Filed by Envestnet, Inc.

 

Pursuant to Rule 425 Under the Securities Act of 1933

 

and deemed filed pursuant to Rule 14a-12

 

of the Securities Exchange Act of 1934

 

 

 

Subject Company:  Yodlee, Inc.

 

Commission File No. 001-36639

 

Envestnet Reports Third Quarter 2015 Financial Results

 

Chicago, IL — November 9, 2015 — Envestnet (NYSE: ENV), a leading provider of unified wealth management technology and services to financial advisors, today reported financial results for its third quarter ended September 30, 2015.

 

Key Financial Metrics

 

Three Months Ended
September 30,

 

%

 

Nine Months Ended
September 30,

 

%

 

(in millions except per share data)

 

2015

 

2014

 

Change

 

2015

 

2014

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Revenues(1)

 

$

103.5

 

$

88.6

 

17

%

$

302.6

 

$

251.9

 

20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$

19.2

 

$

14.7

 

31

%

$

53.6

 

$

39.3

 

36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income per Share(1)

 

$

0.25

 

$

0.21

 

19

%

$

0.70

 

$

0.57

 

23

%

 

Financial Results for the Third Quarter of 2015 Compared to the Third Quarter of 2014:

 

·                  Adjusted Revenues(1) increased 17% to $103.5 million for the third quarter of 2015 from $88.6 million for the third quarter of 2014.

·                  Revenues from assets under management (AUM) or assets under administration (AUA) increased 14% to $85.6 million for the third quarter of 2015 from $74.9 million for the third quarter of 2014; total revenues, which include licensing and professional services fees, increased 17% to $103.4 million for the third quarter of 2015 from $88.6 million for the third quarter of 2014.

·                  Adjusted EBITDA(1) increased 31% to $19.2 million for the third quarter of 2015 compared to $14.7 million for the third quarter of 2014.

·                  Adjusted Net Income(1) was $9.3 million, or $0.25 per diluted share, for the third quarter of 2015 compared to $7.9 million, or $0.21 per diluted share, for the third quarter of 2014.

·                  Net income attributable to Envestnet, Inc. was $3.3 million, or $0.09 per diluted share, for the third quarter of 2015 compared to $3.8 million, or $0.10 per diluted share, for the third quarter of 2014.

 

“Envestnet is creating the world’s leading wealth management technology platform which will deliver better relationships and greater lifetime value for financial advisors, investors and financial services providers.” said Jud Bergman, Chairman and CEO.

 

“During the third quarter, Envestnet continued to grow despite a more difficult market environment.  We onboarded a record $90 billion in conversion assets year-to-date and are currently servicing over three million accounts, reflecting continued demand for our unified offerings. We believe Envestnet will continue to grow organically through ongoing advisor adoption of our wealth management solutions and expect our merger with Yodlee to accelerate that growth.”

 

“We look to close our merger with Yodlee after the stockholder meeting on November 19th.  We have received high levels of interest from our clients about the combined offering and look forward to welcoming the Yodlee team to Envestnet,” concluded Mr. Bergman.

 

Key Operating Metrics (AUM/A Only) as of and for the Quarter Ended September 30, 2015:

 

·                  Assets: $250.3 billion, up 14% from September 30, 2014

·                  Accounts: 1,062,958, up 18% from September 30, 2014

·                  Advisors: 30,177, up 21% from September 30, 2014

·                  Gross sales: $21.0 billion, resulting in net flows of $7.5 billion

 



 

The following table summarizes the changes in AUM and AUA for the quarter ended September 30, 2015:

 

In Millions Except Accounts

 

6/30/15

 

Gross
Sales

 

Redemptions

 

Net Flows

 

Market
Impact

 

9/30/15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under Management (AUM)

 

$

75,922

 

$

6,561

 

$

(4,285

)

$

2,276

 

$

(5,034

)

$

73,164

 

Assets under Administration (AUA)

 

181,922

 

14,446

 

(9,207

)

5,239

 

(10,040

)

177,121

 

Total AUM/A

 

$

257,844

 

$

21,007

 

$

(13,492

)

$

7,515

 

$

(15,074

)

$

250,285

 

Fee-Based Accounts

 

1,028,201

 

81,909

 

(47,152

)

34,757

 

 

 

1,062,958

 

 

During the third quarter, the Company added $1.2 billion of conversions included in the above AUM/A gross sales figures, and an additional $25.2 billion of conversions in Licensing.

 

Review of Third Quarter 2015 Financial Results

 

Adjusted revenues increased 17% to $103.5 million for the third quarter of 2015 from $88.6 million for the third quarter of 2014. The increase was primarily due to a 14% increase in revenues from AUM or AUA to $85.6 million from $74.9 million in the prior year period.

 

Total operating expenses in the third quarter of 2015 increased 15% to $95.0 million from $82.6 million in the prior year period. Cost of revenues increased 5% to $41.0 million in the third quarter of 2015 from $39.1 million in the third quarter of 2014 due to the increase in revenue from AUM or AUA. Compensation and benefits increased 26% to $32.7 million in the third quarter of 2015 from $25.8 million in the prior year period due to higher personnel cost from Placemark and Finance Logix. General and administration expenses increased 13% to $15.2 million in the third quarter of 2015 from $13.4 million in the prior year period, due partly to the inclusion of Placemark and Finance Logix.

 

Income from operations was $8.3 million for the third quarter of 2015 compared to $6.0 million for the third quarter of 2014. Net income attributable to Envestnet, Inc. was $3.3 million, or $0.09 per diluted share, for the third quarter of 2015 compared to $3.8 million, or $0.10 per diluted share, for the third quarter of 2014. Adjusted EBITDA(1) in the third quarter of 2015 was $19.2 million, compared to $14.7 million in the prior year period. Adjusted Net Income(1) was $9.3 million, compared to $7.9 million in the third quarter of 2014. Adjusted Net Income Per Share(1) was $0.25, compared to $0.21 in the third quarter of 2014.

 

At September 30, 2015, the Company had $208 million in cash and cash equivalents, and its revolving credit facility was undrawn with $100 million available.

 

Conference Call

 

The Company will host a conference call to discuss third quarter 2015 financial results today at 5:00 p.m. ET. The live webcast can be accessed from the Company’s investor relations website at http://ir.envestnet.com/. The conference call can also be accessed live over the phone by dialing (888) 503-8175, or (719) 325-2323 for international callers. A replay will be available beginning one hour after the call and can be accessed from the Company’s investor relations website, or by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 3347943. The dial-in replay will be available for one week and the webcast replay will be available for one month following the date of the conference call.

 

About Envestnet

 

Envestnet, Inc. (NYSE: ENV) is a leading provider of unified wealth management technology and services to investment advisors. Our open-architecture platforms unify and fortify the wealth management process, delivering unparalleled flexibility, accuracy, performance, and value. Envestnet solutions enable the transformation of wealth management into a transparent, independent, objective, and fully-aligned standard of care, and empower advisors to deliver better outcomes.

 

2



 

For more information on Envestnet, please visit www.envestnet.com and follow @ENVintel (https://twitter.com/envintel).

 

Envestnet | Tamarac’s web-based platform for independent RIAs, Advisor® Xi, deeply unifies portfolio management, modeling, rebalancing, trading, billing, and reporting with a client portal and enterprise-level client relationship management (CRM) system.

 

For more information about Envestnet | Tamarac’s Advisor Xi, please visit www.envestnet.com/tamarac or follow @TamaracInc

 

(1) Non-GAAP Financial Measures

 

“Adjusted revenues” exclude the effect of purchase accounting on the fair value of acquired deferred revenue.  Under GAAP, we record at fair value the acquired deferred revenue for contracts in effect at the time the entities were acquired.  Consequently, revenue related to acquired entities for periods subsequent to the acquisition does not reflect the full amount of revenue that would have been recorded by these entities had they remained stand-alone entities.

 

“Adjusted EBITDA” represents net income before deferred revenue fair value adjustment, interest income, interest expense, income tax provision, depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, accretion on contingent consideration, fair market value adjustment on contingent consideration, litigation related expense, other income (expense) and pre-tax loss attributable to non-controlling interest.

 

“Adjusted net income” represents net income before deferred revenue fair value adjustment, non-cash interest expense, non-cash compensation expense, restructuring charges and transaction costs, severance, accretion on contingent consideration, fair-market value adjustment on contingent consideration, litigation related expense, amortization of acquired intangibles, other income (expense), and net loss attributable to non-controlling interest. Reconciling items, excluding non-deductible transaction costs, are tax effected using an income tax rate of 40% for all periods presented.

 

“Adjusted net income per share” represents adjusted net income divided by the diluted number of weighted-average shares outstanding.

 

See reconciliation of Non-GAAP Financial Measures at the end of this press release. These measures should not be viewed as a substitute for revenues, net income or net income per share determined in accordance with United States generally accepted accounting principles (GAAP).

 

Cautionary Statement Regarding Forward-Looking Statements

 

The forward-looking statements made in this press release and its attachments concerning, among other things, Envestnet, Inc.’s (the “Company”) expected financial performance and outlook, its strategic operational plans and growth strategy are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties and the Company’s actual results could differ materially from the results expressed or implied by such forward-looking statements.  Furthermore, reported results should not be considered as an indication of future performance. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, the Company’s inability to complete its acquisition of Yodlee, Inc. (“Yodlee”), the Company’s inability to successfully integrate Yodlee or to obtain the benefits of that acquisition, the Company’s and Yodlee’s inability to accurately predict market needs, failure to achieve solution wins with customers or the market’s failure to accept the Company’s and Yodlee’s new products and technologies, the Company’s and Yodlee’s ability to retain key employees and customers and suppliers, difficulty in sustaining rapid revenue growth, which may place significant demands on the Company’s administrative, operational and financial resources, fluctuations in the Company’s revenue, the concentration of nearly all of the Company’s revenues from the delivery of investment solutions and services to clients in the financial advisory industry, the Company’s reliance on a limited number of clients for a material portion of its revenue, the renegotiation of fee percentages or termination of the Company’s services by its clients, the Company’s ability to identify potential acquisition candidates, complete acquisitions and successfully integrate acquired companies, the impact of market and economic conditions on the Company’s revenues, compliance failures, regulatory actions against the Company, the failure to protect the Company’s

 

3



 

intellectual property rights, the Company’s inability to successfully execute the conversion of its clients’ assets from their technology platform to the Company’s technology platform in a timely and accurate manner, general economic conditions, changes to the Company’s previously reported financial information as a result of audit, political and regulatory conditions, as well as management’s response to these factors. More information regarding these and other risks, uncertainties and factors is contained in the Company’s filings with the Securities and Exchange Commission (“SEC”) which are available on the SEC’s website at www.sec.gov or the Company’s Investor Relations website at http://ir.envestnet.com/. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of June 30, 2015 and, unless required by law, the Company undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

 

Additional Information and Where to Find It

 

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed transaction between Envestnet and Yodlee. In connection with the proposed transaction, Envestnet has filed a registration statement on Form S-4, containing a proxy statement of Yodlee with the SEC. The final proxy statement/prospectus has been delivered to the stockholders of Yodlee. This communication is not a substitute for the registration statement, definitive proxy statement/prospectus or any other documents that Envestnet or Yodlee may file with the SEC or send to shareholders in connection with the proposed transaction. STOCKHOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

 

Shareholders will be able to obtain copies of the proxy statement/prospectus and other documents filed with the SEC (when available) free of charge at the SEC’s website, http://www.sec.gov. Copies of documents filed with the SEC by Envestnet will be made available free of charge on Envestnet’s website at www.envestnet.com. Copies of documents filed with the SEC by Yodlee will be made available free of charge on Yodlee’s website at www.yodlee.com.

 

Participants in Solicitation

 

Envestnet, Yodlee and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Envestnet is set forth in the proxy statement for Envestnet’s 2015 Annual Meeting of Stockholders, which was filed with the SEC on April 13, 2015, and Envestnet’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 2, 2015. Information about the directors and executive officers of Yodlee is set forth in the proxy statement for Yodlee’s 2015 Annual Meeting of Stockholders, which was filed with the SEC on April 10, 2015, and Yodlee’s Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on March 4, 2015. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the proxy statement/prospectus and other relevant materials filed with the SEC. You may obtain free copies of these documents as described above.

 

Investors:

Investor Relations

Investor.relations@envestnet.com

(312) 827-3940

 

Public Relations:

Dana Taormina

JCPR

(973) 850-7305

dtaormina@jcprinc.com

 

Yodlee:

Investor Contact: Sheila B. Ennis

ICR, Inc.

IR@yodlee.com

(415) 430-2073

 

4



 

Envestnet, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

September 30,

 

December 31,

 

 

 

2015

 

2014

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

208,348

 

$

209,754

 

Fees and other receivables, net

 

25,467

 

20,345

 

Deferred tax assets, net

 

4,635

 

4,654

 

Prepaid expenses and other current assets

 

20,714

 

7,242

 

Total current assets

 

259,164

 

241,995

 

 

 

 

 

 

 

Property and equipment, net

 

18,461

 

16,629

 

Internally developed software, net

 

8,891

 

7,023

 

Intangible assets, net

 

65,199

 

58,654

 

Goodwill

 

134,814

 

104,976

 

Deferred tax assets, net

 

 

565

 

Other non-current assets

 

11,128

 

9,516

 

Total assets

 

$

497,657

 

$

439,358

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accrued expenses

 

$

53,224

 

$

48,247

 

Accounts payable

 

5,236

 

4,869

 

Contingent consideration

 

3,057

 

6,405

 

Deferred revenue

 

8,320

 

5,159

 

Total current liabilities

 

69,837

 

64,680

 

 

 

 

 

 

 

Convertible notes

 

148,877

 

145,203

 

Contingent consideration

 

2,957

 

7,462

 

Deferred revenue

 

13,107

 

6,954

 

Deferred rent

 

4,405

 

3,588

 

Lease incentive

 

5,379

 

5,550

 

Deferred tax liabilities, net

 

718

 

 

Other non-current liabilities

 

2,002

 

2,430

 

Total liabilities

 

247,282

 

235,867

 

 

 

 

 

 

 

Redeemable units in ERS, LLC

 

2,400

 

1,500

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Stockholders’ equity

 

247,577

 

201,435

 

Non-controlling interest

 

398

 

556

 

Total liabilities and equity

 

$

497,657

 

$

439,358

 

 

5



 

Envestnet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Assets under management or administration

 

$

85,576

 

$

74,899

 

$

250,472

 

$

212,707

 

Licensing and professional services

 

17,791

 

13,678

 

52,012

 

39,238

 

Total revenues

 

103,367

 

88,577

 

302,484

 

251,945

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

41,027

 

39,111

 

122,208

 

111,503

 

Compensation and benefits

 

32,671

 

25,833

 

96,162

 

74,449

 

General and administration

 

15,184

 

13,428

 

44,905

 

38,514

 

Depreciation and amortization

 

6,157

 

4,253

 

17,215

 

13,290

 

Restructuring charges

 

 

 

518

 

 

Total operating expenses

 

95,039

 

82,625

 

281,008

 

237,756

 

Income from operations

 

8,328

 

5,952

 

21,476

 

14,189

 

Other income (expense)

 

(2,347

)

(11

)

(6,801

)

1,909

 

Income before income tax provision

 

5,981

 

5,941

 

14,675

 

16,098

 

Income tax provision

 

2,679

 

2,173

 

6,326

 

5,812

 

Net income

 

3,302

 

3,768

 

8,349

 

10,286

 

Add: Net loss attributable to non-controlling interest

 

 

 

 

195

 

Net income attributable to Envestnet, Inc.

 

$

3,302

 

$

3,768

 

$

8,349

 

$

10,481

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

$

0.11

 

$

0.23

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.09

 

$

0.10

 

$

0.22

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

36,021,784

 

34,674,245

 

35,651,508

 

34,447,619

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

37,614,701

 

37,006,796

 

37,563,815

 

36,832,154

 

 

6



 

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2015

 

2014

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

 

$

8,349

 

$

10,286

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

17,215

 

13,290

 

Deferred rent and lease incentive

 

628

 

173

 

Provision for doubtful accounts

 

31

 

 

Deferred income taxes

 

(264

)

 

Stock-based compensation expense

 

10,157

 

8,443

 

Excess tax benefits from stock-based compensation expense

 

(18,010

)

(5,086

)

Interest expense

 

7,081

 

 

Accrection on contingent consideration

 

794

 

1,108

 

Fair market value adjustment on contingent consideration

 

(3,791

)

(342

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Fees and other receivables, net

 

(4,817

)

(4,613

)

Prepaid expenses and other current assets

 

4,534

 

3,966

 

Other non-current assets

 

(1,024

)

(736

)

Accrued expenses

 

(2,068

)

3,212

 

Accounts payable

 

113

 

2,009

 

Deferred revenue

 

7,331

 

2,835

 

Other non-current liabilities

 

(428

)

278

 

Net cash provided by operating activities

 

25,831

 

34,823

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(6,852

)

(5,249

)

Capitalization of internally developed software

 

(3,782

)

(2,562

)

Investment in private company

 

(1,500

)

 

Purchase of ERS, LLC units

 

(100

)

 

Acquisition of businesses, net of cash acquired

 

(27,332

)

(1,288

)

Net cash used in investing activities

 

(39,566

)

(9,099

)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from bank indebtedness

 

 

30,000

 

Payment of contingent consideration

 

(7,219

)

(6,000

)

Payment of promissory note

 

 

(1,500

)

Issuance of ERS, LLC redeemable units

 

900

 

1,500

 

Proceeds from exercise of stock options

 

7,448

 

3,146

 

Excess tax benefits from stock-based compensation expense

 

18,010

 

5,086

 

Purchase of treasury stock for stock-based minimum tax withholdings

 

(6,812

)

(1,999

)

Issuance of restricted stock

 

2

 

 

Net cash provided by financing activities

 

12,329

 

30,233

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(1,406

)

55,957

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

209,754

 

49,942

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

208,348

 

$

105,899

 

 

7



 

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

103,367

 

$

88,577

 

$

302,484

 

$

251,945

 

Deferred revenue fair value adjustment

 

134

 

 

134

 

 

Adjusted revenues

 

$

103,501

 

$

88,577

 

$

302,618

 

$

251,945

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,302

 

$

3,768

 

$

8,349

 

$

10,286

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment

 

134

 

 

134

 

 

Interest income

 

(77

)

(6

)

(288

)

(101

)

Interest expense

 

2,384

 

22

 

7,081

 

22

 

Income tax provision

 

2,679

 

2,173

 

6,326

 

5,812

 

Depreciation and amortization

 

6,157

 

4,253

 

17,215

 

13,290

 

Non-cash compensation expense

 

3,409

 

2,676

 

10,157

 

8,443

 

Restructuring charges and transaction costs

 

2,473

 

978

 

5,441

 

1,664

 

Severance

 

22

 

 

877

 

 

Accretion on contingent consideration

 

143

 

285

 

794

 

1,108

 

Fair market value adjustment on contingent consideration

 

(1,889

)

118

 

(3,791

)

(342

)

Litigation related expense

 

 

 

 

18

 

Other (income) expense

 

40

 

 

40

 

(1,825

)

Pre-tax loss attributable to non-controlling interest

 

438

 

405

 

1,305

 

935

 

Adjusted EBITDA

 

$

19,215

 

$

14,672

 

$

53,640

 

$

39,310

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,302

 

$

3,768

 

$

8,349

 

$

10,286

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment

 

80

 

 

80

 

 

Non-cash interest expense

 

938

 

 

2,776

 

 

Non-cash compensation expense

 

2,045

 

1,606

 

6,094

 

5,065

 

Restructuring charges and transaction costs

 

1,552

 

690

 

3,417

 

1,203

 

Severance

 

13

 

 

526

 

 

Accretion on contingent consideration

 

86

 

171

 

476

 

665

 

Fair market value adjustment on contingent consideration

 

(1,133

)

71

 

(2,274

)

(205

)

Litigation related expense

 

 

 

 

11

 

Amortization of acquired intangibles

 

2,101

 

1,373

 

6,121

 

4,371

 

Other income (expense)

 

24

 

 

24

 

(1,095

)

Net loss attributable to non-controlling interest

 

263

 

224

 

783

 

542

 

Adjusted net income

 

$

9,271

 

$

7,903

 

$

26,372

 

$

20,843

 

 

 

 

 

 

 

 

 

 

 

Diluted number of weighted-average shares outstanding

 

37,614,701

 

37,006,796

 

37,563,815

 

36,832,154

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share - diluted

 

$

0.25

 

$

0.21

 

$

0.70

 

$

0.57

 

 

Note:        Adjustments, excluding non-deductible transaction costs, are tax effected using an income tax rate of 40.0% for 2015 and 2014, respectively.  Pre-tax loss attributable to non-controlling interest assumes losses are allocated to Envestnet Retirement Solutions, LLC members pro-rata based on ownership percentage.

 

8



 

Envestnet, Inc.

Historical Assets, Accounts and Advisors

(in millions, except accounts and advisors)

(unaudited)

 

 

 

As of

 

 

 

September 30,
2014

 

December 31,
2014

 

March 31,
2015

 

June 30,
2015

 

September 30,
2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Assets

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management (AUM)

 

$

54,935

 

$

72,120

 

$

74,643

 

$

75,922

 

$

73,164

 

Assets Under Administration (AUA)

 

164,639

 

174,249

 

181,239

 

181,922

 

177,121

 

Subtotal AUM/A

 

219,574

 

246,369

 

255,882

 

257,844

 

250,285

 

Licensing

 

448,169

 

466,982

 

493,284

 

534,674

 

538,271

 

Total Platform Assets

 

$

667,743

 

$

713,351

 

$

749,166

 

$

792,518

 

$

788,556

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Accounts

 

 

 

 

 

 

 

 

 

 

 

AUM

 

255,359

 

310,351

 

319,896

 

332,738

 

344,321

 

AUA

 

642,192

 

667,274

 

679,753

 

695,463

 

718,637

 

Subtotal AUM/A

 

897,551

 

977,625

 

999,649

 

1,028,201

 

1,062,958

 

Licensing

 

1,830,678

 

1,881,352

 

1,982,773

 

2,044,355

 

2,140,672

 

Total Platform Accounts

 

2,728,229

 

2,858,977

 

2,982,422

 

3,072,556

 

3,203,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisors

 

 

 

 

 

 

 

 

 

 

 

AUM/A

 

24,887

 

28,605

 

29,023

 

29,541

 

30,177

 

Licensing

 

11,266

 

11,632

 

12,306

 

12,870

 

13,409

 

Total Advisors

 

36,153

 

40,237

 

41,329

 

42,411

 

43,586

 

 

9