Exhibit 99.1

 

Envestnet Reports Fourth Quarter 2014 Financial Results

 

Chicago, IL — February 26, 2015 — Envestnet (NYSE: ENV), a leading provider of unified wealth management technology and services to financial advisors, today reported financial results for its fourth quarter and full year ended December 31, 2014.

 

Key Financial Metrics

 

Fourth Quarter

 

%

 

Full Year

 

%

 

(in millions except per share data)

 

2014

 

2013

 

Change

 

2014

 

2013

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Revenues(1)

 

$

96.8

 

$

74.4

 

30

%

$

348.7

 

$

242.7

 

44

%

Adjusted EBITDA(1)

 

$

16.6

 

$

11.0

 

50

%

$

55.9

 

$

38.6

 

45

%

Adjusted Net Income per Share(1)

 

$

0.23

 

$

0.15

 

53

%

$

0.80

 

$

0.54

 

48

%

 

Financial Results for the Fourth Quarter of 2014 Compared to the Fourth Quarter of 2013:

 

·                  Adjusted Revenues(1) increased 30% to $96.8 million for the fourth quarter of 2014 from $74.4 million for the fourth quarter of 2013.

·                  Revenues from assets under management (AUM) or assets under administration (AUA) increased 29% to $81.5 million for the fourth quarter of 2014 from $63.4 million for the fourth quarter of 2013; total revenues, which include licensing and professional services fees, increased 30% to $96.8 million for the fourth quarter of 2014 from $74.4 million for the fourth quarter of 2013.

·                  Adjusted EBITDA(1) increased 50% to $16.6 million for the fourth quarter of 2014 compared to $11.0 million for the fourth quarter of 2013.

·                  Adjusted Net Income(1) was $8.6 million, or $0.23 per diluted share, for the fourth quarter of 2014 compared to $5.4 million, or $0.15 per diluted share, for the fourth quarter of 2013.

·                  Net income attributable to Envestnet, Inc. was $3.7 million, or $0.10 per diluted share, for the fourth quarter of 2014 compared to $0.7 million, or $0.02 per diluted share, for the fourth quarter of 2013.

 

Financial Results for the Full Year of 2014 Compared to the Full Year of 2013:

 

·                  Adjusted Revenues(1), increased 44% to $348.7 million for 2014 from $242.7 million for 2013.

·                  Revenues from AUM or AUA increased 47% to $294.2 million for 2014 from $200.6 million for 2013; total revenues, which include licensing and professional services fees, increased 44% to $348.7 million for 2014 from $242.5 million for 2013.

·                  Adjusted EBITDA(1) increased 45% to $55.9 million for 2014 compared to $38.6 million for 2013.

·                  Adjusted Net Income(1) was $29.5 million, or $0.80 per diluted share, for 2014 compared to $19.1 million, or $0.54 per diluted share, for 2013.

·                  Net income attributable to Envestnet, Inc. was $14.2 million, or $0.38 per diluted share, for 2014 compared to $3.7 million, or $0.10 per diluted share, for 2013.

 

“During the fourth quarter, Envestnet surpassed two notable milestones — more than $700 billion of platform assets and more than 40,000 advisors served — as we empower excellence in wealth management with our industry-leading solutions,” said Jud Bergman, Chairman and CEO.

 

“We accomplished a great deal in 2014, including the onboarding of nearly $100 billion in new client conversions, the acquisition of Placemark and a successful capital raise. As we execute on our multi-channel and multi-portal strategy, Envestnet is well-positioned to continue delivering strong top and bottom-line growth in 2015 and beyond,” concluded Mr. Bergman.

 



 

Key Operating Metrics (AUM/A Only) as of and for the Quarter and Year Ended December 31, 2014:

 

·                  Assets: $246.4 billion, up 38% from December 31, 2013

·                  Accounts: 977,625, up 33% from December 31, 2013

·                  Advisors: 28,605, up 25% from December 31, 2013

·                  Gross sales — fourth quarter 2014: $24.1 billion, resulting in net flows of $9.9 billion

·                  Gross sales — full year 2014: $99.9 billion, resulting in net flows of $50.0 billion

 

The following table summarizes the changes in AUM and AUA for the quarter ended December 31, 2014:

 

In Millions Except Accounts

 

9/30/14

 

Placemark

 

Gross
Sales

 

Redemptions

 

Net
Flows

 

Market
Impact

 

12/31/14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under Management (AUM)

 

$

54,935

 

$

15,404

 

$

5,846

 

$

(4,371

)

$

1,475

 

$

306

 

$

72,120

 

Assets under Administration (AUA)

 

164,639

 

 

18,280

 

(9,861

)

8,419

 

1,191

 

174,249

 

Total AUM/A

 

$

219,574

 

$

15,404

 

$

24,126

 

$

(14,232

)

$

9,894

 

$

1,497

 

$

246,369

 

Fee-Based Accounts

 

897,551

 

45,187

 

 

 

 

 

34,887

 

 

 

977,625

 

 

The above AUM/A gross sales figures include $5.0 billion in new client conversions. The Company onboarded an additional $8.9 billion in licensing conversions during the fourth quarter, bringing total conversions for the quarter to $13.9 billion.

 

The following table summarizes the changes in AUM and AUA for the year ended December 31, 2014:

 

In Millions Except Accounts

 

12/31/13

 

Placemark

 

Gross
Sales

 

Redemptions

 

Net 
Flows

 

Market
Impact

 

Reclass to
Licensing

 

12/31/14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under Management (AUM)

 

$

45,706

 

$

15,404

 

$

22,355

 

$

(12,414

)

$

9,941

 

$

1,069

 

$

 

$

72,120

 

Assets under Administration (AUA)

 

132,215

 

 

77,514

 

(37,424

)

40,090

 

5,102

 

(3,158

)

174,249

 

Total AUM/A

 

$

177,921

 

$

15,404

 

$

99,869

 

$

(49,838

)

$

50,031

 

$

6,171

 

$

(3,158

)

$

246,369

 

Fee-Based Accounts

 

735,845

 

45,187

 

 

 

 

 

220,003

 

 

 

(23,410

)

977,625

 

 

The above AUM/A gross sales figures include $28.2 billion in new client conversions. The Company onboarded an additional $66.9 billion in licensing conversions during 2014, bringing total conversions for the year to $95.1 billion.

 

Review of Fourth Quarter 2014 Financial Results

 

Adjusted Revenues(1) increased 30% to $96.8 million for the fourth quarter of 2014 from $74.4 million for the fourth quarter of 2013. The increase was primarily due to a 29% increase in revenues from AUM or AUA to $81.5 million from $63.4 million in the prior year period. Revenue from Placemark, acquired by the Company on October 1, 2014, is included for the entire fourth quarter.

 

Total operating expenses increased 23% to $89.7 million in the fourth quarter of 2014 from $73.0 million in the fourth quarter of 2013. Cost of revenues increased 19% to $38.6 million in the fourth quarter of 2014 from $32.4 million in the fourth quarter of 2013 due to the increase in revenue from AUM or AUA, partially offset by Placemark revenue which is recognized net of manager fees. Compensation and benefits increased 37% to $30.0 million in the fourth quarter of 2014 from $22.0 million in the prior year period primarily due to the inclusion of Placemark and an increase in headcount to support growth in the business. General and administration expenses increased 13% to $15.8 million in the fourth quarter of 2014 from $14.0 million in the prior year period, partly due to the inclusion of Placemark.

 

Income from operations was $7.1 million for the fourth quarter of 2014 compared to $1.4 million for the fourth quarter of 2013. Net income attributable to Envestnet, Inc. was $3.7 million, or $0.10 per diluted share, for the fourth quarter of 2014 compared to $0.7 million, or $0.02 per diluted share, for the fourth quarter of 2013. Adjusted EBITDA(1) in the fourth quarter of 2014 was $16.6 million, compared to $11.0 million in the fourth quarter of 2013. Adjusted Net Income(1) was $8.6 million, compared to $5.4 million in the fourth quarter of 2013. Adjusted Net Income Per Share(1) was $0.23, compared to $0.15 in the fourth quarter of 2013.

 

In December 2014, Envestnet completed a $172.5 million convertible bond offering. At December 31,

 

2



 

2014, Envestnet had $209.8 million in cash and cash equivalents, and its revolving credit facility was undrawn with $100 million available.

 

Conference Call

 

Envestnet will host a conference call to discuss fourth quarter 2014 financial results today at 5:00 p.m. ET. The live webcast can be accessed from Envestnet’s investor relations website at http://ir.envestnet.com/. The call can also be accessed live over the phone by dialing (800) 967-7187, or for international callers (719) 457-2644. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 5939718.  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 results.

 

Envestnet’s Advisor Suite® software empowers financial advisors to better manage client outcomes and strengthen their practice. Envestnet provides institutional-quality research and advanced portfolio solutions through our Portfolio Management Consultants group, Envestnet | PMC®. Envestnet | Tamarac provides leading rebalancing, reporting and practice management software.

 


(1) Non-GAAP Financial Measures

 

“Adjusted revenues” exclude the effect of purchase accounting on the fair value of acquired deferred revenue.  Under United States generally accepted accounting principles (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, imputed interest on contingent consideration, income tax provision, depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, re-audit related expenses, severance, fair market value adjustment on contingent consideration, litigation related expense, other income 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, re-audit related expenses, severance, amortization of acquired intangibles, imputed interest on contingent consideration, fair market value adjustment on contingent consideration, litigation related expense, other income and net loss attributable to non-controlling interest. Reconciling items are tax effected using the income tax rates noted in the reconciliation table found in this release.

 

“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 GAAP.

 

3



 

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, 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 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 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 February 26, 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.

 

Contacts

 

 

Investor Relations

 

Media Relations

investor.relations@envestnet.com

 

mediarelations@envestnet.com

(312) 827-3940

 

 

 

4



 

Envestnet, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2013

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

209,754

 

$

49,942

 

Fees and other receivables, net

 

20,345

 

19,848

 

Deferred tax assets, net

 

4,654

 

2,462

 

Prepaid expenses and other current assets

 

7,242

 

7,155

 

Total current assets

 

241,995

 

79,407

 

 

 

 

 

 

 

Property and equipment, net

 

16,629

 

12,766

 

Internally developed software, net

 

7,023

 

5,740

 

Intangible assets, net

 

58,654

 

35,698

 

Goodwill

 

104,976

 

74,335

 

Deferred tax assets, net

 

565

 

8,367

 

Other non-current assets

 

9,516

 

4,929

 

Total assets

 

$

439,358

 

$

221,242

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accrued expenses

 

$

48,247

 

$

35,242

 

Accounts payable

 

4,869

 

5,528

 

Contingent consideration

 

6,405

 

6,008

 

Deferred revenue

 

5,159

 

6,245

 

Total current liabilities

 

64,680

 

53,023

 

 

 

 

 

 

 

Convertible notes, less discount

 

145,203

 

 

Contingent consideration

 

7,462

 

11,297

 

Deferred revenue

 

6,954

 

1,148

 

Deferred rent

 

3,588

 

2,051

 

Lease incentive

 

5,550

 

3,547

 

Other non-current liabilities

 

2,430

 

2,404

 

Total liabilities

 

235,867

 

73,470

 

 

 

 

 

 

 

Redeemable units in ERS, LLC

 

1,500

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Stockholders’ equity

 

201,435

 

147,772

 

Non-controlling interest

 

556

 

 

Total liabilities and equity

 

$

439,358

 

$

221,242

 

 

5



 

Envestnet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

 

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Assets under management or administration

 

$

81,516

 

$

63,418

 

$

294,223

 

$

200,568

 

Licensing and professional services

 

15,287

 

10,980

 

54,525

 

41,967

 

Total revenues

 

96,803

 

74,398

 

348,748

 

242,535

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

38,564

 

32,370

 

150,067

 

98,970

 

Compensation and benefits

 

30,008

 

21,967

 

104,457

 

77,442

 

General and administration

 

15,807

 

13,968

 

54,321

 

44,808

 

Depreciation and amortization

 

5,361

 

4,663

 

18,651

 

15,329

 

Restructuring charges

 

 

 

 

474

 

Total operating expenses

 

89,740

 

72,968

 

327,496

 

237,023

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

7,063

 

1,430

 

21,252

 

5,512

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest income

 

38

 

5

 

139

 

18

 

Interest expense

 

(604

)

 

(626

)

 

Other income (expense), net

 

(88

)

 

1,742

 

182

 

Total other income (expense)

 

(654

)

5

 

1,255

 

200

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision

 

6,409

 

1,435

 

22,507

 

5,712

 

Income tax provision

 

2,716

 

740

 

8,528

 

2,052

 

 

 

 

 

 

 

 

 

 

 

Net and comprehensive income

 

3,693

 

695

 

13,979

 

3,660

 

Add: Net loss attributable to non-controlling interest

 

 

 

195

 

 

Net income attributable to Envestnet, Inc.

 

$

3,693

 

$

695

 

$

14,174

 

$

3,660

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.11

 

$

0.02

 

$

0.41

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.10

 

$

0.02

 

$

0.38

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

34,890,566

 

34,001,055

 

34,559,558

 

33,191,088

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

37,242,598

 

36,339,851

 

36,877,599

 

35,666,575

 

 

6



 

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

 

2014

 

2013

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income

 

$

13,979

 

$

3,660

 

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

 

 

 

 

 

Depreciation and amortization

 

18,651

 

15,329

 

Deferred rent and lease incentive

 

275

 

(483

)

Provision for doubtful accounts

 

15

 

203

 

Impairment of long-lived assets

 

 

330

 

Deferred income taxes

 

(4,640

)

(2,546

)

Stock-based compensation expense

 

11,423

 

8,738

 

Excess tax benefits from stock-based compensation expense

 

(8,848

)

(3,579

)

Interest expense

 

626

 

 

Imputed interest expense

 

1,472

 

787

 

Fair market value adjustment on contingent consideration

 

(1,432

)

501

 

Changes in operating assets and liabilities:

 

 

 

 

 

Fees and other receivables, net

 

1,788

 

(9,566

)

Prepaid expenses and other current assets

 

9,733

 

(1,075

)

Other non-current assets

 

(873

)

(1,444

)

Accrued expenses

 

9,784

 

12,389

 

Accounts payable

 

(659

)

2,914

 

Deferred revenue

 

4,677

 

1,625

 

Other non-current liabilities

 

26

 

1,074

 

Net cash provided by operating activities

 

55,997

 

28,857

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(6,177

)

(6,125

)

Capitalization of internally developed software

 

(3,382

)

(3,143

)

Acquisition of businesses, net of cash acquired

 

(59,570

)

(8,992

)

Net cash used in investing activities

 

(69,129

)

(18,260

)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuance of convertible notes

 

172,500

 

 

Convertible notes issuance costs

 

(5,533

)

 

Proceeds from bank indebtedness

 

30,000

 

 

Payment of bank indebtedness

 

(30,000

)

 

Payment of contingent consideration

 

(6,000

)

 

Payment of promissory note

 

(1,500

)

 

Issuance of ERS, LLC redeemable units

 

1,500

 

 

Proceeds from exercise of stock options

 

5,190

 

6,400

 

Excess tax benefits from stock-based compensation expense

 

8,848

 

3,579

 

Purchase of treasury stock for stock-based minimum tax withholdings

 

(2,062

)

(622

)

Issuance of restricted stock

 

1

 

1

 

Proceeds from exercise of warrants

 

 

4

 

Net cash provided by financing activities

 

172,944

 

9,362

 

 

 

 

 

 

 

INCREASE IN CASH AND CASH EQUIVALENTS

 

159,812

 

19,959

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

49,942

 

29,983

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

209,754

 

$

49,942

 

 

7



 

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

96,803

 

$

74,398

 

$

348,748

 

$

242,535

 

Deferred revenue fair value adjustment

 

 

 

 

160

 

Adjusted revenues

 

$

96,803

 

$

74,398

 

$

348,748

 

$

242,695

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,693

 

$

695

 

$

13,979

 

$

3,660

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment

 

 

 

 

160

 

Interest income

 

(38

)

(5

)

(139

)

(18

)

Interest expense

 

604

 

 

626

 

 

Income tax provision

 

2,716

 

740

 

8,528

 

2,052

 

Depreciation and amortization

 

5,361

 

4,663

 

18,651

 

15,329

 

Non-cash compensation expense

 

2,980

 

2,457

 

11,423

 

8,919

 

Restructuring charges and transaction costs

 

1,008

 

1,124

 

2,672

 

3,297

 

Re-audit related expenses

 

 

105

 

 

3,110

 

Severance

 

717

 

365

 

735

 

790

 

Imputed interest expense on contingent consideration

 

363

 

395

 

1,472

 

787

 

Fair market value adjustment on contingent consideration

 

(1,090

)

501

 

(1,432

)

501

 

Litigation related expense

 

 

 

18

 

7

 

Other income

 

 

 

(1,825

)

 

Pre-tax loss attributable to non-controlling interest

 

295

 

 

1,230

 

 

Adjusted EBITDA

 

$

16,609

 

$

11,040

 

$

55,938

 

$

38,594

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

3,693

 

$

695

 

$

13,979

 

$

3,660

 

Add (deduct):

 

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment

 

 

 

 

93

 

Non-cash interest expense

 

195

 

 

195

 

 

Non-cash compensation expense

 

1,788

 

1,425

 

6,854

 

5,173

 

Restructuring charges and transaction costs

 

777

 

991

 

2,025

 

2,252

 

Re-audit related expenses

 

 

62

 

 

1,804

 

Severance

 

430

 

211

 

440

 

458

 

Amortization of acquired intangibles

 

2,013

 

1,537

 

6,385

 

4,903

 

Imputed interest expense on contingent consideration

 

218

 

229

 

883

 

456

 

Fair market value adjustment on contingent consideration

 

(655

)

291

 

(859

)

291

 

Litigation related expense

 

 

 

11

 

4

 

Other income

 

 

 

(1,095

)

 

Net loss attributable to non-controlling interest

 

177

 

 

719

 

 

Adjusted net income

 

$

8,636

 

$

5,441

 

$

29,537

 

$

19,094

 

 

 

 

 

 

 

 

 

 

 

Diluted number of weighted-average shares outstanding

 

37,242,598

 

36,339,851

 

36,877,599

 

35,666,575

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share - diluted

 

$

0.23

 

$

0.15

 

$

0.80

 

$

0.54

 

 

Note:  Adjustments, excluding non-deductible transaction costs, are tax effected using an income tax rate of 40.0% and 42.0% for 2014 and 2013, 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

 

 

 

December 31,
2013

 

March 31,
2014

 

June 30,
2014

 

September 30,
2014

 

December 31,
2014

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Assets

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management (AUM)

 

$

45,706

 

$

49,383

 

$

53,063

 

$

54,935

 

$

72,120

 

Assets Under Administration (AUA)

 

132,215

 

146,748

 

156,723

 

164,639

 

174,249

 

Subtotal AUM/A

 

177,921

 

196,131

 

209,786

 

219,574

 

246,369

 

Licensing

 

358,919

 

376,341

 

412,141

 

448,169

 

466,982

 

Total Platform Assets

 

$

536,840

 

$

572,472

 

$

621,927

 

$

667,743

 

$

713,351

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Accounts

 

 

 

 

 

 

 

 

 

 

 

AUM

 

211,039

 

226,452

 

239,367

 

255,359

 

310,351

 

AUA

 

524,806

 

566,139

 

596,886

 

642,192

 

667,274

 

Subtotal AUM/A

 

735,845

 

792,591

 

836,253

 

897,551

 

977,625

 

Licensing

 

1,508,254

 

1,559,188

 

1,659,313

 

1,830,678

 

1,881,352

 

Total Platform Accounts

 

2,244,099

 

2,351,779

 

2,495,566

 

2,728,229

 

2,858,977

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisors

 

 

 

 

 

 

 

 

 

 

 

AUM/A

 

22,838

 

24,369

 

24,945

 

24,887

 

28,605

 

Licensing

 

7,794

 

8,025

 

8,583

 

11,266

 

11,632

 

Total Advisors

 

30,632

 

32,394

 

33,528

 

36,153

 

40,237

 

 


Notes:

 

(1) During the third quarter of 2014, approximately $3.2 billion in assets, 23,000 accounts and 1,100 advisors were reclassified from AUA to Licensing in connection with client conversion activity.

 

(2) Metrics as of December 31, 2014 include Placemark, which added approximately $15.4 billion in AUM, 45,000 accounts and 3,400 advisors as of October 1, 2014.

 

9