Exhibit 99.1

 

Envestnet Reports First Quarter 2016 Financial Results

 

Chicago, IL — May 5, 2016 — Envestnet (NYSE: ENV), a leading provider of unified wealth management technology and services to financial advisors, today reported financial results for its first quarter ended March 31, 2016.

 

Key Financial Metrics

 

Three Months Ended 
March 31,

 

%

 

(in millions except per share data)

 

2016

 

2015

 

Change

 

 

 

 

 

 

 

 

 

Adjusted Revenues(1)

 

$

132.0

 

$

96.5

 

37

%

Adjusted EBITDA(1)

 

$

19.2

 

$

16.8

 

14

%

Adjusted Net Income per Share(1)

 

$

0.18

 

$

0.22

 

(18

%)

 

Financial Results for the First Quarter of 2016 Compared to the First Quarter of 2015:

 

·                  Adjusted Revenues(1) increased 37% to $132.0 million for the first quarter of 2016 from $96.5 million for the first quarter of 2015. Total revenues also increased 37% to $131.8 million for the first quarter of 2016 from $96.5 million for the first quarter of 2015.

 

·                  Operating expenses increased 61% to $144.6 million in the first quarter of 2016 from $89.8 million in the first quarter of 2015. Cost of revenues increased 4% to $40.2 million in the first quarter of 2016 from $38.7 million in the first quarter of 2015.

 

·                  Adjusted EBITDA(1) increased 14% to $19.2 million for the first quarter of 2016, compared to $16.8 million for the first quarter of 2015.

 

·                  Adjusted Net Income(1) was $7.8 million, or $0.18 per diluted share, for the first quarter of 2016, compared to $8.4 million, or $0.22 per diluted share, for the first quarter of 2015.

 

·                  Net income (loss) attributable to Envestnet, Inc. was ($11.0) million, or ($0.26) per diluted share, for the first quarter of 2016, compared to $2.5 million, or $0.07 per diluted share, for the first quarter of 2015.

 

·                  Recurring revenue was 96% of total revenue for the first quarter of 2016, compared to 99% for the first quarter of 2015. Recurring revenue mix was 66% in AUM/A revenue and 34% in subscription and licensing revenue for the first quarter of 2016, compared to 85% in AUM/A revenue and 15% in subscription and licensing revenue for the first quarter of 2015.

 

“First quarter results reflect ongoing support and growth among our advisors and financial institutions, adding over 2,000 advisors to the platform and increasing subscription and licensing revenue to over $43 million,” said Jud Bergman, Chairman and CEO.

 

“Our product development teams have been fully engaged on the integration of data aggregation and financial planning capabilities into the Envestnet platform portals, delivering the preeminent enabling technology in wealth management, empowering the essential advisor of the future with a deeply integrated end-to-end platform and enabling advisors and financial institutions to deliver better financial outcomes for their clients,” concluded Mr. Bergman.

 

SEGMENT RESULTS

 

Envestnet

 

Financial Results for the First Quarter of 2016

 

·      Adjusted revenues(1) increased 7% to $103.2 million for the first quarter of 2016 from $96.5 million for the first quarter of 2015.

 

·                  Adjusted EBITDA(1) was $19.6 million for the first quarter of 2016, consistent with the first quarter of 2015.

 



 

Key Operating Metrics (AUM/A Only) as of and for the Quarter Ended March 31, 2016:

 

·                  Assets: $303.0 billion, up 18% from March 31, 2015

 

·                  Accounts: 1,402,822, up 40% from March 31, 2015

 

·                  Advisors: 35,718, up 23% from March 31, 2015

 

·                  Gross sales: $26.5 billion, resulting in net flows of $10.6 billion

 

The following table summarizes the changes in AUM and AUA for the quarter ended March 31, 2016:

 

In Millions Except Accounts

 

12/31/2015

 

Gross 
Sales

 

Redemp-tions

 

Net 
Flows

 

Market 
Impact

 

3/31/2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets under Management (AUM)

 

$

92,559

 

$

7,274

 

$

(5,279

)

$

1,995

 

$

935

 

$

95,489

 

Assets under Administration (AUA)

 

197,177

 

19,237

 

(10,659

)

8,578

 

1,782

 

207,537

 

Total AUM/A

 

$

289,736

 

$

26,511

 

$

(15,938

)

$

10,573

 

$

2,717

 

$

303,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee-Based Accounts

 

1,298,179

 

 

 

 

 

104,643

 

 

 

1,402,822

 

 

The above AUM/A gross sales figures include $2.1 billion in new client conversions. The Company onboarded an additional $8.1 billion in licensing conversions during the first quarter, bringing total conversions for the quarter to $10.2 billion.

 

Envestnet | Yodlee

 

Financial Results for the First Quarter of 2016

 

·      Adjusted revenues(1) were $28.9 million for the period.

 

·                  Adjusted EBITDA(1) was $3.0 million for the period.

 

Non-Segment

 

Non-segment expenses totaled $8.3 million for the first quarter of 2016, up from $3.1 million for the first quarter of 2015. Non-segment expenses were 6% of consolidated operating expenses for the first quarter of 2016, compared to 3% of consolidated operating expenses for the first quarter of 2015.  The increase in expense was primarily due to an increase in non-cash compensation expense, an increase in restructuring and transaction related costs, and a decrease in fair market value adjustments to contingent consideration.

 

Cash Flow and Financial Position

 

At March 31, 2016, Envestnet had $36.6 million in cash and cash equivalents, compared to $51.7 million at December 31, 2015.

 

Total debt was $292.8 million at March 31, 2016 including $2 million drawn on our $100 million revolving credit facility, compared to $290.8 million at December 31, 2015.

 

Outlook

 

The Company’s financial outlook for the second quarter ended June 30, 2016, and full year 2016 is summarized below:

 

2



 

In Millions Except Adjusted EPS

 

Q2 2016

 

FY 2016

 

AUM/A revenue

 

$ 84.0 - 85.0

 

-

 

Subcription and licensing revenue

 

47.0 - 48.5

 

-

 

Professional Services and other revenue

 

6.5 - 7.0

 

-

 

Adjusted Revenues(1)

 

137.5 - 140.5

 

$580 - 592

 

Cost of revenues

 

44.0 - 45.0

 

-

 

 

 

 

 

 

 

Adjusted EBITDA(1)

 

$ 20.0 - 21.0

 

$ 95 - 105

 

Diluted shares outstanding

 

44.0

 

-

 

Adjusted Net Income per Share(1)

 

$ 0.20 - 0.21

 

-

 

 

Conference Call

 

Envestnet will host a conference call to discuss first quarter 2016 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 (888) 466-4462, or for international callers (719) 325-2458. 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 4782611.  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.

 

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.

 

Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. More than 1,000 companies, including 12 of the 20 largest U.S. banks and hundreds of Internet services companies, subscribe to the Envestnet | Yodlee platform to power personalized financial apps and services for millions of consumers. Envestnet | Yodlee solutions help transform the speed and delivery of financial innovation, improve digital customer experiences, and drive better outcomes for our clients and their customers.

 

(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, accretion on contingent consideration, income tax provision (benefit), depreciation and amortization, non-cash compensation expense, restructuring charges and transaction costs, severance, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, other loss and pre-tax loss attributable to non-controlling interest.

 

3



 

“Adjusted net income” represents net income before deferred revenue fair value adjustment, accretion on contingent consideration, non-cash interest expense, non-cash compensation expense, restructuring charges and transaction costs, severance, amortization of acquired intangibles, fair market value adjustment on contingent consideration, litigation related expense, foreign currency and related hedging activity, other loss and net loss attributable to non-controlling interest. Reconciling items are presented gross of tax, and a normalized tax rate is applied to the total of all reconciling items to arrive at adjusted net income. The reconciling items, and resulting adjusted net income, are presented on a different basis than historically shown to eliminate the impact of quarterly volatility of the GAAP tax provision (benefit) on the Company’s adjusted earnings figures.

 

“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. Reconciliations are not provided for guidance on such measures as the Company is unable to predict the amounts to be adjusted. The Company’s Non-GAAP Financial Measures should not be viewed as a substitute for revenues, net income or net income per share determined in accordance with 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 for the second quarter and full year of 2016, 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 May 5, 2016 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)

 

 

 

March 31,

 

December 31,

 

 

 

2016

 

2015

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

36,550

 

$

51,718

 

Fees and other receivables, net

 

35,455

 

46,756

 

Prepaid expenses and other current assets

 

22,880

 

13,239

 

Total current assets

 

94,885

 

111,713

 

 

 

 

 

 

 

Property and equipment, net

 

27,122

 

28,681

 

Internally developed software, net

 

10,490

 

9,897

 

Intangible assets, net

 

286,174

 

292,675

 

Goodwill

 

426,695

 

421,273

 

Deferred tax assets, net

 

 

2,688

 

Other non-current assets

 

10,878

 

9,322

 

Total assets

 

$

856,244

 

$

876,249

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accrued expenses and other liabilities

 

$

61,360

 

$

83,411

 

Accounts payable

 

10,441

 

10,420

 

Current portion of debt

 

8,064

 

6,064

 

Contingent consideration

 

5,190

 

2,537

 

Deferred revenue

 

17,576

 

15,089

 

Total current liabilities

 

102,631

 

117,521

 

 

 

 

 

 

 

Convertible notes

 

147,939

 

146,418

 

Term notes

 

136,819

 

138,335

 

Contingent consideration

 

894

 

1,506

 

Deferred revenue

 

14,628

 

14,378

 

Deferred rent and lease incentive

 

10,805

 

10,976

 

Deferred tax liabilities, net

 

911

 

 

Other non-current liabilities

 

6,706

 

6,288

 

Total liabilities

 

421,333

 

435,422

 

 

 

 

 

 

 

Redeemable units in ERS

 

900

 

900

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Stockholders’ equity

 

433,613

 

439,529

 

Non-controlling interest

 

398

 

398

 

Total liabilities and equity

 

$

856,244

 

$

876,249

 

 

5



 

Envestnet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

2015

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

Assets under management or administration

 

$

82,871

 

$

81,077

 

Subscription and licensing

 

43,620

 

14,082

 

Professional services and other

 

5,330

 

1,295

 

Total revenues

 

131,821

 

96,454

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Cost of revenues

 

40,158

 

38,695

 

Compensation and benefits

 

62,616

 

31,535

 

General and administration

 

25,727

 

14,209

 

Depreciation and amortization

 

16,080

 

5,333

 

Total operating expenses

 

144,581

 

89,772

 

Income (loss) from operations

 

(12,760

)

6,682

 

Other income (expense)

 

(3,949

)

(2,203

)

Income (loss) before income tax provision (benefit)

 

(16,709

)

4,479

 

Income tax provision (benefit)

 

(5,716

)

1,968

 

Net income (loss)

 

(10,993

)

2,511

 

Add: Net loss attributable to non-controlling interest

 

 

 

Net income (loss) attributable to Envestnet, Inc.

 

$

(10,993

)

$

2,511

 

 

 

 

 

 

 

Net income (loss) per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.26

)

$

0.07

 

 

 

 

 

 

 

Diluted

 

$

(0.26

)

$

0.07

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

Basic

 

42,506,557

 

35,147,043

 

 

 

 

 

 

 

Diluted

 

42,506,557

 

37,316,934

 

 

6



 

Envestnet, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

2015

 

OPERATING ACTIVITIES:

 

 

 

 

 

Net income (loss)

 

$

(10,993

)

$

2,511

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

 

16,080

 

5,333

 

Deferred rent and lease incentive

 

(171

)

168

 

Provision for doubtful accounts

 

23

 

 

Deferred income taxes

 

3,599

 

1,888

 

Stock-based compensation expense

 

11,615

 

3,419

 

Shortfall (excess tax benefits) from stock-based compensation expense

 

275

 

(11,468

)

Non-cash interest expense

 

2,013

 

2,356

 

Accretion on contingent consideration

 

62

 

342

 

Fair market value adjustment on contingent consideration

 

50

 

(1,446

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

Fees and other receivables, net

 

11,278

 

(5,853

)

Prepaid expenses and other current assets

 

(9,780

)

(1,175

)

Other non-current assets

 

(1,556

)

(214

)

Accrued expenses and other liabilities

 

(11,335

)

(2,827

)

Accounts payable

 

32

 

188

 

Deferred revenue

 

2,181

 

4,088

 

Other non-current liabilities

 

418

 

(58

)

Net cash provided by (used in) operating activities

 

13,791

 

(2,748

)

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

(1,811

)

(2,058

)

Capitalization of internally developed software

 

(1,388

)

(1,132

)

Purchase of ERS units

 

(1,500

)

 

Acquisition of businesses, net of cash acquired

 

(18,125

)

(2,641

)

Net cash used in investing activities

 

(22,824

)

(5,831

)

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from borrowings on revolving credit facility

 

15,000

 

 

Payments on revolving credit facility

 

(13,000

)

 

Repayment of term notes

 

(2,000

)

 

Proceeds from exercise of stock options

 

1,207

 

3,710

 

Excess tax benefits (shortfall) from stock-based compensation expense

 

(275

)

11,468

 

Purchase of treasury stock for stock-based minimum tax withholdings

 

(7,071

)

(6,441

)

Issuance of restricted stock

 

4

 

2

 

Net cash provided by (used in) financing activities

 

(6,135

)

8,739

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(15,168

)

160

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

51,718

 

209,754

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

36,550

 

$

209,914

 

 

7



 

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

(in thousands, except share and per share information)

(unaudited)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2016

 

2015

 

 

 

 

 

 

 

Revenues

 

$

131,821

 

$

96,454

 

Deferred revenue fair value adjustment

 

211

 

 

Adjusted revenues

 

$

132,032

 

$

96,454

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,993

)

$

2,511

 

Add (deduct):

 

 

 

 

 

Deferred revenue fair value adjustment

 

211

 

 

Interest income

 

(14

)

(122

)

Interest expense

 

4,092

 

2,356

 

Accretion on contingent consideration

 

62

 

342

 

Income tax provision (benefit)

 

(5,716

)

1,968

 

Depreciation and amortization

 

16,080

 

5,333

 

Non-cash compensation expense

 

11,491

 

3,419

 

Restructuring charges and transaction costs

 

2,329

 

1,430

 

Severance

 

627

 

593

 

Fair market value adjustment on contingent consideration

 

50

 

(1,446

)

Litigation related expense

 

499

 

 

Foreign currency and related hedging activity

 

(162

)

 

Other loss

 

43

 

 

Pre-tax loss attributable to non-controlling interest

 

594

 

430

 

Adjusted EBITDA

 

$

19,193

 

$

16,814

 

 

 

 

 

 

 

Net income (loss)

 

$

(10,993

)

$

2,511

 

Income tax provision (benefit) (1)

 

(5,716

)

1,968

 

Income (loss) before income tax provision (benefit)

 

(16,709

)

4,479

 

Add (deduct):

 

 

 

 

 

Deferred revenue fair value adjustment

 

211

 

 

Accretion on contingent consideration

 

62

 

342

 

Non-cash interest expense

 

2,013

 

1,539

 

Non-cash compensation expense

 

11,491

 

3,419

 

Restructuring charges and transaction costs

 

2,329

 

1,430

 

Severance

 

627

 

593

 

Amortization of acquired intangibles

 

11,926

 

3,138

 

Fair market value adjustment on contingent consideration

 

50

 

(1,446

)

Litigation related expense

 

499

 

 

Foreign currency and related hedging activity

 

(162

)

 

Other loss

 

43

 

 

Net loss attributable to non-controlling interest

 

594

 

430

 

Adjusted income before income tax effect

 

12,974

 

13,924

 

Income tax effect (2)

 

(5,190

)

(5,570

)

Adjusted net income

 

$

7,784

 

$

8,354

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

42,506,557

 

35,147,043

 

Effect of dilutive shares:

 

 

 

 

 

Options to purchase common stock

 

1,209,397

 

1,988,124

 

Unvested restricted stock units

 

76,357

 

181,767

 

Diluted number of weighted-average shares outstanding

 

43,792,311

 

37,316,934

 

 

 

 

 

 

 

Adjusted net income per share - diluted

 

$

0.18

 

$

0.22

 

 


(1)  For the three months ended March 31, 2016 and March 31, 2015, the effective tax (benefit) rate computed in accordance with US GAAP equaled (34.2%) and 43.9%, respectively.

 

(2)  For both periods shown, an estimated normalized effective tax rate of 40% has been used to compute adjusted net income.

 

Note on Income Taxes: As of December 31, 2015, the Company had NOL carryforwards of $272,804 and $149,893 for federal and state income tax purposes, respectively, available to reduce future income subject to income taxes. As a result, the amount of actual cash taxes the Company pays for federal, state and foreign income taxes differs from the effective income tax rate computed in accordance with US GAAP, and from the normalized rate shown above. For the three months ended March 31, 2016, the Company received refunds, net of estimated taxes paid, of ($1,513). For the three months ended March 31, 2015, the Company paid estimated cash income taxes of $475.

 

8



 

Envestnet, Inc.

Reconciliation of Non-GAAP Financial Measures

Segment Information

(in thousands)

(unaudited)

 

 

 

For the Three Months Ended March 31, 2016

 

 

 

Envestnet

 

Envestnet | Yodlee

 

Non-Segment

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

103,190

 

$

28,631

 

$

 

$

131,821

 

Deferred revenue fair value adjustment

 

(11

)

222

 

 

211

 

Adjusted revenues

 

$

103,179

 

$

28,853

 

$

 

$

132,032

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

9,574

 

$

(14,041

)

$

(8,293

)

$

(12,760

)

Add (deduct):

 

 

 

 

 

 

 

 

 

Deferred revenue fair value adjustment

 

(11

)

222

 

 

211

 

Accretion on contingent consideration

 

62

 

 

 

62

 

Depreciation and amortization

 

6,065

 

10,015

 

 

16,080

 

Non-cash compensation expense

 

3,215

 

6,025

 

2,251

 

11,491

 

Restructuring charges and transaction costs

 

87

 

4

 

2,238

 

2,329

 

Severance

 

 

309

 

318

 

627

 

Fair market value adjustment on contingent consideration

 

 

 

50

 

50

 

Litigation related expense

 

 

499

 

 

499

 

Other (income) loss

 

 

 

10

 

10

 

Pre-tax loss attributable to non-controlling interest

 

594

 

 

 

594

 

Adjusted EBITDA

 

$

19,586

 

$

3,033

 

$

(3,426

)

$

19,193

 

 

 

 

For the Three Months Ended March 31, 2015

 

 

 

Envestnet

 

Envestnet | Yodlee

 

Non-Segment

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

96,454

 

$

 

$

 

$

96,454

 

Deferred revenue fair value adjustment

 

 

 

 

 

Adjusted revenues

 

$

96,454

 

$

 

$

 

$

96,454

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

9,735

 

$

 

$

(3,053

)

$

6,682

 

Add (deduct):

 

 

 

 

 

Deferred revenue fair value adjustment

 

 

 

 

 

Accretion on contingent consideration

 

342

 

 

 

342

 

Depreciation and amortization

 

5,333

 

 

 

5,333

 

Non-cash compensation expense

 

3,121

 

 

298

 

3,419

 

Restructuring charges and transaction costs

 

 

 

1,430

 

1,430

 

Severance

 

593

 

 

 

593

 

Fair market value adjustment on contingent consideration

 

 

 

(1,446

)

(1,446

)

Litigation related expense

 

 

 

 

 

Other (income) loss

 

 

 

31

 

31

 

Other

 

 

 

 

 

Pre-tax loss attributable to non-controlling interest

 

430

 

 

 

430

 

Adjusted EBITDA

 

$

19,554

 

$

 

$

(2,740

)

$

16,814

 

 

9



 

Envestnet, Inc.

Historical Assets, Accounts and Advisors

(in millions, except accounts and advisors)

(unaudited)

 

 

 

As of

 

 

 

March 31, 
2015

 

June 30, 
2015

 

September 30,
2015

 

December 31,
2015

 

March 31,
2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Assets

 

 

 

 

 

 

 

 

 

 

 

Assets Under Management (AUM)

 

$

74,643

 

$

75,922

 

$

73,164

 

$

92,559

 

$

95,489

 

Assets Under Administration (AUA)

 

181,239

 

181,922

 

177,121

 

197,177

 

207,537

 

Subtotal AUM/A

 

255,882

 

257,844

 

250,285

 

289,736

 

303,026

 

Licensing

 

493,284

 

534,674

 

538,271

 

561,699

 

576,988

 

Total Platform Assets

 

$

749,166

 

$

792,518

 

$

788,556

 

$

851,435

 

$

880,014

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Accounts

 

 

 

 

 

 

 

 

 

 

 

AUM

 

319,896

 

332,738

 

344,321

 

490,471

 

498,449

 

AUA

 

679,753

 

695,463

 

718,637

 

807,708

 

904,373

 

Subtotal AUM/A

 

999,649

 

1,028,201

 

1,062,958

 

1,298,179

 

1,402,822

 

Licensing

 

1,982,773

 

2,044,355

 

2,140,672

 

2,176,068

 

2,237,427

 

Total Platform Accounts

 

2,982,422

 

3,072,556

 

3,203,630

 

3,474,247

 

3,640,249

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisors

 

 

 

 

 

 

 

 

 

 

 

AUM/A

 

29,023

 

29,541

 

30,177

 

33,775

 

35,718

 

Licensing

 

12,306

 

12,870

 

13,409

 

13,553

 

13,675

 

Total Advisors

 

41,329

 

42,411

 

43,586

 

47,328

 

49,393

 

 

10