Annual report pursuant to Section 13 and 15(d)

Earnings Per Share

v3.3.1.900
Earnings Per Share
12 Months Ended
Dec. 31, 2015
Earnings Per Share  
Earnings Per Share

14.       Earnings per Share

 

Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock and Convertible Notes using the treasury stock method.

 

The Company accounts for the effect of the Convertible Notes on diluted net income per share using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company’s option. As a result, the Convertible Notes have no effect on diluted net loss per share until the Company’s stock price exceeds the conversion price of $62.88 per share, or if the trading price of the Convertible Notes meet certain criteria as described in Note 11.  In the period of conversion, the Convertible Notes will have no impact on diluted net income if the Convertible Notes are settled in cash and will have an impact on dilutive net income per share if the Convertible Notes are settled in shares upon conversion.

 

The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

    

2015

    

2014

    

2013

 

Basic income per share calculation:

 

 

 

 

 

 

 

 

 

 

Net income attributable to Envestnet, Inc.

 

$

4,436

 

$

14,174

 

$

3,660

 

 

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

 

36,500,843

 

 

34,559,558

 

 

33,191,088

 

Basic net income per share

 

$

0.12

 

$

0.41

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share calculation:

 

 

 

 

 

 

 

 

 

 

Net income attributable to Envestnet, Inc.

 

$

4,436

 

$

14,174

 

$

3,660

 

 

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

 

36,500,843

 

 

34,559,558

 

 

33,191,088

 

Effect of dilutive shares:

 

 

 

 

 

 

 

 

 

 

Options to purchase common stock

 

 

1,700,248

 

 

2,165,808

 

 

1,979,474

 

Common warrants

 

 

 —

 

 

 —

 

 

378,282

 

Unvested restricted stock units

 

 

185,782

 

 

152,233

 

 

117,731

 

Diluted number of weighted-average shares outstanding

 

 

38,386,873

 

 

36,877,599

 

 

35,666,575

 

Diluted net income per share

 

$

0.12

 

$

0.38

 

$

0.10

 

 

Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share are as follows:

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2015

    

2014

    

2013

  

Options to purchase common stock

    

297,343

 

 —

 

 —

 

Unvested restricted stock units

 

210,233

 

90,792

 

432,272

 

Ungranted unvested restricted stock units related to Upside

 

132,384

 

 —

 

 —

 

Convertible debt

 

2,743,321

 

2,743,321

 

 —

 

Total

 

3,383,281

 

2,834,113

 

432,272