Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.5.0.2
Earnings Per Share
6 Months Ended
Jun. 30, 2016
Earnings Per Share  
Earnings Per Share

13.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 units 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 Companys option. As a result, the Convertible Notes have no effect on diluted net income per share until the Companys stock price exceeds the conversion price of $62.88 per share, or if the trading price of the Convertible Notes meets 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 Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

2016

    

2015

    

2016

    

2015

Net income (loss) attributable to Envestnet, Inc.

 

$

(7,943)

 

$

2,536

 

$

(18,936)

 

$

5,047

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

 

42,752,465

 

 

35,776,125

 

 

42,632,964

 

 

35,463,623

Effect of dilutive shares:

 

 

 

 

 

 

 

 

 

 

 

 

Options to purchase common stock

 

 

 —

 

 

1,776,028

 

 

 —

 

 

1,887,942

Unvested restricted stock units

 

 

 —

 

 

101,921

 

 

 —

 

 

152,463

Diluted number of weighted-average shares outstanding

 

 

42,752,465

 

 

37,654,074

 

 

42,632,964

 

 

37,504,028

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.19)

 

$

0.07

 

$

(0.44)

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.19)

 

$

0.07

 

$

(0.44)

 

$

0.13

 

Common share equivalents for securities that were anti-dilutive or otherwise excluded from the computation of diluted net income per share attributable to Envestnet, Inc. were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

    

2016

    

2015

    

2016

    

2015

Options to purchase common stock

 

3,383,899

 

271,181

 

3,383,899

 

271,181

Unvested restricted stock units

 

1,791,769

 

205,786

 

1,791,769

 

137,191

Ungranted unvested restricted stock units related to Upside

 

 —

 

132,384

 

 —

 

132,384

Convertible Notes

 

2,743,321

 

2,743,321

 

2,743,321

 

2,743,321

Total

 

7,918,989

 

3,352,672

 

7,918,989

 

3,284,077