Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

v3.5.0.2
Earnings Per Share
9 Months Ended
Sep. 30, 2016
Earnings Per Share  
Earnings Per Share

14.Earnings Per Share

 

Basic earnings per common share is computed by dividing net income (loss) 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, if dilutive.

 

The Company accounts for the effect of the Convertible Notes on diluted earnings 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 earnings 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 meets certain criteria as described in Note 12  at which point, the effect of the conversion feature would be included in the Company’s calculation of diluted earnings per share. In the period of conversion, the Convertible Notes will have no impact on diluted earnings if the Convertible Notes are settled in cash and will have an impact on dilutive earnings 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 (loss) per share attributable to Envestnet, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

    

2016

    

2015

    

2016

    

2015

Net income (loss) attributable to Envestnet, Inc.

 

$

(4,057)

 

$

3,302

 

$

(22,993)

 

$

8,349

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic number of weighted-average shares outstanding

 

 

42,843,103

 

 

36,021,784

 

 

42,704,383

 

 

35,651,508

Effect of dilutive shares:

 

 

 

 

 

 

 

 

 

 

 

 

Options to purchase common stock

 

 

 —

 

 

1,554,564

 

 

 —

 

 

1,784,442

Unvested restricted stock units

 

 

 —

 

 

38,353

 

 

 —

 

 

127,865

Diluted number of weighted-average shares outstanding

 

 

42,843,103

 

 

37,614,701

 

 

42,704,383

 

 

37,563,815

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.09)

 

$

0.09

 

$

(0.54)

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

(0.09)

 

$

0.09

 

$

(0.54)

 

$

0.22

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

    

2016

    

2015

    

2016

    

2015

Options to purchase common stock

 

3,283,331

 

447,354

 

3,283,331

 

270,728

Unvested restricted stock units

 

1,981,775

 

475,462

 

1,981,775

 

208,679

Ungranted unvested restricted stock units related to Upside

 

 —

 

132,284

 

 —

 

132,284

Convertible Notes

 

2,743,321

 

2,743,321

 

2,743,321

 

2,743,321

Total

 

8,008,427

 

3,798,421

 

8,008,427

 

3,355,012