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TheStreet Open House

Financial Engines Reports Fourth Quarter And Full Year 2011 Financial Results

Stocks in this article: FNGN

Financial Engines (NASDAQ: FNGN), the leading independent provider of investment management and advice to employees in retirement plans, today reported financial results for its fourth quarter and full year ended December 31, 2011.

Financial results for the fourth quarter of 2011 compared to the fourth quarter of 2010: i

  • Revenue increased 24% to $40.9 million for the fourth quarter of 2011 from $33.1 million for the fourth quarter of 2010.
  • Professional management revenue increased 27% to $31.5 million for the fourth quarter of 2011 from $24.8 million for the fourth quarter of 2010.
  • Net income was $5.8 million, or $0.12 per diluted share, for the fourth quarter of 2011 compared to $7.3 million, or $0.15 per diluted share, for the fourth quarter of 2010. This decrease was more than accounted for by a significant change in the effective tax rate.
  • Non-GAAP Adjusted EBITDA i increased 31% to $14.0 million for the fourth quarter of 2011 from $10.7 million for the fourth quarter of 2010.
  • Non-GAAP Adjusted Net Income i was $6.8 million for the fourth quarter of 2011 compared to $8.1 million for the fourth quarter of 2010. This decrease was more than accounted for by a significant change in the effective tax rate.
  • Non-GAAP Adjusted Earnings Per Share i was $0.14 for the fourth quarter of 2011 compared to $0.17 for the fourth quarter of 2010. This decrease was more than accounted for by a significant change in the effective tax rate.

Financial results for the full year 2011 compared to the full year 2010: i

  • Revenue increased 29% to $144.1 million in 2011 from $111.8 million in 2010.
  • Professional management revenue increased 37% to $108.2 million in 2011 from $79.1 million in 2010.
  • Net income was $15.1 million in 2011 compared to $63.6 million in 2010. This decrease was due in part to an income tax benefit of $50.7 million in 2010, as well as a significant change in the effective tax rate.
  • Net income attributable to holders of common stock was $15.1 million, or $0.31 per diluted share in 2011 compared to $58.1 million, or $1.30 per diluted share in 2010, which included the issuance of a $5.5 million stock dividend.
  • Non-GAAP Adjusted EBITDA i increased 44% to $40.8 million in 2011 from $28.4 million in 2010.
  • Non-GAAP Adjusted Net Income i increased 3% to $18.6 million in 2011 from $18.1 million in 2010. The growth rate was significantly impacted by a change in the effective tax rate.
  • Non-GAAP Adjusted Earnings Per Share i was $0.38 in 2011 compared to $0.39 in 2010. The decrease was more than accounted for by a significant change in the effective tax rate.

Key operating metrics as of December 31, 2011: ii

  • Assets under contract (“AUC”) were $467 billion.
  • Assets under management (“AUM”) were $47.5 billion.
  • Members in Professional Management were 567,000.
  • Asset enrollment rates for companies where services have been available for 26 months or more averaged 12.6% iii and an estimated 12.4% had AUC been marked-to-market at the end of the fourth quarter of 2011.

“When we started Financial Engines, we knew that the demographic wave of baby boomers would transform our nation’s retirement system,” said Jeff Maggioncalda, president and chief executive officer of Financial Engines. “Our long-term promise of helping millions of people achieve a more secure retirement continues to drive the growth of our business.”

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