NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS (Tables)

9 Months Ended

Sep. 30, 2015

NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS

Schedule of calculation of basic and diluted net income (loss) per share

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2015			2014			2015			2014
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	10,090		$	6,500		$	22,557		$	(12,510	)
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$	10,090		$	6,500		$	22,557		$	(12,510	)
Denominator:
Weighted average shares of Class A common stock outstanding—basic		20,184,835			15,262,343			19,919,675			15,262,940
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method		1,281,186	(b)		942,911	(b)		1,185,848	(b)			(b)
Weighted average shares of Class A common stock outstanding—diluted		21,466,021			16,205,254			21,105,523			15,262,940
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.50		$	0.43		$	1.13		$	(0.82	)
Diluted	$	0.47		$	0.40		$	1.07		$	(0.82	)

(a)

Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one-for-one basis, subject to applicable lock-up, vesting and transfer restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 55,398,692 and 55,197,575 for the three months ended September 30, 2015 and 2014, respectively, and 55,303,354 and 54,254,664 for the nine months ended September 30, 2015 and 2014, respectively. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the three and nine months ended September 30, 2015 and 2014, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)

During the three and nine months ended September 30, 2015 and 2014, certain shares of Moelis & Company's Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company. During the three months ended September 30, 2015 and 2014, the additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 15,397 and 11,644 units, respectively, and 7,945 and 665,649 units for the nine months ended September 30, 2015 and September 30, 2014, respectively. Antidilution in the prior year is the result of the Company producing a loss for the nine months ended September 30, 2014. Additionally, during the three months ended September 30, 2015, the additional weighted average amount of options that would have been included in this calculation if the effect were dilutive would have been 1,049,977. No options were excluded from this calculation for the three months ended September 30, 2014 and the nine months ended September 30, 2015 and September 30, 2014.