Net Income (Loss) Per Share Attributable to Class A Common Shareholders (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Calculations of Basic and Diluted Net Income (Loss) Per Share

The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the three and six months ended June 30, 2019 and 2018 are presented below.

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2019			2018			2019			2018
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	29,459		$	35,690		$	43,029		$	69,015
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	$	29,459		$	35,690		$	43,029		$	69,015
Denominator:
Weighted average shares of Class A common stock outstanding—basic		50,107,269			41,750,396			48,919,127			38,938,952
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		4,560,818	(b)		7,529,711	(b)		5,851,725	(b)		8,052,469	(b)
Weighted average shares of Class A common stock outstanding—diluted		54,668,087			49,280,107			54,770,852			46,991,421
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.59		$	0.85		$	0.88		$	1.77
Diluted	$	0.54		$	0.72		$	0.79		$	1.47

We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation.

(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 67,701,355 and 67,189,931 for the three months ended June 30, 2019 and 2018, respectively, and 67,783,254 and 66,858,916 for the six months ended June 30 2019 and 2018, 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 six months ended June 30, 2019 and 2018, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)

During the three and six months ended June 30, 2019 and 2018, 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 June 30, 2019 and 2018, the additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 2,500,362 and 10,508 units, respectively and 1,789,991 and 14,213 for the six months ended June 30 2019 and 2018, respectively.