Skip to content
AnalystLens

LPLA · LPL Financial Holdings

50 filings

10-Q

LPLA 10-Q Quarterly Reports

LPL Financial Holdings - 50 quarterly reports

Filing record · 2016–202610-K1210-Q338-K120

LPLA filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 120 current reports (8-K) between 2016 and 2026.

  1. FY2018 annual report10-K · Feb ’19Feb ’19
  2. Leadership change8-K · Jul ’21Jul ’21
  3. Leadership change8-K · Jan ’26Jan ’26
  1. 2026-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2026

    LPL Financial Holdings Inc. reported net income of $356.6 million, or $4.52 per diluted share, for the third quarter of 2026, compared with a net loss of $29.5 million, or $0.37 per diluted share, in the third quarter of 2025. Total revenue was $5,344.0 million, up from $4,552.0 million, and gross profit, a non-GAAP measure, was $1,661.9 million, an increase of 12% from $1,479.3 million. Adjusted EPS was $5.97 compared with $5.20. For the nine months ended September 30, 2026, net income was $1,092.2 million, or $13.68 per diluted share. Results in the prior-year quarter were heavily affected by $538.2 million of acquisition costs tied to the Commonwealth acquisition, which were $83.1 million in the third quarter of 2026. Asset growth remained positive but slowed. Total advisory and brokerage assets were $2.6 trillion at September 30, 2026, and total net new assets were $29.1 billion for the quarter, compared with $307.7 billion a year earlier. Advisory assets reached $1.6 trillion, or 61% of total assets, while brokerage assets had net outflows of $4.0 billion. Advisor headcount was 32,597, and total client cash balances were $56.6 billion. Capital returns and balance sheet metrics were steady. The company repurchased 893,176 shares for $300.6 million in the third quarter and $610.0 million over the nine months, with $2.5 billion remaining under its repurchase program. The Board declared a $0.30 per share dividend payable November 30, 2026. The leverage ratio was 1.93 against a covenant maximum of 4.0, and the interest coverage ratio was 9.34 against a minimum of 3.0. The company expects to complete the conversion of Commonwealth assets in the fourth quarter of 2026.

    Oct 29, 2026
  2. 2026-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2026

    LPL Financial Holdings Inc. reported net income of $379.3 million, or $4.74 per diluted share, for the second quarter of 2026, compared with $273.2 million, or $3.40 per diluted share, for the second quarter of 2025. Total revenue rose to $5,186.6 million from $3,835.0 million, and advisory and brokerage assets served reached $2.6 trillion at June 30, 2026, versus $1.9 trillion a year earlier. Total net new assets were $23.6 billion for the quarter, compared with $20.5 billion in the prior-year quarter, with net new advisory assets of $30.7 billion offset by a net outflow of $7.1 billion in brokerage assets. The company resumed share repurchases in the second quarter, buying back $309.5 million of stock, and the Board authorized a new $2.5 billion repurchase increase on July 23, 2026. Management expects approximately $300 million of repurchases in the third quarter, and $134.3 million had been repurchased from July 1 through July 30, 2026. Corporate debt and other borrowings totaled $7,460.5 million at June 30, 2026, and the leverage ratio was 1.91 against a covenant maximum of 4.0, with interest coverage of 9.16 against a minimum of 3.0. Expense growth was significant: total expense rose to $4,671.1 million from $3,466.2 million, driven largely by advisory and commission expense and higher amortization of other intangibles, and acquisition costs and transition assistance loan amortization remained material. The filing notes that the Commonwealth Financial Network acquisition's assets are expected to convert to the company's platform in the fourth quarter of 2026. Management also declared a $0.30 per share dividend payable August 28, 2026.

    Aug 3, 2026
  3. 2026-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2026

    LPL Financial Holdings Inc. reported net income of $356.4 million, or $4.43 per diluted share, for the first quarter of 2026, compared with $318.6 million, or $4.24 per diluted share, in the first quarter of 2025. Total revenue rose to $4.94 billion from $3.67 billion, and total expense rose to $4.45 billion from $3.25 billion. Gross profit, a non-GAAP measure, was $1.6 billion, up 25% from $1.3 billion. Adjusted EPS was $5.60 versus $5.15 a year earlier. Total advisory and brokerage assets served were $2.3 trillion at March 31, 2026, up from $1.8 trillion a year earlier. Total net new assets were $21.4 billion for the quarter, down from $78.8 billion in the prior-year period, with a net outflow of $4.4 billion in brokerage assets offsetting $25.8 billion of net new advisory assets. The filing attributes the growth in advisory revenue primarily to the Commonwealth acquisition, which was completed August 1, 2025, with Commonwealth assets expected to transition to the Company's platform in the fourth quarter of 2026. At March 31, 2026, corporate debt and other borrowings, net, were $7.18 billion and the Credit Agreement leverage ratio was 1.86, against a maximum covenant of 4.0. The Company repurchased no shares in the first quarter but resumed repurchases in April 2026, with $630.0 million remaining under its program at quarter-end, and declared a $0.30 per share dividend payable June 4, 2026.

    May 4, 2026
  4. 2025-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2025

    LPL Financial Holdings Inc. reported a net loss of $29.5 million, or $0.37 per diluted share, for the third quarter of 2025, compared with net income of $255.3 million, or $3.39 per diluted share, in the third quarter of 2024. The loss was driven by $419.0 million of acquisition-related expenses incurred at the August 1, 2025 closing of Commonwealth Financial Network, for which the company paid approximately $2.7 billion in cash. Excluding these items, adjusted net income was $418.2 million and adjusted EPS was $5.20, compared with $313.4 million and $4.16 a year earlier. Total revenue rose to $4.55 billion from $3.11 billion, and total advisory and brokerage assets reached $2.3 trillion at September 30, 2025, up from $1.6 trillion a year earlier. The quarter's asset growth was strong. Total net new assets were $307.7 billion for the three months ended September 30, 2025, compared with $27.5 billion a year earlier, and included Commonwealth's assets transitioning to the platform. Advisory revenue increased 60% in the quarter and asset-based revenue increased 25%. Expenses rose sharply, with total expense up 66% to $4.59 billion, largely due to acquisition costs. The leverage ratio rose to 2.04 from 1.23 at June 30, 2025, after debt issuance, and the company remained in compliance with its Credit Agreement covenants. Balance sheet changes were significant. Total assets grew to $18.03 billion from $13.32 billion at December 31, 2024, and corporate debt and other borrowings reached $7.52 billion. Stockholders' equity increased to $5.04 billion from $2.93 billion, reflecting an April 2025 equity offering of about $1.7 billion. The company paused share repurchases in anticipation of the Commonwealth deal and said it expects to evaluate resuming them, and its board declared a $0.30 per share dividend payable December 1, 2025.

    Nov 3, 2025
  5. 2025-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2025

    LPL Financial Holdings Inc. reported net income of $273.2 million, or $3.40 per diluted share, for the second quarter of 2025, compared to $243.8 million, or $3.23 per diluted share, for the second quarter of 2024. Total advisory and brokerage assets served reached $1.9 trillion at June 30, 2025, versus $1.5 trillion a year earlier. Total net new assets were $20.5 billion for the quarter, down from $34.0 billion in the same period of 2024, with brokerage assets showing a net outflow of $2.6 billion. Total revenue was $3.84 billion for the quarter, compared to $2.93 billion in the prior-year quarter, and adjusted EPS was $4.51 versus $3.88. The quarter's main event was the closing on August 1, 2025 of the acquisition of Commonwealth Financial Network for a cash payment of approximately $2.7 billion, funded in part by an April 2025 equity offering of approximately $1.7 billion and a $1.5 billion senior notes issuance. Corporate debt and other borrowings rose to $7.18 billion at June 30, 2025, from $5.49 billion at December 31, 2024, and Corporate Cash was $3.62 billion. The Company's leverage ratio fell to 1.23 from 1.82 at March 31, 2025, and it was in compliance with its Credit Agreement covenants. The Company repurchased $100.0 million of shares in the first half of 2025, made no repurchases in the second quarter, and said it paused repurchases in anticipation of the Commonwealth deal and expects to evaluate resuming them. The filing also highlights rising expense pressure: advisory and commission expense was $2.48 billion for the quarter, and promotional expense increased $41.4 million year over year, driven by recruiting and retention costs. Acquisition costs rose to $74.9 million for the quarter from $36.9 million. The Company disclosed an ongoing SEC request for information on its cash management program for corporate advisory accounts, and putative class actions relating to its cash sweep programs remain pending.

    Aug 4, 2025
  6. 2025-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2025

    LPL Financial Holdings Inc. reported first-quarter 2025 net income of $318.6 million, or $4.24 per diluted share, compared with $288.8 million, or $3.83 per diluted share, in the first quarter of 2024. Total revenue was $3.67 billion versus $2.83 billion a year earlier, and advisory and brokerage assets reached $1.8 trillion at March 31, 2025, up from $1.4 trillion. Total net new assets were $78.8 billion for the quarter, compared with $16.7 billion in the prior-year period. Non-GAAP adjusted EPS was $5.15 versus $4.21, and gross profit rose to $1.27 billion from $1.07 billion. The dominant strategic item is the pending acquisition of Commonwealth Financial Network for $2.7 billion, expected to close in the second half of 2025 and subject to regulatory approvals. To fund it, the company completed an offering of approximately 5.4 million shares at $320.00 per share, receiving proceeds of approximately $1.7 billion, and issued $1.5 billion of senior unsecured notes in April 2025. Share repurchases have been paused pending the Commonwealth closing, with $630.0 million remaining under the authorization at March 31, 2025. Balance sheet metrics show the leverage ratio at 1.82 against a covenant maximum of 4.0, and interest coverage at 9.84 against a minimum of 3.0. Corporate debt and other borrowings were $5.72 billion, and Corporate Cash rose to $620.6 million. The filing also discloses an SEC request for information in August 2024 concerning the cash management program for corporate advisory accounts, which the company describes as likely part of an industry-wide inquiry, and putative class action lawsuits filed in July 2024 related to cash sweep programs.

    May 9, 2025
  7. 2024-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2024

    LPL Financial Holdings Inc. reported net income of $255.3 million, or $3.39 per diluted share, for the third quarter of 2024, compared to $224.3 million, or $2.91 per diluted share, for the third quarter of 2023. Total revenue for the quarter was $3,108.4 million versus $2,522.4 million a year earlier. Total advisory and brokerage assets served reached $1.6 trillion at September 30, 2024, compared to $1.2 trillion a year earlier, and total net new assets were $27.5 billion for the quarter versus $33.2 billion in the prior-year period. Non-GAAP adjusted EPS was $4.16 for the quarter, compared to $3.74 in the prior-year quarter. The company closed its acquisition of Atria Wealth Solutions, Inc. on October 1, 2024, for an initial cash payment of approximately $835 million, with potential contingent consideration of up to $230 million tied to retention and up to approximately $100 million tied to other milestones. To fund the deal, LPL used corporate cash and borrowed $910.0 million under its senior secured revolving credit facility. The filing also reports that the Board terminated Dan H. Arnold as President and CEO for "Cause" on October 1, 2024, and named Rich Steinmeier as CEO on October 21, 2024, with Matt Audette named President and Chief Financial Officer. Leverage ratio stood at 1.61 against a covenant maximum of 4.0, and the company states it expects to resume share repurchases in the fourth quarter of 2024, with $830.0 million remaining under its program. The filing also discloses regulatory exposure. The company recorded an $18.0 million charge related to an agreement in principle with the SEC on its anti-money laundering program, paid a $50.0 million civil monetary penalty in August 2024 related to records preservation, and received an SEC request for information in August 2024 about its cash management program for corporate advisory accounts. Putative class action lawsuits were filed in July 2024 concerning its cash sweep programs, which the company intends to defend vigorously.

    Nov 4, 2024
  8. 2024-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2024

    LPL Financial Holdings Inc. reported second-quarter 2024 net income of $243.8 million, or $3.23 per diluted share, compared with $285.5 million, or $3.65 per diluted share, in the second quarter of 2023. Total revenue for the quarter was $2.93 billion, up 19% from $2.47 billion a year earlier, and total advisory and brokerage assets served reached $1.5 trillion at June 30, 2024, versus $1.2 trillion a year earlier. Net new assets were $34.0 billion for the quarter, compared with $21.7 billion in the prior-year period. Non-GAAP adjusted EPS was $3.88 versus $3.94, and gross profit rose 9% to $1.1 billion. The company's balance sheet grew substantially during the period. On May 20, 2024, it issued $500.0 million of 5.700% senior notes due 2027 and $500.0 million of 6.000% senior notes due 2034. Corporate debt and other borrowings, net, rose to $4.44 billion at June 30, 2024, from $3.73 billion at December 31, 2023, and the leverage ratio was 1.68 against a covenant maximum of 4.0. The company paused share repurchases in the first quarter of 2024 in connection with its planned acquisition of Atria Wealth Solutions, Inc., for an initial purchase price of approximately $805 million, with closing expected in the second half of 2024. Quarterly dividends remained at $0.30 per share. The filing also discloses a regulatory matter: the company reached a settlement in principle with SEC staff over its off-channel communications investigation, under which it expects to pay a $50.0 million civil monetary penalty in the second half of 2024, subject to SEC approval. In July 2024, a putative class action was filed against LPL Financial concerning its cash sweep programs, which the company intends to defend vigorously.

    Jul 30, 2024
  9. 2024-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2024

    LPL Financial Holdings Inc. reported net income of $288.8 million, or $3.83 per diluted share, for the first quarter of 2024, compared with $338.9 million, or $4.24 per diluted share, for the first quarter of 2023. Total revenue was $2.83 billion, up 17% from $2.42 billion, and total advisory and brokerage assets served reached $1.4 trillion at March 31, 2024, versus $1.2 trillion a year earlier. Total net new assets were $16.7 billion, compared with $24.5 billion in the same period of 2023, with net new brokerage assets falling to $0.5 billion from $9.9 billion. Client cash revenue declined to $352.4 million from $418.3 million on lower average client cash balances, and interest expense on borrowings rose to $60.1 million from $39.2 million. The company is pending an acquisition of Atria Wealth Solutions, Inc. for an initial purchase price of approximately $805 million, with closing expected in the second half of 2024 and subject to regulatory approval. LPL paused share repurchases during the quarter because of the planned Atria acquisition, and it repurchased 296,145 shares for $70.0 million in the quarter. The filing also discloses a March 2024 settlement in principle with the SEC over off-channel communications recordkeeping, under which LPL would pay a $50.0 million civil monetary penalty expected to be paid in the second quarter of 2024, subject to definitive documentation and SEC approval. Liquidity metrics were stable. The Leverage Ratio was 1.65 against a covenant maximum of 4.0, and Interest Coverage was 11.02 against a minimum of 3.0. Corporate Cash was $311.1 million, and LPL Financial's net capital was $328.5 million, with excess net capital of $310.4 million. The Board declared a $0.30 per share dividend payable June 4, 2024.

    May 2, 2024
  10. 2023-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2023

    LPL Financial Holdings Inc. reported net income of $224.3 million, or $2.91 per diluted share, for the third quarter of 2023, compared with $232.3 million, or $2.86 per diluted share, for the third quarter of 2022. For the nine months ended September 30, 2023, net income was $848.7 million, or $10.82 per diluted share, versus $526.6 million, or $6.47 per diluted share, a year earlier. Total revenue for the quarter was $2,522.4 million, up 17% from $2,163.1 million. Non-GAAP gross profit was $1.0 billion, an increase of 21% from $837.7 million, and adjusted EPS was $3.74 compared with $3.13. Client cash revenue, which rose to $360.5 million in the quarter from $295.0 million, was a key driver, reflecting higher federal funds rates partly offset by lower average client cash balances. Total advisory and brokerage assets served reached $1.2 trillion at September 30, 2023, and total net new assets were $33.2 billion for the quarter, compared with $19.9 billion a year earlier. Results were affected by a $40.0 million regulatory charge recorded in other expense related to an SEC civil investigation into records preservation for electronic communications stored on personal devices. The filing states the staff proposed a $50.0 million civil monetary penalty, but the company has not yet reached a settlement in principle, and the charge reflects the portion not covered by its captive insurance subsidiary. The company remained within its Credit Agreement covenants, with a leverage ratio of 1.26 against a maximum of 4.00 and interest coverage of 14.26 against a minimum of 3.00. It repurchased $250.0 million of stock in the third quarter and $875 million over the nine months, leaving $1.1 billion under its repurchase program. The Board declared a $0.30 per share dividend payable November 27, 2023. The filing also describes a strategic relationship agreement announced August 24, 2023, under which Prudential Advisors' brokerage and advisory assets are expected to transfer to LPL Financial LLC in the second half of 2024, subject to regulatory approval and other conditions.

    Oct 31, 2023
  11. 2023-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2023

    LPL Financial Holdings Inc. reported net income of $285.5 million, or $3.65 per diluted share, for the second quarter of 2023, compared to $160.5 million, or $1.97 per diluted share, for the second quarter of 2022. Total revenue for the quarter was $2,468.8 million versus $2,038.9 million a year earlier, and for the six months ended June 30, 2023, net income was $624.4 million. Total advisory and brokerage assets served reached $1.2 trillion at June 30, 2023, with total net new assets of $21.7 billion for the quarter. Interest income, net and client cash revenue rose sharply, with client cash revenue of $378.4 million for the quarter versus $154.7 million in the prior-year quarter, driven by higher federal funds rates partially offset by lower average client cash balances. The company repurchased 1.8 million shares for $350.0 million during the quarter and $625 million year to date, and it had $1.4 billion remaining under its repurchase program at June 30, 2023. The Board declared a $0.30 per share quarterly dividend payable August 25, 2023. Corporate Cash was $325.5 million, and the leverage ratio improved to 1.25 from 2.09 a year earlier, with the company in compliance with its Credit Agreement covenants. The filing also discloses pending and completed acquisitions, including the January 31, 2023 acquisition of Financial Resources Group Investment Services, LLC for an initial payment of approximately $140 million, and a July 21, 2023 agreement to acquire the assets of Crown Capital Securities, L.P., a firm with approximately 260 advisors serving about $6.5 billion of assets, expected to close in early 2024. Post-quarter, the company amended its revolving credit facility to increase maximum borrowing from $1.0 billion to $2.0 billion. An SEC request for information regarding records preservation for electronic communications remains open, and the company stated it does not believe it will have a material adverse effect.

    Aug 1, 2023
  12. 2023-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2023

    LPL Financial Holdings Inc. reported net income of $338.9 million, or $4.24 per diluted share, for the first quarter of 2023, compared with $133.7 million, or $1.64 per diluted share, in the first quarter of 2022. Total revenue rose to $2,417.8 million from $2,065.7 million, driven mainly by client cash revenue, which increased to $418.3 million from $84.7 million as federal funds rates rose, partially offset by lower average client cash balances. Advisory revenue declined to $954.1 million from $1,047.1 million, reflecting lower advisory asset balances due to market changes. Total advisory and brokerage assets served were $1.2 trillion at March 31, 2023, with total net new assets of $24.5 billion for the quarter. Gross profit, a non-GAAP measure, was $1,020.0 million, up from $669.0 million, and adjusted EPS was $4.49 compared with $1.95. During the quarter the company closed the acquisition of Financial Resources Group Investment Services, LLC for an initial payment of approximately $140 million, plus Boenning & Scattergood's Private Client Group. The company repurchased 1,205,862 shares for $275.0 million, paid dividends of $23.6 million, and raised its quarterly dividend to $0.30 per share from $0.25. Corporate debt and other borrowings, net, rose to $2,850.8 million, and the leverage ratio was 1.34 against a covenant maximum of 5.00. Corporate Cash fell to $234.2 million from $459.4 million at year-end 2022. The filing notes that the SEC requested information in October 2022 about compliance with records preservation requirements for electronic communications on personal devices or unapproved messaging platforms. The company says it cannot estimate a possible loss from this matter and does not believe it will have a material adverse effect.

    May 2, 2023
  13. 2022-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2022

    LPL Financial Holdings Inc. reported net income of $232.3 million, or $2.86 per diluted share, for the third quarter of 2022, compared with $103.1 million, or $1.26 per diluted share, in the third quarter of 2021. Total revenue rose to $2.16 billion from $2.02 billion, and total advisory and brokerage assets were $1.0 trillion at September 30, 2022, versus $1.1 trillion a year earlier. Total net new assets were $19.9 billion for the quarter, compared with $29.0 billion in the prior-year quarter, and advisory assets fell to $542.6 billion from $594.0 billion, with the filing attributing the decline to market changes. Growth in asset-based revenue, which rose to $489.3 million from $301.7 million, was driven mainly by higher client cash revenue, as client cash balances averaged $65.5 billion versus $47.0 billion a year earlier. Gross profit, a non-GAAP measure, increased to $837.7 million from $631.1 million. Commission revenue declined 4.2% and advisory revenue declined 3.7% in the quarter, reflecting lower trailing commissions and asset balances, while expenses included higher compensation and promotional costs tied to headcount and advisor recruitment. The Board authorized a $2.1 billion increase to the share repurchase program on September 21, 2022, with $2.0 billion available beginning in 2023 and $2.15 billion remaining at September 30, 2022. The company repurchased $75.0 million of stock and paid $20.0 million in dividends during the quarter. The leverage ratio improved to 1.72 from 2.09 in the prior quarter, within a covenant maximum of 5.00, and Corporate Cash stood at $424.3 million.

    Nov 1, 2022
  14. 2022-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2022

    LPL Financial Holdings Inc. reported net income of $160.5 million, or $1.97 per diluted share, for the second quarter of 2022, compared with $119.1 million, or $1.46 per diluted share, in the second quarter of 2021. Total revenue was $2,038.9 million for the quarter, up from $1,898.3 million, and total expense was $1,826.6 million. Total advisory and brokerage assets were $1.1 trillion at both June 30, 2022 and 2021, with total net new assets of $37.2 billion in the quarter, compared with $106.0 billion a year earlier. Advisory assets declined to $558.6 billion from $577.6 billion, and brokerage assets declined to $506.0 billion from $534.7 billion, reflecting market impact. The company's revenue growth was driven mainly by advisory fees, which rose 18.4% to $1,001.9 million, and asset-based revenue, which rose 30.0% to $363.6 million, supported by higher client cash revenue as the federal funds effective rate increased. Commission revenue fell 4.2% to $573.4 million, as trailing commissions declined on volatility-driven drops in trail-eligible assets, partially offset by higher sales of annuities and insurance products. Expenses rose across several categories, including promotional costs and headcount-related compensation, while the number of advisors reached 20,871 and average employees rose to 6,107. Acquisition costs were $8.9 million in the quarter, down from $23.8 million a year earlier. Capital and liquidity metrics remained within covenant levels. The leverage ratio was 2.09 against a covenant maximum of 5.00, and interest coverage was 12.22 against a minimum of 3.00. Corporate Cash was $241.5 million, and LPL Financial reported net capital of $156.9 million against a minimum requirement of $15.4 million. During the first half of 2022 the company repurchased $100.0 million of shares, and it paid quarterly cash dividends of $0.25 per share. On August 4, 2022, LPL Financial LLC entered into a committed senior unsecured revolving credit facility allowing borrowings up to $1.0 billion, replacing a $300.0 million facility.

    Aug 4, 2022
  15. 2022-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2022

    LPL Financial Holdings Inc. reported net income of $133.7 million, or $1.64 per diluted share, for the first quarter of 2022, compared with $129.6 million, or $1.59 per diluted share, for the first quarter of 2021. Total revenue rose to $2,065.7 million from $1,707.6 million, and total advisory and brokerage assets served reached $1.2 trillion at March 31, 2022, up from $958.3 billion a year earlier. Net new assets were $17.6 billion for the quarter, down from $28.9 billion in the prior-year period, with net new brokerage assets of only $0.2 billion compared with $6.2 billion. Gross profit, a non-GAAP measure, was $669.0 million, up from $579.4 million, while total expense increased to $1,892.3 million from $1,542.5 million, driven by advisory and commission expense of $1,374.1 million and higher promotional expense of $87.0 million versus $54.2 million in the prior year. The prior-year quarter included a $24.4 million loss on extinguishment of debt that did not recur. Market declines weighed on asset values, with market impact reducing advisory assets by $36.3 billion and brokerage assets by $24.6 billion during the quarter. Balance sheet and capital metrics remained within covenant limits: the leverage ratio was 2.16 against a maximum of 5.00, and interest coverage was 12.18 against a minimum of 3.00. The company paid $20.0 million in dividends and repurchased $50.0 million of stock, and it reported Corporate Cash of $270.2 million. Total stockholders' equity increased to $1.74 billion, and cash used in operating activities was $75.1 million.

    May 3, 2022
  16. 2021-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2021

    LPL Financial Holdings Inc. reported net income of $103.1 million, or $1.26 per diluted share, for the third quarter of 2021, compared with $103.8 million, or $1.29 per diluted share, for the third quarter of 2020. Total revenue rose to $2,020.8 million from $1,460.3 million, and total advisory and brokerage assets reached $1.1 trillion at September 30, 2021, up 40% from $810.4 billion a year earlier. Total net new assets were $29.0 billion for the quarter, compared with $11.1 billion in the prior-year period, and the company's non-GAAP gross profit was $631.1 million, up 25% from $505.7 million. For the nine months ended September 30, 2021, net income was $351.8 million, or $4.30 per diluted share, versus $361.1 million, or $4.48 per diluted share, a year earlier. The company completed the acquisition of the wealth management business of Waddell & Reed Financial, Inc. on April 30, 2021 for $300.0 million, and recognized a $24.4 million loss on extinguishment of debt in connection with refinancing transactions in March 2021. Acquisition costs of $35.9 million in the third quarter weighed on reported earnings, and amortization of intangible assets and acquisition costs reduced EPS on a GAAP basis. The balance sheet expanded, with total assets of $7.56 billion at September 30, 2021 and total stockholders' equity of $1.62 billion. The company resumed share repurchases in the third quarter, buying back $40.0 million of stock (276,800 shares), and paid a $0.25 per share quarterly dividend. Leverage ratio was 2.18 against a covenant maximum of 5.00, and interest coverage was 12.42 against a minimum of 3.00. The company also declared a $0.25 per share dividend on October 28, 2021, payable November 29, 2021.

    Nov 2, 2021
  17. 2021-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2021

    LPL Financial Holdings Inc. reported net income of $119.1 million, or $1.46 per diluted share, for the second quarter of 2021, compared with $101.7 million, or $1.27 per diluted share, in the second quarter of 2020. Total revenues were $1,898.3 million for the quarter, up from $1,366.7 million a year earlier, and total advisory and brokerage assets reached $1.1 trillion as of June 30, 2021, up from $761.7 billion. Total net new assets were $106.0 billion for the quarter, including $68.9 billion of assets related to the acquisition of the wealth management business of Waddell & Reed Financial, Inc. Organic net new assets were $37.1 billion. Gross profit, a non-GAAP measure, was $601.6 million for the quarter, versus $488.2 million in the prior-year quarter. Advisors numbered 19,114 at period end, and the Company reported a leverage ratio of 2.26 against a covenant maximum of 5.00. The Company also recorded a $24.4 million loss on extinguishment of debt in the first quarter of 2021 tied to refinancing, and it issued $900.0 million of 2029 Senior Notes and $400.0 million of 2031 Senior Notes during 2021. The Company paid $20.0 million in dividends during the quarter and stated it expects to restart share repurchases in the third quarter of 2021 at approximately $40.0 million per quarter, initially to offset dilution. As of June 30, 2021, $349.8 million remained authorized for repurchases. Management stated it is not yet able to determine the full impact of the COVID-19 pandemic on its results.

    Aug 3, 2021
  18. 2021-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2021

    LPL Financial Holdings Inc. reported net income of $129.6 million, or $1.59 per diluted share, for the first quarter of 2021, compared to $155.6 million, or $1.92 per diluted share, for the first quarter of 2020. Total revenues rose to $1.71 billion from $1.46 billion, and gross profit, a non-GAAP measure, was $579.4 million, up 1% from $575.6 million. Total advisory and brokerage assets reached $958.3 billion as of March 31, 2021, up 43% year over year, and total net new assets were $28.9 billion for the quarter versus $14.3 billion a year earlier. The filing notes that $11.8 billion of assets transitioned onto the platform from BMO Harris during the quarter. The quarter's net income decline reflected higher advisory and commission expenses, which rose to $1.11 billion from $870.8 million, and a $24.4 million loss on extinguishment of debt tied to the March 2021 refinancing. In that transaction, the company issued $900.0 million of 4.00% senior unsecured notes due 2029 and redeemed its 2025 senior notes. Share repurchases were suspended in early 2020 and none occurred in the first quarter of 2021, while dividends of $20.0 million were paid. The company reported a leverage ratio of 2.11 against a covenant maximum of 5.00, and its Waddell & Reed wealth management acquisition, for $300 million, closed on April 30, 2021, after the quarter end. The filing describes liquidity as adequate, with $1.0 billion of committed senior secured revolving capacity and LPL Financial net capital of $98.9 million against a minimum requirement of $11.5 million. Management states that it cannot yet determine the full impact of the COVID-19 pandemic and that a continued impact could have a material adverse effect on results of operations.

    May 4, 2021
  19. 2020-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2020

    LPL Financial Holdings Inc. reported net income of $103.8 million, or $1.29 per diluted share, for the third quarter of 2020, compared with $131.7 million, or $1.57 per diluted share, for the third quarter of 2019. Total advisory and brokerage assets served were $810.4 billion as of September 30, 2020, up 13% from $719.3 billion a year earlier. Total net new assets were $11.1 billion for the quarter, compared with $11.9 billion in the prior-year period. Gross profit, a non-GAAP measure, was $505.7 million, down 7% from $542.5 million. Total net revenues rose 3.2% to $1.46 billion, driven by advisory revenue growth of 14.1%, while asset-based revenue fell 13.2% and commission revenue fell 0.5%, reflecting the low interest rate environment. For the nine months ended September 30, 2020, net income was $361.1 million, or $4.48 per diluted share, versus $433.2 million, or $5.07, a year earlier. Management attributes the decline in client cash revenues to lower federal funds rates and says those declines are likely to continue through the rest of the year. The company suspended share repurchases in mid-March 2020 because of COVID-19 uncertainty, and it paid a quarterly dividend of $0.25 per share, totaling $19.8 million in the third quarter. Liquidity remained solid, with cash and cash equivalents of $800.8 million at September 30, 2020, and the company reported compliance with both financial covenants under its Credit Agreement, with a leverage ratio of 2.15 against a 5.00 maximum. Management notes that the COVID-19 pandemic has created significant uncertainty about future commission revenues, and it states that it is not yet able to determine the full impact of the pandemic on its results. Recent acquisitions included Lucia Securities and E.K. Riley Investments, which closed on August 18, 2020, and Blaze Portfolio Systems, which was acquired on October 26, 2020 for approximately $12 million at closing plus a potential contingent payment of up to $5 million.

    Nov 3, 2020
  20. 2020-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2020

    LPL Financial Holdings Inc. reported net income of $101.7 million, or $1.27 per diluted share, for the second quarter of 2020, compared with $146.1 million, or $1.71 per diluted share, in the second quarter of 2019. Total net revenues were $1,366.7 million, down from $1,389.8 million a year earlier, and total brokerage and advisory assets served rose 8% to $761.7 billion as of June 30, 2020. Total net new assets were $13.0 billion for the quarter, versus $6.2 billion in the prior-year period. Gross profit, a non-GAAP measure, fell 9% to $488.2 million, and management attributed the revenue pressure largely to the COVID-19 pandemic, which reduced sales-based commissions and client cash revenues amid low interest rates. The filing shows the company's liquidity and capital position remained sound. Operating cash flow for the six months ended June 30, 2020 was $338.1 million, and the company reported $845.2 million in cash and cash equivalents. LPL Financial had net capital of $121.5 million against a minimum requirement of $9.6 million, and the company was in compliance with both financial covenants under its Credit Agreement, with a Leverage Test ratio of 2.03 against a 5.00 maximum. Management suspended share repurchases in mid-March 2020, and the board declared a $0.25 per share dividend on July 28, 2020, payable August 28, 2020. Management stated it is not yet able to determine the full impact of the pandemic and warned that a prolonged downturn could materially affect results. The filing also describes ongoing regulatory exposure, including the implementation of Regulation BI, which took effect with a compliance date of June 30, 2020, and the pending acquisitions of Lucia Securities, LLC and E.K. Riley Investments, LLC, both expected to close in the second half of 2020.

    Aug 4, 2020
  21. 2020-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2020

    LPL Financial Holdings Inc. reported net income of $155.6 million, or $1.92 per diluted share, for the first quarter of 2020, compared with $155.4 million, or $1.79 per diluted share, in the first quarter of 2019. Total net revenues were $1,463.4 million, up from $1,371.7 million, and gross profit, a non-GAAP measure, was $575.6 million. Total brokerage and advisory assets served fell to $669.9 billion as of March 31, 2020, down from $684.0 billion a year earlier, though total net new assets were $12.5 billion, compared with $4.0 billion in the prior-year quarter. The filing states that the COVID-19 pandemic and the market downturn in March 2020 are expected to weigh on advisory, asset-based and trailing commission revenues in the second quarter, and that the Federal Reserve cut the fed funds target range to 0.0% to 0.25%, reducing client cash program revenues. The company returned $169.7 million to stockholders in the quarter, including $19.7 million of dividends and $150.0 million of share repurchases, but suspended repurchases in mid-March 2020 amid pandemic uncertainty. Operating cash flow was $381.2 million, and the company reports $1.1 billion of combined availability under its short-term liquidity sources. It states it was in compliance with its financial covenants, with a leverage ratio of 2.07 against a 5.00 maximum and an interest coverage ratio of 9.19 against a 3.00 minimum. Management says it cannot yet determine the full impact of the pandemic, and that a prolonged downturn could have a material adverse effect on results of operations. The filing also highlights an elevated payout ratio, higher advisory revenue from net new advisory assets, and continued regulatory preparation for Regulation BI, which has a June 30, 2020 compliance date.

    May 5, 2020
  22. 2019-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2019

    LPL Financial Holdings Inc. reported net income of $131.7 million, or $1.57 per diluted share, for the third quarter of 2019, compared with $106.9 million, or $1.19 per diluted share, for the third quarter of 2018. Net revenues were $1,415.5 million for the quarter, up 6.4% from $1,331.0 million, and gross profit, a non-GAAP measure, was $542.5 million, up 10.0%. Total brokerage and advisory assets served were $719.3 billion as of September 30, 2019, up 6% from a year earlier, and total net new assets were $9.9 billion for the quarter, compared with $4.4 billion in the prior-year period. The company returned $150.8 million to stockholders in the quarter, including $20.5 million of dividends and $130.3 million of share repurchases. For the nine months ended September 30, 2019, net income was $433.2 million, or $5.07 per diluted share, versus $319.2 million, or $3.49 per diluted share, a year earlier. Operating cash flow for the nine months was $509.8 million, compared with $196.1 million in the prior-year period. Total long-term borrowings were $2,370.0 million in principal, and the company stated it was in compliance with its Leverage Test (actual ratio 2.00 against a maximum of 5.00) and Interest Coverage test (actual 8.75 against a minimum of 3.00). The filing also flags continuing regulatory exposure. The company accrued for significant regulatory matters, including a May 2018 settlement with the North American Securities Administrators Association involving approximately $26.4 million in aggregate fines, and says customer remediation costs cannot yet be estimated and could exceed reserves. The company also cites Regulation BI, with a compliance date of June 30, 2020, as an area of uncertainty for its business. The company acquired Allen & Company of Florida, LLC on August 1, 2019, paying approximately $25 million at closing with a contingent payment of up to $10 million.

    Oct 29, 2019
  23. 2019-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2019

    LPL Financial Holdings Inc. reported net income of $146.1 million, or $1.71 per diluted share, for the second quarter of 2019, compared with $118.8 million, or $1.30 per diluted share, in the second quarter of 2018. Total net revenues were $1,389.8 million for the quarter, up 7.0% from $1,298.8 million a year earlier. Total brokerage and advisory assets served reached $706.0 billion at June 30, 2019, up 7% from $659.1 billion, and advisory assets represented 46% of that total. Net new assets were $4.0 billion for the quarter, versus $2.5 billion in the prior-year quarter, with net new advisory assets of $6.6 billion offset by a net outflow of $2.6 billion in brokerage assets. Gross profit, a non-GAAP measure, was $535.7 million for the quarter, up 11.0% from $482.8 million. Growth in asset-based revenue (up 20.9% for the quarter) and advisory revenue (up 9.7%) drove the results, while commission revenue fell 1.8%. The company returned $145.9 million to stockholders in the quarter, including $125.0 million of share repurchases and $20.8 million of dividends. Operating cash flow for the six months was negative at $(54.4) million, and cash and cash equivalents stood at $403.8 million at June 30, 2019. The filing also flags regulatory exposure. The company agreed in May 2018 to a settlement structure with NASAA over state blue-sky laws, resulting in aggregate fines of approximately $26.4 million, and the scope and cost of customer remediation cannot yet be estimated. The company entered into an agreement on May 17, 2019 to acquire Allen & Company of Florida, Inc., with a total purchase price in the mid-$30.0 million range, expected to close in the third quarter of 2019. The SEC adopted Regulation BI in June 2019, with a compliance date of June 30, 2020.

    Jul 30, 2019
  24. 2019-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2019

    LPL Financial Holdings Inc. reported net income of $155.4 million, or $1.79 per diluted share, for the first quarter of 2019, compared with $93.5 million, or $1.01 per diluted share, in the first quarter of 2018. Total net revenues rose to $1,371.7 million from $1,241.6 million, and gross profit, a non-GAAP measure the company presents, was $555.8 million versus $464.0 million a year earlier. Total brokerage and advisory assets served reached $684.0 billion as of March 31, 2019, up from $647.5 billion, but net new assets fell to $4.0 billion from $38.9 billion, which the company attributes in part to the prior-year onboarding of $36.0 billion of assets from the National Planning Holdings acquisition. Growth in asset-based revenue, which rose to $296.4 million from $219.3 million, was driven mainly by cash sweep fees and higher average cash sweep balances, which reached $31.3 billion on average versus $29.3 billion. Commission revenue declined 2.8% to $461.4 million, with trailing commissions down 6.0%, while advisory revenue grew to $453.9 million. Operating expenses rose 4.0% to $1,135.2 million, and total payout ratio increased to 87.37% from 84.90%, reflecting higher non-GDC sensitive payout tied largely to advisor deferred compensation. The filing highlights significant regulatory exposure: the company has agreed to a settlement structure with NASAA related to historical state blue sky law compliance, with aggregate fines of approximately $26.4 million, and the scope and cost of customer remediation cannot yet be estimated. Capital returns in the quarter totaled $146.1 million, including $125.0 million of share repurchases of 1,747,116 shares and $21.1 million of dividends, and $875.0 million of repurchase authorization remained. The company was in compliance with its financial covenants, with an actual leverage ratio of 2.05 against a 5.00 maximum and interest coverage of 8.35 against a 3.00 minimum.

    May 2, 2019
  25. 2018-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2018

    LPL Financial Holdings Inc. reported net income of $106.9 million, or $1.19 per diluted share, for the third quarter of 2018, compared with $58.1 million, or $0.63 per diluted share, in the third quarter of 2017. Total net revenues were $1,331.0 million, up from $1,064.1 million, and the filing attributes the earnings growth primarily to higher advisory fee and cash sweep revenue. Total brokerage and advisory assets served reached $681.0 billion as of September 30, 2018, up 22% from $560.0 billion a year earlier. Net new assets were $4.4 billion for the quarter, compared with $2.9 billion in the prior-year period. For the nine months ended September 30, 2018, net income was $319.2 million, or $3.49 per diluted share, against $174.8 million, or $1.90 per diluted share, a year earlier. Gross profit, a non-GAAP measure, rose to $1,439.9 million from $1,151.6 million. The company returned $144.4 million to shareholders in the quarter, including $21.9 million of dividends and $122.5 million of share repurchases, and had $200.0 million of remaining repurchase authorization at quarter end. The filing highlights ongoing regulatory exposure. LPL agreed to a settlement structure with the North American Securities Administrators Association over historical state "blue sky" compliance, with aggregate fines of approximately $26.4 million across 53 jurisdictions. The company also notes a putative class action lawsuit alleging misstatements related to share repurchases and financial performance in late 2015, which it intends to defend vigorously. The company stated it was in compliance with both financial covenants at September 30, 2018, with a leverage ratio of 2.24 against a maximum of 5.00.

    Oct 30, 2018
  26. 2018-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2018

    LPL Financial Holdings Inc. reported net income of $118.8 million, or $1.30 per diluted share, for the second quarter of 2018, compared with $68.4 million, or $0.74 per diluted share, in the second quarter of 2017. Total net revenues rose 21.9% to $1.30 billion, from $1.07 billion. The filing attributes the earnings growth primarily to higher cash sweep revenue and advisory fee revenue. Total brokerage and advisory assets served reached $659.1 billion as of June 30, 2018, up 21.6% from $542.0 billion, and gross profit, a non-GAAP measure, was $482.8 million, up 24.2%. Advisor headcount was 16,049 at June 30, 2018, and the company returned $139.1 million to shareholders in the quarter, including $22.3 million of dividends and $116.8 million of share repurchases. The filing highlights several items relevant to investors. The company agreed on May 1, 2018 to a settlement structure with the North American Securities Administrators Association over historical compliance with state blue sky laws, expecting aggregate fines of approximately $26.4 million across 53 jurisdictions. A putative class action lawsuit alleging misstatements related to share repurchases and financial performance in late 2015 is pending. The filing also describes the June 2018 effectiveness of the Fifth Circuit's vacatur of the Department of Labor fiduciary rule and the April 2018 SEC proposal for a best interest standard for brokerage accounts. Leverage and interest coverage covenants were in compliance, with actual ratios of 2.34 against a 5.00 maximum and 8.11 against a 3.00 minimum. Liquidity remained sound, with cash and cash equivalents of $817.6 million at June 30, 2018 and long-term borrowings net carrying value of $2.38 billion. LPL Financial's net capital was $130.4 million against a minimum requirement of $7.5 million. The company also declared a $0.25 per share quarterly dividend on July 24, 2018, payable August 23, 2018.

    Jul 31, 2018
  27. 2018-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2018

    LPL Financial Holdings Inc. reported net income of $93.5 million, or $1.01 per diluted share, for the three months ended March 31, 2018, compared with $48.2 million, or $0.52 per diluted share, in the same period of 2017. The filing attributes the increase in earnings per share to higher cash sweep revenue and advisory fee revenue. Total net revenues rose to $1,241.6 million from $1,035.4 million, and total brokerage and advisory assets served reached $647.5 billion, up from $530.3 billion a year earlier. Net new assets were $38.9 billion for the quarter, compared with $2.6 billion in the prior-year quarter, with the increase primarily reflecting the second wave of advisors onboarded from the National Planning Holdings (NPH) acquisition. Gross profit, a non-GAAP measure, was $464.0 million, up from $376.2 million. Cash sweep revenue increased to $104.1 million from $59.7 million, driven by higher federal funds rates. Commission and advisory expense rose to $761.7 million, and total operating expenses increased to $1.09 billion. Income tax expense fell, with the effective tax rate at 22.0% compared with 36.0% a year earlier, reflecting the federal rate reduction under the Tax Act. The company returned $83.4 million to shareholders in the quarter, including $60.8 million of share repurchases and $22.6 million of dividends. The filing also discloses a May 1, 2018 settlement structure with the North American Securities Administrators Association related to historical state "blue sky" law compliance, which would result in aggregate fines of approximately $26 million if all 52 jurisdictions participate. The company expects the majority of related costs to be covered by its captive insurance subsidiary. A putative class action lawsuit related to share repurchases and financial performance in late 2015 also remains pending. The company stated it was in compliance with both financial covenants at March 31, 2018.

    May 4, 2018
  28. 2017-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2017

    LPL Financial Holdings Inc. reported net income of $58.1 million, or $0.63 per diluted share, for the third quarter of 2017, compared with $52.0 million, or $0.58 per share, in the third quarter of 2016. Total net revenues were $1,064.1 million, up 4.6% from $1,017.4 million, and the filing attributes the earnings growth mainly to higher cash sweep revenue and advisory fee revenue. Total brokerage and advisory assets served reached $560.0 billion at September 30, 2017, up 11.5% year over year, and total net new assets were $2.9 billion for the quarter, with net new advisory assets of $6.9 billion offset by a $4.0 billion net outflow from brokerage accounts. The company's biggest pending event is the August 15, 2017 asset purchase agreement with National Planning Holdings, Inc. (NPH) and its four broker-dealer subsidiaries. LPL paid $325 million at closing and agreed to a contingent payment of up to $122.8 million, tied to the percentage of transferred gross dealer concessions between 72% and 93.5%. Onboarding is expected to occur in two waves beginning in the fourth quarter of 2017 and be completed by the end of the first quarter of 2018. Management also flagged the DOL fiduciary rule, which became applicable on June 9, 2017, as a driver of lower annuity commission activity. Balance sheet and capital activity included a September 2017 add-on of $400 million in 5.75% senior notes issued at 103.0% of par, with $200 million used to pay down the Term Loan B to $1,500 million. Stockholders' equity rose to $940.6 million at September 30, 2017. The company returned $47.5 million to shareholders in the quarter ($22.5 million in dividends and $25.0 million in repurchases), and it had $141.3 million remaining under its share repurchase authorization. Credit Agreement covenant ratios were 3.21 against a 5.00 maximum for leverage and 6.88 against a 3.00 minimum for interest coverage.

    Oct 31, 2017
  29. 2017-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2017

    LPL Financial Holdings Inc. reported net income of $68.4 million, or $0.74 per diluted share, for the second quarter of 2017, compared with $47.8 million, or $0.53 per diluted share, in the second quarter of 2016. Net income for the six months ended June 30, 2017 was $116.6 million, or $1.27 per diluted share. Total net revenues were $1,065.5 million for the quarter, up from $1,019.2 million a year earlier, with growth led by cash sweep revenue, advisory fees, and transaction and fee revenue. Total brokerage and advisory assets served reached $542.0 billion at June 30, 2017, versus $488.0 billion a year earlier, while net new brokerage assets were outflows of $5.5 billion for the quarter, compared with outflows of $1.5 billion in the prior-year quarter. Net new advisory assets were $5.9 billion for the quarter, up from $2.8 billion. The filing highlights rising asset-based revenue from the cash sweep program following Federal Reserve rate increases, with cash sweep revenue of $71.8 million for the quarter versus $40.9 million a year earlier, even as average cash sweep balances declined. Commission revenue fell 5.6% for the quarter, driven by lower fixed and variable annuity activity that management attributes in part to marketplace uncertainty around the DOL Rule, which became applicable on June 9, 2017. The company expects that compliance with the DOL Rule will require increased legal, compliance, information technology, and other costs and could lead to greater litigation risk. Capital and balance sheet activity included a March 2017 refinancing with a new $1.7 billion Term Loan B and $500.0 million of 5.75% senior notes due 2025, which led to a $21.1 million loss on extinguishment of debt. The company returned $58.8 million to shareholders in the quarter, including $22.6 million of dividends and $36.2 million of share repurchases, and had $166.3 million remaining under its repurchase authorization at June 30, 2017. The filing also discloses a putative class action lawsuit alleging misstatements related to share repurchases and financial performance in late 2015, which the company intends to defend vigorously.

    Aug 1, 2017
  30. 2017-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2017

    LPL Financial Holdings Inc. reported first-quarter 2017 net income of $48.2 million, or $0.52 per diluted share, compared with $50.4 million, or $0.56 per diluted share, in the first quarter of 2016. The decline was driven by a $21.1 million loss on extinguishment of debt tied to the March 2017 refinancing, which reduced earnings per share by $0.14 on a tax-effected basis. Excluding that charge, cash sweep revenue and transaction and fee revenue increased. Total net revenues were $1,035.4 million, up 3.0% from $1,005.3 million, and gross profit, a non-GAAP measure, was $376.2 million, up 5.8%. Total brokerage and advisory assets served reached $530.3 billion as of March 31, 2017, up 10.8% year over year. Net new assets were $2.6 billion, but the mix was uneven: net new advisory assets were $6.0 billion, while net new brokerage assets were outflows of $3.4 billion, which the company attributed primarily to client departures during the quarter. Advisory assets under custody grew to $225.7 billion, representing 42.6% of total brokerage and advisory assets served. On March 10, 2017, the company refinanced its debt structure with a new $1.7 billion seven-year Term Loan B, $500.0 million of 5.75% senior notes due 2025, and a $500.0 million five-year revolver that remained undrawn at quarter end. Total borrowings were $2.2 billion at a weighted-average interest rate of 4.22%. The company was in compliance with its revolver covenants, with an actual leverage ratio of 3.32 against a 5.00 maximum. The filing also discloses a putative class action lawsuit tied to share repurchases and financial performance in late 2015, and notes that the Department of Labor's conflict-of-interest rule becomes applicable on June 9, 2017, which management expects will require increased costs.

    May 2, 2017
  31. 2016-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2016

    LPL Financial Holdings Inc. reported net income of $52.0 million, or $0.58 per diluted share, for the third quarter of 2016, compared with $41.1 million, or $0.43 per share, in the third quarter of 2015. Management attributed part of the per-share growth to a $0.12 benefit from tax planning initiatives related to prior periods and a $0.04 benefit from account termination fees tied to an institutional client acquired by a bank with its own broker-dealer. Total net revenues were $1,017.4 million for the quarter, down 3.5% from $1,054.7 million, while gross profit, a non-GAAP measure, rose to $346.9 million from $339.8 million. Brokerage and advisory assets served reached $502.4 billion at September 30, 2016, up from $461.8 billion a year earlier, and net new advisory assets were $4.1 billion for the quarter. The quarter showed a shift in revenue mix. Commission revenue fell 10.1% to $431.7 million, driven by lower variable annuity, mutual fund, and alternative investment activity, while asset-based revenue rose 11.6% to $138.3 million on higher cash sweep revenue. The company paid $22.3 million in dividends and made no share repurchases in the quarter, leaving $225.0 million of repurchase authorization. At quarter end, total debt was $2.2 billion, the company was in compliance with its credit agreement covenants, and its leverage ratio was 3.57 against a maximum of 5.0. The filing also highlights regulatory and legal exposure. The company has accrued for a significant regulatory matter relating to sales of certain securities over several years, and it faces a putative class action alleging misstatements about share repurchases and financial performance in late 2015. The U.S. Department of Labor's April 2016 fiduciary rule is expected to affect products, compensation, and compliance costs for retirement accounts, and the company continues to assess its effects.

    Nov 3, 2016
  32. 2016-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2016

    LPL Financial Holdings Inc. reported net income of $47.8 million, or $0.53 per diluted share, for the second quarter of 2016, compared with $50.2 million, or $0.52 per diluted share, in the second quarter of 2015. Total net revenues declined to $1,019.2 million from $1,090.7 million, driven by lower commission revenue ($445.8 million versus $509.7 million) and lower advisory revenue ($323.0 million versus $344.9 million). Asset-based revenue rose to $137.8 million, led by cash sweep revenue of $40.9 million versus $22.6 million a year earlier. Gross profit, a non-GAAP measure, was $344.9 million, up from $340.3 million, and the company cited lower advisor production bonuses and a lower share count as contributors to EPS growth. Brokerage and advisory assets served reached $488.0 billion at June 30, 2016, up from $485.7 billion, while net new advisory assets fell to $2.8 billion in the quarter from $4.3 billion. Advisory assets under custody grew to $196.1 billion, and Hybrid RIA assets reached $132.3 billion. Management noted that a shift of advisors to its Hybrid RIA platform reduced advisory fee revenue even as advisory assets grew. Regulatory-related charges decreased $1.2 million in the quarter, and the company expects 2016 regulatory charges to be meaningfully lower than 2015. The filing also discusses the U.S. Department of Labor's April 2016 fiduciary rule (the "DOL Rule"), which the company said will likely affect its products, compensation, and costs, and it discloses a putative securities class action related to share repurchases and financial performance in late 2015. The company paid $22.3 million in dividends and made no share repurchases in the quarter. Liquidity remained adequate, with cash and cash equivalents of $745.8 million at June 30, 2016, and the company reported compliance with all credit agreement covenants, including a leverage ratio of 3.7 against a maximum of 5.0 and an interest coverage ratio of 6.9 against a minimum of 3.0.

    Jul 29, 2016
  33. 2016-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2016

    LPL Financial Holdings Inc. reported first-quarter 2016 net income of $50.4 million, or $0.56 per diluted share, compared with $50.7 million, or $0.52 per share, in the first quarter of 2015. Total net revenues were $1,005.3 million, down from $1,109.3 million, with commission revenue falling to $436.7 million from $523.4 million, driven mainly by lower sales-based activity in alternative investments, variable annuities, and mutual funds. Asset-based revenue rose to $136.3 million, primarily on cash sweep revenue of $43.4 million versus $21.5 million a year earlier, after the federal funds rate target increase. Gross profit, a non-GAAP measure, was $355.7 million, roughly flat with $355.3 million a year earlier. Advisory and brokerage assets served were $478.7 billion at March 31, 2016, down from $485.4 billion, while advisory assets under custody grew to $189.5 billion from $183.7 billion. Net new advisory assets slowed to $2.0 billion from $5.2 billion. Management said volatility and macro uncertainty offset most of the flows. The filing notes that a putative class action has been filed against the company and certain executive officers over share repurchases and financial performance in late 2015, which the company intends to defend vigorously. It also states that the April 2016 Department of Labor fiduciary rule will likely affect the products, compensation, and compliance costs for retirement accounts. Capital returns in the quarter totaled $47.2 million, including $22.2 million in dividends and $25.0 million in share repurchases of 634,651 shares. The company was in compliance with its credit agreement covenants, with a leverage ratio of 3.7 against a maximum of 5.0 and interest coverage of 11.9 against a minimum of 3.0. Total debt borrowings were $2.21 billion at March 31, 2016.

    May 4, 2016
  34. 2015-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2015

    LPL Financial Holdings Inc. reported third-quarter 2015 net income of $41.1 million, or $0.43 per diluted share, up from $33.3 million, or $0.33 per diluted share, in the third quarter of 2014. Total net revenues declined 3.2% to $1,054.7 million, driven by lower commission revenue (down 7.7% to $480.3 million) and lower alternative investment, variable annuity and mutual fund sales. Advisory revenue ($341.2 million), asset-based revenue ($123.9 million) and transaction and fee revenue ($105.6 million, up 11.5%) were higher or roughly flat. Gross profit grew 2.6% to $339.8 million, and Adjusted EBITDA rose to $118.4 million from $108.9 million. For the nine months, net income was $142.0 million, or $1.46 per diluted share. Advisory and brokerage assets fell to $461.8 billion from $464.8 billion, as net new advisory assets of $13.7 billion for the nine months were offset by market-driven declines. Advisory assets under custody rose to $179.7 billion, and Hybrid RIA assets grew to $110.0 billion. Capital returned in the quarter totaled $49.0 million, including $24.0 million of dividends and $25.0 million of share repurchases. Cash and cash equivalents were $410.0 million at September 30, 2015, and total senior secured credit facilities were $1,666.1 million. Subsequent to quarter end, on October 29, 2015, the company announced planned changes to its capital management strategy. These include increasing indebtedness by up to $700 million of incremental credit facility upsizing, extending the term B loan maturity, and raising the share repurchase authorization to $500.0 million from the prior program. The company also reached agreements to resolve several significant regulatory matters, with regulatory-related charges decreasing $14.4 million in the quarter, though the filing notes that exposure above the accrued liability could range from $0 to $6 million.

    Oct 29, 2015
  35. 2015-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2015

    LPL Financial Holdings Inc. reported second-quarter 2015 net income of $50.2 million, up from $43.1 million a year earlier, with diluted EPS of $0.52 versus $0.42. Total net revenues were $1.09 billion, essentially flat (down 0.2%) from $1.09 billion in the prior-year quarter. Six-month net income was $100.9 million and diluted EPS was $1.03, compared with $96.2 million and $0.94 in the first half of 2014. Net revenue for the six months rose 0.9% to $2.20 billion. The filing attributes the flat revenue largely to lower sales-based commissions on annuities and alternative investments, partly offset by growth in trailing commissions and advisory fees. Advisory and brokerage assets reached $485.7 billion and advisory assets under custody reached $186.8 billion at June 30, 2015. Net new advisory assets were $4.3 billion in the quarter and $9.5 billion for the first half. Cash sweep revenue fell 8.9% to $22.6 million, reflecting fee compression. Adjusted EBITDA was $135.4 million for the quarter, and Adjusted Earnings per diluted share were $0.65. The company repurchased 2.1 million shares for $85.8 million in the quarter, leaving $177.2 million of authorization, and declared a $0.25 quarterly dividend payable August 28, 2015. Management recorded $6.7 million of regulatory-related charges in the quarter and accrued for certain regulatory matters, with exposure estimated at up to $8 million above the accrual. Total debt under the Credit Agreement was $1.69 billion, and the company reported compliance with all covenants.

    Aug 5, 2015
  36. 2015-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2015

    LPL Financial Holdings Inc. reported net income of $50.7 million, or $0.52 per diluted share, for the three months ended March 31, 2015, compared with $53.1 million, or $0.51 per diluted share, a year earlier. Total net revenues rose to $1.109 billion from $1.087 billion, driven by higher advisory revenue ($342.1 million) and transaction and fee revenue ($101.7 million), partly offset by lower commission revenue ($523.4 million versus $534.6 million), with the decline in sales-based annuity commissions cited as the main cause. Total operating expenses increased to $1.011 billion from $987.0 million, with general and administrative costs up sharply on $10.4 million of regulatory-matter and captive insurance charges and $8.5 million of business development and promotional expenses. Key operating metrics were strong. Advisory and brokerage assets reached $485.4 billion, net new advisory assets were $5.2 billion, and Hybrid RIA assets under custody grew 50.6% to $104.8 billion. Adjusted EBITDA was $135.1 million compared with $141.5 million, and Adjusted Earnings per diluted share were $0.64 versus $0.69. Cash cash equivalents rose to $484.7 million, and operating cash flow was $145.6 million, while the company spent $30.0 million repurchasing 0.7 million shares. The filing also flags continuing regulatory exposure: the company accrued estimated costs for significant regulatory matters, including one relating to sales of certain securities over several years, and estimates potential exposure in excess of accruals of $0 to $8 million. Its Service Value Commitment restructuring is expected to be completed in 2015, with total charges of approximately $68.0 million and expected annual pre-tax savings of about $32.0 million. Subsequent to quarter-end, the board declared a $0.25 per share dividend and increased the share repurchase plan by $200.0 million.

    Apr 30, 2015
  37. 2014-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2014

    LPL Financial Holdings Inc. reported net income of $33.3 million for the three months ended September 30, 2014, down from $37.6 million a year earlier, on total net revenues of $1,089.2 million, up from $1,053.2 million. For the nine months, net income was $129.5 million versus $137.4 million, and diluted EPS was $1.26 compared with $1.29. Growth in advisory revenue ($340.4 million in the quarter, up 13.8%) and asset-based revenue was offset by higher production and general and administrative expenses, including professional services tied to regulatory matters. Adjusted EBITDA was $108.9 million for the quarter, down from $120.3 million, and Adjusted Earnings per diluted share were $0.48 versus $0.56. Balance sheet and cash flow metrics show total assets of $3.92 billion and stockholders' equity of $1.06 billion at September 30, 2014. Operating cash flow for the nine months was $224.3 million, and the company repurchased $150.0 million of common stock and paid $72.1 million in dividends during the period. Senior secured credit facilities totaled $1.53 billion, with a total leverage ratio of 2.56 against a 4.25 covenant maximum. Subsequent to quarter end, the company amended its credit agreement, extending the Term Loan A and Revolving Credit Facility maturity to September 30, 2019 and increasing the revolver to $400.0 million, raised its share repurchase authorization by $150.0 million to $217.9 million, and declared a $0.24 quarterly dividend. Management highlighted fee compression in its cash sweep programs as a headwind, with cash sweep revenues down 14.0% in the quarter, and noted that fee compression is expected to increase further in 2015 and 2016. The Service Value Commitment restructuring program, with total charges estimated at $65.0 million, is expected to be completed in 2015, with annual pre-tax savings expected to approach $30.0 million by 2015.

    Oct 30, 2014
  38. 2014-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2014

    LPL Financial Holdings Inc. reported net revenues of $1,092.7 million for the quarter ended June 30, 2014, up from $1,018.9 million a year earlier, while net income fell to $43.1 million from $45.1 million. Diluted EPS was $0.42 in both periods. Growth came mainly from advisory revenue of $330.4 million (versus $298.1 million) and commission revenue of $535.2 million (versus $508.4 million). Total operating expenses rose to $1,008.7 million from $923.4 million, led by commission and advisory expenses, general and administrative costs (up 26.4% to $106.8 million, including $11.6 million of higher professional fees), and restructuring charges of $9.2 million tied to the Service Value Commitment program. For the six months ended June 30, 2014, net revenues were $2,180.2 million and net income was $96.2 million, compared with $1,993.7 million and $99.8 million in 2013. Operating cash flow was $116.5 million, compared with a use of $4.3 million a year earlier. Share repurchases totaled $125.0 million in the first half, and dividends paid totaled $48.1 million. Advisory and brokerage assets reached $465.4 billion at June 30, 2014, up from $396.7 billion, and net new advisory assets were $8.7 billion for the six months. The balance sheet shows total assets of $3,893.5 million and stockholders' equity of $1,068.6 million at June 30, 2014. Senior secured credit facilities totaled $1,529.7 million, and the company was in compliance with its covenants, with a reported leverage ratio of 2.49 against a 4.25 maximum. LPL Financial's net capital was $187.5 million, with $180.7 million in excess of the minimum requirement. The company also declared a $0.24 per share quarterly dividend on July 29, 2014.

    Jul 30, 2014
  39. 2014-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2014

    LPL Financial Holdings Inc. reported first-quarter 2014 net income of $53.1 million, or $0.51 per diluted share, compared with $54.7 million, or $0.51 per diluted share, in the first quarter of 2013. Total net revenues rose 11.6% to $1,087.4 million, driven by commission revenue (up 10.1% to $534.6 million), advisory revenue (up 16.4% to $327.3 million) and asset-based revenue (up 10.5% to $114.7 million). Total operating expenses rose 13.2% to $987.0 million, led by production expenses (up 13.0%) and general and administrative expenses (up 21.4%), which the company attributed in part to parallel rent and other costs tied to its new San Diego office. Adjusted EBITDA was $141.5 million, up from $135.9 million, and Adjusted Earnings per diluted share rose to $0.69 from $0.64. Balance sheet and cash flow activity centered on capital return. In February 2014 the company repurchased 1.9 million shares from an investment fund associated with TPG Capital at $52.00 per share for $100.0 million, and it paid a $0.24 per share dividend totaling $24.1 million. Operating cash flow was $85.8 million, against $7.3 million a year earlier, largely reflecting client trading and settlement activity. Total assets declined to $3.93 billion from $4.04 billion at year-end 2013, and stockholders' equity fell to $1.06 billion from $1.10 billion, reflecting the repurchase and dividends. Senior secured credit facilities totaled $1.53 billion, and the company reported a leverage ratio of 2.42 against a covenant maximum of 4.25. The company continues its Service Value Commitment program, with total expected charges of $65.0 million through 2015 and expected annual pre-tax savings of approximately $30.0 million by 2015. The filing reports 13,726 advisors at March 31, 2014, up from 13,377, and advisory and brokerage assets of $447.1 billion, up 13.5%. Management reported no material changes to risk factors from its 2013 Form 10-K.

    Apr 28, 2014
  40. 2013-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2013

    LPL Financial Holdings Inc. reported third-quarter 2013 net income of $37.6 million, or $0.36 per diluted share, up from $34.3 million, or $0.31 per diluted share, a year earlier. Total net revenues rose to $1.05 billion from $907.2 million, a 16.1% increase, with commission revenue up 19.3% to $527.4 million and advisory revenue up 11.9% to $299.1 million. Nine-month net income was $137.4 million ($1.29 diluted EPS) versus $115.0 million ($1.02) in the prior-year period, and total net revenues were $3.05 billion, up 12.1%. Adjusted EBITDA for the quarter was $120.3 million, up from $108.0 million. Advisory and brokerage assets reached $414.7 billion at September 30, 2013, up 11.7%, and advisory assets under custody reached $141.1 billion, up 19.0%. Net new advisory assets were $10.7 billion for the nine months. Expenses were pressured by restructuring charges of $6.5 million in the quarter tied to the Service Value Commitment expansion, which the company estimates will total $65.0 million through 2015, and by the closure of its NestWise subsidiary, which resulted in a $10.2 million goodwill write-off and $6.9 million of fixed asset charges. Liquidity remained solid: cash and cash equivalents were $585.7 million, and LPL Financial's net capital was $183.1 million against a minimum of $6.3 million. Senior secured credit facilities totaled $1.54 billion after a May 2013 refinancing, and the company was in compliance with its covenants, with a leverage ratio of 2.42 against a 4.25 maximum. Shareholder returns included $175.7 million of share repurchases and $48.7 million of dividends paid in the nine months, and the board declared a $0.19 per share dividend on October 29, 2013.

    Oct 30, 2013
  41. 2013-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2013

    LPL Financial Holdings Inc. reported net income of $45.1 million for the second quarter of 2013, up from $39.5 million in the prior-year quarter, and diluted EPS of $0.42 versus $0.35. For the six months ended June 30, 2013, net income was $99.8 million ($0.93 diluted EPS) compared with $80.7 million ($0.72) a year earlier. Total net revenues rose to $1.02 billion for the quarter (up 12.2%) and $1.99 billion for the six months (up 10.2%), led by commission and advisory revenue growth. Total advisory and brokerage assets reached $396.7 billion at June 30, 2013, and advisory assets under custody reached $132.4 billion. Restructuring charges increased to $7.3 million in the quarter and $13.4 million for the six months, tied to the expanded Service Value Commitment, a program with estimated total charges of $65.0 million expected to be completed in 2015 and targeted annual pre-tax run-rate savings of $30.0 million to $35.0 million. In May 2013 the company refinanced its senior secured credit facilities, with Amended Term Loan B increased to $1,083.9 million, and recorded an $8.0 million loss on extinguishment of debt. Total borrowings were $1.54 billion at June 30, 2013, and the company reported a leverage ratio of 2.50 against a covenant maximum of 4.00. Cash used in operating activities was $4.3 million for the six months ended June 30, 2013, compared with cash provided of $56.1 million a year earlier, mainly reflecting client trading and settlement activity. The board declared a quarterly dividend of $0.19 per share on July 30, 2013, payable August 30, 2013, and the company repurchased 1,428,576 shares in the quarter at a weighted average price of $36.99.

    Jul 31, 2013
  42. 2013-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2013

    LPL Financial Holdings Inc. reported net income of $54.7 million, or $0.51 per diluted share, for the three months ended March 31, 2013, up from $41.2 million, or $0.37 per diluted share, a year earlier. Total net revenues rose 8.1% to $974.8 million, led by advisory revenues (up 12.1% to $281.2 million), commission revenues (up 4.7% to $485.6 million) and transaction and other revenues (up 19.9% to $89.4 million). Recurring revenue was 65% of total net revenue. Total operating expenses rose 8.7% to $872.1 million, including $6.0 million of restructuring charges tied to the expanded Service Value Commitment, which the company estimates will cost approximately $65.0 million in total through 2015. Non-operating interest expense fell 24.2% to $12.2 million, and the prior-year quarter included a $16.5 million loss on extinguishment of debt that did not recur. The balance sheet showed total assets of $3.81 billion and stockholders' equity of $1.19 billion at March 31, 2013, with senior secured credit facilities of $1.31 billion. Cash and cash equivalents were $436.0 million, and the company reported net cash provided by operating activities of $7.3 million for the quarter. Adjusted EBITDA was $135.9 million, and Adjusted Earnings were $68.1 million, or $0.64 per diluted share, both non-GAAP measures that the company reconciles to GAAP results. The company paid a $0.135 per share quarterly cash dividend in March 2013 and declared another on April 24, 2013, payable May 20, 2013. The filing also reports that the company estimates its Credit Agreement leverage ratio at 2.29 against a covenant maximum of 4.00, and its interest coverage ratio at 9.97 against a minimum of 3.00. The company disclosed that it has recorded an estimated probable loss related to a discussion with its principal regulator about email surveillance and production, and that an IRS penalty matter was resolved through remittance of payment approximating prior accruals.

    Apr 25, 2013
  43. 2012-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2012

    LPL Financial Holdings Inc. reported third-quarter 2012 results with net revenues of $907.2 million, up from $882.9 million a year earlier, and net income of $34.3 million, compared with $36.4 million in the prior-year quarter. Diluted EPS was $0.31 versus $0.32. For the nine months, net revenues were $2.72 billion and net income was $115.0 million, down from $130.9 million. The filing attributes the decline in profitability partly to a $9.2 million charge from an increase in the fair value of contingent consideration obligations in the quarter, a $3.9 million charge for late deposit of withholding taxes tied to a 2010 IPO-related stock option exercise, and higher compensation and general and administrative expenses. Recurring revenue was 65.2% of net revenue for the nine months, and advisory and brokerage assets reached $371.4 billion, up from $316.4 billion. Cash and cash equivalents fell to $446.0 million from $720.8 million at year-end 2011, reflecting $235.8 million in cash dividends (including a special dividend of $2.00 per share paid in May 2012), $107.5 million in share repurchases, and $43.7 million for acquisitions. Net cash from operating activities was $101.4 million for the nine months, compared with $363.7 million in the prior year, largely due to client-related settlement activity and tax receivable collections in 2011. In March 2012 the company refinanced its senior secured credit facilities into a $735.0 million Term Loan A, a $615.0 million Term Loan B and a $250.0 million undrawn revolver, and recorded a $16.5 million loss on extinguishment of debt. Total borrowings were $1.33 billion, and the company stated it was in compliance with its covenants, with a leverage ratio of 2.27 against a 4.00 maximum. During the quarter the company completed the Fortigent and Veritat acquisitions and declared a regular quarterly dividend of $0.12 per share, payable November 30, 2012. Stockholders' equity was $1.19 billion at September 30, 2012, down from $1.34 billion at December 31, 2011.

    Oct 31, 2012
  44. 2012-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2012

    LPL Financial Holdings Inc. reported second-quarter 2012 net revenues of $907.8 million, up 1.5% from $894.0 million a year earlier, while net income fell 13.2% to $39.5 million ($0.35 diluted EPS versus $0.40). For the six months ended June 30, 2012, net revenues rose 2.4% to $1.81 billion and net income declined 14.6% to $80.7 million, with the decline reflecting a $16.5 million loss on extinguishment of debt tied to the March 2012 refinancing. Adjusted EBITDA for the quarter was $111.6 million (down from $123.0 million), and Adjusted Earnings were $55.0 million, or $0.49 per diluted share, versus $0.52 a year earlier. Advisory and brokerage assets reached $353.0 billion and advisory assets under management reached $111.4 billion at June 30, 2012, up 3.6% and 7.9% year over year. Commission revenue was essentially flat for the six months (down 0.1%), with declines in fixed annuities and mutual funds offset by growth in variable annuities and alternative investments. Asset-based fees rose 10.9% for the six months, partly due to the UVEST conversion, and transaction and other fees rose 7.7%. Balance-sheet and capital actions were significant during the period. The company refinanced its credit facilities into a $735.0 million Term Loan A and a $615.0 million Term Loan B, paid a $2.00 per share special dividend totaling $222.6 million, and repurchased $55.9 million of stock during the six months. Operating cash flow fell to $56.1 million from $349.7 million. The company also disclosed an IRS Notice of Proposed Adjustment on July 20, 2012 relating to withholding-tax deposits, for which it could not estimate a range of liability.

    Aug 1, 2012
  45. 2012-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2012

    LPL Investment Holdings Inc. reported first-quarter 2012 net income of $41.2 million, or $0.37 diluted earnings per share, compared with $49.0 million, or $0.43 per diluted share, in the first quarter of 2011. Total net revenues rose to $901.8 million from $873.9 million, with commissions of $463.7 million, advisory fees of $251.0 million and asset-based fees of $97.2 million. Total operating expenses increased to $802.4 million, and results were affected by a $16.5 million loss on extinguishment of debt tied to the March 2012 refinancing. Adjusted EBITDA was $125.0 million, and Adjusted Earnings were $63.2 million, or $0.56 per diluted share, versus $0.52 a year earlier, per the filing's non-GAAP reconciliations. The company entered into a new $1.35 billion senior secured credit agreement on March 29, 2012, comprising a $735.0 million Term Loan A, a $615.0 million Term Loan B and a $250.0 million revolving facility, which replaced its prior credit agreement. Net cash used in operating activities was $28.1 million, compared with $189.5 million provided in the prior-year period, primarily due to client settlement and funding activity. The Board approved a special dividend of $2.00 per share payable May 25, 2012, for which the company recorded a $220.6 million dividend payable, and it repurchased 1,149,896 shares for $37.5 million in connection with a deferred compensation plan distribution. The company also closed its acquisition of Fortigent on April 23, 2012, for a total purchase price of $39.5 million. As of March 31, 2012, the company reported 12,962 advisors, advisory and brokerage assets of $354.1 billion, advisory assets under management of $110.8 billion, and total stockholders' equity of $1.18 billion, down from $1.34 billion at December 31, 2011 following the dividend declaration and share repurchases. The filing states that the company was in compliance with all covenants at March 31, 2012.

    Apr 30, 2012
  46. 2011-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2011

    LPL Investment Holdings Inc. reported net income of $36.4 million for the third quarter of 2011 on net revenues of $882.9 million, compared with net income of $26.1 million on net revenues of $760.0 million in the third quarter of 2010. For the nine months ended September 30, 2011, net income was $130.9 million on net revenues of $2.65 billion, versus $59.7 million on $2.29 billion a year earlier. Diluted earnings per share were $0.32 for the quarter and $1.15 for the nine months. Commissions and advisory fees were the largest expense, and the company attributed revenue growth to higher advisory fees and commissions, with advisory fees up 26.2% in the quarter. The company's balance sheet shows total assets of $3.65 billion and stockholders' equity of $1.30 billion at September 30, 2011. Senior credit facilities totaled $1.34 billion, down from $1.39 billion at December 31, 2010. Cash and cash equivalents rose to $663.2 million, and net cash provided by operating activities was $363.7 million for the nine months, aided by a $193.2 million change in income tax receivables and $57.3 million of excess tax benefits from share-based compensation. The company repurchased $89.0 million of treasury stock during the nine months under its share repurchase programs. Management highlighted the UVEST Financial Services Group consolidation into LPL Financial, with total expected restructuring costs of $47.6 million and a projected annual pre-tax profitability improvement of approximately $10 million to $12 million upon completion. The company also disclosed a September 2011 upgrade of its corporate credit rating to Ba2 from Ba3 and noted that Adjusted EBITDA was $111.6 million for the quarter, up from $98.6 million a year earlier.

    Nov 2, 2011
  47. 2011-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2011

    LPL Investment Holdings Inc. reported its second-quarter 2011 results in this Form 10-Q, with net revenues of $894.0 million for the three months ended June 30, 2011, up 13.1% from $790.2 million a year earlier, and net income of $45.5 million compared with $8.0 million. For the six months, net revenues were $1.77 billion, up 15.3%, and net income was $94.5 million versus $33.6 million. Diluted EPS was $0.40 for the quarter and $0.82 for the half-year. The quarter included a $38.0 million loss on extinguishment of debt, which the company recorded in connection with its 2011 debt activity, and the reported figures are shaped by that charge and by income tax expense of $30.0 million for the quarter. The company's balance sheet grew to $3.66 billion in total assets at June 30, 2011, with senior credit facilities of $1.34 billion, down from $1.39 billion at December 31, 2010. Cash and cash equivalents rose to $681.5 million, and net cash provided by operating activities was $349.7 million for the six months, helped by $55.8 million of excess tax benefits from stock option exercises and a $181.8 million change in income tax receivables. The company repurchased 2,283,854 shares for about $79.6 million under a $80.0 million program approved May 25, 2011. Operationally, the company reported 12,660 advisors and advisory and brokerage assets of $340.8 billion, up 23.1%. Advisory fees reached a record $264.3 million in the quarter. The company is consolidating its UVEST Financial Services Group subsidiary into LPL Financial, with total expected pre-tax expenditures of $52.7 million and a targeted pre-tax profitability improvement of approximately $10 million to $12 million per year.

    Aug 3, 2011
  48. 2011-Q1

    LPL Financial Holdings Quarterly Report for Q1 Ended Mar 31, 2011

    LPL Investment Holdings Inc. reported its first quarter 2011 results in this Form 10-Q, filed after its IPO in the fourth quarter of 2010. Net revenues rose 17.5% to $873.9 million from $743.4 million, and net income increased to $49.0 million from $25.6 million, with diluted EPS of $0.43 versus $0.25. Adjusted EBITDA was $124.3 million and Adjusted Earnings were $59.4 million ($0.52 per diluted share), against $105.5 million and $41.1 million in the prior-year quarter. Commission revenue reached $451.9 million, which the company says surpassed its previous quarterly high from the second quarter of 2008, and advisory fees and transaction and other fees also hit record highs. The balance sheet strengthened, with cash and cash equivalents of $596.6 million at March 31, 2011, up from $419.2 million at year-end 2010, and total stockholders' equity of $1.27 billion. Total indebtedness was $1.34 billion, down from $1.39 billion, after a $40.0 million term loan repayment funded from IPO proceeds and $43.5 million of total senior credit facility repayments in the quarter. Operating cash flow was $189.5 million, compared with an outflow of $86.0 million a year earlier, helped by an $82.6 million change in income tax receivables tied to IPO-related tax benefits. Other developments include the acquisition of certain assets of National Retirement Partners Inc. for about $22.7 million total consideration, and a March 2011 decision to consolidate UVEST Financial Services Group with LPL Financial, with estimated pre-tax charges of $52.7 million over the restructuring plan and expected annual pre-tax savings of $10 million to $12 million beginning in 2012. Subsequent to quarter end, the company announced its intent to acquire Concord Capital Partners, and it received $98.2 million in federal tax refunds in April 2011.

    Apr 26, 2011
  49. 2010-Q3

    LPL Financial Holdings Quarterly Report for Q3 Ended Sep 30, 2010

    LPL Investment Holdings Inc. reported net revenues of $759.964 million for the third quarter of 2010, up 8.2% from $702.326 million a year earlier, and net income of $26.144 million, compared with a net loss of $1.456 million in the prior-year quarter. For the nine months ended September 30, 2010, net revenues were $2.293531 billion (up 13.8%) and net income was $59.698 million. Management cites a market recovery as the main driver: advisory fees rose 16.6% in the quarter, commissions rose 4.1%, and advisory assets under management grew 18.7% to $86.2 billion. Total operating expenses rose 1.5% in the quarter, while restructuring charges fell sharply to $1.863 million from $42.219 million. Debt was refinanced in the second quarter of 2010. The company established a $580.0 million term loan maturing in 2017 and redeemed its $550.0 million 10.75% senior unsecured subordinated notes at 105.375% of principal, which produced a $37.979 million loss on extinguishment of debt for the nine months. Total borrowings were $1.390 billion at September 30, 2010, and the company reported compliance with its covenants, with a leverage ratio of 2.81 against a 3.90 maximum and interest coverage of 4.46 against a 2.50 minimum. Cash and cash equivalents rose to $442.5 million from $378.6 million at year-end 2009, and net cash provided by operating activities was $107.8 million for the nine months. Stockholders' equity increased to $927.3 million. The filing also discloses a dispute with a third-party indemnitor that has asserted it is no longer obligated to indemnify the company for certain claims. The company settled two arbitrations in the third quarter and recorded $8.9 million of related legal expenses for the nine months.

    Oct 29, 2010
  50. 2010-Q2

    LPL Financial Holdings Quarterly Report for Q2 Ended Jun 30, 2010

    LPL Investment Holdings Inc. reported net revenues of $790.2 million for the three months ended June 30, 2010, up 18.1% from $669.3 million a year earlier, driven by higher commissions ($420.2 million, up 14.4%), advisory fees ($215.1 million, up 33.2%) and asset-based fees ($77.4 million, up 14.3%). Net income for the quarter fell to $8.0 million from $15.6 million, as a $38.0 million loss on extinguishment of debt and restructuring charges of $4.6 million weighed on results. Income tax expense was only $0.6 million, reflecting a 7.3% effective tax rate that the company attributed to a favorable state apportionment ruling and revised settlement contingencies. For the six months, net income was $33.6 million, up 10.5% from $30.4 million, and diluted EPS was $0.33 versus $0.30. The balance sheet shows total assets of $3.32 billion and stockholders' equity of $897.9 million at June 30, 2010. The company's debt restructuring in May and June 2010 added a $580.0 million 2017 term loan tranche and redeemed its $550.0 million 10.75% senior unsecured subordinated notes at 105.375% of principal, for an aggregate cash payment of approximately $610.4 million including accrued interest. Total borrowings were $1.39 billion at quarter end, versus $1.37 billion at December 31, 2009. Advisory and brokerage assets reached $276.9 billion, with advisory assets under management up 20.8% to $78.9 billion, while money market account balances fell 22.6% to $7.2 billion. The filing also discloses a subsequent event: on July 14, 2010, the company agreed to acquire certain assets of National Retirement Partners, Inc. for a $27.0 million payment at closing plus a contingent payment tied to commission and fee revenue, with closing expected in the fourth quarter of 2010.

    Aug 4, 2010