Skip to content
AnalystLens

LPL Financial Holdings 8-K Report, Financial Results (Apr 30, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 30, 2024
Period End
April 30, 2024
Security
LPLA
In the 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. Material agreement8-K · Sep ’17Sep ’17
  2. Leadership change8-K · Jul ’21Jul ’21
  3. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 8-K filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.

LPL Financial Holdings Inc. (Nasdaq: LPLA) reported first-quarter 2024 results in a press release furnished as Exhibit 99.1 to this Form 8-K.

Net income was $289 milliona, or $3.83 diluted earnings per share, down 10% from a year ago. Adjusted EPS decreased 6% year-over-year to $4.21, gross profit increased 5% to $1,066 million, core G&A increased 11% to $364 million, and adjusted EBITDA decreased 5% to $541 million. Total advisory and brokerage assets rose 23% year-over-year to $1.44 trillion, and total organic net new assets were $17 billion, representing 5% annualized growth.

The company also announced a definitive agreement to acquire Atria Wealth Solutions, which supports about 2,400 advisors and manages roughly $100 billionb of brokerage and advisory assets, with closing expected in the second half of 2024. A transition of the Wintrust wealth management business, covering about 85 advisors and $16 billion of assets, is expected to onboard in the first quarter of 2025. The Crown Capital wealth management business, with about 125 advisors and roughly $5 billion of assets, was acquired in April 2024.

The Board declared a $0.30c per share dividend payable June 4, 2024. For investors, the quarter shows strong asset growth and advisor recruiting, with advisor count at 22,884, alongside lower year-over-year earnings. Client cash balances fell to $46 billion, and the filing notes a $50 million SEC civil penalty expected to be paid in the second quarter of 2024 under a settlement in principle.

02—Key points

Key Highlights

  1. Net income of $289 million and diluted EPS of $3.83, down 10% year-over-year; adjusted EPS of $4.21, down 6%.
  2. Total advisory and brokerage assets increased 23% year-over-year to $1.44 trillion, with advisory assets up 28% to $793 billion.
  3. Total organic net new assets of $17 billion, representing 5% annualized growth; recruited assets of $20 billion in the quarter.
  4. Advisor count rose 1,363 year-over-year to 22,884, while client cash balances fell $8 billion year-over-year to $46 billion (3.2% of total assets).
  5. Agreed to acquire Atria Wealth Solutions (about $100 billion of assets), expected to close in the second half of 2024, with conversion expected in mid-2025.
  6. Wintrust wealth management transition (about $16 billion of assets) expected to onboard in the first quarter of 2025; Crown Capital acquisition completed in April 2024.
  7. Declared a $0.30 per share dividend payable June 4, 2024; share repurchases were $70.0 million in the quarter.

03—Questions

Frequently Asked Questions

  1. How did LPL's profitability change in the first quarter of 2024?

    Net income was $289 million, or $3.83 per diluted share, down 10% from a year ago. Adjusted EPS decreased 6% to $4.21, while gross profit rose 5% to $1,066 million and adjusted EBITDA decreased 5% to $541 million.

  2. What is the Atria acquisition and when is it expected to close?

    LPL announced a definitive purchase agreement to acquire Atria Wealth Solutions, which supports about 2,400 advisors and about 150 banks and credit unions and manages about $100 billion of brokerage and advisory assets. The company expects to close the transaction in the second half of 2024, subject to regulatory approval and other conditions, with conversion expected to be completed in mid-2025.

  3. How much did LPL's asset base and asset flows grow?

    Total advisory and brokerage assets increased 23% year-over-year to $1.44 trillion. Total organic net new assets were $17 billion, representing 5% annualized growth, and organic net new advisory assets were $16 billion, representing 9% annualized growth.

  4. What is the status of the SEC matter and what does it cost?

    The filing states that on March 22, 2024, the company reached a settlement in principle with SEC staff to resolve its civil investigation into records preservation for business communications on personal devices. The company expects to pay a $50 million civil monetary penalty in the second quarter of 2024, and the settlement remains subject to definitive documentation and SEC approval.

  5. What capital returns did LPL make in the quarter?

    LPL repurchased $70.0 million of shares and paid $22.4 million in dividends during the first quarter of 2024. The Board declared a $0.30 per share dividend payable June 4, 2024, to stockholders of record as of May 21, 2024. The leverage ratio was 1.65x and corporate cash was $311 million.

04—Continue

← View all 8-K filings