From GlobeNewswire: 2025-01-30 16:07:00

LPL Financial reported fourth-quarter 2024 net income of $271 million, with earnings per share at $3.59, a 26% increase from the previous year. Total advisory and brokerage assets rose to $1.7 trillion, with $957 billion in advisory assets. The company also declared a $0.30 per share dividend to be paid in March.

Full-year 2024 saw a net income of $1.1 billion, with diluted EPS at $14.03, a 2% increase from 2023. Total organic net new assets for the year were $141 billion, a 10% growth rate. Share repurchases totaled $170 million, and dividends paid were $90 million. The company also closed various acquisitions and completed a leverage-neutral refinancing.

CEO Rich Steinmeier stated, “2024 marked another milestone year for LPL,” with double-digit organic asset growth and record adjusted earnings per share. President and CFO Matt Audette highlighted the solid financial results for Q4 and expressed excitement for future growth opportunities. A conference call to discuss the results will be held on January 30, 2025, accessible at investor.lpl.com/events. LPL Financial, a registered investment adviser and broker-dealer, discloses financial services only from the US. The company recently acquired brokerage and advisory assets from Atria, Prudential, The Investment Center, and Wintrust. Forward-looking statements include forecasts on financial results, growth, and future investments. Risks outlined in achieving these objectives are also highlighted.

The press release from LPL Financial emphasizes the importance of forward-looking statements regarding the company’s financial and operating results. Factors such as regulatory approvals, client relationships, and economic conditions may impact the achievement of stated objectives. The company also discloses risks related to legislation, competition, and strategic acquisitions. Shareholders are advised to consider these factors when evaluating the company’s performance. LPL Financial Holdings Inc. reported a 13% increase in total revenue for the fourth quarter of 2024 compared to the same period in 2023. Net income also rose by 6% to $270,749, with earnings per share of $3.59, up 6% from the previous year. The company’s total assets grew to $13,317,404 by the end of December 2024.

The company’s revenue from advisory services saw a significant increase of 16% to $1,595,834 in the fourth quarter of 2024. Commission revenue also rose by 20% to $965,463, driven by sales-based commissions, which surged by 23% to $525,795. Asset-based revenue increased by 7% to $669,778, contributing to the overall growth in revenue.

Expenses for advisory and commission services increased by 16% to $2,250,427 in the fourth quarter of 2024. Compensation and benefits also rose by 21% to $321,933. Despite the increase in expenses, the company reported a net income of $270,749, reflecting a 6% growth compared to the previous year.

LPL Financial Holdings Inc. saw a 23% increase in total revenue for the full year of 2024 compared to 2023, reaching $12,385,107. The company’s net income for the year was $1,058,616, a slight decrease of 1% from the previous year. Earnings per share for the year stood at $14.17, up 2% from 2023.

The company’s financial condition showed a significant improvement, with total assets reaching $13,317,404 by the end of December 2024. Total liabilities amounted to $10,386,802, while stockholders’ equity increased to $2,930,602. The company’s capital management measures indicated a leverage ratio of 1.89x by the end of 2024. LPL Financial Holdings Inc. reported key business and financial metrics for Q4 2024. The company saw a 22% increase in advisors, with 5,202 net new advisors. Annualized advisory fees per advisor increased by 5%, with total client accounts reaching 10.0 million. The company also reported a 6% increase in employees.

The Services Group subscriptions saw a 4% increase, with Business Optimizers growing by 5% and Planning and Advice by 9%. The AUM retention rate quarterly annualized was 97.3%. Capital management included $165.5 million in capital expenditures, $847.9 million in acquisitions, $100.0 million in share repurchases, and $22.5 million in dividends.

Non-GAAP financial measures include Adjusted EPS, which excludes certain items to provide insight into core operating performance. Gross profit, calculated as total revenue less specific expenses, is a non-GAAP financial measure used to evaluate core operating performance. Core G&A, a measure of controllable expenses, excludes certain costs like advisory and commission.

EBITDA and Adjusted EBITDA are used to understand the company’s earnings from operations. Credit Agreement EBITDA is a useful financial metric for understanding debt capacity and covenant compliance. The company does not provide an outlook for total expenses due to market-driven components. Total advisory and brokerage assets transitioning to LPL Financial were estimated. LPL Financial estimates advisors’ transitioned assets over several quarters may vary from the estimate. Financial Advisors refer to registered representatives with LPL Financial. Corporate cash includes cash and equivalents from various sources. LPL Financial was named a top RIA custodian and No. 1 Independent Broker-Dealer in the U.S. in 2021-2022. Gross profit and production-based payout figures are provided for Q4 2024. Client cash revenue and interest income figures are also provided for Q4 2024. Core G&A figures are reconciled for Q4 2024 and the full year 2024. Regulatory charges for 2024 include settlements with the SEC for AML compliance. The Company has faced regulatory charges, including an $18.0 million charge for Q3 2024 and a $50.0 million penalty paid in August 2024. Acquisition costs for Q4 2024 totaled $37.2 million. EBITDA for Q4 2024 was $557.9 million, and adjusted EBITDA was $584.8 million. Adjusted net income for Q4 2024 was $320.3 million. Total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, and third-party custodians were significant. Assets on the corporate advisory and independent RIA advisory platforms were also substantial. Total client deposits into advisory or brokerage accounts showed positive growth. LPL Financial reported Q4 2024 purchased money market funds of $41.0 billion, up from $38.5 billion in Q3 2024 and $29.5 billion in Q4 2023. The company updated its definition of client cash account balances in Q1 2024. EBITDA and Credit Agreement EBITDA reconciliations for Q4 2024 show EBITDA at $2,110,834 and Credit Agreement EBITDA at $2,665,033.

Calculation of organic net new assets is based on annualized current period figures divided by the preceding period’s assets. Client cash balances exclude purchased money market funds and other client payables. EBITDA and Credit Agreement EBITDA are non-GAAP measures. The average advisor count and total advisory and brokerage assets are used for calculations. Amortization expense on forgivable loans is included.

Active subscriptions include professional services, business optimizer offerings, and planning and advice services. Retention of total advisory and brokerage assets is calculated by deducting quarterly annualized attrition. Capital expenditures represent property and equipment payments, acquisitions net represent cash paid for acquisitions. Fair value adjustment to contingent consideration liabilities is reflected in other expense. Acquisition costs and other include various expenses. M&A accretion reflects the annualized expected run rate EBITDA of an acquisition.



Read more at GlobeNewswire:: LPL Financial Announces Fourth Quarter and Full Year 2024