Market Overview

LPL Financial Announces Second Quarter 2018 Results

Share:

Key Performance Indicators

  • Earnings per share ("EPS") increased 76% year-over-year to $1.30.
    • Net Income increased 74% year-over-year to $119 million.
  • EPS prior to Amortization of Intangible Assets** increased 76% year-over-year to $1.42.
  • Total Brokerage and Advisory Assets increased 22% year-over-year to $659 billion, up 2% sequentially.
    • Total Brokerage and Advisory Assets prior to NPH increased 8% year-over-year to $587 billion, up 2% sequentially.
  • Total Net New Assets were an inflow of $2.5 billion, including $1.5 billion from NPH.
    • Total Net New Assets prior to NPH were an inflow of $1.0 billion, translating to a 0.7% annualized growth rate.
      • Net new advisory assets prior to NPH were an inflow of $4.1 billion, translating to a 6.1% annualized growth rate.
      • Net new brokerage assets prior to NPH were an outflow of $3.1 billion, translating to a (4.1)% annualized rate.
    • Recruited Assets(1) were $6.0 billion in Q2, and $9.6 billion year-to-date.
    • Advisor count was 16,049 and production retention rate year-to-date was 96%.
      • Prior to NPH, net new advisors were 35.
  • Gross Profit** increased 24% year-over-year to $483 million, including approximately $42 million generated by NPH advisors.
  • EBITDA** increased 37% year-over-year to $233 million.
    • EBITDA prior to NPH increased 26% year-over-year to $214 million.
    • EBITDA as a percentage of Gross Profit was 48%, up from 44% a year ago.
      • EBITDA as a percentage of Gross Profit prior to NPH was 49%, up from 44% a year ago.
    • Core G&A** increased 9% year-over-year to $192 million, and decreased 4% sequentially.
      • Core G&A prior to NPH was flat from a year ago at $176 million, and decreased 3% sequentially.

Key Updates

  • Completed NPH asset onboarding in Q2, and total net new assets from this transaction were approximately $72 billion.
  • Reached the Company's $90 million NPH annual run-rate EBITDA accretion estimate in Q2, ahead of its anticipated end of 2018 timing.
  • Tightened 2018 Core G&A** outlook range of $805 to $825 million from prior outlook of $800 to $830 million.
  • Returned $139 million of capital to shareholders in Q2, through $117 million of share repurchases and $22 million of dividends.

SAN DIEGO, July 26, 2018 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (NASDAQ:LPLA) (the "Company") today announced results for its second quarter ended June 30, 2018, reporting net income of $119 million, or $1.30 per share. This compares with $68 million, or $0.74 per share, in the second quarter of 2017 and $94 million, or $1.01 per share, in the prior quarter.

"We had another quarter of business and earnings growth," said Dan Arnold, president and CEO.  "We had solid recruiting, saw advisor productivity increase, and finished onboarding NPH assets.  Going forward, we remain focused on helping our advisors win in the marketplace by enhancing capabilities, making it easier for advisors to do business with us, and investing in technology."

"Our earnings continued to grow in the second quarter, driven by asset growth, improved return on assets, and expense discipline," said Matt Audette, CFO.  "We also deployed more capital into share repurchases.  Going forward, we plan to continue investing for organic growth, taking advantage of M&A opportunities when appropriate, and returning capital to shareholders."

Additional Second Quarter 2018 Financial and Business Highlights
Capital Management

  • The Company returned capital to shareholders totaling $139 million in Q2 2018, translating to $1.52 per share.
    • Deployed $117 million of capital to repurchase 1.8 million shares at an average price of $65.20 per share in Q2 2018.
    • Paid dividends of $22 million on June 1, 2018. For the third quarter, the Company's Board of Directors declared a $0.25 per share dividend to be paid on August 23, 2018 to all stockholders of record as of August 9, 2018.
  • Capital expenditures were primarily driven by technology spend and totaled $26 million in Q2.
  • Cash available for corporate use was $446 million as of quarter-end, and Credit Agreement Net Leverage Ratio, which only applies to the revolving credit facility, was 2.34x, down 0.12x from the prior quarter.
    • After applying $300 million of cash available for corporate use to Credit Agreement Net Debt, this left an additional $146 million of cash, which if applied to the debt, would further reduce the Credit Agreement Net Leverage Ratio to 2.17x.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. EDT on Thursday, July 26.  To listen, call 877-677-9122 (domestic) or 708-290-1401 (international); passcode 3775803, or visit investor.lpl.com (webcast).  Replays will be available by phone and on investor.lpl.com beginning two hours after the call and until Aug 2 and Aug 16, respectively.  For telephonic replay, call 855-859-2056 (domestic) or 404-537-3406 (international); passcode 3775803.

About LPL Financial

LPL Financial is a leader in the retail financial advice market and the nation's largest independent broker/dealer*. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices.  LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.  LPL.com

*based on total revenues, Financial Planning magazine June 1996-2018.

Securities and Advisory Services offered through LPL Financial. A Registered Investment Advisor, Member FINRA/SIPC.

**Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company's current performance, prospects, and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

EPS Prior to Amortization of Intangible Assets is defined as GAAP EPS plus the per share impact of Amortization of Intangible Assets. The per share impact is calculated as Amortization of Intangible Assets expense, net of applicable tax benefit, divided by the number of shares outstanding for the applicable period. The Company presents EPS Prior to Amortization of Intangible Assets because management believes that the metric can provide investors with useful insight into the Company's core operating performance by excluding non-cash items that management does not believe impact the Company's ongoing operations. EPS Prior to Amortization of Intangible Assets is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to GAAP EPS or any other performance measure derived in accordance with GAAP. For a reconciliation of EPS Prior to Amortization of Intangible Assets to GAAP EPS, please see footnote 33 on page 20 of this release.

Gross Profit is calculated as net revenues, which were $1,299 million for the three months ended June 30, 2018, less commission and advisory expenses and brokerage, clearing, and exchange fees, which were $801 million and $15 million, respectively, for the three months ended June 30, 2018. All other expense categories, including depreciation and amortization of fixed assets and amortization of intangible assets, are considered general and administrative in nature. Because the Company's gross profit amounts do not include any depreciation and amortization expense, the Company considers its gross profit amounts to be non-GAAP financial measures that may not be comparable to those of others in its industry. Management believes that Gross Profit can provide investors with useful insight into the Company's core operating performance before indirect costs that are general and administrative in nature.

Core G&A consists of total operating expenses, which were $1,104 million for the three months ended June 30, 2018, excluding the following expenses: commission and advisory, regulatory charges, promotional, employee share-based compensation, depreciation and amortization, amortization of intangible assets, and brokerage, clearing, and exchange. Management presents Core G&A because it believes Core G&A reflects the corporate operating expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as commission and advisory expenses, or which management views as promotional expense necessary to support advisor growth and retention including conferences and transition assistance. Core G&A is not a measure of the Company's total operating expenses as calculated in accordance with GAAP. For a reconciliation of Core G&A against the Company's total operating expenses, please see footnote 4 on page 18 of this release. The Company does not provide an outlook for its total operating expenses because it contains expense components, such as commission and advisory expenses, that are market-driven and over which the Company cannot exercise control. Accordingly a reconciliation of the Company's outlook for Core G&A to an outlook for total operating expenses cannot be made available without unreasonable effort.

EBITDA is defined as net income plus interest expense, income tax expense, depreciation, amortization and loss on extinguishment of debt. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Company's earnings from operations. EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of profitability or liquidity. In addition, the Company's EBITDA can differ significantly from EBITDA calculated by other companies, depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments.

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's credit agreement ("Credit Agreement") as "Consolidated EBITDA," which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense, tax expense, depreciation and amortization and further adjusted to exclude certain non-cash charges and other adjustments, including unusual or non-recurring charges and gains, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions, including the Company's acquisition of the broker/dealer network of National Planning Holdings, Inc. ("NPH"). The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company's debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of profitability or liquidity. In addition, the Company's Credit Agreement-defined EBITDA can differ significantly from adjusted EBITDA calculated by other companies, depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments, and types of adjustments made by such companies.

Forward-Looking Statements

Statements in this press release regarding the Company's future financial and operating results, growth, priorities and business strategies, including forecasts and statements relating to future expenses (including 2018 Core G&A** outlook), investments, capital allocation and enhanced capabilities, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements. These forward-looking statements are based on the Company's historical performance and its plans, estimates, and expectations as of July 26, 2018. Forward-looking statements are not guarantees that the future results, plans, intentions, or expectations expressed or implied will be achieved. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive, and other factors, which may cause actual financial or operating results, levels of activity, or the timing of events, to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: changes in general economic and financial market conditions, including retail investor sentiment; changes in interest rates and fees payable by banks participating in the Company's cash sweep program, the Company's strategy and success in managing cash sweep program fees; changes in the growth and profitability of the Company's fee-based business; fluctuations in the value and levels of advisory and brokerage assets and the related impact on revenue; effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions; whether the retail investors served by newly-recruited advisors choose to open accounts and/or move their respective assets to new accounts at the Company; the effect of current, pending and future legislation, regulation and regulatory actions, including changes in the retail retirement savings area and disciplinary actions imposed by federal and state securities regulators and self-regulatory organizations; the costs of settling and remediating issues related to pending or future regulatory matters or legal proceedings; changes made to the Company's offerings, services, and pricing, and the effect that such changes may have on the Company's gross profit streams and costs; execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements, and/or efficiencies expected to result from its initiatives and programs, including as a result of the NPH acquisition; and the other factors set forth in Part I, "Item 1A. Risk Factors" in the Company's 2017 Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or subsequent filings with the SEC. Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, even if its estimates change, and you should not rely on statements contained herein as representing the Company's views as of any date subsequent to the date of this press release.


 
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended
June 30,
      Six Months Ended
June 30,
   
  2018   2017   %
Change
  2018   2017   %
Change
REVENUES                      
Commission $ 488,085     $ 420,706     16 %   $ 962,896     $ 841,870     14 %
Advisory 438,917     346,515     27 %   861,304     676,374     27 %
Asset-based 238,603     173,450     38 %   457,939     330,673     38 %
Transaction and fee 116,455     109,361     6 %   233,104     217,523     7 %
Interest income, net of interest expense 10,133     5,976     70 %   17,914     11,769     52 %
Other 6,611     9,496     (30 %)   7,204     22,722     (68 %)
Total net revenues 1,298,804     1,065,504     22 %   2,540,361     2,100,931     21 %
EXPENSES                      
Commission and advisory 800,619     663,046     21 %   1,562,316     1,308,109     19 %
Compensation and benefits 122,360     110,299     11 %   245,877     223,511     10 %
Promotional 43,407     32,006     36 %   110,834     68,660     61 %
Depreciation and amortization 22,220     21,190     5 %   42,921     41,937     2 %
Amortization of intangible assets 15,682     9,453     66 %   28,904     18,944     53 %
Occupancy and equipment 26,904     22,987     17 %   54,540     48,186     13 %
Professional services 15,922     18,757     (15 %)   38,094     34,294     11 %
Brokerage, clearing and exchange 15,433     13,890     11 %   31,310     28,076     12 %
Communications and data processing 11,038     10,645     4 %   22,212     21,659     3 %
Other 30,370     24,201     25 %   58,956     46,764     26 %
Total operating expenses 1,103,955     926,474     19 %   2,195,964     1,840,140     19 %
Non-operating interest expense 31,940     26,261     22 %   61,562     51,612     19 %
Loss on extinguishment of debt         n/m         21,139     n/m  
INCOME BEFORE PROVISION FOR INCOME TAXES 162,909     112,769     44 %   282,835     188,040     50 %
PROVISION FOR INCOME TAXES 44,143     44,335     %   70,539     71,417     (1 %)
NET INCOME $ 118,766     $ 68,434     74 %   $ 212,296     $ 116,623     82 %
EARNINGS PER SHARE                      
Earnings per share, basic $ 1.33     $ 0.76     75 %   $ 2.37     $ 1.29     84 %
Earnings per share, diluted $ 1.30     $ 0.74     76 %   $ 2.30     $ 1.27     81 %
Weighted-average shares outstanding, basic 89,128   90,251   (1 %)   89,560   90,060   (1 %)
Weighted-average shares outstanding, diluted 91,684   92,013   %   92,236   91,996   %



 
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Income Trend
(In thousands, except per share data)
(Unaudited)
 
  Quarterly Results
 
  Q2 2018   Q1 2018   Q4 2017
REVENUES
         
Commission $ 488,085     $ 474,811     $ 425,943  
Advisory 438,917     422,387     375,928  
Asset-based 238,603     219,336     193,707  
Transaction and fee 116,455     116,649     103,145  
Interest income, net of interest expense 10,133     7,781     6,542  
Other 6,611     593     11,177  
Total net revenues 1,298,804     1,241,557     1,116,442  
EXPENSES          
Commission and advisory 800,619     761,697     697,725  
Compensation and benefits 122,360     123,517     119,748  
Promotional 43,407     67,427     60,066  
Depreciation and amortization 22,220     20,701     20,138  
Amortization of intangible assets 15,682     13,222     9,997  
Occupancy and equipment 26,904     27,636     26,343  
Professional services 15,922     22,172     20,675  
Brokerage, clearing and exchange expense 15,433     15,877     15,480  
Communications and data processing 11,038     11,174     12,416  
Other 30,370     28,586     25,070  
Total operating expenses 1,103,955     1,092,009     1,007,658  
Non-operating interest expense 31,940     29,622     28,894  
INCOME BEFORE PROVISION FOR INCOME TAXES 162,909     119,926     79,890  
PROVISION FOR INCOME TAXES 44,143     26,396     15,792  
NET INCOME $ 118,766     $ 93,530     $ 64,098  
EARNINGS PER SHARE          
Earnings per share, basic $ 1.33     $ 1.04     $ 0.71  
Earnings per share, diluted $ 1.30     $ 1.01     $ 0.69  
Weighted-average shares outstanding, basic 89,128   89,997     89,921  
Weighted-average shares outstanding, diluted 91,684   92,784     92,386  



 
LPL Financial Holdings Inc.
Condensed Consolidated Statements of Financial Condition
(Dollars in thousands, except par value)
(Unaudited)
 
    June 30,
 2018
  December 31,
2017
ASSETS
Cash and cash equivalents   $ 817,560     $ 811,136  
Cash segregated under federal and other regulations   568,903     763,831  
Restricted cash   61,086     50,688  
Receivables from:        
Clients, net of allowance of $579 at June 30, 2018 and $466 at December 31, 2017   361,619     344,230  
Product sponsors, broker-dealers, and clearing organizations   188,097     196,207  
Advisor loans, net of allowance of $3,629 at June 30, 2018 and $3,264 at December 31, 2017   229,652     219,157  
Others, net of allowance of $8,168 at June 30, 2018 and $6,115 at December 31, 2017   241,827     228,986  
Securities owned:        
Trading — at fair value   24,055     17,879  
Held-to-maturity — at amortized cost   13,006     11,833  
Securities borrowed   4,991     12,489  
Fixed assets, net of accumulated depreciation and amortization of $467,140 at June 30, 2018 and $427,344 at December 31, 2017   431,777     412,684  
Goodwill   1,476,775     1,427,769  
Intangible assets, net of accumulated amortization of $447,971 at June 30, 2018 and $419,066 at December 31, 2017   497,909     414,093  
National Planning Holdings acquisition       162,500  
Other assets   306,120     285,269  
Total assets   $ 5,223,377     $ 5,358,751  
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:        
Drafts payable   $ 154,182     $ 185,929  
Payables to clients   758,136     962,891  
Payables to broker-dealers and clearing organizations   63,076     54,262  
Accrued commission and advisory expenses payable   158,539     147,095  
Accounts payable and accrued liabilities   472,341     461,149  
Income taxes payable   19,463     469  
Unearned revenue   91,003     72,222  
Securities sold, but not yet purchased — at fair value   79     1,182  
Long-term borrowing, net of unamortized debt issuance cost of $21,166 at June 30, 2018 and $22,812 at December 31, 2017   2,378,417     2,385,022  
Leasehold financing and capital lease obligations   105,570     107,518  
Deferred income taxes, net   15,875     16,004  
Total liabilities   4,216,681     4,393,743  
STOCKHOLDERS' EQUITY:        
Common stock, $.001 par value; 600,000,000 shares authorized; 124,460,729 shares issued at June 30, 2018 and 123,030,383 shares issued at December 31, 2017   124     123  
Additional paid-in capital   1,610,567     1,556,117  
Treasury stock, at cost — 36,052,704 shares at June 30, 2018 and 33,262,115 shares at December 31, 2017   (1,490,020 )   (1,309,568 )
Retained earnings   886,025     718,336  
Total stockholders' equity   1,006,696     965,008  
Total liabilities and stockholders' equity   $ 5,223,377     $ 5,358,751  


LPL Financial Holdings Inc.
Management's Statements of Operations (2)
(In thousands, except per share data)
(Unaudited)

The information presented on pages 8-17 of this release is presented as reviewed by the Company's management and includes information derived from the Company's Unaudited Condensed Consolidated Statements of Income, non-GAAP financial measures, and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" that begins on page 3 of this release. 

  Quarterly Results
 
  Q2 2018   Q1 2018   %
Change
  Q2 2017
  %
Change
Gross Profit(2)                                            
Sales-based commissions $ 196,530       $ 187,233       5 %     $ 181,843       8 %
Trailing commissions 291,555       287,578       1 %     238,863       22 %
Advisory 438,917       422,387       4 %     346,515       27 %
Commission and advisory fees 927,002       897,198       3 %     767,221       21 %
Commission and advisory expense (800,619 )     (761,697 )     5 %     (663,046 )     21 %
Commission and advisory fees, net of payout 126,383       135,501       (7 %)     104,175       21 %
Cash sweep 121,386       104,084       17 %     71,848       69 %
Other asset-based(3) 117,217       115,252       2 %     101,602       15 %
Transaction and fee 116,455       116,649       %     109,361       6 %
Interest income and other 16,744       8,374       100 %     15,472       8 %
Total net commission and advisory fees and attachment revenue 498,185       479,860       4 %     402,458       24 %
Brokerage, clearing, and exchange expense (15,433 )     (15,877 )     (3 %)     (13,890 )     11 %
Gross Profit(2) 482,752       463,983       4 %     388,568       24 %
                                         
G&A Expense                  
Core G&A(4) 192,148       201,039       (4 %)     176,428       9 %
Regulatory charges 8,321       6,440       n/m       5,428       n/m  
Promotional 43,407       67,427       (36 %)     32,006       36 %
Employee share-based compensation 6,125       5,606       9 %     5,033       22 %
Total G&A 250,001       280,512       (11 %)     218,895       14 %
EBITDA(2) 232,751       183,471       27 %     169,673       37 %
Depreciation and amortization 22,220       20,701       7 %     21,190       5 %
Amortization of intangible assets 15,682       13,222       19 %     9,453       66 %
Non-operating interest expense 31,940       29,622       8 %     26,261       22 %
INCOME BEFORE PROVISION FOR INCOME TAXES 162,909       119,926       36 %     112,769       44 %
PROVISION FOR INCOME TAXES 44,143       26,396       67 %     44,335       %
NET INCOME $ 118,766       $ 93,530       27 %     $ 68,434       74 %
Earnings per share, diluted $ 1.30       $ 1.01       29 %     $ 0.74       76 %
Weighted-average shares outstanding, diluted 91,684       92,784       (1 %)     92,013       %



 
LPL Financial Holdings Inc.
Management's Statements of Operations Trend (2)
(In thousands, except per share data)
(Unaudited)
 
  Quarterly Results
 
  Q2 2018   Q1 2018   Q4 2017
Gross Profit(2)
         
Sales-based commissions $ 196,530     $ 187,233     $ 174,052  
Trailing commissions 291,555     287,578     251,891  
Advisory 438,917     422,387     375,928  
Commission and advisory fees 927,002     897,198     801,871  
Commission and advisory expense (800,619 )   (761,697 )   (697,725 )
Commission and advisory fees, net of payout 126,383     135,501     104,146  
Cash sweep 121,386     104,084     88,333  
Other asset-based(3) 117,217     115,252     105,374  
Transaction and fee 116,455     116,649     103,145  
Interest income and other 16,744     8,374     17,719  
Total net commission and advisory fees and attachment revenue 498,185     479,860     418,717  
Brokerage, clearing, and exchange expense (15,433 )   (15,877 )   (15,480 )
Gross Profit(2) 482,752     463,983     403,237  
           
G&A Expense          
Core G&A(4) 192,148     201,039     194,607  
Regulatory charges 8,321     6,440     5,433  
Promotional 43,407     67,427     60,066  
Employee share-based compensation 6,125     5,606     4,212  
Total G&A 250,001     280,512     264,318  
EBITDA(2) 232,751     183,471     138,919  
Depreciation and amortization 22,220     20,701     20,138  
Amortization of intangible assets 15,682     13,222     9,997  
Non-operating interest expense 31,940     29,622     28,894  
INCOME BEFORE PROVISION FOR INCOME TAXES 162,909     119,926     79,890  
PROVISION FOR INCOME TAXES 44,143     26,396     15,792  
NET INCOME $ 118,766     $ 93,530     $ 64,098  
Earnings per share, diluted $ 1.30     $ 1.01     $ 0.69  
Weighted-average shares outstanding, diluted 91,684     92,784     92,386  



 
LPL Financial Holdings Inc.
Operating Measures (2)
(Dollars in billions, except where noted) (Unaudited)
 
  Q2 2018   Q1 2018   Change   Q2 2017   Change
Market Drivers                  
S&P 500 Index (end of period) 2,718     2,641     3 %   2,423     12 %
Fed Funds Daily Effective Rate (FFER) (average bps) 174     145     29bps   95     79bps
Assets                  
Advisory Assets(5) $ 291.5     $ 283.5     3 %   $ 236.8     23 %
Brokerage Assets(6) 367.5     364.1     1 %   305.2     20 %
Total Brokerage and Advisory Assets $ 659.1     $ 647.5     2 %   $ 542.0     22 %
Advisory % of Total Assets 44.2 %   43.8 %   40bps   43.7 %   50bps
Assets Prior to NPH                  
Advisory Assets(5) $ 277.4     $ 269.8     3 %   $ 236.8     17 %
Brokerage Assets(6) 309.4     308.4     %   305.2     1 %
Total Brokerage and Advisory Assets $ 586.8     $ 578.1     2 %   $ 542.0     8 %
Advisory % of Total Assets 47.3 %   46.7 %   60bps   43.7 %   360bps
                   
Assets by Platform                  
Corporate Platform Advisory Assets(7) $ 173.9     $ 167.7     4 %   $ 137.7     26 %
Hybrid Platform Advisory Assets(8) 117.7     115.7     2 %   99.1     19 %
Brokerage Assets 367.5     364.1     1 %   305.2     20 %
Total Brokerage and Advisory Assets $ 659.1     $ 647.5     2 %   $ 542.0     22 %
Assets by Platform Prior to NPH                  
Corporate Platform Advisory Assets(7) $ 161.7     $ 155.7     4 %   $ 137.7     17 %
Hybrid Platform Advisory Assets(8) 115.7     114.1     1 %   99.1     17 %
Brokerage Assets 309.4     308.4     %   305.2     1 %
Total Brokerage and Advisory Assets $ 586.8     $ 578.1     2 %   $ 542.0     8 %
                   
Centrally Managed Assets                  
Centrally Managed Assets(9) $ 37.9     $ 35.9     6 %   $ 27.0     40 %
Centrally Managed  % of Total Advisory Assets 13.0 %   12.7 %   30bps   11.4 %   160bps
Centrally Managed Assets Prior to NPH                  
Centrally Managed Assets(9) $ 35.1     $ 33.3     5 %   $ 27.0     30 %
Centrally Managed % of Total Advisory Assets 12.7 %   12.3 %   40bps   11.4 %   130bps
                   
Retirement Assets                  
Advisory Retirement Assets $ 164.4     $ 159.2     3 %   $ 131.5     25 %
Brokerage Retirement Assets 189.3     186.3     2 %   149.9     26 %
Total Retirement Assets(10) $ 353.7     $ 345.5     2 %   $ 281.4     26 %
Retirement % of Total Assets 53.7 %   53.4 %   30bps   51.9 %   180bps
Retirement Assets Prior to NPH                  
Advisory Retirement Assets $ 155.5     $ 150.6     3 %   $ 131.5     18 %
Brokerage Retirement Assets 156.9     156.2     %   149.9     5 %
Total Retirement Assets(10) $ 312.4     $ 306.8     2 %   $ 281.4     11 %
Retirement % of Total Assets 53.2 %   53.1 %   10bps   51.9 %   130bps
                         


 
LPL Financial Holdings Inc.
Operating Measures (2)
(Dollars in billions, except where noted) (Unaudited)
 
  Q2 2018   Q1 2018   Change   Q2 2017   Change
Net New Assets (NNA)                  
Net New Advisory Assets(11) $ 4.3     $ 13.1     n/m   $ 5.9     n/m
Net New Brokerage Assets(12) (1.9 )   25.8     n/m   (5.5 )   n/m
Total Net New Assets $ 2.5     $ 38.9     n/m   $ 0.4     n/m
Net Brokerage to Advisory Conversions(13) $ 1.8     $ 2.5     n/m   $ 2.0     n/m
                   
Net New Assets Prior to NPH                  
Net New Advisory Assets(11) $ 4.1     $ 6.9     n/m   $ 5.9     n/m
Net New Brokerage Assets(12) (3.1 )   (4.1 )   n/m   (5.5 )   n/m
Total Net New Assets $ 1.0     $ 2.9     n/m   $ 0.4     n/m
Advisory NNA Annualized Growth(14) 6 %   10 %   n/m   10 %   n/m
Total NNA Annualized Growth(14) 1 %   2 %   n/m   0.3 %   n/m
                   
Net New Advisory Assets                  
Corporate Platform Net New Advisory Assets(15) $ 3.8     $ 10.4     n/m   $ 3.2     n/m
Hybrid Platform Net New Advisory Assets(16) 0.6     2.7     n/m   2.7     n/m
Total Net New Advisory Assets $ 4.3     $ 13.1     n/m   $ 5.9     n/m
Centrally Managed Net New Advisory Assets(17) $ 1.7     $ 3.3     n/m   $ 1.3     n/m
                   
Net New Advisory Assets Prior to NPH                  
Corporate Platform Net New Advisory Assets(15) $ 3.6     $ 4.3     n/m   $ 3.2     n/m
Hybrid Platform Net New Advisory Assets(16) 0.5     2.6     n/m   2.7     n/m
Total Net New Advisory Assets $ 4.1     $ 6.9     n/m   $ 5.9     n/m
Centrally Managed Net New Advisory Assets(17) $ 1.5     $ 1.8     n/m   $ 1.3     n/m
                   
Cash Sweep Balances                  
Insured Cash Account Balances $ 21.7     $ 22.6     (4 %)   $ 20.8     4 %
Deposit Cash Account Balances 4.0     4.2     (5 %)   3.7     8 %
Money Market Account Cash Balances 2.9     2.9     %   3.3     (12 %)
Total Cash Sweep Balances $ 28.6     $ 29.6     (3 %)   $ 27.8     3 %
Cash Sweep % of Total Assets 4.3 %   4.6 %   (30bps)   5.1 %   (80bps)
Cash Sweep Balances Prior to NPH                  
Insured Cash Account Balances $ 20.6     $ 21.7     (5 %)   $ 20.8     (1 %)
Deposit Cash Account Balances 3.6     3.8     (5 %)   3.7     (3 %)
Money Market Account Cash Balances 2.3     2.1     10 %   3.3     (30 %)
Total Cash Sweep Balances $ 26.6     $ 27.6     (4 %)   $ 27.8     (4 %)
Cash Sweep % of Total Assets 4.5 %   4.8 %   (30bps)   5.1 %   (60bps)
                   
Cash Sweep Average Fees                  
Insured Cash Account Average Fee - bps(18) 179     152     27     108     71  
Deposit Cash Account Fee Average Fee - bps(18) 175     150     25     85     90  
Money Market Account Average Fee - bps(18) 72     71     1     69     3  
Total Cash Sweep Average Fee - bps(18) 168     144     24     100     68  



 
LPL Financial Holdings Inc.
Monthly Metrics (2)
(Dollars in billions, except where noted)
(Unaudited)
 
    June 2018   May 2018   May to
June
Change
  April 2018   March 2018
Assets Served
                   
Advisory Assets(5)   $ 291.5     $ 290.3     0.4%   $ 284.7     $ 283.5  
Brokerage Assets(6)   367.5     369.2     (0.5%)   367.6     364.1  
Total Brokerage and Advisory Assets   $ 659.1     $ 659.5     (0.1%)   $ 652.3     $ 647.5  
                     
Assets Served Prior to NPH                    
Advisory Assets(5)   $ 277.4     $ 276.4     0.4%   $ 270.9     $ 269.8  
Brokerage Assets(6)   309.4     310.6     (0.4%)   309.2     308.4  
Total Brokerage and Advisory Assets   $ 586.8     $ 587.0     —%   $ 580.1     $ 578.1  
                     
Net New Assets                    
Net New Advisory Assets(11)   $ 1.3     $ 1.9     n/m   $ 1.1     $ 1.7  
Net New Brokerage Assets(12)   (1.2 )   (1.6 )   n/m   1.0     2.1  
Total Net New Assets   $ 0.1     $ 0.3     n/m   $ 2.1     $ 3.8  
Net Brokerage to Advisory Conversions(13)   $ 0.5     $ 0.6     n/m   $ 0.6     $ 0.7  
                     
Net New Assets Prior to NPH                    
Net New Advisory Assets(11)   $ 1.2     $ 1.9     n/m   $ 1.1     $ 1.7  
Net New Brokerage Assets(12)   (0.9 )   (1.0 )   n/m   (1.2 )   (1.6 )
Total Net New Assets   $ 0.3     $ 0.8     n/m   $ (0.1 )   $ 0.1  
                     
Cash Sweep Balances                    
Insured Cash Account Balances   $ 21.7     $ 21.8     (0.5%)   $ 22.2     $ 22.6  
Deposit Cash Account Balances   4.0     4.0     —%   4.0     4.2  
Money Market Account Cash Balances   2.9     2.8     3.6%   2.7     2.9  
Total Client Cash Sweep Balances   $ 28.6     $ 28.6     —%   $ 28.9     $ 29.6  
                     
Cash Sweep Balances Prior to NPH                    
Insured Cash Account Balances   $ 20.6     $ 20.7     (0.5%)   $ 21.2     $ 21.7  
Deposit Cash Account Balances   3.6     3.6     —%   3.6     3.8  
Money Market Account Cash Balances   2.3     2.2     4.5%   2.1     2.1  
Total Client Cash Sweep Balances   $ 26.6     $ 26.5     0.4%   $ 26.9     $ 27.6  
                     
Market Indices                    
S&P 500 Index (end of period)   2,718     2,705     0.5%   2,648     2,641  
Fed Funds Effective Rate (average bps)   182     170     12bps   169     151  



 
LPL Financial Holdings Inc.
Financial Measures (2)
(Dollars in thousands, except where noted)
(Unaudited)
 
  Q2 2018   Q1 2018   %
Change
  Q2 2017   %
Change
Commission Revenue by Product                  
Variable annuities $ 196,496     $ 200,043     (2 %)   $ 167,454     17 %
Mutual funds 161,340     153,745     5 %   134,510     20 %
Alternative investments 6,704     5,567     20 %   6,719     %
Fixed annuities 46,116     34,055     35 %   39,560     17 %
Equities 19,388     23,601     (18 %)   18,799     3 %
Fixed income 30,898     30,324     2 %   26,256     18 %
Insurance 17,344     18,494     (6 %)   16,294     6 %
Group annuities 9,619     8,894     8 %   11,000     (13 %)
Other 180     88     105 %   114     58 %
Total commission revenue $ 488,085     $ 474,811     3 %   $ 420,706     16 %
                   
Commission Revenue by Sales-based and Trailing Commission            
Sales-based commissions                  
Variable annuities $ 57,095     $ 53,902     6 %   $ 53,032     8 %
Mutual funds 37,533     37,057     1 %   34,909     8 %
Alternative investments 1,805     1,830     (1 %)   3,645     (50 %)
Fixed annuities 39,333     28,337     39 %   34,931     13 %
Equities 19,388     23,601     (18 %)   18,799     3 %
Fixed income 24,474     24,355     %   20,501     19 %
Insurance 15,578     16,865     (8 %)   14,861     5 %
Group annuities 1,144     1,198     (5 %)   1,051     9 %
Other 180     88     105 %   114     58 %
Total sales-based commissions $ 196,530     $ 187,233     5 %   $ 181,843     8 %
Trailing commissions                  
Variable annuities $ 139,401     $ 146,141     (5 %)   $ 114,422     22 %
Mutual funds 123,807     116,688     6 %   99,601     24 %
Alternative investments 4,899     3,737     31 %   3,074     59 %
Fixed annuities 6,783     5,718     19 %   4,629     47 %
Fixed income 6,424     5,969     8 %   5,755     12 %
Insurance 1,766     1,629     8 %   1,433     23 %
Group annuities 8,475     7,696     10 %   9,949     (15 %)
Total trailing commissions $ 291,555     $ 287,578     1 %   $ 238,863     22 %
Total commission revenue $ 488,085     $ 474,811     3 %   $ 420,706     16 %


 
LPL Financial Holdings Inc.
Financial Measures (2)
(Dollars in thousands, except where noted)
(Unaudited)
 
  Q2 2018   Q1 2018   Change   Q2 2017   Change
Payout Rate                  
Base Payout Rate 82.98 %   82.60 %   38bps   82.94 %   4bps
Production Based Bonuses 2.81 %   2.05 %   76bps   2.56 %   25bps
GDC Sensitive Payout 85.79 %   84.65 %   114bps   85.50 %   29bps
Non-GDC Sensitive Payout 0.58 %   0.25 %   33bps   0.92 %   (34bps)
Total Payout Ratio 86.37 %   84.90 %   147bps   86.42 %   (5bps)
Production Based Bonuses Ratio (Trailing Twelve Months) 2.80 %   2.73 %   7bps   2.68 %   12bps



 
LPL Financial Holdings Inc.
Capital Management Measures (2)
(Dollars in thousands, except where noted)
(Unaudited)
 
  Q2 2018   Q1 2018
Credit Agreement EBITDA Trailing Twelve Months(2)(19)
     
Net income $ 334,536     $ 284,204  
Non-operating interest expense 116,975     111,296  
Provision for income taxes 124,829     125,021  
Loss on extinguishment of debt 1,268     1,268  
Depreciation and amortization 85,055     84,025  
Amortization of intangible assets 48,253     42,024  
EBITDA(2) $ 710,916     $ 647,838  
Credit Agreement Adjustments:      
Employee share-based compensation expense $ 20,882     $ 19,790  
Advisor share-based compensation expense 10,046     9,358  
NPH run-rate EBITDA accretion(20) 92,000     90,000  
Realized NPH EBITDA Offset(21) (27,500 )   (4,500 )
NPH onboarding costs 71,639     67,516  
Other(22) 15,644     20,769  
Credit Agreement EBITDA Trailing Twelve Months(2)(19) $ 893,627     $ 850,771  
       
Cash Available for Corporate Use(23)      
Cash at Parent $ 360,475     $ 429,715  
Excess Cash at Broker-Dealer subsidiary per Credit Agreement 76,941     36,342  
Other Available Cash 8,958     8,237  
Total Cash Available for Corporate Use $ 446,374     $ 474,294  
       
Credit Agreement Net Leverage      
Total Debt (does not include unamortized premium) $ 2,388,750     $ 2,392,500  
Cash Available (up to $300 million) 300,000     300,000  
Credit Agreement Net Debt $ 2,088,750     $ 2,092,500  
Credit Agreement EBITDA Trailing Twelve Months(19) $ 893,627     $ 850,771  
Credit Agreement Net Leverage Ratio 2.34 x   2.46 x



 
LPL Financial Holdings Inc.
Debt Schedule (2)
(Dollars in thousands, except where noted)
(Unaudited)
 
Total Debt   Outstanding
(end of period)
  Current Applicable
Margin
  Yield At
Issuance
  Interest Rate
(end of period)
  Maturity
Revolving Credit Facility(a)   $     LIBOR+125bps(b)       %   9/21/2022
Senior Secured Term Loan B   1,488,750     LIBOR+225bps(b)       4.49 %   9/21/2024
Senior Unsecured Notes(c)   500,000     5.75% Fixed   5.750 %   5.75 %   9/15/2025
Senior Unsecured Notes(c)   400,000   (d) 5.75% Fixed   5.115 %   5.75 %   9/15/2025
Total / Weighted Average   $ 2,388,750             4.96 %    

(a) The Revolving Credit Facility has a borrowing capacity of $500 million.
(b) The LIBOR rate option is one-, two-, three- or six-month LIBOR rate and subject to an interest rate floor of 0 basis points.
(c) The Senior Unsecured Notes were issued in two separate transactions; $500 million in notes were issued in March 2017 at par; the remaining $400 million were issued in September 2017 and priced at 103% of the aggregate principal amount.
(d) Does not include unamortized premium of approximately $10.8 million as of June 30, 2018.

 
LPL Financial Holdings Inc.
Key Business and Financial Metrics (2)
(Dollars in thousands, except where noted)
(Unaudited)
 
  Q2 2018   Q1 2018   Change   Q2 2017   Change
Advisors                  
Advisors 16,049     16,067     %   14,256     13 %
Net New Advisors (18 )   857     n/m     (98 )   n/m  
Annualized commission and advisory fees per Advisor(24) $ 231     $ 230     %   $ 215     7 %
Average Total Assets per Advisor ($ in millions)(25) $ 41.1     $ 40.3     2 %   $ 38.0     8 %
Transition assistance loan amortization($ in millions)(26) $ 18.1     $ 16.8     8 %   $ 14.0     29 %
Total client accounts (in millions) 5.4     5.3     2 %   4.6     17 %
                   
Employees - period end 4,005     3,838     4 %   3,419     17 %
                   
Productivity Metrics                  
Annualized Advisory Revenue as a percentage of Corporate Advisory Assets 1.05 %   1.06 %   (1 bps)   1.04 %   1 bps
Gross Profit ROA(27) 29.4 bps   28.8 bps   0.6 bps   28.8 bps   0.6 bps
OPEX ROA(28) 17.5 bps   19.5 bps   (2.0 bps)   18.5 bps   (1.0 bps)
EBIT ROA(29) 11.9 bps   9.3 bps   2.6 bps   10.3 bps   1.6 bps
Production Retention Rate (YTD annualized)(30) 96.0 %   96.2 %   (20 bps)   93.4 %   260 bps
Recurring Gross Profit Rate (trailing twelve months) (31) 84.7 %   83.9 %   80 bps   81.1 %   360 bps
EBITDA as a percentage of Gross Profit 48.2 %   39.5 %   870 bps   43.7 %   450 bps
                   
Productivity Metrics Prior to NPH                  
Gross Profit ROA(27) 30.1 bps   30.0 bps   0.1 bps   28.8 bps   1.3 bps
OPEX ROA(28) 17.6 bps   17.5 bps   0.1 bps   18.5 bps   (0.9 bps)
EBIT ROA(29) 12.5 bps   12.5 bps   bps   10.3 bps   2.2 bps
EBITDA as a percentage of Gross Profit 48.6 %   48.4 %   20 bps   43.7 %   490 bps
                   
Capital Allocation per Share(32)
(in millions, except per share data)
                 
Share Repurchases $ 116.8     $ 60.8     92 %   $ 36.2     223 %
Dividends 22.3     22.6     (1 %)   22.6     (1 %)
Total Capital Allocated $ 139.1     $ 83.4     67 %   $ 58.8     137 %
Weighted-average Share Count, Diluted 91.7     92.8     (1 %)   92.0     %
Total Capital Allocated per Share(32) $ 1.52     $ 0.90     69 %   $ 0.64     138 %
                                   

Endnote Disclosures

(1) Recruited Assets represents the estimated total brokerage and advisory assets expected to transition to the Company's broker-dealer subsidiary, LPL Financial LLC ("LPL Financial"), associated with advisors who have transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters including the initial quarter, and the actual amount received may vary from the estimate.

(2) The information presented on pages 8-17 includes non-GAAP financial measures and operational and performance metrics. For more information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" on page 3.

(3) Other asset-based revenues consist of revenues from the Company's sponsorship programs with financial product manufacturers and recordkeeping services, but does not include fees from cash sweep programs. Other asset-based revenues are a component of asset-based revenues and are derived from the Company's Unaudited Condensed Consolidated Statements of Income.

(4) Core G&A is a non-GAAP financial measure. Please see a description of Core G&A under "Non-GAAP Financial Measures" on page 3 of this release for additional information. Below is a reconciliation of Core G&A against the Company's total operating expense for the periods presented:

 
  Q2 2018   Q1 2018   Q2 2017
Operating Expense Reconciliation (in thousands)
         
Core G&A $ 192,148     $ 201,039     $ 176,428  
Regulatory charges 8,321     6,440     5,428  
Promotional 43,407     67,427     32,006  
Employee share-based compensation 6,125     5,606     5,033  
Total G&A 250,001     280,512     218,895  
Commissions and advisory 800,619     761,697     663,046  
Depreciation & amortization 22,220     20,701     21,190  
Amortization of intangible assets 15,682     13,222     9,453  
Brokerage, clearing and exchange 15,433     15,877     13,890  
Total operating expense $ 1,103,955     $ 1,092,009     $ 926,474  

(5) Consists of total advisory assets under custody at LPL Financial.

(6) Consists of brokerage assets serviced by advisors licensed with LPL Financial.

(7) Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial.

(8) Consists of total assets on LPL Financial's independent advisory platform serviced by investment advisor representatives of separate investment advisor firms ("Hybrid RIAs"), rather than of LPL Financial.

(9) Represents those Advisory Assets in LPL Financial's Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios, and Guided Wealth Portfolios platforms.

(10) Total Retirement Assets are a component of Total Brokerage and Advisory Assets. This measure does not include additional retirement plan assets custodied with third parties, estimated to be $147 billion as of June 30, 2018.

(11) Consists of total client deposits into advisory accounts less total client withdrawals from advisory accounts. The Company considers conversions from and to brokerage accounts as deposits and withdrawals respectively.

(12) Consists of total client deposits into brokerage accounts less total client withdrawals from brokerage accounts. The Company considers conversions from and to advisory accounts as deposits and withdrawals respectively.

(13) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(14) Calculated as annualized current period net new assets divided by preceding period assets in their respective categories of advisory assets or total brokerage and advisory assets.

(15) Consists of total client deposits into advisory accounts on LPL Financial's corporate advisory platform (FN 7) less total client withdrawals from advisory accounts on its corporate advisory platform.

(16) Consists of total client deposits into advisory accounts on LPL Financial's independent advisory platform (FN 8) less total client withdrawals from advisory accounts on its independent advisory platform.

(17) Consists of total client deposits into Centrally Managed Assets accounts (FN 9) less total client withdrawals from Centrally Managed Assets accounts.

(18) Calculated by dividing revenue for the period by the average balance during the period.

(19) Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter.

(20) Represents estimated potential future cost savings, operating expense reductions or other synergies included in Credit Agreement EBITDA in accordance with the Credit Agreement relating to the acquisition of NPH.  Such amounts do not represent actual performance and there can be no assurance that any such cost savings, operating expense reductions or other synergies will be realized.

(21) Represents the portion of Credit Agreement EBITDA that management estimates to be attributable to the NPH acquisition, which is added back to offset NPH run-rate EBITDA accretion, in accordance with the Credit Agreement.

(22) Represents items that are adjustable in accordance with the Credit Agreement to calculate Credit Agreement EBITDA, including employee severance costs, employee signing costs, employee retention or completion bonuses, and other non-recurring costs.

(23) Consists of cash unrestricted by the Credit Agreement and other regulations available for operating, investing, and financing uses.

(24) Calculated based on the average advisor count from the current period and prior period.

(25) Calculated based on the end of period Total Brokerage and Advisory Assets divided by end of period Advisor count.

(26) Represents the amortization expense attributable to forgivable loans from transition assistance paid to advisors and financial institutions.

(27) Represents annualized Gross Profit (FN 2) for the period, divided by average month-end Total Brokerage and Advisory Assets for the period.

(28) Represents annualized operating expenses for the period, excluding production-related expense, divided by average month-end Total Brokerage and Advisory Assets for the period. Production-related expense includes commissions and advisory expense and brokerage, clearing and exchange expense. For purposes of this metric, operating expenses includes Core G&A (FN 4), Regulatory, Promotional, Employee Share Based Compensation, Depreciation & Amortization, and Amortization of Intangible Assets.

(29) EBIT ROA is calculated as Gross Profit ROA less OPEX ROA.

(30) Reflects retention of commission and advisory revenues, calculated by deducting the prior year production of the annualized year-to-date attrition rate, over the prior year total production.

(31) Recurring Gross Profit Rate refers to the percentage of the Company's gross profit, a non-GAAP financial measure, that was recurring for the period presented. Management tracks recurring gross profit, a characterization of gross profit and a statistical measure, which is defined to include the Company's revenues from asset-based fees, advisory fees, trailing commissions, cash sweep programs, and certain other fees that are based upon client accounts and advisors, less the expenses associated with such revenues and certain other recurring expenses not specifically associated with a revenue line. Management allocates such other recurring expenses, such as non-GDC sensitive production expenses, on a pro-rata basis against specific revenue lines at its discretion.

(32) Capital Allocation per Share equals the amount of capital allocated for share repurchases and cash dividends divided by the diluted weighted-average shares outstanding.

(33) EPS prior to amortization of intangible assets is a non-GAAP financial measure. Please see a description of EPS prior to amortization of intangible assets under "Non-GAAP Financial Measures" on page 3 of this release for additional information. Below is a reconciliation of EPS, prior to amortization of intangible assets against the Company's GAAP EPS for the periods presented:

 
EPS Reconciliation (in thousands, except per share data) Q2 2018
EPS
  $ 1.30
Amortization of Intangible Assets $ 15,682  
Tax Benefit(i) (4,391 )
Amortization of Intangible Assets Net of Tax Benefit $ 11,291  
Diluted Share Count 91,684  
EPS Impact $ 0.12  
EPS Prior to Amortization of Intangible Assets $ 1.42  

 (i) Calculated using a 28% effective tax rate, which is the mid-point of the Company's expected effective tax rate range of 27-29% for 2018.

Investor Relations - Chris Koegel, (617) 897-4574
Media Relations - Jeff Mochal, (704) 733-3589
investor.lpl.com/contactus.cfm

 

Primary Logo

View Comments and Join the Discussion!