Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q2 2017 Earnings Presentation
11 slides from Lpl Financial's earnings presentation, Jul 27, 2017
Slide 1: Q2 2017 Earnings Key Metrics
Q2 2017 Earnings Key Metrics LPL Financial Holdings Inc. Q2 2017 Earnings July 27, 2017 Member FINRA/SIPC 1 LPL Financial Member FINRA/SIPC
Slide 2: Notice to Investors: Non-GAAP Financial Measures
Notice to Investors: Non-GAAP Financial Measures The management of LPL Financial Holdings Inc. (“the Company”) believes that presenting certain non-GAAP measures by excluding or including certain items can be helpful to investors and analysts who may wish to use some or all of this information to an
Slide 3: Performance has steadily improved on four key metrics
Performance has steadily improved on four key metrics (1) (2) Total Brokerage & Advisory Assets ($ billions) Gross Profit ($ millions) YoY SEQ YoY SEQ Change Change Change Change $530 $542 11% 2% $389 13% 3% $486 $462 $476 $479 $488 $502 $509 $340 $340 $322 $356 $345 $347 $347 $376 Q2 Q3 Q4 Q1 Q2 Q3
Slide 4: Q2 Total Brokerage and Advisory Assets increased 11% year-over-year to $542 billion
Q2 Total Brokerage and Advisory Assets increased 11% year-over-year to $542 billion, and increased 2% sequentially Total Brokerage and Advisory Assets ($ billions) Total Brokerage and Advisory Asset Mix (4) (5) (6) (4) (5) (6) Brokerage Assets Corporate Assets Hybrid Advisory Assets Brokerage Assets
Slide 5: Q2 EBIT ROA increased 1.8 bps year-over-year as Gross Profit ROA increased
Q2 EBIT ROA increased 1.8 bps year-over-year as Gross Profit ROA increased and OPEX ROA decreased year-over-year Total Brokerage & Advisory Assets ($ billions) (1) (7) (8) Total Brokerage & Advisory Assets Gross Profit ROA OPEX ROA YoY SEQ Change Change $530 $542 11% 2% $502 $509 $486 $476 $479 $488
Slide 6: Q2 Total Net New Assets were an inflow of $0.4 billion
Q2 Total Net New Assets were an inflow of $0.4 billion (10) (11) (12) Total Net New Assets ($ billions) Net New Advisory Assets ($ billions) Net New Brokerage Assets ($ billions) Total NNA Total NNA Annualized Growth Advisory NNA Advisory NNA Annualized Growth Brokerage NNA Brokerage NNA Anualized G
Slide 7: Q2 Gross Profit increased 13% year-over-year and 3% sequentially
Q2 Gross Profit increased 13% year-over-year and 3% sequentially Gross Profit ($ millions) (2) (15) (16) YoY SEQ Net Commission and Advisory Fees (14) Cash Sweep Other Asset-Based Change Change Transaction and Fee, net of BC&E (17) Interst Income and Other $389 13% 3% $376 $356 $345 $347 $347 $15 43
Slide 8: Q2 Cash sweep balances decreased 5% year-over-year and 7% sequentially
Q2 Cash sweep balances decreased 5% year-over-year and 7% sequentially, and yields increased 44 bps year-over-year and 20 bps sequentially Client cash sweep balances ($ billions) (18) (19) (20) YoY SEQ ICA Balances (EOP) DCA Balances (EOP) Money Market Balances (EOP) Change Change $30.4 $31.3 $29.0
Slide 9: Q2 Total OPEX increased 3% year-over-year and decreased 2% sequentially
Q2 Total OPEX increased 3% year-over-year and decreased 2% sequentially (8) Total OPEX ($ millions) (22) (23) (24) Core G&A Other Historical Adjustments Promotional (25) (26) Regulatory Employee Share-based Compensation D&A Expense (ex Amortization of Intangibles) YoY SEQ Amortization of Intangible
Slide 10: Q2 EBITDA increased 29% year-over-year and 12% sequentially
Q2 EBITDA increased 29% year-over-year and 12% sequentially (3) EBITDA ($ millions) (27) EBITDA Margin as a Percent of Gross Profit YoY SEQ Change Change $170 29% 12% $152 $137 $132 $124 $120 $119 $109 $96 43.7% 550 bps 330 bps 38.5% 40.4% 36.4% 38.2% 34.6% 34.4% 32.1% 29.7% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: Footnotes
Footnotes (1) Total Brokerage and Advisory Assets are comprised of assets that are custodied, networked, and non-networked, and reflect market movement in addition to new assets, inclusive of new business development and net of attrition. (2) Gross Profit is a non-GAAP measure. Please see a descript
LPL Financial Holdings — Q2 2017 Earnings Presentation on 6ix