Lpl Financial Holdings Inc. · NASDAQ:LPLA

Lpl Financial — Q1 2017 Earnings Presentation

11 slides from Lpl Financial's earnings presentation, Apr 27, 2017

  1. Slide 1: Q1 2017 Earnings Key Metrics

    Q1 2017 Earnings Key Metrics LPL Financial Holdings Inc. Q1 2017 Earnings April 27, 2017 Member FINRA/SIPC 1 LPL Financial Member FINRA/SIPC

  2. 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

  3. 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 11% 4% $355 $340 $340 $356 $345 $347 $347 $376 6% 8% $485 $486 $462 $476 $479 $488 $502 $509 $322 Q1 Q2 Q3 Q4 Q1 Q2

  4. Slide 4: Q1 Total Brokerage and Advisory Assets increased 11% year-over-year to $530 billion

    Q1 Total Brokerage and Advisory Assets increased 11% year-over-year to $530 billion, and increased 4% sequentially Total Brokerage and Advisory Assets ($ billions) Total Brokerage and Advisory Asset Mix YoY SEQ YoY SEQ Change Change Change Change $485 $486 $462 $476 $479 $488 $502 $509 $530 11% 4% $

  5. Slide 5: Q1 EBIT ROA increased 0.1 bps year-over-year as OPEX ROA decreased more than Gross Profit ROA

    Q1 EBIT ROA increased 0.1 bps year-over-year as OPEX ROA decreased more than Gross Profit ROA 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 11% 4% $502 $509 $485 $486 $476 $479 $488 $46

  6. Slide 6: Q1 Total Net New Assets were an inflow of $2.6 billion

    Q1 Total Net New Assets were an inflow of $2.6 billion (10) (11) (12) Total Net New Assets ($ 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

  7. Slide 7: Q1 Gross Profit increased 6% year-over-year and 8% sequentially

    Q1 Gross Profit increased 6% year-over-year and 8% sequentially Gross Profit ($ millions) (2) (14) (15) (16) (17) Net GDC Cash Sweep Other Asset-Based Transaction and Fee, net of BC&E Total Interest and Other YoY SEQ Change Change $376 6% 8% $355 $356 $345 $347 $347 $340 $340 $19 86% 60% $21 $322 $1

  8. Slide 8: Q1 Cash sweep balances decreased 1% year-over-year and 4% sequentially

    Q1 Cash sweep balances decreased 1% year-over-year and 4% sequentially, and yields increased 23 bps year-over-year and 16 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

  9. Slide 9: Q1 Total OPEX increased 3% year-over-year and decreased 1% sequentially

    Q1 Total OPEX increased 3% year-over-year and decreased 1% sequentially (8) Total OPEX ($ millions) (22) (23) (24) Core G&A Other Historical Adjustments Promotional (26) Regulatory (25) Employee Share-based Compensation D&A Expense (ex Amortization of Intangibles) YoY SEQ Change Change Amortization

  10. Slide 10: Q1 EBITDA increased 11% year-over-year and 28% sequentially

    Q1 EBITDA increased 11% year-over-year and 28% sequentially (3) EBITDA ($ millions) (27) EBITDA Margin as a Percent of Gross Profit YoY SEQ Change Change $152 11% 28% $137 $132 $125 $124 $120 $119 $109 40.4% ~190 bps ~600 bps 38.5% 38.2% 35.1% 36.4% 34.6% $96 34.4% 32.1% 29.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

  11. Slide 11: Footnotes

    (1) Footnotes 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

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