Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q4 2016 Earnings Presentation
11 slides from Lpl Financial's earnings presentation, Feb 9, 2017
Slide 1: Q4 2016 Earnings Key Metrics
Q4 2016 Earnings Key Metrics LPL Financial Holdings Inc. Q4 2016 Earnings February 9, 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 Management 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 analyze LPL Financial Holdings Inc.’s (the “Company’s
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 $475 $485 $486 $462 $476 $479 $488 $502 $509 7% 1% $335 $355 $340 $340 $322 $356 $345 $347 $347 8% 0% Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 4: Q4 Total Brokerage and Advisory Assets increased 7% year-over-year to $509 billion
Q4 Total Brokerage and Advisory Assets increased 7% year-over-year to $509 billion, and increased 1% sequentially Total Brokerage and Advisory Assets ($ billions) Total Brokerage and Advisory Asset Mix YoY SEQ YoY SEQ Change Change Change Change $475 $485 $486 $462 $476 $479 $488 $502 $509 7% 1% $50
Slide 5: Q4 EBIT ROA increased 1.7 bps year-over-year
Q4 EBIT ROA increased 1.7 bps year-over-year as Gross Profit ROA increased and OPEX ROA decreased year-over-year Total Brokerage & Advisory Assets ($ billions) (1) (7) (8) Total Brokerage & Advisory Assets Gross Profit ROA OPEX ROA YoY SEQ Change Change $502 $509 7% 1% $475 $485 $486 $476 $479 $488
Slide 6: Q4 Total Net New Assets were an inflow of $2.5 billion
Q4 Total Net New Assets were an inflow of $2.5 billion (10) (11) (12) Total Net New Assets ($ 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 Annualized
Slide 7: Q4 Gross Profit increased 8% year-over-year and remained flat sequentially
Q4 Gross Profit increased 8% year-over-year and remained flat sequentially Gross Profit ($ millions) (2) (13) (14) (15) (16) GDC - Net Cash Sweep Other Asset-based Transaction and Fee, net of BC&E Total Interest and Other YoY SEQ Change Change $355 $356 $345 $347 $347 8% 0% $335 $340 $340 $21 $322 $
Slide 8: Q4 Cash sweep balances increased 8% year-over-year and 7% sequentially
Q4 Cash sweep balances increased 8% year-over-year and 7% sequentially, and yields increased 25 bps year-over-year and 8 bps sequentially Client cash sweep balances ($ billions) (17) (18) (19) YoY SEQ ICA Balances (EOP) DCA Balances (EOP) Money Market Balances (EOP) Change Change $30.4 $31.3 8% 7% $
Slide 9: Q4 Total OPEX decreased 1% year-over-year and increased 1% sequentially
Q4 Total OPEX decreased 1% year-over-year and increased 1% sequentially (8) Total OPEX ($ millions) (21) (22) Core G&A (24) Other Historical Adj. (25) Promotional(23) YoY SEQ Regulatory Employee Share-based Comp. D&A Expense (ex Amort of Intang) Change Change Amortization of Intangible Assets $257 $
Slide 10: Q4 EBITDA increased 25% year-over-year and decreased 1% sequentially
Q4 EBITDA increased 25% year-over-year and decreased 1% sequentially (3) EBITDA ($ millions) (26) EBITDA Margin as a percent of Gross Profit YoY SEQ Change Change $137 $132 $125 $124 $120 $120 $119 25% -1% $109 $96 38.5% 38.2% 35.7% 35.1% 36.4% 34.6% 34.4% ~470 bps -~20 bps 32.1% 29.7% Q4 Q1 Q2 Q3 Q
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
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