Lpl Financial Holdings Inc. · NASDAQ:LPLA
Lpl Financial — Q1 2015 Earnings Presentation
11 slides from Lpl Financial's earnings presentation, Apr 30, 2015
Slide 1: 1Q15 Supplemental Presentation
1Q15 Supplemental Presentation April 30, 2015 LPL Financial Member FINRA/SIPC Member FINRA/SIPC 1
Slide 2: Safe Harbor Disclosure and Non-GAAP Financial Measures
SAFE HARBOR DISCLOSURE AND NON-GAAP FINANCIAL MEASURES Safe Harbor Disclosure Statements in this presentation regarding LPL Financial Holdings Inc.’s (together with its affiliates and subsidiaries, the “Company”) future financial and operating results, plans, strategies, goals, and future growth, in
Slide 3: Executive Summary
Executive Summary • Our business fundamentals remained strong • Healthy asset growth, net new advisory asset flows, net new advisors, and recruiting pipeline • Net new advisory asset growth rate of 12% over the past year is the best among publicly traded companies in the retail advice industry, incl
Slide 4: Our net new advisory asset growth rate of 12% is the best among publicly traded companies
Our net new advisory asset growth rate of 12% over the past year is the best among publicly traded companies in the retail advice industry 2014 Net Flows Growth1 12% 10% 9% 8% 7% LPL Financial TD Ameritrade Ameriprise - Wealth Morgan Stanley - Wealth Charles Schwab Management Management LPL Financia
Slide 5: Recurring gross profit of >75% has created financial stability
Recurring gross profit* of >75% has created financial stability and minimized dependency on sales commissions Recurring 2014 Components % Gross % of Gross Revenue Gross ($ in millions) Recurring Profit Profit Profit <25% Advisory 1,338 99% 231 17% 229 Sales commissions 1,181 0% 120 9% - Trailing com
Slide 6: In the first quarter, Adjusted EPS declined as business expansion and buybacks were outweighed
In the first quarter, Adjusted EPS* declined as business expansion and share repurchases were outweighed by regulatory, cash sweep, and conference timing Components of our Q1 2015 Year-over-Year Adjusted Earnings per Share* performance $0.03 $0.06 $0.02 $0.03 $0.69 $0.01 $0.64 Q1'14 Adjusted Busines
Slide 7: We have been undergoing a transition to advisory for many years
We have been undergoing a transition to advisory for many years and are benefitting from the marketplace trend towards advisory business 1990 2000 2010 Today Mid ‘90s– LPL establishes 2004 – LPL launches 1991 – LPL Launches 2008 – LPL 2014 – LPL’s 7 advisory Advisory Consulting “centrally managed” o
Slide 8: The Department of Labor focus on brokerage retirement accounts would likely impact ~30% of client assets
The Department of Labor focus on brokerage retirement accounts would likely impact ~30% of client assets Total Brokerage & Advisory Client Assets of $475.1B (as of December 31, 2014) $299 $152 $176 $83 $147 $93 2014 Brokerage Assets 2014 Advisory Assets Retirement Assets Non-Retirement Assets LPL Fi
Slide 9: We have limited financial exposure under the DOL proposal as written
We have limited financial exposure under the DOL proposal as written 2014 Brokerage 2014 Brokerage 2014 Total Gross Asset Sales* Gross Asset Sales* Retirement Acct. Sales • Alternatives Investments 38% generated ~5% of total 5% 100% brokerage sales and ~5% 9% of total gross profit** 9% 38% • ~40% of
Slide 10: Our product mix reflects serving a greater percentage of mass affluent investors
Our product mix is reflective of serving a greater percentage of mass affluent investors than wirehouse or regional firms 10% 12% 28% 25% 36% ~65% 44% 52% Mass 39% Affluent (<$500K) 21% 18% 13% 2% LPL Regional Wirehouse <$100K $100-500K $500K-2M >$2M LPL Financial Member FINRA/SIPC 10 1 Cerulli Advi
Slide 11: Putting clients first has driven the success of our advisors' businesses and our own
Putting clients first has driven the success of our advisors’ businesses and our own Advisors 14,036 13,352 11,920 12,444 7,006 5,879 4,315 3,458 2000 2002 2004 2006 2008 2010 2012 2014 LPL Financial Member FINRA/SIPC 11
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