April 28, 2010

LPL Financial Net Jumps 91% on 15% Revenue Rise in Q1

EBITDA for the quarter rises 28% to top $100 million mark

LPL Financial, the largest independent broker/dealer, announced April 28 that its net income soared 91.3% to $27.9 million in the first quarter of 2010 compared to the prior year's first quarter, on a 15.6% rise in net revenue to $743.4 million.

The company's CFO, Robert Moore, called it a "very healthy quarter" in which LPL's "broad-based revenue growth outstripped costs" showing "good management of our expenses," and pointed out that adjusted EBITDA for the quarter was the "highest ever," crossing the "psychological barrier of $100 million." Specifically, EBITDA for the first quarter of 2010 rose a very healthy 28.7% to $105 million, compared to $81.9 million in 2009's first period.

Moore said that while the revenue results and a 23% rise in advisory and brokerage assets to $284.6 billion reflected "improved market conditions" (LPL does not break out net new assets), he also noted an increase in client accounts funded, and the addition of 450 new advisors to the LPL platform for the 12-month period ended March 31, 2010; the B/D closed the quarter with a reported 12,026 registered representatives, a 2.2% decline from 2009 that was partly due to expected rep attrition from the integration of three of its former Pacific Life broker/dealers during 2009.

The company reported that its RIA platform attracted five RIA firms and 32 advisors in the first quarter, putting the Hybrid RIA platform at the $8.4 billion mark in AUM from 96 RIA firms with 471 advisors.

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