LPL Financial said its first-quarter net income was $41.2 million, or $0.37 per share, down $7.8 million compared with net income of $49.0 million, or $0.43 per share, from a year earlier. Earnings after adjustments, including a $16.5 million charge related to the refinancing of senior secured credit facilities, were $63.2 million, or $0.56 per share, vs. $59.4 million, or $0.52 per diluted share, in the first quarter of 2011.
The independent broker-dealer’s net revenue for the first quarter of 2012 increased 3.2% to $901.8 million, from $873.9 million in the prior year period. Equity analysts had expected earnings of $0.54 a share and sales of $890.5 million.
The company also said that the private-equity firms Hellman & Friedman and TPG Capital, which each own about 31% of LPL, are selling a total of 14.5 million shares. This secondary offering represents about 14% of LPL’s total shares and should reduce each of the two private-equity stakes to about 24%.
Total advisory and brokerage assets (excluding assets in retirement plans and trusts) ended the period at $354.1 billion, a 7.3% increase from a year ago and a jump of 7.2% from the previous quarter.