• LPL Financial Announces Second Quarter 2024 Results

    ソース: Nasdaq GlobeNewswire / 25 7 2024 16:05:01   America/New_York

    Key Financial Results

    • Net Income was $244 million, translating to diluted earnings per share ("EPS") of $3.23, down 12% from a year ago
    • Adjusted EPS* decreased 2% year-over-year to $3.88
      • Gross profit* increased 9% year-over-year to $1,079 million
      • Core G&A* increased 10% year-over-year to $371 million
      • Adjusted EBITDA* increased 2% year-over-year to $533 million

    Key Business Results

    • Total advisory and brokerage assets increased 21% year-over-year to $1.5 trillion
      • Advisory assets increased 25% year-over-year to $829 billion
      • Advisory assets as a percentage of total assets increased to 55.4%, up from 53.3% a year ago
    • Total organic net new assets were $29 billion, representing 8% annualized growth
      • Organic net new advisory assets were $27 billion, representing 13% annualized growth
    • Recruited assets(1) were $24 billion
      • Recruited assets over the trailing twelve months were $93 billion, up approximately 55% from a year ago
    • Advisor count(2) was 23,462, up 578 sequentially and 1,520 year-over-year
    • Total client cash balances were $44 billion, a decrease of $2 billion sequentially and $6 billion year-over-year
      • Client cash balances as a percentage of total assets were 2.9%, down from 3.2% in the prior quarter and 4.0% a year ago

    Key Capital and Liquidity Results

    • Corporate cash(3) was $684 million
    • Leverage ratio(4) was 1.68x
    • Dividends paid were $22.4 million

    Key Updates

    • Completed debt issuance: Issued $1 billion of senior unsecured notes, including $500 million of 5.700% notes due 2027 and $500 million of 6.000% notes due 2034. Net proceeds will be used for general corporate purposes, including financing the acquisition of Atria Wealth Solutions, Inc. ("Atria").
    • Large OSJs: Announced a planned separation from two misaligned large OSJs on our platform that collectively have ~$20 billion of client assets, which began to off-board in July.

    *See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures

    SAN DIEGO, July 25, 2024 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its second quarter ended June 30, 2024, reporting net income of $244 million, or $3.23 per share. This compares with $286 million, or $3.65 per share, in the second quarter of 2023 and $289 million, or $3.83 per share, in the prior quarter.

    "Over the past quarter, we remained focused on our mission of taking care of our advisors, so they can take care of their clients," said Dan Arnold, President and CEO. "This focus led to another quarter of solid business and financial results, reinforcing our momentum and the building appeal of our model. As we look ahead, we remain committed to delivering an industry-leading value proposition to advisors, as we strive to become the leader across the advisor-mediated marketplace."

    "We delivered another quarter of solid results," said Matt Audette, CFO and Head of Business Operations. "We recorded strong organic growth across our affiliation models, closed the acquisition of Crown Capital, continued to build momentum in our Liquidity & Succession solution, and are preparing to onboard the wealth management businesses of Prudential Financial and Wintrust Financial. As we look ahead, our business momentum and financial strength position us well to continue creating long-term shareholder value."

    Dividend Declaration

    The Company's Board of Directors declared a $0.30 per share dividend to be paid on August 23, 2024 to all stockholders of record as of August 9, 2024.

    Conference Call and Additional Information

    The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, July 25, 2024. The conference call will be available for replay at investor.lpl.com/events.

    Contacts

    Investor Relations
    investor.relations@lplfinancial.com

    Media Relations
    media.relations@lplfinancial.com

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for advisors and institutions, and not the other way around. Today, LPL is a leader in the markets we serve(5), serving more than 23,000 financial advisors, including advisors at approximately 1,000 institutions and at approximately 580 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional. At LPL, independence means that advisors and institution leaders have the freedom they deserve to choose the business model, services, and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors and institutions, so they can take care of their clients.

    Securities and Advisory services offered through LPL Financial LLC ("LPL Financial"), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.

    Throughout this communication, the terms "financial advisors" and "advisors" are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

    We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

    Forward-Looking Statements

    This press release contains statements regarding:

    • the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential Financial, Inc. ("Prudential") and Wintrust Financial Corporation ("Wintrust");
    • the amount and timing of offboarding of client assets associated with the planned separation of misaligned large OSJs;
    • the Company's future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company's core G&A expenses and client cash programs; and
    • future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

    These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company's expectations and objectives as of July 25, 2024 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

    • the failure to satisfy the closing conditions applicable to the Company's strategic relationship agreements with Prudential and Wintrust, or the Company's purchase agreement with Atria, including regulatory approvals;
    • difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
    • disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
    • the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
    • the negotiation of definitive terms of separation with misaligned large OSJs;
    • changes in general economic and financial market conditions, including retail investor sentiment;
    • changes in interest rates and fees payable by banks participating in the Company's client cash programs, including the Company's success in negotiating agreements with current or additional counterparties;
    • the Company's strategy and success in managing client cash program fees;
    • fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
    • effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to market financial products and services effectively;
    • whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
    • changes in the growth and profitability of the Company's fee-based offerings;
    • the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
    • the cost of settling and remediating issues related to regulatory matters or legal proceedings, including actual costs of reimbursing customers for losses in excess of our reserves;
    • the SEC's approval of the settlement agreement in connection with the settlement of the industry-wide civil investigation into compliance with records preservation requirements for business-related electronic communications stored on personal devices applicable to broker-dealer firms and investment advisors;
    • changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
    • execution of the Company's capital management plans, including its compliance with the terms of the Company's amended and restated credit agreement, the committed revolving credit facility and LPL Financial's committed revolving credit facility, and the indentures governing the Company's senior unsecured notes;
    • strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
    • the price, availability and trading volumes of shares of the Company's common stock, which will affect the timing and size of future share repurchases by the Company, if any;
    • the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
    • whether advisors affiliated with Atria, Prudential, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
    • the performance of third-party service providers to which business processes have been transitioned;
    • the Company's ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
    • the other factors set forth in the Company's most recent Annual Report on Form 10-K, as may be amended or updated in the Company's Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. 

    Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company's view as of any date subsequent to the date of this press release.

    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)

     Three Months Ended Three Months Ended 
     June 30,March 31, June 30, 
     20242024Change2023Change
    REVENUE     
    Advisory$1,288,163$1,199,8117%$1,014,56527%
    Commission:     
    Sales-based 423,070 385,23510% 298,96142%
    Trailing 363,976 361,2111% 323,92512%
      Total commission 787,046 746,4465% 622,88626%
    Asset-based:     
    Client cash 341,475 352,382(3%) 378,415(10%)
    Other asset-based 259,533 248,3395% 211,30023%
      Total asset-based 601,008 600,721—% 589,7152%
    Service and fee 135,000 132,1722% 123,12210%
    Transaction 58,935 57,2583% 46,93626%
    Interest income, net 47,478 43,5259% 37,97225%
    Other 14,139 52,660(73%) 33,608(58%)
      Total revenue 2,931,769 2,832,5934% 2,468,80419%
    EXPENSE     
    Advisory and commission 1,819,027 1,733,4875% 1,448,76326%
    Compensation and benefits 274,000 274,369—% 231,68018%
    Promotional 136,125 126,6198% 102,56533%
    Depreciation and amortization 70,999 67,1586% 58,37722%
    Occupancy and equipment 69,529 66,2645% 65,0057%
    Interest expense on borrowings 64,341 60,0827% 44,84243%
    Brokerage, clearing and exchange 32,984 30,5328% 29,14813%
    Amortization of other intangibles 30,607 29,5524% 26,74114%
    Professional services 22,100 13,27966% 18,09222%
    Communications and data processing 19,406 19,744(2%) 20,594(6%)
    Other 62,580 37,31568% 34,17883%
      Total expense 2,601,698 2,458,4016% 2,079,98525%
    INCOME BEFORE PROVISION FOR INCOME TAXES 330,071 374,192(12%) 388,819(15%)
    PROVISION FOR INCOME TAXES 86,271 85,4281% 103,299(16%)
    NET INCOME$243,800$288,764(16%)$285,520(15%)
    EARNINGS PER SHARE     
    Earnings per share, basic$3.26$3.87(16%)$3.70(12%)
    Earnings per share, diluted$3.23$3.83(16%)$3.65(12%)
    Weighted-average shares outstanding, basic 74,725 74,562—% 77,234(3%)
    Weighted-average shares outstanding, diluted 75,548 75,463—% 78,194(3%)
               

    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)

     Six Months Ended 
     June 30, 
     20242023Change
    REVENUE   
    Advisory$2,487,974$1,968,62226%
    Commission:   
    Sales-based 808,305 585,03338%
    Trailing 725,187 641,57813%
      Total commission 1,533,492 1,226,61125%
    Asset-based:   
    Client cash 693,857 796,690(13%)
    Other asset-based 507,872 414,77322%
      Total asset-based 1,201,729 1,211,463(1%)
    Service and fee 267,172 242,10910%
    Transaction 116,193 95,87121%
    Interest income, net 91,003 75,33021%
    Other 66,799 66,630—%
      Total revenue 5,764,362 4,886,63618%
    EXPENSE   
    Advisory and commission 3,552,514 2,819,39726%
    Compensation and benefits 548,369 465,21318%
    Promotional 262,744 200,78831%
    Depreciation and amortization 138,157 114,43121%
    Occupancy and equipment 135,793 125,1788%
    Interest expense on borrowings 124,423 84,02648%
    Brokerage, clearing and exchange 63,516 55,27415%
    Amortization of other intangibles 60,159 50,83318%
    Communications and data processing 39,150 38,2692%
    Professional services 35,379 32,3129%
    Other 99,895 67,59948%
      Total expense 5,060,099 4,053,32025%
    INCOME BEFORE PROVISION FOR INCOME TAXES 704,263 833,316(15%)
    PROVISION FOR INCOME TAXES 171,699 208,912(18%)
    NET INCOME$532,564$624,404(15%)
    EARNINGS PER SHARE   
    Earnings per share, basic$7.13$8.01(11%)
    Earnings per share, diluted$7.05$7.90(11%)
    Weighted-average shares outstanding, basic 74,644 77,988(4%)
    Weighted-average shares outstanding, diluted 75,529 79,083(4%)
           

    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Financial Condition
    (In thousands, except share data)
    (Unaudited)

     June 30, 2024March 31, 2024December 31, 2023
    ASSETS
    Cash and equivalents$1,318,894 $1,102,270 $465,671 
    Cash and equivalents segregated under federal or other regulations 1,530,150  1,610,996  2,007,312 
    Restricted cash 109,618  114,006  108,180 
    Receivables from clients, net 563,923  591,503  588,585 
    Receivables from brokers, dealers and clearing organizations 74,432  103,236  50,069 
    Advisor loans, net 1,757,727  1,573,774  1,479,690 
    Other receivables, net 763,632  863,119  743,317 
    Investment securities ($73,463, $43,428 and $76,088 at fair value at June 30, 2024, March 31, 2024 and December 31, 2023, respectively) 89,853  57,451  91,311 
    Property and equipment, net 1,066,395  987,308  933,091 
    Goodwill 1,860,062  1,840,972  1,856,648 
    Other intangibles, net 783,031  690,767  671,585 
    Other assets 1,586,010  1,482,137  1,390,021 
    Total assets$11,503,727 $11,017,539 $10,385,480 
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    LIABILITIES:   
    Client payables$1,963,988 $2,486,605 $2,266,176 
    Payables to brokers, dealers and clearing organizations 212,394  190,419  163,337 
    Accrued advisory and commission expenses payable 240,370  232,084  216,541 
    Corporate debt and other borrowings, net 4,442,840  3,853,794  3,734,111 
    Accounts payable and accrued liabilities 461,277  369,244  485,963 
    Other liabilities 1,667,511  1,615,512  1,440,373 
    Total liabilities 8,988,380  8,747,658  8,306,501 
    STOCKHOLDERS’ EQUITY:   
    Common stock, $0.001 par value; 600,000,000 shares authorized; 130,746,590, 130,704,541 shares and 130,233,328 shares issued at June 30, 2024, March 31, 2024 and December 31, 2023, respectively 131  131  130 
    Additional paid-in capital 2,038,216  2,016,666  1,987,684 
    Treasury stock, at cost — 55,985,188, 55,998,999 shares and 55,576,970 shares at June 30, 2024, March 31, 2024 and December 31, 2023, respectively (4,101,955) (4,101,055) (3,993,949)
    Retained earnings 4,578,955  4,354,139  4,085,114 
    Total stockholders’ equity 2,515,347  2,269,881  2,078,979 
    Total liabilities and stockholders’ equity$11,503,727 $11,017,539 $10,385,480 
              

    LPL Financial Holdings Inc.
    Management's Statements of Operations
    (In thousands, except per share data)
    (Unaudited)

    Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" in this release.

     Quarterly Results
     Q2 2024Q1 2024ChangeQ2 2023Change
    Gross Profit(6)     
    Advisory$1,288,163 $1,199,811 7%$1,014,565 27%
    Trailing commissions 363,976  361,211 1% 323,925 12%
    Sales-based commissions 423,070  385,235 10% 298,961 42%
    Advisory fees and commissions 2,075,209  1,946,257 7% 1,637,451 27%
    Production-based payout(7) (1,812,050) (1,686,332)7% (1,419,659)28%
    Advisory fees and commissions, net of payout 263,159  259,925 1% 217,792 21%
    Client cash(8) 361,316  373,408 (3%) 396,238 (9%)
    Other asset-based(9) 259,533  248,339 5% 211,300 23%
    Service and fee 135,000  132,172 2% 123,122 10%
    Transaction 58,935  57,258 3% 46,936 26%
    Interest income, net(10) 27,618  22,482 23% 20,136 37%
    Other revenue(11) 6,621  3,382 96% 3,431 93%
    Total net advisory fees and commissions and attachment revenue 1,112,182  1,096,966 1% 1,018,955 9%
    Brokerage, clearing and exchange expense (32,984) (30,532)8% (29,148)13%
    Gross Profit(6) 1,079,198  1,066,434 1% 989,807 9%
          
    G&A Expense     
    Core G&A(12) 370,912  363,513 2% 337,025 10%
    Regulatory charges 7,594  7,469 2% 6,600 15%
    Promotional (ongoing)(13)(14) 147,830  132,311 12% 106,535 39%
    Acquisition costs(14) 36,876  9,524 n/m 4,091 n/m
    Employee share-based compensation 19,968  22,633 (12%) 16,777 19%
    Total G&A 583,180  535,450 9% 471,028 24%
    EBITDA(15) 496,018  530,984 (7%) 518,779 (4%)
    Depreciation and amortization 70,999  67,158 6% 58,377 22%
    Amortization of other intangibles 30,607  29,552 4% 26,741 14%
    Interest expense on borrowings 64,341  60,082 7% 44,842 43%
    INCOME BEFORE PROVISION FOR INCOME TAXES 330,071  374,192 (12%) 388,819 (15%)
    PROVISION FOR INCOME TAXES 86,271  85,428 1% 103,299 (16%)
    NET INCOME$243,800 $288,764 (16%)$285,520 (15%)
    Earnings per share, diluted$3.23 $3.83 (16%)$3.65 (12%)
    Weighted-average shares outstanding, diluted 75,548  75,463 —% 78,194 (3%)
    Adjusted EBITDA(15)$532,894 $540,508 (1%)$522,870 2%
    Adjusted EPS(16)$3.88 $4.21 (8%)$3.94 (2%)
                  

    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)

     Q2 2024Q1 2024ChangeQ2 2023Change
    Market Drivers     
    S&P 500 Index (end of period) 5,460  5,254 4% 4,450 23%
    Russell 2000 Index (end of period) 2,048  2,125 (4%) 1,889 8%
    Fed Funds daily effective rate (average bps) 533  533 —bps 499 34bps
          
    Advisory and Brokerage Assets(17)     
    Advisory assets$829.1 $793.0 5%$661.6 25%
    Brokerage assets 668.7  647.9 3% 578.6 16%
    Total Advisory and Brokerage Assets$1,497.8 $1,440.9 4%$1,240.2 21%
    Advisory as a % of Total Advisory and Brokerage Assets 55.4% 55.0%40bps 53.3%210bps
          
    Assets by Platform     
    Corporate advisory assets(18)$567.8 $537.6 6%$442.1 28%
    Independent RIA advisory assets(18) 261.3  255.4 2% 219.5 19%
    Brokerage assets 668.7  647.9 3% 578.6 16%
    Total Advisory and Brokerage Assets$1,497.8 $1,440.9 4%$1,240.2 21%
          
    Centrally Managed Assets     
    Centrally managed assets(19)$126.9 $121.7 4%$99.8 27%
    Centrally Managed as a % of Total Advisory Assets 15.3% 15.3%—bps 15.1%20bps
                

    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)

     Q2 2024Q1 2024ChangeQ2 2023Change
    Net New Assets (NNA)(20)     
    Net new advisory assets$26.8 $16.2 n/m$18.1 n/m
    Net new brokerage assets 7.2  0.5 n/m 3.6 n/m
    Total Net New Assets$34.0 $16.7 n/m$21.7 n/m
          
    Organic Net New Assets     
    Organic net new advisory assets$26.6 $16.2 n/m$18.1 n/m
    Organic net new brokerage assets 2.5  0.5 n/m 3.6 n/m
    Total Organic Net New Assets $29.0 $16.7 n/m$21.7 n/m
          
    Net brokerage to advisory conversions(21)$3.7 $3.6 n/m$2.2 n/m
    Organic advisory NNA annualized growth(22) 13.4% 8.8%n/m 11.7%n/m
    Total organic NNA annualized growth(22) 8.1% 4.9%n/m 7.4%n/m
          
    Net New Advisory Assets(20)     
    Corporate RIA net new advisory assets$23.4 $13.9 n/m$11.8 n/m
    Independent RIA net new advisory assets 3.4  2.3 n/m 6.4 n/m
    Total Net New Advisory Assets$26.8 $16.2 n/m$18.1 n/m
    Centrally managed net new advisory assets(20)$4.4 $3.6 n/m$2.0 n/m
          
    Net buy (sell) activity(23)$39.3 $37.8 n/m$32.3 n/m
                

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Client Cash Data
    (Dollars in thousands, except where noted)
    (Unaudited)

     Q2 2024Q1 2024ChangeQ2 2023Change
    Client Cash Balances (in billions)(24)     
    Insured cash account sweep$31.0 $32.6 (5%)$36.0 (14%)
    Deposit cash account sweep 9.2  9.2 —% 9.5 (3%)
    Total Bank Sweep 40.2  41.8 (4%) 45.5 (12%)
    Money market sweep 2.3  2.4 (4%) 2.3 —%
    Total Client Cash Sweep Held by Third Parties 42.5  44.2 (4%) 47.9 (11%)
    Client cash account (CCA)(25) 1.5  2.1 (29%) 1.7 (12%)
    Total Client Cash Balances$44.0 $46.3 (5%)$49.6 (11%)
    Client Cash Balances as a % of Total Assets 2.9% 3.2%(30bps) 4.0%(110bps)
                

    Note: Totals may not foot due to rounding.

     Three Months Ended
     June 30, 2024March 31, 2024June 30, 2023
    Interest-Earnings AssetsAverage Balance
    (in billions)    		RevenueNet Yield (bps)(26)Average Balance
    (in billions)    		RevenueNet Yield (bps)(26)Average Balance
    (in billions)    		RevenueNet Yield (bps)(26)
    Insured cash account sweep$31.7$250,804318$33.2$266,792323$36.9$296,994322
    Deposit cash account sweep 9.0 89,070399 8.9 83,978378 9.6 79,612333
    Total Bank Sweep 40.7 339,874336 42.1 350,770335 46.5 376,606325
    Money market sweep 2.3 1,60128 2.3 1,61228 2.5 1,80930
    Total Client Cash Held By
    Third Parties    		 43.0 341,475320 44.4 352,382319 49.0 378,415310
    Client cash account (CCA)(25) 1.7 19,841472 1.8 21,026467 1.6 17,823441
    Total Client Cash 44.7 361,316326 46.2 373,408325 50.6 396,238314
    Margin receivables 0.5 10,521889 0.5 10,249890 0.5 10,133865
    Other interest revenue 1.3 17,097545 0.9 12,233535 0.8 10,003490
    Total Client Cash and
    Interest Income, Net    		$46.5$388,934337$47.6$395,890334$51.9$416,374322
                    

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Monthly Metrics
    (Dollars in billions, except where noted)
    (Unaudited)

     June 2024May 2024ChangeApril 2024March 2024
    Advisory and Brokerage Assets(17)     
    Advisory assets$829.1$809.42%$775.5 $793.0
    Brokerage assets 668.7 655.02% 637.5  647.9
    Total Advisory and Brokerage Assets$1,497.8$1,464.42%$1,413.0 $1,440.9
          
    Net New Assets (NNA)(20)     
    Net new advisory assets$9.2$9.9n/m$7.6 $7.5
    Net new brokerage assets 1.6 1.3n/m 4.3  0.4
    Total Net New Assets$10.8$11.2n/m$12.0 $7.9
    Net brokerage to advisory conversions(21)$1.2$1.2n/m$1.2 $1.3
          
    Organic Net New Assets (NNA)     
    Net new advisory assets$9.2$9.9n/m$7.4 $7.5
    Net new brokerage assets 1.6 1.3n/m (0.4) 0.4
    Total Organic Net New Assets $10.8$11.2n/m$7.0 $7.9
          
    Client Cash Balances(24)     
    Insured cash account sweep$31.0$31.8(3%)$32.5 $32.6
    Deposit cash account sweep 9.2 9.02% 9.1  9.2
    Total Bank Sweep  40.2 40.8(1%) 41.6  41.8
    Money market sweep 2.3 2.3—% 2.3  2.4
    Total Client Cash Sweep Held by Third Parties 42.5 43.1(1%) 43.8  44.2
    Client cash account (CCA)(25) 1.5 1.315% 1.9  2.1
    Total Client Cash Balances$44.0$44.5(1%)$45.7 $46.3
          
    Net buy (sell) activity(23)$12.1$15.0n/m$12.3 $12.9
          
    Market Drivers     
    S&P 500 Index (end of period) 5,460 5,2783% 5,036  5,254
    Russell 2000 Index (end of period) 2,048 2,070(1%) 1,974  2,125
    Fed Funds effective rate (average bps) 533 533—bps 533  533
               

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Financial Measures
    (Dollars in thousands, except where noted)
    (Unaudited)

     Q2 2024Q1 2024ChangeQ2 2023Change
    Commission Revenue by Product     
    Annuities$469,100 $436,473 7%$358,845 31%
    Mutual funds 187,432  186,540 —% 165,194 13%
    Fixed income 53,192  48,641 9% 36,183 47%
    Equities 34,434  35,451 (3%) 27,474 25%
    Other 42,888  39,341 9% 35,190 22%
    Total commission revenue$787,046 $746,446 5%$622,886 26%
          
    Commission Revenue by Sales-based and Trailing   
    Sales-based commissions     
    Annuities$260,188 $229,077 14%$172,540 51%
    Mutual funds 42,981  43,496 (1%) 36,431 18%
    Fixed income 53,192  48,641 9% 36,183 47%
    Equities 34,434  35,451 (3%) 27,474 25%
    Other 32,275  28,570 13% 26,333 23%
    Total sales-based commissions$423,070 $385,235 10%$298,961 42%
    Trailing commissions     
    Annuities$208,912 $207,396 1%$186,305 12%
    Mutual funds 144,451  143,044 1% 128,763 12%
    Other 10,613  10,771 (1%) 8,857 20%
    Total trailing commissions$363,976 $361,211 1%$323,925 12%
    Total commission revenue$787,046 $746,446 5%$622,886 26%
          
    Payout Rate(7) 87.32% 86.64%68bps 86.70%62bps
                

    LPL Financial Holdings Inc.
    Capital Management Measures
    (Dollars in thousands, except where noted)
    (Unaudited)

     Q2 2024Q1 2024Q4 2023
    Cash and equivalents$1,318,894 $1,102,270 $465,671 
    Cash at regulated subsidiaries (828,145) (1,038,241) (410,313)
    Excess cash at regulated subsidiaries per the Credit Agreement 193,342  247,033  128,327 
    Corporate Cash(3)$684,091 $311,062 $183,685 
        
    Corporate Cash(3)   
    Cash at the Parent$450,505 $30,781 $26,587 
    Excess cash at regulated subsidiaries per the Credit Agreement 193,342  247,033  128,327 
    Cash at non-regulated subsidiaries 40,244  33,248  28,771 
    Corporate Cash$684,091 $311,062 $183,685 
        
    Leverage Ratio   
    Total debt$4,471,850 $3,875,525 $3,757,200 
    Total corporate cash 684,091  311,062  183,685 
    Credit Agreement Net Debt$3,787,759 $3,564,463 $3,573,515 
    Credit Agreement EBITDA (trailing twelve months)(27)$2,260,165 $2,160,464 $2,194,807 
    Leverage Ratio1.68x1.65x1.63x
        


     June 30, 2024 
    Total DebtBalanceCurrent Applicable
    Margin    		Interest RateMaturity
    Revolving Credit Facility(a)$—ABR+37.5 bps / SOFR+147.5 bps8.875%5/20/2029
    Broker-Dealer Revolving Credit Facility —SOFR+135 bps6.680%5/19/2025
    Senior Secured Term Loan B 1,021,850SOFR+185 bps(b)7.179%11/12/2026
    Senior Unsecured Notes 500,0005.700% Fixed5.700%5/20/2027
    Senior Unsecured Notes 400,0004.625% Fixed4.625%11/15/2027
    Senior Unsecured Notes 750,0006.750% Fixed6.750%11/17/2028
    Senior Unsecured Notes 900,0004.000% Fixed4.000%3/15/2029
    Senior Unsecured Notes 400,0004.375% Fixed4.375%5/15/2031
    Senior Unsecured Notes 500,0006.000% Fixed6.000%5/20/2034
    Total / Weighted Average$4,471,850 5.691% 
           

    (a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the "Parent").
    (b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.

    LPL Financial Holdings Inc.
    Key Business and Financial Metrics
    (Dollars in thousands, except where noted)
    (Unaudited)

     Q2 2024Q1 2024ChangeQ2 2023Change
    Advisors     
    Advisors 23,462  22,884 3% 21,942 7%
    Net new advisors 578  224 158% 421 37%
    Annualized advisory fees and commissions per advisor(28)$358 $342 5%$301 19%
    Average total assets per advisor ($ in millions)(29)$63.8 $63.0 1%$56.5 13%
    Transition assistance loan amortization ($ in millions)(30)$61.9 $58.3 6%$50.5 23%
    Total client accounts (in millions) 8.6  8.4 2% 8.1 6%
          
    Employees 7,451  7,413 1% 6,827 9%
          
    Services Group     
    Services Group subscriptions(31)     
    Professional Services 1,892  1,824 4% 1,791 6%
    Business Optimizers 3,606  3,487 3% 3,118 16%
    Planning and Advice 665  624 7% 329 102%
    Total Services Group subscriptions 6,163  5,935 4% 5,238 18%
    Services Group advisor count 4,169  4,035 3% 3,506 19%
          
    AUM retention rate (quarterly annualized)(32) 98.4% 97.4%100bps 98.8%(40bps)
          
    Capital Management     
    Capital expenditures ($ in millions)(33)$128.9 $121.0 7%$101.1 27%
    Acquisitions, net ($ in millions)(34)$115.1 $10.2 n/m$49.0 135%
          
    Share repurchases ($ in millions)$— $70.0 (100%)$350.0 (100%)
    Dividends ($ in millions) 22.4  22.4 —% 23.1 (3%)
    Total Capital Returned ($ in millions)$22.4 $92.4 (76%)$373.1 (94%)
                  

    Non-GAAP Financial Measures

    Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

    Adjusted EPS and Adjusted net income

    Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles and acquisition costs, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items and acquisition costs that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

    Gross profit

    Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

    Core G&A

    Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company's total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

    EBITDA and Adjusted EBITDA

    EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company's financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

    Credit Agreement EBITDA

    Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

    Endnote Disclosures

    (1) Represents the estimated total advisory and brokerage assets expected to transition to the Company's primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

    (2) The terms “Financial Advisors” and “Advisors” refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor.

    (3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company's Credit Agreement, which include LPL Financial and The Private Trust Company, N.A., in excess of the capital requirements of the Company's Credit Agreement (which, in the case of LPL Financial is net capital in excess of 10% of its aggregate debits, or five times the net capital required in accordance with Exchange Act Rule 15c3-1) and (3) cash and equivalents held at non-regulated subsidiaries.

    (4) Compliance with the Leverage Ratio is only required under the Company's revolving credit facility.

    (5) The Company was named Top RIA custodian (Cerulli Associates, 2023 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

    (6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

     Q2 2024Q1 2024Q2 2023
    Total revenue$2,931,769$2,832,593$2,468,804
    Advisory and commission expense 1,819,027 1,733,487 1,448,763
    Brokerage, clearing and exchange expense 32,984 30,532 29,148
    Employee deferred compensation 560 2,140 1,086
    Gross profit$1,079,198$1,066,434$989,807

    (7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

     Q2 2024Q1 2024Q2 2023
    Advisory and commission expense$1,819,027 $1,733,487 $1,448,763 
    (Less) Plus: Advisor deferred compensation (6,977) (47,155) (29,104)
    Production-based payout$1,812,050 $1,686,332 $1,419,659 
        
    Advisory and commission revenue$2,075,209 $1,946,257 $1,637,451 
        
    Payout rate 87.32% 86.64% 86.70%

    (8) Below is a reconciliation of client cash revenue per Management's Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company's condensed consolidated statements of income for the periods presented (in thousands):

        
     Q2 2024Q1 2024Q2 2023
    Client cash on Management's Statement of Operations$361,316 $373,408 $396,238 
    Interest income on CCA balances segregated under federal or other regulations(10) (19,841) (21,026) (17,823)
    Client cash on Condensed Consolidated Statements of Income$341,475 $352,382 $378,415 

    (9) Consists of revenue from the Company's sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

    (10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management's Statements of Operations to interest income, net on the Company's condensed consolidated statements of income for the periods presented (in thousands):      

     Q2 2024Q1 2024Q2 2023
    Interest income, net on Management's Statement of Operations$27,618$22,482$20,136
    Interest income on CCA balances segregated under federal or other regulations(8) 19,841 21,026 17,823
    Interest income on deferred compensation 19 17 13
    Interest income, net on Condensed Consolidated Statements of Income $47,478$43,525$37,972

    (11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management's Statements of Operations to other revenue on the Company's condensed consolidated statements of income for the periods presented (in thousands):      

     Q2 2024Q1 2024Q2 2023
    Other revenue on Management's Statement of Operations$6,621 $3,382 $3,431 
    Interest income on deferred compensation (19) (17) (13)
    Deferred compensation 7,537  49,295  30,190 
    Other revenue on Condensed Consolidated Statements of Income $14,139 $52,660 $33,608 

    (12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company's total expense to core G&A for the periods presented (in thousands):

     Q2 2024Q1 2024Q2 2023
    Core G&A Reconciliation   
    Total expense$2,601,698 $2,458,401 $2,079,985 
    Advisory and commission (1,819,027) (1,733,487) (1,448,763)
    Depreciation and amortization (70,999) (67,158) (58,377)
    Interest expense on borrowings (64,341) (60,082) (44,842)
    Brokerage, clearing and exchange (32,984) (30,532) (29,148)
    Amortization of other intangibles (30,607) (29,552) (26,741)
    Employee deferred compensation (560) (2,140) (1,086)
    Total G&A 583,180  535,450  471,028 
    Promotional (ongoing)(13)(14) (147,830) (132,311) (106,535)
    Acquisition costs(14) (36,876) (9,524) (4,091)
    Employee share-based compensation (19,968) (22,633) (16,777)
    Regulatory charges (7,594) (7,469) (6,600)
    Core G&A$370,912 $363,513 $337,025 

    (13) Promotional (ongoing) includes $12.2 million, $8.0 million and $4.2 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs for the same periods.

    (14) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

     Q2 2024Q1 2024Q2 2023
    Acquisition costs   
    Fair value mark on contingent consideration(35)$24,624$—$—
    Compensation and benefits 6,827 3,850 1,020
    Professional services 3,567 3,246 2,575
    Promotional(13) 539 2,268 260
    Other 1,319 160 236
    Acquisition costs$36,876$9,524$4,091

    (15) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the "Non-GAAP Financial Measures" section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

     Q2 2024Q1 2024Q2 2023
    EBITDA and adjusted EBITDA Reconciliation   
    Net income$243,800$288,764$285,520
    Interest expense on borrowings 64,341 60,082 44,842
    Provision for income taxes 86,271 85,428 103,299
    Depreciation and amortization 70,999 67,158 58,377
    Amortization of other intangibles 30,607 29,552 26,741
    EBITDA$496,018$530,984$518,779
    Acquisition costs(14) 36,876 9,524 4,091
    Adjusted EBITDA$532,894$540,508$522,870

    (16) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

     Q2 2024Q1 2024Q2 2023
     AmountPer ShareAmountPer ShareAmountPer Share
    Net income / earnings per diluted share$243,800 $3.23 $288,764 $3.83 $285,520 $3.65 
    Amortization of other intangibles 30,607  0.41  29,552  0.39  26,741  0.34 
    Acquisition costs(14) 36,876  0.49  9,524  0.13  4,091  0.05 
    Tax benefit (17,816) (0.24) (10,340) (0.14) (8,081) (0.10)
    Adjusted net income / adjusted EPS$293,467 $3.88 $317,500 $4.21 $308,271 $3.94 
    Diluted share count 75,548   75,463   78,194  
    Note: Totals may not foot due to rounding.      
           

    (17) Consists of total advisory and brokerage assets under custody at the Company's primary broker-dealer subsidiary, LPL Financial.

    (18) Assets on the Company's corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company's independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

    (19) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

    (20) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

    (21) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

    (22) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

    (23) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

    (24) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

     Q2 2024Q1 2024Q2 2023
    Purchased money market funds$35.7$32.6$20.0

    (25) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

    (26) Calculated by dividing revenue for the period by the average balance during the period.

    (27) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):         

     Q2 2024Q1 2024Q4 2023
    EBITDA and Credit Agreement EBITDA Reconciliations   
    Net income$974,410$1,016,130$1,066,250
    Interest expense on borrowings 227,201 207,702 186,804
    Provision for income taxes 341,312 358,340 378,525
    Depreciation and amortization 270,720 258,098 246,994
    Amortization of other intangibles 116,537 112,671 107,211
    EBITDA$1,930,180$1,952,941$1,985,784
    Credit Agreement Adjustments:   
    Acquisition costs and other(14)(36)$224,687$117,246$110,170
    Employee share-based compensation 73,884 70,693 66,024
    M&A accretion(37) 28,843 17,024 30,268
    Advisor share-based compensation 2,571 2,560 2,561
    Credit Agreement EBITDA$2,260,165$2,160,464$2,194,807

    (28) Calculated based on the average advisor count from the current period and prior periods.

    (29) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

    (30) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

    (31) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales and CFO Essentials) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

    (32) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

    (33) Capital expenditures represent cash payments for property and equipment during the period.

    (34) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

    (35) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.

    (36) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company's compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

    (37) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.


    Primary Logo

シェアする