LPL Financial(US:LPLA)2022-05-03 20:44Financial Performance - Net income for Q1 2022 was $133.7 million, or $1.64 per diluted share, compared to $129.6 million, or $1.59 per diluted share in Q1 2021[31]. - Gross profit for the three months ended March 31, 2022, was $669.0 million, a 15% increase from $579.4 million for the same period in 2021[35]. - Total revenue for the three months ended March 31, 2022, was $2,065.7 million, compared to $1,707.6 million in 2021, reflecting a significant growth[40]. - Net income for the three months ended March 31, 2022, was $133.7 million, slightly up from $129.6 million in 2021[40]. - Total revenue for the three months ended March 31, 2022, was $2,065,693, an increase of 21% compared to $1,707,617 for the same period in 2021[113]. - Net income for the three months ended March 31, 2022, was $133,744, representing a 3% increase from $129,620 in the prior year[113]. - EBITDA for the three months ended March 31, 2022, was $267.2 million, up from $243.1 million in 2021[40]. - Total expenses for Q1 2022 were $1,892.3 million, a 22.7% increase from $1,542.5 million in Q1 2021[59]. Assets and Liabilities - Total advisory and brokerage assets served reached $1.2 trillion as of March 31, 2022, a 21% increase from $958.3 billion at the same date in 2021[32]. - Total advisory and brokerage assets as of March 31, 2022, were $1,163.1 billion, down from $1,206.4 billion as of December 31, 2021[39]. - Total assets decreased to $7,773,331 thousand as of March 31, 2022, down from $7,991,600 thousand as of December 31, 2021, representing a decline of approximately 2.7%[116]. - Total liabilities decreased to $6,038,325 thousand as of March 31, 2022, down from $6,321,067 thousand as of December 31, 2021, indicating a reduction of about 4.5%[116]. - Corporate Cash as of March 31, 2022, was $270,165, up from $236,987 as of December 31, 2021, indicating improved liquidity[93]. - The company's corporate debt and other borrowings, net, were reported at $2,722,396,000 as of March 31, 2022, down from $2,814,044,000 at December 31, 2021, indicating improved leverage management[167]. Advisory and Brokerage Assets - Net new assets for the three months ended March 31, 2022, were $17.6 billion, down from $28.9 billion for the same period in 2021[32]. - Net new advisory assets totaled $17.4 billion for Q1 2022, compared to $22.7 billion in Q1 2021[33]. - Advisory assets were $624.3 billion, representing 54% of total advisory and brokerage assets, up 26% from $496.7 billion in Q1 2021[33]. - Net new brokerage assets were $0.2 billion for Q1 2022, significantly lower than $6.2 billion for the same period in 2021[34]. - Brokerage assets stood at $538.8 billion as of March 31, 2022, a 17% increase from $461.6 billion at the same date in 2021[34]. Revenue Streams - Advisory revenue increased by 45.0% to $1,047.1 million in Q1 2022, compared to $722.0 million in Q1 2021[59]. - Total commission revenue rose to $585.5 million in Q1 2022, up 5.1% from $557.2 million in Q1 2021[66]. - Sales-based commission revenue for Q1 2022 was $240.3 million, a 1.7% increase from $236.3 million in Q1 2021[66]. - Asset-based revenue for the three months ended March 31, 2022, was $296.4 million, up 11.9% from $264.7 million in the prior year[142]. - Service and fee revenue for the three months ended March 31, 2022, totaled $112.8 million, representing a 16.5% increase from $96.8 million in the same period of 2021[144]. Expenses and Costs - Core G&A expenses for Q1 2022 were $280.9 million, compared to $236.3 million in Q1 2021, marking an increase of 18.8%[14]. - The company incurred $87.0 million in promotional expenses during Q1 2022, a significant increase of 60.6% from $54.2 million in Q1 2021[59]. - Compensation and benefits expense increased by $30.5 million in Q1 2022, primarily due to higher salaries and benefits from increased headcount[79]. - Other expense for Q1 2022 rose by $12.5 million compared to 2021, mainly due to costs related to transitional support and licensing fees[88]. Shareholder Returns - The company paid cash dividends of $20.0 million and repurchased shares worth $50.0 million during the three months ended March 31, 2022[36]. - Cash dividends on common stock remained at $0.25 per share, with total dividends paid amounting to $20,013 thousand for the three months ended March 31, 2022[126]. - The Company repurchased 292,163 shares of common stock at a weighted-average price of $171.16, totaling $50.0 million during Q1 2022[202]. Employment and Economic Indicators - The company added 1.7 million jobs in the U.S. economy during the first three months of 2022, with an unemployment rate of 3.6%[55]. - Average number of employees increased by 26.6% to 6,059 in Q1 2022 compared to 4,787 in Q1 2021[79]. Acquisitions - The company acquired the wealth management business of Waddell & Reed Financial, Inc. for $300.0 million on April 30, 2021, to expand its addressable markets[148]. - The company allocated $128.6 million of the acquisition price to goodwill, reflecting expected synergies from combining operations[148].