LPL Investment Holdings, parent company of LPL Financial LLC, on Monday reported net income of $41.2 million on revenue of $901.8 million for this year's first quarter. Revenue rose 3.2%, from $873.9 million, in the same period last year.
However, LPL's net income was down $7.8 million compared to first quarter 2011, primarily due to a $16.5 million pre-tax charge related to the successful completion of the refinancing of its senior secured credit facilities.
Revenue from advisory activities rose 2.8% versus a 2.6% gain in commission-based revenue. This was due to continued growth in advisory assets during the past four quarters, as well as market appreciation.
During the quarter, the nation's largest independent brokerage firm attracted $3.1 billion in net new advisory assets, bringing total advisory assets to $103.2 billion, which is up 30.8% from the comparable period last year.
LPL Investment Holdings' adjusted earnings, which excludes certain non-cash charges and other adjustments, were $63.2 million, up $3.8 million or 6.4% compared to $59.4 million, in the first quarter of 2011.
"We are pleased to announce a positive start to 2012 led by record revenue and adjusted earnings for the first quarter," Mark Casady, LPL Financial chairman and CEO, said in a statement. "This success was driven by the ongoing relationships our advisors maintain with clients. These relationships positioned our advisors for increased productivity as their clients re-engaged in the market"
For the quarter, total advisory and brokerage assets totaled $354.1 billion, a 7.3% increase from the year-earlier period. Compared to the previous quarter, total advisory and brokerage assets increased 7.2%.