LPL's revenues for the three months ended June 30 were $1.898 billion, reflecting a 39% increase from the same quarter last year, and an 11% bump from the preceding quarter’s revenues, the company announced.
The company said earnings per share had increased 30% year over year to $1.85, while diluted EPS were $1.46, a 15% year-over-year spike.
The company’s total advisory and brokerage assets stood at $1.1 trillion, showing a 46% increase from a year ago, helped by organic growth, equity market appreciation and the acquisition of Waddell & Reed, whose 900 advisors joined LPL’s ranks last week, according to company President and CEO Dan Arnold.
The company’s earnings before interest, taxes, depreciation and amortization were $243 million for the quarter, an increase of 18% year over year.
With the Waddell deal and others, LPL now has 19,144 advisors, an increase of 2,141 advisors year over year. The Waddell & Reed acquisition added $69 billion in assets and an estimated $85 million to EBITDA, LPL said.
The company’s board of directors declared a dividend of 25 cents a share to be paid August 27. The company also said it would restart share repurchases in the third quarter with a target of $40 million per quarter. The company suspended the repurchase program in 2020 because of business uncertainties related to the Covid-19 pandemic.
Arnold said during an earnings call late yesterday that total organic net new assets were $37 billion for the quarter, reflecting a 16% annualized growth rate.
Recruited assets were $35 billion for the quarter, Arnold said. The company said that is triple last year's figure, while the trailing 12-month recruited assets were $80 million, which is double last year's number.
“Advisors are both winning new clients and capturing more assets from existing clients, which drove same-store sales to new highs in the second quarter,” Arnold said. He said asset retention was 98% for the quarter and the year.
The company also added brokerage assets and advisory assets from M&T Bank and BMO Harris Financial Advisors, which last year announced they would move retail brokerage and advisory business to LPL’s platform. LPL completed the $15 billion total asset transition from BMO and added $15.6 billion in M&T assets in the second quarter, with another $6.3 billion to be added later.