GlobeNewswire Inc | Feb 4, 2021 04:05PM EST

February 04, 2021

Fourth Quarter 2020 Key Financial Results

-- Earnings per share ("EPS") was $1.38, and Net Income was $112 million. Gross Profit** was $534 million. Core G&A** was $252 million. EBITDA** was $217 million and EBITDA** as a percentage of Gross Profit** was 41%. -- EPS Prior to Amortization of Intangible Assets** was $1.53.

Fourth Quarter 2020 Key Business Results

-- Total Advisory and Brokerage Assets increased 18% year-over-year to $903 billion. Advisory assets increased by 26% year-over-year to $461 billion. Advisory assets as a percentage of total assets increased to 51.1%, up from 47.8% a year ago. -- Total organic net new assets(1) were an inflow of $17.8billion, translating to an 8.8% annualized growth rate. Total organic net new asset annualized growth rate was 7.4% in October, 7.3% in November and 10.8% in December. Organic net new advisory assets were an inflow of $15.9billion, translating to a 15.6% annualized growth rate. Organic net new brokerage assets were an inflow of $1.9billion, translating to a 1.9% annualized growth rate. -- Acquired net new assets were $4.0billion, of which $2.5billion was advisory and $1.5billion was brokerage. Acquired net new assets were from Lucia Securities and E.K. Riley as we completed the onboarding of these two acquisitions during the quarter. -- Recruited Assets(2) were $10.8 billion, contributing to a trailing twelve-month total of $40.9billion, up 17% year-over-year. Advisor count(3) was 17,287, up 119 from Q3 2020 and 823 year-over-year. -- Total client cash balances were $48.9 billion, up $2.3billion, or 5% sequentially. Client cash balances as a percentage of total assets were 5.4%.

Fourth Quarter 2020 Key Capital Results

-- Dividends were $20 million. -- Cash available for corporate use was $280 million. -- Credit Agreement Net Leverage Ratio(4) was 2.16x.

Full Year 2020 Key Performance Indicators

-- EPS was $5.86, and Net Income was $473 million. Gross Profit** was $2,103million. Core G&A** was $925million. EBITDA** was $909million and EBITDA** as a percentage of Gross Profit** was 43%. -- EPS Prior to Amortization of Intangible Assets** was $6.46. -- Total organic net new assetswere $56.2billion, translating to a 7.4% growth rate, up from 5.3% in 2019. Full-year production retention rate was 97.7%, up from 96.5% a year ago. -- Dividends were $79million.

Key Updates

-- 2020 Core G&A** was $925million, which translates to a 6.5% growth rate year-over-year and within our outlook range of $915 to $940 million. -- Established 2021 Core G&A** outlook range of ~5.5% to 8% prior to expenses from Waddell & Reed, or $975 to $1,000 million. -- Signed an agreement to acquire Waddell & Reeds wealth management business for $300 million, a firm with over 900 advisors and ~$70 billion of client assets as of December 31, 2020.To date, Waddell & Reed advisors serving ~80% of client assets have already committed to join LPL following the close of the transaction, and we are encouraged by our ongoing progress.

SAN DIEGO, Feb. 04, 2021 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq: LPLA) (the Company) today announced results for its fourth quarter ended December31, 2020, reporting net income of $112 million, or $1.38 per share. This compares with $127 million, or $1.53 per share, in the fourth quarter of 2019 and $104 million, or $1.29 per share, in the prior quarter.

"Throughout 2020, 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 us to enhance our capabilities, service, and technology, which increased the appeal of our model and contributed to new highs for total assets and organic growth. As we look ahead, we aim to continue investing in our model and increasing our market share within the advisor-centered marketplace."

Looking at 2020, we are proud of what we accomplished within our framework to drive shareholder value, said Matt Audette, CFO. We continued to invest through a volatile environment while staying disciplined on expenses, closed on three M&A transactions, reached an agreement to acquire Waddell & Reed's wealth management business, and delivered the highest organic net new assets in our history. Going forward, 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 $0.25 per share dividend to be paid on March 30, 2021 to all stockholders of record as of March 16, 2021.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. EST on Thursday, February 4. To listen, call 877-677-9122 (domestic) or 708-290-1401 (international); passcode 9671648, or visit investor.lpl.com(webcast). Replays will be available by phone and on investor.lpl.combeginning two hours after the call and until February 11 and February 25, respectively. For telephonic replay, call 855-859-2056 (domestic) or 404-537-3406 (international); passcode 9671648.

About LPL Financial

LPL Financial is a leader in the retail financial advice market, the nations largest independent broker-dealer+ and a leading custodian (or provider of custodial services) to RIAs. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow their practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions.LPL.com

+Based on total revenues, Financial Planning magazine June 1996-2020.

Securities and advisory services offered through LPL Financial LLC, a registered investment advisor. Member FINRA/SIPC. 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 LLC. We routinely disclose information that may be important to shareholders in the Investor Relations or Press Releases section of our website.

**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 Companys 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.

EPS Prior to Amortization of Intangible Assets is defined as GAAP EPS plus the per share impact of amortization of intangible assets. The per share impact is calculated as amortization of intangible assets expense, net of applicable tax benefit, divided by the number of shares outstanding for the applicable period. The Company presents EPS Prior to Amortization of Intangible Assets because management believes that the metric can provide investors with useful insight into the Companys core operating performance by excluding non-cash items that management does not believe impact the Companys ongoing operations. EPS Prior to Amortization of Intangible Assets is not a measure of the Company's financial performance under GAAP and should not be considered as an alternative to GAAP EPS or any other performance measure derived in accordance with GAAP. For a reconciliation of EPS Prior to Amortization of Intangible Assets to GAAP EPS, please see footnote 38 on page 19 of this release.

Gross Profit is calculated as total net revenues, which were $1,581million for the three months ended December 31, 2020, less advisory and commission expenses and brokerage, clearing and exchange fees, which were $1,030million and $18million, respectively for the three months ended December 31, 2020. All other expense categories, including depreciation and amortization of fixed assets and amortization of intangible assets, are considered general and administrative in nature. Because the Companys 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 Companys core operating performance before indirect costs that are general and administrative in nature. For a calculation of Gross Profit, please see footnote 6 on page 16 of this release.

Core G&A consists of total operating expenses, which were $1,410million for the three months ended December 31, 2020, excluding the following expenses: advisory and commission, regulatory charges, promotional, employee share-based compensation, depreciation and amortization, amortization of intangible assets, and brokerage, clearing and exchange. Management presents Core G&A because it believes Core G&A reflects the corporate operating 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 expenses, 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 Companys total operating expenses as calculated in accordance with GAAP. For a reconciliation of Core G&A to the Companys total operating expenses, please see footnote 10 on page 17 of this release. The Company does not provide an outlook for its total operating expenses because it contains expense components, such as advisory and commission expenses, that are market-driven and over which the Company cannot exercise control. Accordingly a reconciliation of the Companys outlook for Core G&A to an outlook for total operating expenses cannot be made available without unreasonable effort.

EBITDA is defined as net income plus interest and other expense, income tax expense, depreciation and amortization, and amortization of intangible assets. The Company presents EBITDA because management believes that it can be a useful financial metric in understanding the Companys earnings from operations. 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, or as an alternative to cash flows from operating activities as a measure of profitability or liquidity. In addition, the Companys EBITDA can differ significantly from EBITDA calculated by other companies, depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, and capital investments. For a reconciliation of EBITDA to net income, please see footnote 27 on page 18 of this release.

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company's credit agreement (Credit Agreement) as Consolidated EBITDA, which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense, tax expense, depreciation and amortization, and amortization of intangible assets, and is further adjusted to exclude certain non-cash charges and other adjustments, including unusual or non-recurring charges and gains, 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 Companys 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, or as an alternative to cash flows from operating activities as a measure of profitability or liquidity. In addition, the Companys calculation of Credit Agreement EBITDA can differ significantly from adjusted EBITDA calculated by other companies, depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate, capital investments, and types of adjustments made by such companies. For a reconciliation of Credit Agreement EBITDA to net income, please see footnote 27 on page 18 of this release.

Forward-Looking Statements

Statements in this press release regarding the Company's future financial and operating results, growth, priorities and business strategies, including forecasts and statements relating to future expenses (including 2020 Core G&A** outlook), future capabilities, future advisor service experience, future investments and capital deployment, long-term shareholder value and the planned acquisition of Waddell & Reed's wealth management business, as well as any other statements that are not related to present facts or current conditions or that are not purely historical, constitute forward-looking statements.These forward-looking statements are based on the Company's historical performance and its plans, estimates and expectations as of February4, 2021. Forward-looking statements are not guarantees that the future results, plans, intentions or expectations expressed or implied will be achieved.Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, which may cause actual financial or operating results, levels of activity or the timing of events to be materially different than those expressed or implied by forward-looking statements.Important factors that could cause or contribute to such differences include: 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; the Company's strategy and success in managing client cash program fees; changes in the growth and profitability of the Company's fee-based business; fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue; the effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions; whether the retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company; 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 and the implementation of Regulation BI (Best Interest); the costs 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; changes made to the Companys services and pricing, and the effect that such changes may have on the Companys gross profit streams and costs; the execution of the Company's plans and its success in realizing the synergies, expense savings, service improvements and efficiencies expected to result from its initiatives, acquisitions and programs; the effects of the COVID-19 pandemic; the successful onboarding of advisors and client assets in connection with the acquisition of Waddell & Reed's wealth management business; and the other factors set forth in Part I, Item 1A. Risk Factors in the Company's 2019 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, even if its estimates change, and you should not rely on statements contained herein as representing the Company's views as of any date subsequent to the date of this press release.

Investor Relations - Chris Koegel, (617) 897-4574Media Relations - Jeff Mochal, (704) 733-3589investor.lpl.com/contactus.cfm

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

Three Months Ended Years Ended December 31, December 31, 2020 2019 % 2020 2019 % Change ChangeREVENUES Advisory $ 638,181 $ 533,259 20 % $ 2,327,519 $ 1,982,869 17 %Commission 503,020 476,920 5 % 1,906,560 1,892,407 1 %Asset-based 258,393 288,925 (11 %) 1,044,517 1,165,979 (10 %)Transaction and 129,750 118,291 10 % 506,071 480,328 5 %feeInterest income,net of interest 6,707 10,966 (39 %) 29,412 46,508 (37 %)expenseOther 45,232 19,534 n/m 57,561 56,765 n/mTotal net 1,581,283 1,447,895 9 % 5,871,640 5,624,856 4 %revenuesEXPENSES Advisory and 1,029,739 893,831 15 % 3,697,147 3,388,186 9 %commissionCompensation and 167,864 149,128 13 % 609,257 556,128 10 %benefitsPromotional 48,342 51,050 (5 %) 208,250 205,537 1 %Depreciation and 28,650 25,663 12 % 109,732 95,779 15 %amortizationAmortization ofintangible 17,270 16,631 4 % 67,358 65,334 3 %assetsOccupancy and 41,903 35,320 19 % 166,389 136,163 22 %equipmentProfessional 16,541 17,772 (7 %) 57,067 73,887 (23 %)servicesBrokerage,clearing and 17,762 15,927 12 % 71,185 64,445 10 %exchangeCommunicationsand data 14,656 12,465 18 % 52,399 49,859 5 %processingOther 27,744 30,569 (9 %) 101,018 114,546 (12 %)Total operating 1,410,471 1,248,356 13 % 5,139,802 4,749,864 8 %expensesNon-operatinginterest expense 24,979 31,384 (20 %) 105,765 130,001 (19 %)and otherLoss onextinguishment ? 3,156 n/m ? 3,156 n/mof debtINCOME BEFOREPROVISION FOR 145,833 164,999 (12 %) 626,073 741,835 (16 %)INCOME TAXESPROVISION FOR 34,285 38,323 (11 %) 153,433 181,955 (16 %)INCOME TAXESNET INCOME $ 111,548 $ 126,676 (12 %) $ 472,640 $ 559,880 (16 %)EARNINGS PER SHAREEarnings per $ 1.41 $ 1.57 (10 %) $ 5.96 $ 6.78 (12 %)share, basicEarnings per $ 1.38 $ 1.53 (10 %) $ 5.86 $ 6.62 (11 %)share, dilutedWeighted-averageshares 79,353 80,701 (2 %) 79,244 82,552 (4 %)outstanding,basicWeighted-averageshares 80,904 82,695 (2 %) 80,702 84,624 (5 %)outstanding,diluted

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

Quarterly Results Q4 2020 Q3 2020 Q2 2020REVENUES Advisory $ 638,181 $ 586,941 $ 523,370 Commission 503,020 472,643 427,453 Asset-based 258,393 253,551 247,067 Transaction and fee 129,750 119,747 119,478 Interest income, net of interest 6,707 6,623 6,540 expenseOther 45,232 20,796 42,751 Total net revenues 1,581,283 1,460,301 1,366,659 EXPENSES Advisory and commission 1,029,739 936,766 859,847 Compensation and benefits 167,864 151,271 143,320 Promotional 48,342 57,970 44,540 Depreciation and amortization 28,650 27,548 26,890 Amortization of intangible assets 17,270 16,829 16,689 Occupancy and equipment 41,903 41,874 43,066 Professional services 16,541 12,301 13,620 Brokerage, clearing and exchange 17,762 17,834 18,565 expenseCommunications and data processing 14,656 12,547 14,361 Other 27,744 24,852 22,194 Total operating expenses 1,410,471 1,299,792 1,203,092 Non-operating interest expense and 24,979 25,179 26,289 otherINCOME BEFORE PROVISION FOR INCOME 145,833 135,330 137,278 TAXESPROVISION FOR INCOME TAXES 34,285 31,541 35,616 NET INCOME $ 111,548 $ 103,789 $ 101,662 EARNINGS PER SHARE Earnings per share, basic $ 1.41 $ 1.31 $ 1.29 Earnings per share, diluted $ 1.38 $ 1.29 $ 1.27 Weighted-average shares 79,353 79,176 78,940 outstanding, basicWeighted-average shares 80,904 80,550 80,127 outstanding, diluted

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

December 31, September 30, December 31, 2020 2020 2019ASSETSCash and cash equivalents $ 808,612 $ 800,799 $ 590,209 Cash segregated under federal and 923,158 667,121 822,697 other regulationsRestricted cash 67,264 75,295 58,872 Receivables from: Clients, net of allowance 405,106 424,131 433,986 Product sponsors, broker-dealers 233,192 205,508 177,654 and clearing organizationsAdvisor loans, net of allowance 547,372 509,124 441,743 Others, net of allowance 306,640 306,952 298,790 Securities owned: Trading ? at fair value 29,252 28,215 46,447 Held-to-maturity ? at amortized 13,235 13,058 11,806 costSecurities borrowed 30,130 23,510 17,684 Fixed assets, net of accumulated 582,868 570,592 533,044 depreciation and amortizationOperating lease assets 101,921 99,565 102,477 Goodwill 1,513,866 1,503,648 1,503,648 Intangible assets, net of 397,486 409,427 439,838 accumulated amortizationDeferred income taxes, net 24,112 744 ? Other assets 539,357 453,038 401,343 Total assets $ 6,523,571 $ 6,090,727 $ 5,880,238 LIABILITIES AND STOCKHOLDERS? EQUITYLIABILITIES: Drafts payable $ 178,403 $ 176,916 $ 218,636 Payables to clients 1,356,083 1,153,014 1,058,873 Payables to broker-dealers and 89,743 84,405 92,002 clearing organizationsAccrued advisory and commission 187,040 175,278 174,330 expenses payableAccounts payable and accrued 681,554 586,432 557,969 liabilitiesIncome taxes payable 28,145 14,619 20,129 Unearned revenue 95,328 99,694 82,842 Securities sold, but not yet 206 337 176 purchased? at fair valueLong-term and other borrowings, 2,345,414 2,347,517 2,398,818 netOperating lease liabilities 139,377 137,569 141,900 Finance lease liabilities 107,424 107,498 108,592 Deferred income taxes, net ? ? 2,098 Total liabilities 5,208,717 4,883,279 4,856,365 STOCKHOLDERS? EQUITY: Common stock, $0.001 par value;600,000,000 shares authorized;127,585,764 shares issued at 127 127 126 December31, 2020 and 126,494,028shares issued at December31,2019Additional paid-in capital 1,762,770 1,748,310 1,703,973 Treasury stock, at cost ?48,115,037 shares at December31, (2,391,062 ) (2,391,449 ) (2,234,793 )2020 and 46,259,989 shares atDecember31, 2019Retained earnings 1,943,019 1,850,460 1,554,567 Total stockholders? equity 1,314,854 1,207,448 1,023,873 Total liabilities and $ 6,523,571 $ 6,090,727 $ 5,880,238 stockholders? equity

LPL Financial Holdings Inc.Management's Statements of Operations(5)(In thousands, except per share data)(Unaudited)

Certain information presented on pages 8-15 of this release is presented as reviewed by the Companys management and includes information derived from the Companys 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" that begins on page 3 of this release.

Quarterly Results Q4 2020 Q3 2020 % Q4 2019 % Change ChangeGross Profit(6) Advisory $ 638,181 $ 586,941 9 % $ 533,259 20 %Sales-based 202,504 180,357 12 % 193,980 4 %commissionsTrailing commissions 300,516 292,286 3 % 282,940 6 %Advisory and 1,141,201 1,059,584 8 % 1,010,179 13 %commission feesProduction based (987,882 ) (917,831 ) 8 % (876,654 ) 13 %payout(7)Advisory andcommission fees, net 153,319 141,753 8 % 133,525 15 %of payoutClient cash 105,019 108,705 (3 %) 155,322 (32 %)Other asset-based(8) 153,374 144,846 6 % 133,603 15 %Transaction and fee 129,750 119,747 8 % 118,291 10 %Interest income and 10,082 8,484 19 % 13,323 (24 %)other, net(9)Total net advisoryand commission fees 551,544 523,535 5 % 554,064 ? %and attachmentrevenueBrokerage, clearing (17,762 ) (17,834 ) ? % (15,927 ) 12 %and exchange expenseGross Profit(6) 533,782 505,701 6 % 538,137 (1 %) G&A Expense Core G&A(10) 252,391 227,099 11 % 230,182 10 %Regulatory charges 8,775 8,326 n/m 7,893 n/mPromotional 48,342 57,970 (17 %) 51,050 (5 %)Employee share-based 7,542 7,420 2 % 7,179 5 %compensationTotal G&A 317,050 300,815 5 % 296,304 7 %EBITDA(5) 216,732 204,886 6 % 241,833 (10 %)Depreciation and 28,650 27,548 4 % 25,663 12 %amortizationAmortization of 17,270 16,829 3 % 16,631 4 %intangible assetsNon-operatinginterest expense and 24,979 25,179 (1 %) 31,384 (20 %)otherLoss onextinguishment of ? ? n/m 3,156 n/mdebtINCOME BEFOREPROVISION FOR INCOME 145,833 135,330 8 % 164,999 (12 %)TAXESPROVISION FOR INCOME 34,285 31,541 9 % 38,323 (11 %)TAXESNET INCOME $ 111,548 $ 103,789 7 % $ 126,676 (12 %)Earnings per share, $ 1.38 $ 1.29 7 % $ 1.53 (10 %)dilutedWeighted-averageshares outstanding, 80,904 80,550 ? % 82,695 (2 %)dilutedEPS Prior toAmortization of $ 1.53 $ 1.44 6 % $ 1.68 (9 %)Intangible Assets(5)(38)

LPL Financial Holdings Inc.Management's Statements of Operations Trend(5)(In thousands, except per share data)(Unaudited)

Quarterly Results Q4 2020 Q3 2020 Q2 2020Gross Profit(6) Advisory $ 638,181 $ 586,941 $ 523,370 Sales-based commissions 202,504 180,357 159,512 Trailing commissions 300,516 292,286 267,941 Advisory and commission fees 1,141,201 1,059,584 950,823 Production based payout(7) (987,882 ) (917,831 ) (819,953 )Advisory and commission fees, net 153,319 141,753 130,870 of payoutClient cash 105,019 108,705 116,266 Other asset-based(8) 153,374 144,846 130,801 Transaction and fee 129,750 119,747 119,478 Interest income and other, net(9) 10,082 8,484 9,397 Total net advisory and commission 551,544 523,535 506,812 fees and attachment revenueBrokerage, clearing and exchange (17,762 ) (17,834 ) (18,565 )expenseGross Profit(6) 533,782 505,701 488,247 G&A Expense Core G&A(10) 252,391 227,099 222,406 Regulatory charges 8,775 8,326 6,115 Promotional 48,342 57,970 44,540 Employee share-based compensation 7,542 7,420 8,040 Total G&A 317,050 300,815 281,101 EBITDA(5) 216,732 204,886 207,146 Depreciation and amortization 28,650 27,548 26,890 Amortization of intangible assets 17,270 16,829 16,689 Non-operating interest expense and 24,979 25,179 26,289 otherINCOME BEFORE PROVISION FOR INCOME 145,833 135,330 137,278 TAXESPROVISION FOR INCOME TAXES 34,285 31,541 35,616 NET INCOME $ 111,548 $ 103,789 $ 101,662 Earnings per share, diluted $ 1.38 $ 1.29 $ 1.27 Weighted-average shares 80,904 80,550 80,127 outstanding, dilutedEPS Prior to Amortization of $ 1.53 $ 1.44 $ 1.42 Intangible Assets(5)(38)

LPL Financial Holdings Inc.Operating Metrics(5)(Dollars in billions, except where noted)(Unaudited)

Q4 2020 Q3 2020 Change Q4 2019 ChangeMarket Drivers S&P 500 Index (end of 3,756 3,363 12% 3,231 16%period)Fed Funds Daily Effective 9 9 ?bps 165 (156bps)Rate (FFER) (average bps) Assets Advisory Assets(11) $ 461.2 $ 405.9 14% $ 365.8 26%Brokerage Assets(12) 441.9 404.4 9% 398.6 11%Total Advisory and $ 903.1 $ 810.4 11% $ 764.4 18%Brokerage AssetsAdvisory % of TotalAdvisory and Brokerage 51.1 % 50.1 % 100bps 47.8 % 330bpsAssets Assets by Platform Corporate Platform $ 291.9 $ 253.9 15% $ 228.3 28%Advisory Assets(13)Hybrid Platform Advisory 169.3 152.0 11% 137.5 23%Assets(14)Brokerage Assets 441.9 404.4 9% 398.6 11%Total Advisory and $ 903.1 $ 810.4 11% $ 764.4 18%Brokerage Assets Centrally Managed Assets Centrally Managed Assets $ 67.1 $ 59.0 14% $ 52.4 28%(15)Centrally Managed % of 14.6 % 14.5 % 10bps 14.3 % 30bpsTotal Advisory Assets

LPL Financial Holdings Inc.Operating Metrics(5)(Dollars in billions, except where noted)(Unaudited)

Q4 2020 Q3 2020 Change Q4 2019 ChangeNet New Assets (NNA) Net New Advisory Assets(16) $ 18.4 $ 10.4 n/m $ 11.5 n/mNet New Brokerage Assets(17) 3.4 0.7 n/m 1.0 n/mTotal Net New Assets $ 21.8 $ 11.1 n/m $ 12.5 n/m Net New Assets (NNA) Prior to Acquisitions(18)Net New Advisory Assets $ 15.9 $ 10.4 n/m $ 11.5 n/mNet New Brokerage Assets 1.9 0.7 n/m 1.0 n/mTotal Net New Assets Prior to $ 17.8 $ 11.1 n/m $ 12.5 n/mAcquisitions Net Brokerage to Advisory $ 2.6 $ 2.0 n/m $ 1.9 n/mConversions(19)Advisory NNA AnnualizedGrowth Prior to Acquisitions 15.6 % 11.0 % n/m 13.7 % n/m(20)Total NNA Annualized Growth 8.8 % 5.8 % n/m 6.9 % n/mPrior to Acquisitions(20) Net New Advisory Assets Corporate Platform Net New $ 15.0 $ 7.8 n/m $ 8.7 n/mAdvisory Assets(21)Hybrid Platform Net New 3.3 2.6 n/m 2.9 n/mAdvisory Assets(22)Total Net New Advisory Assets $ 18.4 $ 10.4 n/m $ 11.5 n/mCentrally Managed Net New $ 2.5 $ 1.9 n/m $ 2.3 n/mAdvisory Assets(23) Client Cash Balances Insured Cash Account Balances $ 37.3 $ 34.7 7% $ 24.4 53%Deposit Cash Account Balances 8.2 8.0 2% 5.0 64%Total Bank Sweep Balances 45.5 42.7 7% 29.4 55%Money Market Account Cash 1.5 1.5 ?% 1.9 (21%)BalancesPurchased Money Market Funds 1.9 2.3 (17%) 2.4 (21%)Total Money Market Balances 3.3 3.9 (15%) 4.3 (23%)Total Client Cash Balances $ 48.9 $ 46.6 5% $ 33.7 45%Client Cash Balances % of 5.4 % 5.7 % (30bps) 4.4 % 100bpsTotal Assets Client Cash Balance Average Fees(24)Insured Cash Account Average 108 118 (10) 222 (114)Fee - bpsDeposit Cash Account Average 30 38 (8) 184 (154)Fee - bpsMoney Market Account Average 5 9 (4) 69 (64)Fee - bpsPurchased Money Market Fund 13 20 n/m 29 n/mAverage Fee - bpsTotal Client Cash Balance 87 95 (8) 193 (106)Average Fee - bps Net Buy (Sell) Activity(25) $ 12.2 $ 9.3 n/m $ 9.8 n/m

LPL Financial Holdings Inc.Monthly Metrics(5)(Dollars in billions, except where noted)(Unaudited)

December November Nov to October September 2020 2020 December 2020 2020 ChangeAssets Advisory Assets(11) $ 461.2 $ 442.0 4.3% $ 406.0 $ 405.9 Brokerage Assets(12) 441.9 431.3 2.5% 401.6 404.4 Total Advisory and $ 903.1 $ 873.3 3.4% $ 807.6 $ 810.4 Brokerage Assets Net New Assets (NNA) Net New Advisory $ 6.8 $ 5.8 n/m $ 5.7 $ 4.4 Assets(16)Net New Brokerage 1.1 1.6 n/m 0.8 0.7 Assets(17)Total Net New Assets $ 7.9 $ 7.4 n/m $ 6.5 $ 5.1 Net Brokerage toAdvisory Conversions $ 1.0 $ 0.7 n/m $ 0.9 $ 0.7 (19) Net New Assets (NNA)Prior to Acquisitions (18)Net New Advisory $ 6.8 $ 4.2 n/m $ 4.8 $ 4.4 AssetsNet New Brokerage 1.1 0.7 n/m 0.2 0.7 AssetsTotal Net New Assets $ 7.9 $ 4.9 n/m $ 5.0 $ 5.1 Prior to Acquisitions Client Cash Balances Insured Cash Account $ 37.3 $ 36.1 3.3% $ 36.0 $ 34.7 BalancesDeposit Cash Account 8.2 8.3 (1.2%) 8.6 8.0 BalancesTotal Bank Sweep 45.5 44.5 2.2% 44.6 42.7 BalancesMoney Market Account 1.5 1.5 ?% 1.6 1.5 Cash BalancesPurchased Money 1.9 2.1 (9.5%) 2.2 2.3 Market FundsTotal Money Market 3.3 3.6 (8.3%) 3.8 3.9 BalancesTotal Client Cash $ 48.9 $ 48.1 1.7% $ 48.3 $ 46.6 Balances Net Buy (Sell) $ 5.6 $ 4.2 n/m $ 2.5 $ 2.9 Activity(25) Market Indices S&P 500 Index (end of 3,756 3,622 3.7% 3,270 3,363 period)Fed Funds Effective 9 9 ?bps 9 9 Rate (average bps)

LPL Financial Holdings Inc.Financial Measures(5)(Dollars in thousands, except where noted)(Unaudited)

Q4 2020 Q3 2020 Change Q4 2019 ChangeCommissionRevenue by ProductAnnuities $ 262,235 $ 250,823 5% $ 244,249 7%Mutual funds 153,330 146,788 4% 150,697 2%Fixed income 24,395 16,731 46% 28,642 (15%)Equities 31,231 30,283 3% 21,233 47%Other 31,829 28,018 14% 32,099 (1%)Totalcommission $ 503,020 $ 472,643 6% $ 476,920 5%revenue Commission Revenue by Sales-based and Trailing CommissionSales-based commissionsAnnuities $ 89,125 $ 81,475 9% $ 86,141 3%Mutual funds 36,715 33,871 8% 37,611 (2%)Fixed income 24,395 16,731 46% 28,642 (15%)Equities 31,231 30,283 3% 21,233 47%Other 21,038 17,997 17% 20,353 3%Totalsales-based $ 202,504 $ 180,357 12% $ 193,980 4%commissionsTrailing commissionsAnnuities $ 173,110 $ 169,348 2% $ 158,108 9%Mutual funds 116,615 112,917 3% 113,086 3%Other 10,791 10,021 8% 11,746 (8%)Totaltrailing $ 300,516 $ 292,286 3% $ 282,940 6%commissionsTotalcommission $ 503,020 $ 472,643 6% $ 476,920 5%revenue Payout Rate Base Payout 82.57 % 82.97 % (40bps) 82.82 % (25bps)RateProductionBased 3.99 % 3.65 % 34bps 3.96 % 3bpsBonusesTotal Payout 86.57 % 86.62 % (5bps) 86.78 % (21bps)Ratio

LPL Financial Holdings Inc.Capital Management Measures(5)(Dollars in thousands, except where noted)(Unaudited)

Q4 2020 Q3 2020Cash Available for Corporate Use(26) Cash at Parent $ 201,385 $ 162,035 Excess Cash at Broker-Dealer subsidiary per 67,574 78,739 Credit AgreementOther Available Cash 10,960 11,337 Total Cash Available for Corporate Use $ 279,919 $ 252,111 Credit Agreement Net Leverage Total Debt (does not include unamortized $ 2,359,300 $ 2,361,975 premium)Cash Available 279,919 252,111 Credit Agreement Net Debt $ 2,079,381 $ 2,109,864 Credit Agreement EBITDA (trailing twelve $ 961,225 $ 980,827 months)(27)Credit Agreement Net Leverage Ratio 2.16 x 2.15 x

December 31, 2020 Current Yield At InterestTotal Debt Balance Applicable Issuance Rate Maturity MarginRevolving Credit $ ? ABR+25bps ? % 11/12/Facility(a) 2024Broker-Dealer 7/31/Revolving Credit ? FFR+125bps ? % 2024Facility(b)Senior Secured 1,059,300 LIBOR+175 1.898 % 11/12/Term Loan B bps(c) 2026Senior Unsecured 500,000 5.75% 5.750 % 5.750 % 9/15/Notes(d) Fixed 2025Senior Unsecured 400,000 (e) 5.75% 5.115 % 5.750 % 9/15/Notes(d) Fixed 2025Senior Unsecured 400,000 4.625% 4.625 % 4.625 % 11/15/Notes(f) Fixed 2027Total / Weighted $ 2,359,300 3.830 % Average

(a) The Revolving Credit Facility is secured and has a borrowing capacity of $750 million.(b) The Broker-Dealer Revolving Credit Facility is unsecured and at LPL Financial LLC, the Companys broker-dealer subsidiary, and has a borrowing capacity of $300 million.(c) The LIBOR rate option is one-month LIBOR rate and subject to an interest rate floor of 0 basis points.(d) The Senior Unsecured Notes were issued in two separate transactions; $500 million in notes were issued in March 2017 at par; the remaining $400 million were issued in September 2017 and priced at 103% of the aggregate principal amount.(e) Does not include unamortized premium of approximately $7.1 million as of December31, 2020.(f) The Senior Unsecured Notes were issued in November 2019 at par.

LPL Financial Holdings Inc.Key Business and Financial Metrics(5)(Dollars in thousands, except where noted)(Unaudited)

Q4 2020 Q3 2020 Change Q4 2019 ChangeAdvisors Advisors 17,287 17,168 1 % 16,464 5 %Net New Advisors 119 195 n/m 115 n/mAnnualizedadvisory and $ 265 $ 248 7 % $ 246 8 %commission feesper Advisor(28)Average TotalAssets per $ 52.2 $ 47.2 11 % $ 46.4 13 %Advisor ($ inmillions)(29)Transitionassistance loan $ 29.7 $ 30.4 (2 %) $ 26.1 14 %amortization ($in millions)(30)Total clientaccounts (in 6.0 5.9 2 % 5.7 5 %millions) Employees - 4,756 4,658 2 % 4,343 10 %period end Productivity MetricsAdvisory Revenueas a % ofCorporate 1.02 % 1.02 % ? bps 1.02 % ? bpsAdvisory Assets(31)Gross Profit ROA 26.8 bps 27.9 bps (1.1 bps) 30.7 bps (3.9 bps)(32)OPEX as a % ofAdvisory and 17.5 bps 17.8 bps (0.3 bps) 18.3 bps (0.8 bps)Brokerage Assets(33)EBIT ROA(34) 9.3 bps 10.1 bps (0.8 bps) 12.4 bps (3.1 bps)ProductionRetention Rate 97.7 % 98.1 % (40 bps) 96.5 % 120 bps(YTD annualized)(35)Recurring Gross 84.8 % 86.1 % (130 bps) 85.9 % (110 bps)Profit Rate(36)EBITDA as a % of 40.6 % 40.5 % 10 bps 44.9 % (430 bps)Gross Profit CapitalExpenditure ($ in $ 43.6 $ 40.1 9 % $ 52.1 (16 %)millions) Share Repurchases $ ? $ ? ? % $ 120.0 (100 %)($ in millions)Dividends ($ in 19.8 19.8 ? % 20.2 (2 %)millions)Total CapitalAllocated ($ in $ 19.8 $ 19.8 ? % $ 140.2 (86 %)millions)Weighted-averageShare Count, 80.9 80.6 ? % 82.7 (2 %)DilutedTotal CapitalAllocated per $ 0.25 $ 0.25 ? % $ 1.70 (85 %)Share(37)

Endnote Disclosures

(1) In April 2020, the Company updated its definition of net new assets to include Dividends plus Interest, minus Advisory Fees. See FNs 16, 17, 21, 22 and 23.

(2) Represents the estimated total advisory and brokerage assets expected to transition to the Company's broker-dealer subsidiary, LPL Financial LLC ("LPL Financial"), associated 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, including the initial quarter of the transition, and the actual amount transitioned may vary from the estimate.

(3) 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 adviser.Q4 2020 advisor count included 32 advisors from the acquisition of E.K. Riley.

(4) Compliance with the Credit Agreement Net Leverage Ratio is only required under our revolving credit facility.

(5) Certain information presented on pages 8-15 includes non-GAAP financial measures and operational and performance metrics. For more information on non-GAAP financial measures, please see the section titled Non-GAAP Financial Measures that begins on page 3 of this release.

(6) Gross Profit is a non-GAAP financial measure. Please see a description of Gross Profit under "Non-GAAP Financial Measures" on page 3 of this release for additional information. Below is a calculation of Gross Profit for the periods presented (in millions):

Q4 2020 Q3 2020 Q2 2020 Q4 2019Total net revenues $ 1,581 $ 1,460 $ 1,367 $ 1,448 Advisory and commission 1,030 937 860 894 expenseBrokerage, clearing and 18 18 19 16 exchange feesGross profit[(+)] $ 534 $ 506 $ 488 $ 538

(+)Balances may not foot due to rounding.

(7) Production based payout is an operating measure calculated as an advisory and commission expense less advisor deferred compensation expense. Below is a reconciliation of production based payout against the Companys advisory and commission expense for the periods presented (in thousands):

Q4 2020 Q3 2020 Q2 2020 Q4 2019Production based $ 987,882 $ 917,831 $ 819,953 $ 876,654 payoutAdvisor deferredcompensation 41,857 18,935 39,894 17,177 expenseAdvisory andcommission $ 1,029,739 $ 936,766 $ 859,847 $ 893,831 expense

(8) Consists of revenues from the Company's sponsorship programs with financial product manufacturers and omnibus processing and networking services, but does not include fees from client cash programs. Other asset-based revenues are a component of asset-based revenues and are derived from the Company's Unaudited Condensed Consolidated Statements of Income.

(9) Interest income and other, net is an operating measure calculated as interest income, net of interest expense plus other revenue, less advisor deferred compensation expense. Below is a reconciliation of interest income and other, net against the Companys interest income, net of interest expense and other revenue for the periods presented (in thousands):

Q4 2020 Q3 2020 Q2 2020 Q4 2019Interest income, net of $ 6,707 $ 6,623 $ 6,540 $ 10,966 interest expensePlus: Other revenue 45,232 20,796 42,751 19,534 Less: Advisor deferred (41,857 ) (18,935 ) (39,894 ) (17,177 )compensation expenseInterest income and $ 10,082 $ 8,484 $ 9,397 $ 13,323 other, net

(10) Core G&A is a non-GAAP financial measure. Please see a description of Core G&A under Non-GAAP Financial Measures on page 3 of this release for additional information. Below is a reconciliation of Core G&A against the Companys total operating expenses for the periods presented:

Q4 2020 Q3 2020 Q2 2020 Q4 2019OperatingExpense Reconciliation(in thousands)Core G&A $ 252,391 $ 227,099 $ 222,406 $ 230,182 Regulatory 8,775 8,326 6,115 7,893 chargesPromotional 48,342 57,970 44,540 51,050 Employeeshare-based 7,542 7,420 8,040 7,179 compensationTotal G&A 317,050 300,815 281,101 296,304 Advisory and 1,029,739 936,766 859,847 893,831 commissionDepreciationand 28,650 27,548 26,890 25,663 amortizationAmortizationof intangible 17,270 16,829 16,689 16,631 assetsBrokerage,clearing and 17,762 17,834 18,565 15,927 exchangeTotaloperating $ 1,410,471 $ 1,299,792 $ 1,203,092 $ 1,248,356 expenses

(11) Consists of total advisory assets under custody at LPL Financial. Q4 2019 also included advisory assets serviced by investment advisor representatives of Allen & Company of Florida, LLC ("Allen & Company") that were onboarded to LPL Financial's custodial platform in Q4 2019.

(12) Consists of brokerage assets serviced by advisors licensed with LPL Financial. Q4 2019 also included brokerage assets serviced by advisors licensed with Allen & Company that were onboarded to LPL Financial's custodial platform in Q4 2019.

(13) Consists of total assets on LPL Financial's corporate advisory platform serviced by investment advisor representatives of LPL Financial or Allen & Company.

(14) Consists of total assets on LPL Financial's independent advisory platform serviced by investment advisor representatives of separate registered investment advisor firms ("Hybrid RIAs"), rather than of LPL Financial.

(15) Represents those advisory assets in LPL Financials Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

(16) Consists of total client deposits into advisory accounts, including advisory assets serviced by Allen & Company advisors, less total client withdrawals from advisory accounts, plus dividends, plus interest, minus advisory fees.The Company considers conversions from and to brokerage accounts as deposits and withdrawals, respectively. Figures for Net New Advisory Assets reported prior to April 2020 did not include dividends and interest or subtract advisory fees. The figure previously reported for Q4 2019 was an inflow of $9.6billion. See FN 1.

(17) Consists of total client deposits into brokerage accounts, including brokerage assets serviced by Allen & Company advisors, less total client withdrawals from brokerage accounts, plus dividends, plus interest.The Company considers conversions from and to advisory accounts as deposits and withdrawals, respectively. Figures for Net New Brokerage Assets reported prior to April 2020 did not include dividends and interest. The figure previously reported for Q4 2019 was an outflow of $0.8billion. See FN 1.

(18) Consists of net new assets excluding the acquisitions of Lucia Securities, LLC and E.K. Riley Investments, LLC. Acquired assets include $2.5billion of net new assets related to E.K. Riley Investments, LLC in November 2020, and $1.5billion of net new assets from Lucia Securities, LLC in October 2020.

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

(20) Calculated as annualized current period net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets. (See FN 18)

(21) Consists of total client deposits into advisory accounts on LPL Financial's corporate advisory platform (FN 13) less total client withdrawals from advisory accounts on its corporate advisory platform, plus dividends, plus interest, minus advisory fees. Figures for Corporate Platform Net New Advisory Assets reported prior to April 2020 did not include dividends and interest or subtract advisory fees. The figure previously reported for Q4 2019 was an inflow of $7.5billion. See FN 1.

(22) Consists of total client deposits into advisory accounts on LPL Financial's independent advisory platform (FN 14) less total client withdrawals from advisory accounts on its independent advisory platform, plus dividends, plus interest, minus advisory fees. Figures for Hybrid Platform Net New Advisory Assets reported prior to April 2020 did not include dividends and interest or subtract advisory fees. The figure previously reported for Q4 2019 was an inflow of $2.1billion. See FN 1.

(23) Consists of total client deposits into centrally managed assets accounts (FN 15) less total client withdrawals from centrally managed assets accounts, plus dividends, plus interest, minus advisory fees. Figures for Centrally Managed Net New Advisory Assets reported prior to April 2020 did not include dividends and interest or subtract advisory fees. The figure previously reported for Q4 2019 was an inflow of $2.0billion. See FN 1.

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

(25) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial. Reported activity does not include any other cash activity, such as deposits, withdrawals, dividends received or fees paid.

(26) Consists of cash unrestricted by the Credit Agreement and other regulations available for operating, investing and financing uses.

(27) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under Non-GAAP Financial Measures on page 3 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 EBITDA and Credit Agreement EBITDA to net income for the periods presented (dollars in thousands):

Q4 2020 Q3 2020EBITDA and Credit Agreement EBITDA Reconciliations Net income $ 472,640 $ 487,768 Non-operating interest expense and other 105,765 112,170 Provision for income taxes 153,433 157,471 Loss on extinguishment of debt ? 3,156 Depreciation and amortization 109,732 106,745 Amortization of intangible assets 67,358 66,719 EBITDA $ 908,928 $ 934,029 Credit Agreement Adjustments: Employee share-based compensation expense $ 31,650 $ 31,287 Advisor share-based compensation expense 2,321 2,404 Other 18,326 13,107 Credit Agreement EBITDA (trailing twelve months) $ 961,225 $ 980,827

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

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

(30) Represents the amortization expense amount of forgivable loans for transition assistance to advisors and financial institutions.

(31) Represents advisory revenue as a percentage of Corporate Platform Advisory Assets (FN 13) for the trailing twelve month period.

(32) Represents Gross Profit (FN 6), a non-GAAP financial measure, for the trailing twelve month period, divided by average month-end total advisory and brokerage assets for the trailing twelve month period.

(33) Represents operating expenses for the trailing twelve month period, excluding production-related expense, divided by average month-end total advisory and brokerage assets for the period. Production-related expense includes commissions and advisory expense and brokerage, clearing and exchange expense.For purposes of this metric, operating expenses includes Core G&A (FN 10), a non-GAAP financial measure, as well as regulatory charges, promotional, employee share-based compensation, depreciation and amortization, and amortization of intangible assets.

(34) EBIT ROA is calculated as Gross Profit ROA (FN 32) less OPEX as a percentage of Total Advisory and Brokerage Assets. (See FN 33)

(35) Reflects retention of advisory and commission revenues, calculated by deducting the prior year production of the annualized year-to-date attrition rate, over the prior year total production.

(36) Recurring Gross Profit Rate refers to the percentage of the Companys Gross Profit, a non-GAAP financial measure, that was recurring for the trailing twelve month period. Management tracks Recurring Gross Profit, a characterization of Gross Profit and a statistical measure, which is defined to include the Companys revenues from asset-based fees, advisory fees, trailing commissions, client cash programs and certain other fees that are based upon client accounts and advisors, less the expenses associated with such revenues and certain other recurring expenses not specifically associated with a revenue line. Management allocates such other recurring expenses on a pro-rata basis against specific revenue lines at its discretion.

(37) Capital Allocated per Share equals the amount of capital allocated for share repurchases and cash dividends divided by the diluted weighted-average shares outstanding.

(38) EPS Prior to Amortization of Intangible Assets is a non-GAAP financial measure. Please see a description of EPS Prior to Amortization of Intangible Assets under Non-GAAP Financial Measures on page 3 of this release for additional information. Below is a reconciliation of EPS Prior to Amortization of Intangible Assets to the Companys GAAP EPS for the periods presented:

EPS Reconciliation (in thousands, except per share data) Q4 2020EPS $ 1.38 Amortization of Intangible Assets 17,270 Tax Benefit (4,836 )Amortization of Intangible Assets Net of Tax Benefit $ 12,434 Diluted Share Count 80,904 EPS Impact $ 0.15 EPS Prior to Amortization of Intangible Assets $ 1.53