* IPO-related compensation costs fuel fourth-quarter loss
* "Adjusted earnings" rose 6 percent to $44.7 mln
* Adviser network grew 4.1 pct to 12,444 last year
By Joseph A. Giannone
NEW YORK, Feb 7 LPL Investment Holdings Inc
(LPLA.O), which provides technology and services to more than
12,000 independent brokers, posted a fourth-quarter loss on
Monday, fueled by $222 million of costs related to its November
initial public offering.
Boston-based LPL had a net loss of $116.6 million, or $1.20
a share, in the fourth quarter compared with net income of
$18.6 million, or 19 cents, in the year-earlier period. It was
the company's first quarterly results since its November IPO.
LPL shares closed down less than one percent at $33.75 a
share in Monday trading on the Nasdaq. The company, which
released its results after the closing bell, told investors
last week to expect a quarterly loss after costs related to
individuals exercising stock and options granted before the
"Adjusted" net income, which excludes charges and other
items, rose 6.2 percent to $44.7 million, or 42 cents a share.
Net revenue rose 12 percent to $820 million driven by advisory
fees, revenue linked to client assets and commissions.
Analysts on average expected LPL to earn 40 cents a share,
according to Thomson Reuters I/B/E/S estimates.
"We achieved strong net new advisor growth during the
quarter and continue to see excellent growth in our hybrid
(registered investment adviser) platform," LPL Chief Executive
Mark Casady said in a statement.
LPL, formerly known as Linsco/Private Ledger, added 494 net
new advisors last year, including 206 from National Retirement
Partners. As of Dec. 31, LPL's network grew to 12,444 financial
advisers, up 4.1 percent from a year earlier.
Total advisory and brokerage assets rose 13 percent to end
last year with a record $315.6 billion.
Over the past five years LPL has amassed one of the largest
brokerage forces, fueled by the waves of advisers leaving
banks, insurers and big Wall Street firms.
The company is majority owned by private-equity investors
TPG Capital [TPG.UL] and Hellman & Friedman.
(Reporting by Joseph A. Giannone; editing by Andre Grenon)