Ladenburg Thalmann Financial Services (LTS), the parent company of Securities America, said early Thursday that its net income soared to $1.1 million, or $0.01 per share, in the first quarter vs. $100,000, or $0.00 per share, in the year-ago period — meeting estimates.
First-quarter revenues were $211.8 million, a 13% increase from revenues of $187.3 million in the first quarter of 2013. These results beat analysts' estimates of $204 million.
"Ladenburg performed very well in the first quarter, as strong growth in advisory and commission revenues and in investment banking fees fueled a 13% increase in total revenues and a meaningful increase in adjusted [earnings before interest, taxes, depreciation and amortization] compared to the year-ago period," said Dr. Phillip Frost, chairman of Ladenburg, in a press release.
"With approximately $90 billion in client assets firmwide, our independent brokerage franchise continues to excel and our investment banking business is hitting its stride amidst stronger capital markets," Frost added.
It stock was trading up 2% to nearly trade at close to $2.80 on Thursday.
IBD Results
The Independent Brokerage and Advisory Services unit, which includes independent broker-dealers Securities America, Triad and Investacorp, had sales of $211.8 million, up from $187.2 million a year ago. The unit's net income grew to $4.3 million from $136,000.
Recurring revenues, which consist of advisory fees, trailing commissions, cash sweep fees and certain other fees, represented about 69% of revenues for the unit vs. roughly 65% in the prior quarter and about 64% in the year-ago period.
"Ladenburg's independent broker-dealer business benefited from strong recruiting activity in the first quarter. Growth in commissions, advisory fees and investment banking activity helped drive performance across the firm," explained President & CEO Richard Lampen, in a statement.
"We are also excited about new additions to our talented investment banking team, which well position Ladenburg to continue capitalizing on opportunities in the marketplace," Lampen noted. "We look forward to building out our platforms on both sides of the business to generate increased value for shareholders."
