LPL Financial Holdings Inc (LPLA) 2023 Q1 法說會逐字稿

Good afternoon, and thank you for joining the First Quarter 2023 Earnings Conference Call for LPL Financial Holdings Inc. Joining the call today are our President and Chief Executive Officer, Dan Arnold; and Chief Financial Officer and Head of Business Operations, Matt Audette. Dan and Matt will offer introductory remarks, and then the call will be open for questions. (Operator Instructions)

下午好，感謝您參加 LPL Financial Holdings Inc. 2023 年第一季度收益電話會議。今天加入電話會議的是我們的總裁兼首席執行官 Dan Arnold；首席財務官兼業務運營主管 Matt Audette。丹和馬特將進行介紹性發言，然後電話會議將開放提問。 （操作員說明）

The company has posted its earnings press release and supplementary information on the Investor Relations section of the company's website, investor.lpl.com. Today's call will include forward-looking statements, including statements about LPL Financial's future financial and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees. Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements.

該公司已在公司網站 Investor.lpl.com 的投資者關係部分發布了收益新聞稿和補充信息。今天的電話會議將包括前瞻性陳述，包括有關 LPL Financial 未來財務和經營業績、前景、業務戰略和計劃以及管理層預見的其他機會和潛在風險的陳述。此類前瞻性陳述反映了管理層當前的估計或信念，並受到已知和未知的風險和不確定性的影響，這些風險和不確定性可能導致實際結果或事件發生的時間與此類前瞻性陳述中明示或暗示的結果或時間存在重大差異。

For more information about such risks and uncertainties, the company refers listeners to the disclosures set forth under the caption forward-looking statements in the earnings press release as well as the risk factors and other disclosures contained in the company's recent filings with the Securities and Exchange Commission. During the call, the company will also discuss certain non-GAAP financial measures. For reconciliation of non-GAAP financial measures to the comparable GAAP figures, please refer to the company's earnings release, which can be found at investor.lpl.com.

有關此類風險和不確定性的更多信息，該公司請聽眾參閱收益新聞稿中前瞻性陳述標題下所載的披露信息，以及該公司最近向美國證券交易委員會提交的文件中包含的風險因素和其他披露信息委員會。在電話會議期間，該公司還將討論某些非公認會計準則財務措施。有關非 GAAP 財務指標與可比 GAAP 數據的調節，請參閱該公司的盈利報告，該報告可在 Investor.lpl.com 上找到。

With that, I would now turn the call over to Mr. Arnold.

這樣，我現在就把電話轉給阿諾德先生。

Thank you, Latania, and thanks to everyone for joining our call today. Over the past quarter, our advisers continue to help their clients navigate through market volatility and macroeconomic uncertainty. In doing so, they reinforce the value of their advice and collectively helped millions of Americans continue to pursue their financial goals and aspirations. We thank them for the important work and remain focused on our mission taking care of our advisers, they can take care of their clients.

謝謝拉塔尼亞，也感謝大家今天加入我們的電話會議。在過去的季度中，我們的顧問繼續幫助客戶應對市場波動和宏觀經濟不確定性。在此過程中，他們強化了建議的價值，並共同幫助數百萬美國人繼續追求他們的財務目標和願望。我們感謝他們所做的重要工作，並繼續專注於我們的使命，照顧我們的顧問，他們也可以照顧他們的客戶。

Now as we look at the marketplace, we continue to experience the growing appeal of our model due to the combination of our robust and future risk platform, stability and scale of our industry-leading model and capacity and commitment to invest. As a result, we continue to make solid progress toward our vision of becoming the leader across the adviser-mediated market.

現在，當我們放眼市場時，由於我們強大的未來風險平台、行業領先模型的穩定性和規模以及投資能力和承諾的結合，我們繼續體驗到我們的模型日益增長的吸引力。因此，我們繼續朝著成為顧問中介市場領導者的願景取得堅實進展。

In that spirit, we will continue to focus on helping advisers and enterprises, solve challenges and capitalize on opportunities better than anyone else and thereby serving as the most appealing player in the industry. With respect to our performance, we delivered another quarter of solid results, also continuing to make progress on the execution of our strategic plan. I'll review both of these areas, starting with our first quarter business results.

本著這種精神，我們將繼續專注於幫助顧問和企業，比任何人都更好地解決挑戰和利用機遇，從而成為行業中最具吸引力的參與者。就我們的業績而言，我們又取得了一個季度的穩健業績，並在戰略計​​劃的執行方面繼續取得進展。我將從我們第一季度的業務業績開始回顧這兩個領域。

In the quarter, total assets increased to $1.2 trillion as continued solid organic growth was complemented by higher equity margins. With respect to organic growth, first quarter organic net new assets were $21 billion, representing 7.5% annualized growth. This contributed to organic net new assets over the past 12 months of $99 billion, representing approximately a 9% organic growth rate. Recruited assets were $13 billion in Q1, bringing our total for the trailing 12 months to $85 billion.

本季度總資產增至 1.2 萬億美元，持續穩健的有機增長輔以更高的股本利潤率。有機增長方面，第一季度有機淨新資產為210億美元，年化增長7.5%。這使得過去 12 個月的有機淨新資產達到 990 億美元，有機增長率約為 9%。第一季度募集的資產為 130 億美元，使我們過去 12 個月的資產總額達到 850 億美元。

These results were driven by the ongoing enhancements to our model and our expanded addressable market. Looking at same-store sales, our advisers remain focused in serving their clients and delivering a differentiated experience. As a result, our advisers are both winning new clients and expanding wallet share with existing funds. A combination that drove a sequential improvement in same-store sales in fuel, this increase occurred across all of our affiliation models led by solid growth in our enterprise team. With respect to retention, we continue to enhance the adviser experience through the delivery of new capabilities and technology as well as the evolution of our service and operations company.

這些結果是由我們模型的持續增強和我們擴大的目標市場推動的。就同​​店銷售而言，我們的顧問仍然專注於為客戶提供服務並提供差異化的體驗。因此，我們的顧問既贏得了新客戶，又擴大了現有資金的錢包份額。這種組合推動了燃料同店銷售額的連續增長，這種增長發生在我們所有的聯屬模型中，而這都是由我們企業團隊的穩健增長帶動的。在保留方面，我們通過提供新的​​功能和技術以及我們的服務和運營公司的發展，繼續增強顧問的體驗。

As a result, asset retention for the first quarter was approximately 99% and 98% over the last 12 months. Our first quarter business results led to solid financial outcomes of $4.49 of adjusted EPS, which is more than double our level from a year ago.

因此，第一季度的資產保留率約為 99%，過去 12 個月的資產保留率為 98%。我們第一季度的業務業績帶來了穩健的財務成果，調整後每股收益為 4.49 美元，是去年同期水平的兩倍多。

Let's now turn to the progress we made on our strategic plan. Now as a reminder, our long-term vision is -- on the leader across the adviser center market, which for us is being the best at empowering advisers and enterprises to deliver great advice to their clients and to be great operators of the business.

現在讓我們談談我們的戰略計劃所取得的進展。現在提醒一下，我們的長期願景是成為顧問中心市場的領導者，對我們來說，這就是最擅長幫助顧問和企業向客戶提供出色的建議，並成為出色的業務運營商。

Now bring this vision to life, we are providing the capabilities and solutions that help our advisers, deliver personalized advice and planning experience (inaudible). And at the same time, through human-driven technology-enabled solutions and expertise, we are supporting advisers in their efforts to the extraordinary business. Doing this well gives us a sustainable path to industry leadership across the adviser experience, organic growth and market share. As we look ahead, we continue to see both the growing demand for advice and increasing the appeal of receiving that advice through a financial profession, and we believe that our strategy positions us well to capitalize on these key structural trends.

現在，為了將這一願景變為現實，我們正在提供幫助我們的顧問、提供個性化建議和規劃經驗的功能和解決方案（聽不清）。與此同時，通過以人為本的技術解決方案和專業知識，我們支持顧問努力實現非凡的業務。做好這件事為我們在顧問經驗、有機增長和市場份額方面提供了一條可持續的行業領先之路。展望未來，我們繼續看到對建議的需求不斷增長，並且通過金融專業人士獲得建議的吸引力也不斷增加，我們相信我們的戰略使我們能夠很好地利用這些關鍵的結構性趨勢。

Now to execute on our strategy, we organize our work around 2 primary categories, horizontal expansion, where we look to expand the ways that advisers and enterprises can affiliate such that we can compete for all 300,000 advisers in the marketplace. And vertical integration, where we focus on providing capabilities to solve for a broader spectrum of adviser means and in doing so, create durable, differentiated value.

現在，為了執行我們的戰略，我們圍繞兩個主要類別組織我們的工作，即橫向擴展，我們希望擴大顧問和企業的聯繫方式，以便我們能夠競爭市場上所有 300,000 名顧問。以及垂直整合，我們專注於提供解決更廣泛顧問手段的能力，並在此過程中創造持久的、差異化的價值。

Now while our strategy has not changed, we will use the framework of horizontal expansion and vertical integration to review our strategic agility. This structure is an evolution of our strategic plays framework, and you can see how the strategic plays map to this new orientation within our investor presentation.

現在雖然我們的戰略沒有改變，但我們會用橫向擴張和縱向整合的框架來審視我們的戰略敏捷性。這種結構是我們戰略策略框架的演變，您可以在我們的投資者演示中看到戰略策略如何映射到這一新方向。

With that as context, let's start with our efforts around horizontal expansion. This work involves meeting advisers and enterprises where they are in the evolution of the business by creating flexibility in our affiliation models, so they can design the perfect practice for themselves and clients. As a result, this component of our strategy helps contribute to solid growth in our traditional markets, while also expanding our addressable market through our new affiliation models.

以此為背景，讓我們從橫向擴展的努力開始。這項工作涉及通過在我們的隸屬模型中創建靈活性來與處於業務發展階段的顧問和企業會面，以便他們可以為自己和客戶設計完美的實踐。因此，我們戰略的這一組成部分有助於促進我們傳統市場的穩健增長，同時還通過我們新的聯盟模式擴大我們的目標市場。

Our recruiting and traditional markets continue to be a significant source of growth reaching a new first quarter high of approximately $9 billion in assets. In the quarter, we continued to increase our win rates and expand the depth and breadth of our pipeline despite adviser movement in the industry remaining at lower levels.

我們的招聘和傳統市場仍然是增長的重要來源，第一季度資產達到約 90 億美元的新高。在本季度，儘管該行業的顧問流動仍處於較低水平，但我們繼續提高勝率並擴大渠道的深度和廣度。

With respect to our new affiliation models, strategic wealth employee and our enhanced RIA offering, we delivered our strongest quarter to date, recruiting roughly $3 billion in assets in Q1. In each of these models, we continue to realize growing demand and expanding pipeline, which position them for increased contribution to our organic growth. Looking ahead, we expect to carry this recruiting momentum into Q2 for both our traditional markets and our new affiliation models. And with respect to large enterprises, today, we announced that BMO will onboard the Wealth Management business of Bank of the West to our Enterprise platform.

就我們新的隸屬關係模式、戰略財富員工和增強的 RIA 產品而言，我們實現了迄今為止最強勁的季度業績，第一季度招募了約 30 億美元的資產。在每一個模型中，我們都不斷意識到不斷增長的需求和不斷擴大的管道，這使它們能夠為我們的有機增長做出更大的貢獻。展望未來，我們希望將傳統市場和新聯盟模式的招聘勢頭延續到第二季​​度。對於大型企業，今天我們宣布BMO將把西方銀行的財富管理業務納入我們的企業平台。

In addition, we continue to prepare to onboard commerce. Collectively, these 2 deals will add approximately $11 billion of brokerage and advisory assets in the second half of the year. Looking ahead, we continue to build our pipeline as demand for our model growth. Now in Q1, we also continue to have success in our traditional banking credit (inaudible) space, adding approximately $1 billion of accreted assets from this change.

此外，我們繼續為船上商務做準備。總的來說，這兩筆交易將在今年下半年增加約 110 億美元的經紀和諮詢資產。展望未來，我們將根據模型增長的需求繼續建設我們的產品線。現在在第一季度，我們還在傳統銀行信貸（聽不清）領域繼續取得成功，通過這一變化增加了約 10 億美元的增值資產。

Now shifting to our vertical integration efforts. Here, we are focused on delivering value-added capabilities, services and technology that extend across an adviser's end-to-end business, all for the purpose of helping them differentiate and win in the marketplace and run driving business. Now (inaudible) this part of our strategy is helping advisers deliver their differentiated wisdom insight and advice wrapped in an easily accessible and highly personalized experience for the client. In that spirit, this quarter, we continued to enhance our adviser's value proposition through their funds. By introducing new account aggregation capabilities to help advisers consider their clients' holistic financial picture by enriching the end client digital portal through the expansion of customizable self-service capabilities and by evolving our research offerings to include increased market commentary, delivered how and where it works best for the adviser.

現在轉向我們的垂直整​​合工作。在這裡，我們專注於提供涵蓋顧問端到端業務的增值能力、服務和技術，所有這些都是為了幫助他們在市場中脫穎而出並獲勝，並經營推動業務。現在（聽不清）我們戰略的這一部分正在幫助顧問提供差異化的智慧見解和建議，並為客戶提供易於訪問且高度個性化的體驗。本著這種精神，本季度，我們繼續通過顧問的資金增強其價值主張。通過引入新的賬戶聚合功能來幫助顧問考慮客戶的整體財務狀況，通過擴展可定制的自助服務功能來豐富最終客戶數字門戶，並通過發展我們的研究產品以包括更多的市場評論，提供其工作方式和地點最適合顧問。

Now in a separate play within our vertical integration strategy, we continue to expand and enhance our services portfolio and are encouraged by the evolving appeal of our value proposition and the seasoning of this business.

現在，在我們的垂直整​​合戰略中，我們繼續擴大和增強我們的服務組合，並受到我們價值主張不斷變化的吸引力和該業務的成熟的鼓舞。

As a result of solid demand in Q1, the number of advisers utilizing our service group continued to increase. And we ended the quarter at over 3,300 active users, up roughly 30% year-over-year. Now as we work with advisers to increase the utilization of existing services, we're also continuing to create new services such as our partial book sales solution, where we provide the flexibility for advisers to sell us their smaller accounts with clients that don't necessarily fit their practice, thus creating more capacity for them to focus on managing and growing their business more robust. This service has been received well, and we are seeing solid early momentum, a growing pipeline of demand. Now at the same time, we're seeing good success with our set of services that help solve the industry-wide challenge of up to 1/3 of advisers retiring over the next decade.

由於第一季度的需求強勁，使用我們服務團隊的顧問數量持續增加。截至本季度末，我們的活躍用戶數量超過 3,300 名，同比增長約 30%。現在，當我們與顧問合作提高現有服務的利用率時，我們還繼續創建新的服務，例如我們的部分圖書銷售解決方案，我們為顧問提供了靈活性，可以向我們出售較小的帳戶給那些不這樣做的客戶。必然適合他們的實踐，從而為他們創造更多能力，專注於管理和發展更強勁的業務。這項服務受到了好評，我們看到了強勁的早期勢頭，需求不斷增長。與此同時，我們看到我們的一系列服務取得了巨大成功，這些服務有助於解決未來十年內多達 1/3 的顧問退休這一全行業挑戰。

In that spirit, over the past year, we've facilitated approximately 150 acquisitions among advisers through our M&A solutions program. And since launching our liquidity and succession capability in Q4, we have completed more than 10 of these deals with LPL advisers and have growing interest, both inside and outside of the LPL echo system.

本著這種精神，在過去的一年裡，我們通過併購解決方案計劃在顧問中促成了大約 150 起收購。自第四季度推出流動性和繼任能力以來，我們已與 LPL 顧問完成了 10 多項此類交易，並且 LPL echo 系統內外的興趣日益濃厚。

In summary, in the first quarter, we continued to invest in the value proposition for advisers and their clients while driving growth and increasing our market leadership. As we look ahead, we remain focused on executing our strategy to help our advisers further differentiate and win in the marketplace. And as a result, we have long-term shareholder value.

總之，在第一季度，我們繼續投資於顧問及其客戶的價值主張，同時推動增長並增強我們的市場領導地位。展望未來，我們仍然專注於執行我們的戰略，以幫助我們的顧問進一步脫穎而出並在市場中獲勝。因此，我們擁有長期的股東價值。

With that, I'll turn the call over to Matt.

這樣，我會將電話轉給馬特。

All right. Thank you, Dan. And I'm glad to speak with everyone on today's call. As we move into 2023, we remain focused on serving our advisers, growing our business and delivering shareholder value.

好的。謝謝你，丹。我很高興在今天的電話會議上與大家交談。進入 2023 年，我們仍然專注於為我們的顧問提供服務、發展我們的業務並創造股東價值。

Against the backdrop of market uncertainty, our business performed well as we continue to execute on our strategic priorities. In recent years, we've invested in capabilities, technology and service to enhance the experience of advisers, enterprises and their clients. At the same time, we've maintained a strong balance sheet with significant corporate liquidity and low leverage, positioning us to support our advisers and clients in a range of macro environments.

在市場不確定性的背景下，我們的業務表現良好，我們繼續執行我們的戰略重點。近年來，我們在能力、技術和服務方面進行了投資，以增強顧問、企業及其客戶的體驗。與此同時，我們保持了強勁的資產負債表、大量的企業流動性和較低的槓桿率，使我們能夠在一系列宏觀環境下為我們的顧問和客戶提供支持。

This is most recently recognized by S&P, who upgraded our credit rating earlier this month, establishing us as an investment-grade credit with both our rating agencies. By leveraging the investments in our platform and our financial strength, we continue to grow assets organically in both our traditional and new markets. Closed 2 strategic acquisitions, continued our momentum with our liquidity and succession capability and are preparing to onboard Commerce Bank, in Bank of the West in the second half of the year. We accomplished all of this while continuing to invest in our industry-leading value proposition and delivering record adjusted earnings per share. So as we look ahead, we continue to be excited by the opportunities we have to help our advisers differentiate and win in the marketplace.

標準普爾最近認識到了這一點，本月早些時候升級了我們的信用評級，將我們確立為兩家評級機構的投資級信用評級。通過利用我們平台的投資和我們的財務實力，我們繼續在傳統和新市場有機增長資產。完成了兩項戰略收購，利用我們的流動性和繼任能力繼續保持我們的勢頭，並準備在今年下半年將商業銀行納入西方銀行。我們實現了這一切，同時繼續投資於我們行業領先的價值主張並創造創紀錄的調整後每股收益。因此，展望未來，我們繼續對幫助我們的顧問在市場上脫穎而出並獲勝的機會感到興奮。

Now let's turn to our first quarter business results. Total advisory and brokerage assets were $1.2 trillion, up 6% from Q4 as continued organic growth was complemented by higher [records]. Total organic net new assets were $21 billion or a 7.5% annualized growth rate. Our Q1 recruited assets were $13 billion, which prior to large enterprises was a record first quarter of the year. This included $3 billion of recruited assets from our new affiliation, the largest contribution since their launch a few years ago.

現在讓我們來看看第一季度的業績。諮詢和經紀資產總額為 1.2 萬億美元，較第四季度增長 6%，持續的有機增長得到了更高的[記錄]的補充。有機淨新資產總額為 210 億美元，年化增長率為 7.5%。我們第一季度招募的資產為 130 億美元，在大型企業之前創下了今年第一季度的紀錄。其中包括從我們新的附屬機構招募的 30 億美元資產，這是自幾年前成立以來最大的捐款。

Looking ahead to Q2, our momentum continues across our traditional independent and new models, and we are on pace to deliver another strong quarter of recruiting.

展望第二季度，我們傳統的獨立模式和新模式將繼續保持強勁勢頭，並且我們正在努力實現又一個強勁的季度招聘。

As for our Q1 financial results, the combination of organic growth, rising interest rates and expense discipline led to adjusted EPS of $4.49, the highest in our history.

至於我們第一季度的財務業績，有機增長、利率上升和費用紀律相結合，導致調整後每股收益達到 4.49 美元，創歷史最高水平。

Looking at our top line growth. Gross profit reached a new high of $1.02 billion, up $48 million or 5% sequentially. As for the components, commission and advisory fees net of payout were $215 million, up $43 million from Q4, primarily driven by higher advisory fees and a seasonally lower production.

看看我們的營收增長。毛利潤創下 10.2 億美元的新高，比上一季度增加 4800 萬美元，即 5%。至於零部件，扣除支出後的佣金和諮詢費為 2.15 億美元，比第四季度增加 4300 萬美元，這主要是由於諮詢費增加和季節性產量下降所致。

In Q1, our payout rate was 86.2%, down about 220 basis points from Q4 and largely due to the seasonal reset of the production bonus at the beginning of the year as well as a nonrecurring benefit of approximately 50 basis points realized during the quarter. Looking ahead to Q2, we anticipate our payout rate will increase to approximately 87.5% primarily driven by the typical seasonal build in the production [build]. With respect to client cash revenue, it was $439 million, flat to Q4 as the impact of higher short-term interest rates was offset by a sequential decline in balance. Looking at overall client cash balances, they ended the quarter at $55 billion, down $10 billion, driven by record net buying of $37 million. Within our ICA portfolio, we added $3 billion of new fixed rate contracts, bringing our fixed rate balances to roughly 55% of the ICA portfolio within our target range of 50% to 75%.

第一季度，我們的支付率為 86.2%，比第四季度下降約 220 個基點，這主要是由於年初生產獎金的季節性重置以及本季度實現的約 50 個基點的非經常性收益。展望第二季度，我們預計我們的支付率將增加至約 87.5%，這主要是由於典型的季節性生產 [build] 推動的。客戶現金收入為 4.39 億美元，與第四季度持平，因為短期利率上升的影響被餘額連續下降所抵消。從整體客戶現金餘額來看，本季度末，他們的現金餘額為 550 億美元，減少了 100 億美元，這是由創紀錄的 3700 萬美元淨買入推動的。在我們的 ICA 投資組合中，我們增加了 30 億美元的新固定利率合約，使我們的固定利率餘額佔 ICA 投資組合的約 55%，在我們 50% 至 75% 的目標範圍內。

Our ICA yield averaged 320 basis points in the quarter, up 29 basis points from Q4, primarily due to the increases in short-term rates. As for Q2, based on where interest rates are today and what we've seen with client cash balances so far in April, we expect our ICA yield to remain unchanged at approximately 320 basis.

本季度我們的 ICA 收益率平均為 320 個基點，比第四季度上升 29 個基點，主要是由於短期利率的上升。至於第二季度，根據今天的利率水平以及 4 月份迄今為止我們所看到的客戶現金餘額，我們預計 ICA 收益率將保持在約 320 基點不變。

As the full quarter benefit of the Q1 rate hikes is offset by the mix impact of lower floating rate balances. As for service fee revenue, it was $119 million in Q1, down $1 million from Q4, primarily driven by lower conference revenues, offset by seasonal increases in IRA. Looking ahead to Q2, we expect service and fee revenue to be roughly flat sequentially.

由於第一季度加息的整個季度效益被浮動利率餘額較低的綜合影響所抵消。至於服務費收入，第一季度為 1.19 億美元，比第四季度減少 100 萬美元，主要是由於會議收入下降，但被 IRA 的季節性增長所抵消。展望第二季度，我們預計服務和費用收入將大致持平。

Moving on to Q1 transaction revenue. It was $49 million, up $2 million sequentially as trading volume increased slightly. Looking ahead to Q2, we expect a seasonal decline of a couple of million dollars. Now let's turn to expenses, starting with core G&A. It was $326 million in Q1. For the full year 2023, we continue to we continue to anticipate core G&A to be in a range of $1.335 billion to $1.37 billion.

接下來是第一季度的交易收入。由於交易量略有增加，該金額為 4900 萬美元，比上一季度增加 200 萬美元。展望第二季度，我們預計季節性下降數百萬美元。現在讓我們談談費用，從核心管理費用開始。第一季度為 3.26 億美元。對於 2023 年全年，我們繼續預計核心一般管理費用將在 13.35 億美元至 13.7 億美元之間。

As a reminder, this year, we are opportunistically accelerating our investments to support our core business growth, expand our addressable markets and scale our new services.

提醒一下，今年，我們將趁機加速投資，以支持我們的核心業務增長、擴大我們的目標市場並擴展我們的新服務。

We have also sequenced our spending plans to build gradually through the year, which positions us to be flexible and dynamic depending on how our growth opportunities and the macro evolve from here. To give you a sense of the near-term timing of the spend, in Q2, we expect core G&A to be in a range of $330 million to $340 million. Moving on to Q1 promotional expense. It was $101 million, up $17 million sequentially, primarily driven by conference spend as we had 2 of our largest conferences of the year during the quarter. In Q2, we expect promotional expense to increase to a range of $105 million to $110 million due to increased transition assistance resulting from strong recruiting and large enterprise onboarding as we prepare for Commerce Bank and Bank of the West to join us in the second half of this year. Looking at share-based compensation expense. It was $18 million in Q1, up from $12 million in Q4. In Q2, we expect a similar level of expense as the majority of our grants occur in the first 2 quarters of the year.

我們還對全年逐步製定的支出計劃進行了排序，這使我們能夠根據增長機會和宏觀經濟的發展情況保持靈活和動態。為了讓您了解近期支出的時間安排，我們預計第二季度的核心一般管理費用將在 3.3 億美元至 3.4 億美元之間。接下來是第一季度的促銷費用。該數字為 1.01 億美元，比上一季度增加 1700 萬美元，主要是由會議支出推動的，因為我們在本季度舉辦了兩次年度最大的會議。在第二季度，我們預計促銷費用將增加到 1.05 億美元至 1.1 億美元之間，這是由於我們為商業銀行和西方銀行在下半年加入我們做準備，因此強勁的招聘和大型企業入職帶來了過渡援助的增加。今年。看看基於股份的補償費用。第一季度為 1800 萬美元，高於第四季度的 1200 萬美元。在第二季度，我們預計支出水平將與今年前兩個季度類似，因為我們的大部分撥款都發生在今年的前兩個季度。

Turning to depreciation and amortization. It was $56 million in Q1, up $2 million sequentially, and we expect it to increase to approximately $60 million next quarter.

轉向折舊和攤銷。第一季度為 5600 萬美元，比上一季度增加 200 萬美元，我們預計下季度將增加到約 6000 萬美元。

Regarding capital management. Our balance sheet remains strong. We ended Q1 with corporate cash of $234 million, down $225 million from Q4 as we closed on 2 acquisitions during the quarter. Our leverage ratio was 1.3x, down from 1.4x in Q4, driven by a combination of our continued growth and a higher interest rate environment, both of which have meaningfully improved our earnings. As for capital deployment, our framework remains focused on allocating capital aligned with the returns we generate. Investing in organic growth first and foremost, pursuing M&A where appropriate and returning excess capital to shareholders.

關於資本管理。我們的資產負債表仍然強勁。第一季度結束時，我們的企業現金為 2.34 億美元，比第四季度減少了 2.25 億美元，因為我們在本季度完成了 2 項收購。我們的槓桿率為 1.3 倍，低於第四季度的 1.4 倍，這是由於我們的持續增長和較高的利率環境共同推動的，這兩者都顯著改善了我們的盈利。至於資本配置，我們的框架仍然側重於根據我們產生的回報來分配資本。首先投資於有機增長，在適當的情況下進行併購，並將多餘的資本返還給股東。

In Q1, we allocated capital across our entire frame. We continue to invest to drive and support organically. On traditional M&A, we closed on 2 acquisitions for approximately $150 million. Within our liquidity and succession offering, we closed 7 deals for around $100 million, and we continue to have a solid pace. With regards to capital return, we increased our share repurchases to $275 million in Q1. We plan to further increase share repurchases in Q2 to approximately $300 million.

在第一季度，我們在整個框架內分配了資本。我們繼續投資以有機地推動和支持。在傳統併購方面，我們完成了兩筆收購，金額約為 1.5 億美元。在我們的流動性和繼任產品中，我們完成了 7 筆交易，金額約為 1 億美元，並且我們繼續保持穩健的步伐。在資本回報方面，我們第一季度將股票回購增加至 2.75 億美元。我們計劃在第二季度將股票回購進一步增加至約 3 億美元。

To summarize, our balance sheet is strong, and we are well positioned to drive value through our capital allocation point. In closing, we delivered another quarter of strong business and financial results. As we look forward, we remain excited about the opportunities we see to continue investing to serve our advisers, grow our business and create long-term shareholder value.

總而言之，我們的資產負債表強勁，並且我們有能力通過資本配置點推動價值。最後，我們又一個季度實現了強勁的業務和財務業績。展望未來，我們仍然對繼續投資為顧問服務、發展業務和創造長期股東價值的機會感到興奮。

With that, operator, please open the call for questions.

那麼，接線員，請打開提問電話。

(Operator Instructions) Our first question will come from Steven Chubak of Wolfe Research.

（操作員說明）我們的第一個問題將來自 Wolfe Research 的 Steven Chubak。

So maybe just kicking things off with a question for Matt on the enterprise channel. Recently, you've seen some really strong recruiting momentum within Enterprise. I was hoping to get your perspective on whether the recent stress in the banking space bolsters the case for banks to partner with LPL. And can you help quantify just where the enterprise backlog is today versus, say, the start of the year?

因此，也許只是通過在企業頻道上向 Matt 提問來開始。最近，您已經看到 Enterprise 內部出現了一些非常強勁的招聘勢頭。我希望了解您對銀行業近期面臨的壓力是否有利於銀行與 LPL 合作的看法。您能否幫助量化當前企業積壓的情況與年初相比的情況？

Yes. I know you said for me, Steven, I think Dan is chomping up a bit on this (inaudible) figure.

是的。我知道你是替我說的，史蒂文，我認為丹對這個（聽不清）數字有些猶豫。

Yes. No, look, Steve, when you have circumstances of displacement in the marketplace as you were calling out, that can create challenges and/or opportunities and circle through some of the bank failures in Q1.

是的。不，史蒂夫，當你在市場上出現你所呼籲的流離失所的情況時，這可能會帶來挑戰和/或機遇，並導致第一季度的一些銀行倒閉。

We think back to 2020 with the pandemic, a much more significant impact from that. I think in the case of the recent bank failures, we didn't necessarily see this disruption creating short-term opportunity because it was very short-lived and the impact somewhat muted. That said, I think at times like this, it does reinforce maybe some of the really important elements of this model.

我們回想 2020 年，疫情帶來的影響更為重大。我認為，就最近的銀行倒閉而言，我們不一定認為這種破壞會創造短期機會，因為它的持續時間非常短暫，而且影響也有些微弱。也就是說，我認為在這樣的時候，它確實強化了這個模型的一些真正重要的元素。

So think about it this way, the value of human center port, which creates opportunity for advisers as they are providing guidance and folks need it most in times of uncertainty. It certainly helps reinforce the deal of us as a strategic partner to advisers given our strength and scale and robust capabilities, we sort of end up being even a quality. And then finally, I think right to your question or the point of your question, it does reinforce our value proposition for enterprises and in particular banks that type of disruption may be a catalyst for exploring different strategic options or alternatives for different business lines, as an example, wealth management.

因此，這樣思考一下，人類中心港的價值，它為顧問創造了機會，因為他們提供指導，而人們在不確定的時期最需要它。鑑於我們的實力、規模和強大的能力，這無疑有助於加強我們作為顧問的戰略合作夥伴的關係，我們最終甚至成為了一種品質。最後，我認為針對你的問題或你的問題的要點，它確實強化了我們對企業，特別是銀行的價值主張，這種顛覆可能成為探索不同業務線的不同戰略選擇或替代方案的催化劑，因為舉個例子，財富管理。

And I think that certainly would create incremental demand as we go forward. Finally, our Capital-Light model allows us to play offense and continue to invest back in the platform in order to enhance and further differentiate our (inaudible) reach and others perhaps can't do that in these disruptive markets are displaced a month.

我認為，隨著我們的前進，這肯定會創造增量需求。最後，我們的輕資本模式使我們能夠進攻並繼續投資於該平台，以增強並進一步區分我們的（聽不清）影響力，而其他人可能無法在這些一個月就被取代的顛覆性市場中做到這一點。

So I think we didn't see necessarily opportunity in the short run. I think it does reinforce the attributes of this model and it's quite helpful to our long-term growth and our positioning in the marketplace where we can kind of turn this change in the market into opportunity across most disruptive sort of marketplace changes. So I hope that helps.

所以我認為短期內我們不一定看到機會。我認為它確實強化了這種模式的屬性，並且對我們的長期增長和我們在市場中的定位非常有幫助，我們可以將市場的這種變化轉化為跨越最具顛覆性的市場變化的機會。所以我希望這會有所幫助。

It's really helpful color, Dan. Matt, I was really just trying to share the well, but my follow-up is going to be for Dan here. Just on the traditional independent channel, there is some evidence that recent broker-dealer consolidation activity is driving increased adviser churn. And just given the strong NNA results that we saw in March, how does the recruiting backdrop in the traditional market compared to last year? And do you expect to see an acceleration NNA given some evidence of higher adviser trend?

這真的很有幫助，丹。馬特，我真的只是想分享這口井，但我的後續行動將是丹在這裡。僅在傳統的獨立渠道上，有一些證據表明，最近的經紀交易商整合活動正在導致顧問流失率增加。鑑於我們在 3 月份看到的 NNA 強勁結果，傳統市場的招聘背景與去年相比如何？考慮到更高顧問趨勢的一些證據，您是否預計 NNA 會加速？

Yes. Well, look, I mean, if we look just glance Q1 as perhaps jumping off to your question, Steven, you see the traditional recruiting markets in a solid place for us with $9 billion in assets. And that channel continues to continuously produce solid results and continues to increase over time as differentiation of our model and our capabilities creates a real appealing alternative to these advisers. And quite frankly, the flexibility in our different affiliation models gives them different sets of sort of problems or challenges to potentially solve for by moving to our platform that they're in a place where they're trying to evolve their practice depending where they are in the life cycle of their model.

是的。好吧，我的意思是，如果我們只看第一季度，也許會跳到你的問題，史蒂文，你會發現傳統的招聘市場對於我們擁有 90 億美元的資產來說是一個穩固的地位。隨著我們模式和能力的差異化為這些顧問創造了真正有吸引力的替代方案，該渠道將繼續不斷產生紮實的成果，並隨著時間的推移而不斷增加。坦率地說，我們不同的隸屬模型的靈活性給他們帶來了不同類型的問題或挑戰，可以通過轉移到我們的平台來解決，他們正在嘗試根據自己所在的位置發展他們的實踐在他們模型的生命週期中。

So we certainly think that just as a baseline, we continue to see that part of the market strengthening and its opportunity from a recruiting standpoint. As you look forward to your point around other changes that players in the marketplace and the independent space may be contemplating or considering that certainly would take the lower baseline of churn we've seen over the last couple of years.

因此，我們當然認為，作為基準，從招聘的角度來看，我們繼續看到這部分市場的加強及其機會。當您期待市場和獨立領域的參與者可能正在考慮或考慮的其他變化時，這肯定會降低我們在過去幾年中看到的客戶流失基線。

And obviously create what should be a much bigger appetite we set any time we change in the marketplace and new model that is going to trigger or be a catalyst for advisers to consider their sets of opportunity (inaudible) relative to how they practice this business going forward. And so we do believe that if those things occur, that does create more churn in the marketplace. And we take our healing model. We take the growing capabilities out of our business development team to do a great job across all of these different affiliation models. And I think we addressed it very good play off and capitalize on that opportunity. So that's kind of how we see the traditional marketplace, both now and if things occur in the future, we'll be ready to explore those possibilities as they may unveil.

顯然，每當我們改變市場和新模式時，我們都會設定一個更大的胃口，這將觸發或成為顧問考慮他們的機會集（聽不清）相對於他們如何實踐這項業務的方式向前。因此，我們確實相信，如果這些事情發生，確實會在市場上造成更多的混亂。我們採用我們的治療模型。我們利用業務開發團隊不斷增長的能力，在所有這些不同的隸屬關係模式中出色地完成工作。我認為我們在附加賽中很好地解決了這個問題，並利用了這個機會。這就是我們看待傳統市場的方式，無論是現在還是將來，如果事情發生，我們將準備好探索這些可能性，因為它們可能會揭開面紗。

And our next question will come from Alexander Blostein of Goldman Sachs.

我們的下一個問題將來自高盛的亞歷山大·布洛斯坦。

Okay. So you guys announced a pretty sizable win in the RIA channel, I think, a couple of weeks ago. I think it's on the larger size from what we've seen in that kind of affiliation part of your model. So I was curious if you could speak to sort of the key attributes that maybe won the business for you guys and ultimately, what does the pipeline look like? And that part of the market and maybe just remind us on sort of the economics in that channel for LPL, either in the gross profit RIA terms or else?

好的。我想，幾週前你們在 RIA 頻道上宣布了一項相當大的勝利。我認為從我們在模型的那種附屬部分中看到的尺寸來看，它的尺寸更大。所以我很好奇你是否能談談可能為你們贏得業務的關鍵屬性，最終，管道是什麼樣的？市場的這一部分也許只是提醒我們 LPL 渠道中的某種經濟學，無論是毛利潤 RIA 條款還是其他？

Thanks, Alex. This is Dan. I'll take the first part of that and then I'll flip it to Matt for kind of the part via that question. So first of all, yes, we had a nice win that you referenced a couple of weeks ago that we announced where the team did a great job of attracting CG Advisor Network, which is a new large RIA. And those apps will show up actually in second quarter or the current quarter that we're in.

謝謝，亞歷克斯。這是丹.我會先講第一部分，然後我會把它轉給馬特，讓他通過這個問題來了解部分內容。首先，是的，我們取得了一場不錯的勝利，正如您幾週前提到的，我們宣布團隊在吸引 CG Advisor Network（這是一個新的大型 RIA）方面做得非常出色。這些應用程序實際上將在第二季度或我們所處的當前季度出現。

And look, I think this win does a couple of things. First and foremost, reinforces the strong work the team is doing to create a really compelling and differentiated solution in this part of the market. A great example perhaps of that is how we're using our services portfolio to give these RIAs access to differentiated tools and resources, they had always had availability to access to, which are really meant to help them better operate with businesses as they go forward once on our platform. So that's a great example of how we're building in what I might call a baseline of capability set and differentiation that can think is creating a more robust appeal for this part of the marketplace.

看，我認為這場胜利有幾件事。首先也是最重要的是，加強團隊正在做的強有力的工作，以在這部分市場中創建真正引人注目的差異化解決方案。也許一個很好的例子就是我們如何使用我們的服務組合讓這些 RIA 能夠訪問差異化的工具和資源，他們始終可以訪問，這實際上是為了幫助他們在未來更好地運營業務一旦進入我們的平台。因此，這是一個很好的例子，說明我們如何建立我所說的能力集和差異化的基線，可以認為這正在為這部分市場創造更強大的吸引力。

I think if you click down specifically on CGA advisor network, and what were some of the attributes that may be attracted them, one, our very advisory-centered model I think coupled with innovative technology that they can create integrated workflows for driving efficiency in the practice and finally, in the flexibility of our solution to handle all of their assets in more integrated way on 1 platform. And so at a high level, those were probably some of the bigger attributes that they were attracted to.

我想，如果你專門點擊 CGA 顧問網絡，有哪些屬性可能會吸引他們，一是我們以諮詢為中心的模型，我認為再加上創新技術，他們可以創建集成的工作流程，以提高整個行業的效率。最後，我們的解決方案具有靈活性，可以在一個平台上以更集成的方式處理他們的所有資產。因此，從較高的層面來看，這些可能是吸引他們的一些更大的屬性。

And so look, I think as we look forward, overall, we're really excited about the opportunity and the momentum is building in this model. We have a number of new clients that have joined us so far this year as we referenced in the recruiting in Q1. And certainly, there's more opportunities that are progressing in the pipeline. So we'll continue to invest in the capabilities here as we see this as a very attractive market to create that differentiated model and continue to contribute and accelerate growth. So hopefully, that gives you a little color on both that particular affiliation model and then specifically with CGA Advisor Network.

因此，我認為，總體而言，當我們展望未來時，我們對這個模型中正在形成的機會和勢頭感到非常興奮。正如我們在第一季度的招聘中提到的那樣，今年到目前為止，我們有許多新客戶加入了我們。當然，還有更多機會正在醞釀之中。因此，我們將繼續投資於此，因為我們認為這是一個非常有吸引力的市場，可以創建差異化模型並繼續做出貢獻並加速增長。希望這能讓您對特定的從屬關係模型以及 CGA Advisor Network 有所了解。

And then Alexander, on the economics, I mean, it's not too dissimilar from the enterprise channel or the large financial institutions, where on the RIA side, it would typically have a lower gross profit ROA, but the cost and specifically, the acquisition costs are also lower. So I will underwrite returns. So you get to a bottom line margin and economics that are compelling and similar to the rest of the business, but you have that dynamic similar to what you have on the large enterprise side.

然後亞歷山大，在經濟學上，我的意思是，它與企業渠道或大型金融機構並沒有太大不同，在 RIA 方面，它通常具有較低的毛利潤 ROA，但成本，特別是收購成本也較低。所以我會承保退貨。因此，您可以獲得令人信服的底線利潤和經濟效益，並且與其他業務類似，但您的動態與大型企業方麵類似。

Okay. Great. For my second, maybe I'll ask a less insightful question. Can we talk just about cash. I think you guys gave the ICA yield of 320 for second quarter, but maybe just an update on where cash stands today in the composition. And also just around the philosophy you guys kind of starting on this journey of putting extensions in a couple of years ago, you're north of 50% now. Clearly, the volatility in cash balances has been something we have to live with for the last 6 to 9 months. So as the environment continues to be sort of uncertain, do you guys anticipate to continue to extend and add more to big balances, or are you finding itself in a pretty good place here?

好的。偉大的。對於第二個問題，也許我會問一個不太有見地的問題。我們可以只討論現金嗎？我認為你們給出的第二季度 ICA 收益率為 320，但也許只是目前現金構成的最新情況。而且就在幾年前你們開始進行擴展的哲學上，你們現在已經超過了 50%。顯然，過去 6 到 9 個月我們不得不忍受現金餘額的波動。因此，隨著環境繼續存在不確定性，你們是否預計會繼續擴大並增加更多的大額餘額，或者你們是否發現自己處於一個非常好的位置？

Yes. Alex, I think on April, and I'll give some color on cash balances and maybe just how we're seeing organic growth pull through in April as well. And I think when you look at cash on both of those things as a reminder, which I'm sure you know, but the -- I'll remind anyways, there's 2 key seasonal factors for April that will hit first and foremost is the tax impact right? It's tax month annual taxes for our clients usually impact cash as well as NNA by about $1.5 billion. And then in addition, given it's month 1 of the quarter, advisory fees primarily come out in that first month as well, which is around $1 billion. So those 2 seasonal factors would reduce cash by around $2.5 billion, everything else being equal. Then in addition to that, I think we've continued to see strong levels of investor engagement, but the pace of cash balance declines has continued to moderate.

是的。亞歷克斯，我想在四月份，我會對現金餘額以及我們如何看待四月份的有機增長進行一些說明。我認為，當你把這兩件事上的現金作為提醒時，我相信你知道這一點，但無論如何，我會提醒你，四月份有兩個關鍵的季節性因素首先受到影響，那就是稅收影響對嗎？在納稅月，我們客戶的年度稅款通常會影響現金和 NNA 約 15 億美元。此外，考慮到這是本季度的第一個月，諮詢費也主要在第一個月產生，約為 10 億美元。因此，在其他條件相同的情況下，這兩個季節性因素將使現金減少約 25 億美元。除此之外，我認為我們繼續看到投資者參與度很高，但現金餘額下降的速度繼續放緩。

So when you look at the incremental decline in April, beyond those seasonal factors, it's about $800 million. So if you look at the first 4 months of this year, the cash balance declines really peaked in January and have moderated each month since. And when you take those seasonal factors into account, the April decline is the smallest decline so far this year.

因此，當你看看 4 月份的增量下降時，除了這些季節性因素之外，下降幅度約為 8 億美元。因此，如果你看看今年的前 4 個月，現金餘額的下降確實在 1 月份達到頂峰，此後每個月都在放緩。如果考慮到這些季節性因素，四月份的降幅是今年迄今為止最小的降幅。

So you put all that together, that it's cash sweep balances just above around $51 billion where we sit today. On your point on fixing out the ICA balances, I think you -- I think the premise of the question summarized it well. We've got a target range of 50% to 75% with the $3 billion that we did put on this quarter. We're now within that range of 55%. And I think I like where we are. I think we feel well positioned. And of course, we'll monitor the environment from here. And if things evolve where we think it makes sense to put on more fixed the environment there has gotten quite constructive, and we feel good about our ability to do that if it makes sense. But where we sit today in this market, I think we feel well positioned where we are.

因此，將所有這些加在一起，現金周轉餘額略高於我們今天的 510 億美元左右。關於你關於解決 ICA 餘額問題的觀點，我認為你——我認為這個問題的前提很好地概括了這一點。我們本季度投入的 30 億美元的目標範圍是 50% 到 75%。我們現在處於 55% 的範圍內。我想我喜歡我們現在的處境。我認為我們感覺自己處於有利位置。當然，我們將從這裡監控環境。如果事情發展到我們認為有意義的地方，那麼建立更固定的環境就會變得相當有建設性，如果有意義的話，我們會對我們這樣做的能力感到滿意。但我認為我們今天在這個市場上所處的位置很好。

And our next question will come from Jeff Schmitt of William Blair.

我們的下一個問題將來自威廉·布萊爾的傑夫·施密特。

Just another one on the cash balances. So I think they're around 4.6% of client assets in the quarter. I understand you were saying that the pace kind of slowed, but appears to be driven by really strong sort of buy-sell activity. Are we approaching a level that you think even if the markets remain strong, it won't move below? Like I think you bottomed at 4.3% in 2019. Is that sort of a good support level?

只是現金餘額上的另一筆。所以我認為它們佔本季度客戶資產的 4.6% 左右。我理解你的意思是速度有所放緩，但似乎是由真正強勁的買賣活動推動的。我們是否正在接近您認為即使市場保持強勁也不會跌破的水平？就像我認為 2019 年 4.3% 觸底一樣。這是一個很好的支撐位嗎？

Yes. I think a few things. I think the headline answer is yes from a support level. I think the best -- the thing that we look at here, which I think you were referencing is really history is the best guy here and getting at, is there a natural amount of cash that sits in an account to manage it and to do things like facilitate rebalancing, facilitate bank advisory fees, customer withdrawals, all so you don't see an adviser not forced to make a trade that they would otherwise not make a trade to facilitate those things.

是的。我想有幾件事。我認為從支撐位來看，主要答案是肯定的。我認為最好的——我們在這裡看到的事情，我認為你提到的確實是歷史，是這裡最好的人，並且了解，賬戶中是否有自然數量的現金來管理和做諸如促進再平衡、促進銀行諮詢費、客戶提款等，所有這些都是為了讓您不會看到顧問不被迫進行交易，否則他們不會進行交易來促進這些事情。

So when you look at our history, as you highlighted, when we've gotten to a place where advisers have their clients fully deployed into the marketplace, which has happened several times in our history, usually see it get down to that around 4% level. So history tells us that's the zone. And we're not seeing anything in this environment that causes us to think anything different.

因此，當您回顧我們的歷史時，正如您所強調的那樣，當我們達到顧問將其客戶完全部署到市場的程度時（這種情況在我們的歷史上發生過多次），通常會看到比例下降到 4% 左右等級。歷史告訴我們，這就是這個區域。我們在這個環境中沒有看到任何東西讓我們產生不同的想法。

Okay. And then on core organic growth, I think you guided into the mid- to low teens kind of reiterated that view. What does that assume on interest rates? And would that change, I guess, if the Fed pause highest cutting in the back half of the year. How variable, I guess, is that assumption?

好的。然後，關於核心有機增長，我認為您引導到中低青少年重申了這一觀點。這對利率有何假設？我想，如果美聯儲在今年下半年暫停最高降息，這種情況會改變嗎？我猜這個假設有多大變化？

Yes. Well, I think as I commented on the prepared remarks, right, we have prepared our spending plans to build throughout the year. So if we think there is a reason to pause or adjust, we certainly have that ability. I think we'd be very deliberate about that. I think the investments that we're making, we think, drive long-term value of the firm.

是的。嗯，我認為正如我對準備好的評論的評論一樣，我們已經準備好了全年的支出計劃。因此，如果我們認為有理由暫停或調整，我們當然有這種能力。我認為我們對此會非常慎重。我認為我們正在進行的投資會推動公司的長期價值。

We've got our balance sheet positioned quite well to be able to do that. But if we do get an environment where the investments don't make sense or it does mean we need to pause we would, but I think sitting here today, I think we still feel quite comfortable that the 12% to 15% this year makes sense given the investments that we're making and the results that we think that will follow.

我們的資產負債表定位得很好，能夠做到這一點。但如果我們確實遇到了一個投資沒有意義的環境，或者這確實意味著我們需要暫停，我們會這樣做，但我認為今天坐在這裡，我認為我們仍然對今年 12％ 至 15％ 的增長感到非常滿意。考慮到我們正在進行的投資以及我們認為隨之而來的結果，這是有道理的。

And our next question will come from Kyle Voigt of KBW.

我們的下一個問題將來自 KBW 的 Kyle Voigt。

A couple of follow-ups for me. The first is on Alex's RIA question. I believe CG was previously using TDA for custody and with the Schwab and Ameritrade integration happening over the next year, I think, primarily in Q3. Just wondering, are you viewing that migration as a potential catalyst for putting more RIA assets in motion, and are you targeting that as an opportunity to continue to have success in that channel.

我有幾個後續行動。第一個是關於 Alex 的 RIA 問題。我相信 CG 之前使用 TDA 進行託管，嘉信理財和 Ameritrade 的整合將在明年進行，我認為，主要是在第三季度。只是想知道，您是否將這種遷移視為啟動更多 RIA 資產的潛在催化劑，以及您是否將其視為繼續在該渠道取得成功的機會。

Much like we mentioned with regard to our traditional markets, that is certainly a change in the marketplace. It could be a catalyst for advisers looking different options and alternatives. And certainly, we believe that, that is a contributor to ongoing potential demand as not only we leave up to that transition, but even post that transition.

就像我們提到的傳統市場一樣，這肯定是市場的變化。這可能會成為顧問尋找不同選擇和替代方案的催化劑。當然，我們相信，這對持續的潛在需求做出了貢獻，因為我們不僅要等到過渡，甚至還要在過渡之後。

I think in terms of step function change and significant change management efforts, sometimes on the other side of those, the always look what [poser]would have expected a desire and wanted.

我認為就步驟功能變更和重大變更管理工作而言，有時在另一方面，總是看起來[裝腔作勢者]所期望的願望和想要的。

And so I think that opportunity that extends both before the transition and potentially after relative to the potential opportunity set. And I think what we're trying to do is just build a capable and feeling alternative that will structurally be attractive and create great opportunities for the advisers to see on our platform.

因此，我認為相對於潛在的機會集，這種機會在過渡之前和之後都可能延伸。我認為我們正在嘗試做的只是建立一個有能力且感覺良好的替代方案，該替代方案在結構上具有吸引力，並為顧問在我們的平台上看到的機會創造巨大的機會。

To the extent we can do that, I think that differentiated value with the willingness and need to potentially look around at other options creates an interesting opportunity. That's what we're trying to play in.

在我們能夠做到這一點的範圍內，我認為差異化的價值以及潛在地考慮其他選擇的意願和需要創造了一個有趣的機會。這就是我們正在努力發揮的作用。

Great. And then a second follow-up is on the ICA. On the fixed rate side, I think a lot of the demand generally comes from larger banks that may have seen deposit inflows through the recent banking crisis. But in terms of that demand, I think you just noted that there were very constructive trends actually there. I guess, can you just provide a little bit more color on what you're seeing in terms of how constructive those trends are and maybe quantifying that?

偉大的。第二個後續行動是針對 ICA。在固定利率方面，我認為很多需求通常來自大型銀行，這些銀行可能在最近的銀行業危機中看到了存款流入。但就這種需求而言，我認為您剛剛注意到實際上存在非常有建設性的趨勢。我想，您能否就您所看到的這些趨勢的建設性程度提供更多信息，並可能對其進行量化？

Sure. I mean at a headline level, I think that the appetite of the demand for ICA balances overall, whether it be fixed or floating, is well in excess of what we have to deploy, right? So I think when we our balances were able to deploy on both sides. I think on the fixed rate side, we're just now positioned where we want to be, and we're able to do that during the quarter. I think maybe to put some data behind it and where you could probably see it move in the marketplace itself is really on the variable rate side. And I think that when we're placing those deposits, we're starting -- if you look in the current quarter or the current market, those are now being placed at Fed funds plus 15 to 25 basis points. That was about a spread of 10 to 15 last quarter and compares to kind of flat to negative during the ended. So maybe that's probably the best place to focus on where you can see that demand for these deposits really showed up.

當然。我的意思是，從整體上看，我認為對 ICA 餘額的整體需求量，無論是固定的還是浮動的，都遠遠超過了我們必須部署的，對嗎？所以我認為當我們的平衡能夠部署在雙方時。我認為在固定利率方面，我們現在剛剛處於我們想要的位置，並且我們能夠在本季度做到這一點。我認為也許在它背後放一些數據，你可能會看到它在市場本身的移動，這實際上是在可變利率方面。我認為，當我們存入這些存款時，我們就開始了——如果你看看當前季度或當前市場，這些存款現在存入聯邦基金，再加上 15 到 25 個基點。上個季度的利差約為 10 到 15，而期末的利差則持平甚至為負。因此，也許這可能是您可以看到對這些存款的需求真正出現的最佳關注點。

Our next question will be coming from Michael Cyprys of Morgan Stanley.

我們的下一個問題將來自摩根士丹利的邁克爾·賽普里斯。

Maybe we could circle back to brokerage M&A strength there, quite robust, 5.5% or so. organic annualized. It's up meaningfully from a year ago. So I was hoping you might be able to elaborate on what's driving the strength there on the brokerage side and how you think about the persistency of that.

也許我們可以回到那裡的券商併購實力，相當強勁，大約為 5.5%。有機年化。與一年前相比，這一數字顯著上升。因此，我希望您能夠詳細說明是什麼推動了經紀業務的強勁發展，以及您如何看待這種勢頭的持久性。

Let me take that. There's a couple of maybe primary drivers. As you say, you see some growth year-on-year of revision that is compared to basis. And I think One of the drivers would be we're in a rate environment that we hadn't seen for 15, 16, 17 years. And in some cases, advisers opportunity to serve their clients to meet their needs in this rate environment leads to products that have maybe a utilization that is more appealing or easier to use as appropriate structure than an advisory.

讓我來吧。也許有幾個主要驅動因素。正如您所說，與基礎相比，您看到修訂版同比有所增長。我認為驅動因素之一是我們正處於 15、16、17 年來從未見過的利率環境中。在某些情況下，顧問有機會在這種利率環境下為客戶提供服務，以滿足他們的需求，從而導致產品的使用可能比諮詢更具吸引力或更容易作為適當的結構使用。

So you see some of that [indsicernible] way to say that, that might be familiar to or some type of bond treasury, et cetera. The other thing that I think that you see driving that growth is also the -- some of the mix in these larger enterprise wins that we've had. They have a higher mix of brokerage than advisory. And certainly different than our typical mix of roughly 52%, 53% advisory. So when we transition those folks in, obviously, that has a shorter-term influence in the mix we see that as an opportunity. Once they get to our platform, it's a much more appealing and robust advisory platform that has more interest in pricing to the end client. We do see those as opportunities for them as a (inaudible) list to shift their mix over time more towards advisory. But that's what's causing that -- those are the primary drivers that you're on your ship indsicernible .

所以你會看到一些[不可理喻的]方式來表達，這可能是某種類型的債券金庫所熟悉的，等等。我認為您看到的推動增長的另一件事也是——我們所取得的這些大型企業勝利的一些組合。他們的經紀業務比諮詢業務更多。當然這與我們典型的大約 52%、53% 諮詢的組合不同。因此，當我們將這些人轉移進來時，顯然，這會對組合產生短期影響，我們認為這是一個機會。一旦他們進入我們的平台，這是一個更具吸引力和強大的諮詢平台，對最終客戶的定價更感興趣。我們確實將這些視為他們的機會（聽不清），隨著時間的推移，他們的組合將更多地轉向諮詢。但這就是造成這種情況的原因——這些是你在船上不可察覺的主要驅動因素。

Great. Very helpful. And then just as a follow-up question. If we look at the gross profit ROA prior to the client cash, that also showed a very nice improvement year-on-year. It has been pretty steady in this 19 to 20 basis point range for some time.

偉大的。很有幫助。然後作為後續問題。如果我們看看客戶現金之前的毛利潤 ROA，也顯示出同比非常好的改善。一段時間以來，它一直在 19 至 20 個基點範圍內相當穩定。

So I guess what do you see as some of the biggest opportunities to expand that over time, the gross profit ROA prior to client cash? What might be the 2 to 3 biggest of expansion over the next couple of years, where do you see some potential partial offsets? And ultimately, what level do you think this could ultimately achieve?

所以我想您認為隨著時間的推移擴大客戶現金之前的毛利潤 ROA 的一些最大機會是什麼？未來幾年最大的 2 到 3 個擴張可能是什麼？您認為哪些地方可能會出現部分抵消？最後，您認為這最終可以達到什麼水平？

Yes, Michael. I mean, I think what I'd emphasize is really the overall growth opportunities that we have for gross profit itself, right, things that we've talked a lot about on this call, but our overall organic growth bringing in and recruiting larger advisers, the enterprise channel, which drives gross profit growth, but actually has a lower gross profit ROA. Like all of those things adding in our service and fee revenues and services group.

是的，邁克爾。我的意思是，我認為我要強調的是我們毛利潤本身的整體增長機會，對，我們在這次電話會議上討論了很多事情，但我們的整體有機增長引入並招募了更大的顧問企業渠道，帶動毛利潤增長，但毛利潤ROA實際上較低。就像我們的服務和費用收入和服務組中添加的所有這些東西一樣。

Those things all drive growth there. And I think the key thing I would highlight from an ROA standpoint is as we become a larger and more diversified firm for both offerings and revenue drivers, they're just not all asset driven, especially in that service and fee revenue side, the growth that we've had in the large enterprise channel will show up as lower gross profit ROA, even though we're serving and supporting those clients in a way that can drive compelling margin.

這些因素都推動了那裡的增長。我認為，從資產回報率的角度來看，我要強調的關鍵一點是，隨著我們成為一家規模更大、更加多元化的公司，無論是產品還是收入驅動因素，它們並不都是資產驅動的，特別是在服務和費用收入方面，增長儘管我們以一種可以提高利潤率的方式為這些客戶提供服務和支持，但我們在大型企業渠道中的表現將表現為較低的毛利潤 ROA。

So I think it's less about the ROA from a basis point standpoint, it's really about the key drivers of our model that can drive a gross profit growth over time.

因此，我認為從基點的角度來看，這與 ROA 無關，而真正與我們模型的關鍵驅動因素有關，這些驅動因素可以隨著時間的推移推動毛利潤增長。

And our next question comes from Brennan Hawken of UBS.

我們的下一個問題來自瑞銀集團的布倫南·霍肯。

Matt, I would love to circle back to the comments that you made about thinking that the prior level of cash as a percent of client assets would work as a trough this cycle. We've seen other firms, you laid out a few of the reasons for that, the need to have advisors catching the dividends and need for some base line of cash. But we've seen in other wealth management firms that have very similar business models, cash as a percentage of client assets go below prior cycle trough.

馬特，我很想回顧一下您的評論，您認為之前的現金佔客戶資產的百分比將在本週期的低谷發揮作用。我們見過其他公司，您列出了一些原因，需要讓顧問獲得股息以及需要一些基本現金。但我們在其他具有非常相似業務模式的財富管理公司中看到，現金佔客戶資產的百分比低於上一個週期的低點。

So I guess I'm just curious as to what gives you the confidence that, that trough is going to hold rather than a simple understanding that we're going to hire for longer, and therefore, prior trends might end up just being a bit different here and that fair too?

所以我想我只是好奇是什麼讓你有信心，這個低谷將會持續下去，而不是簡單地理解我們將僱用更長的時間，因此，之前的趨勢可能最終會變得有點這里和那個公平也不同嗎？

Yes. Well, I think, Brennan, there's always scenarios where things can play out differently. But I think from our standpoint, history is the best guy, right? And I think from our business model, which I know you've -- you've heard us talk through a bunch, but the cash balances as a starting point are relatively small and they are transactional or operational in nature.

是的。嗯，我認為，布倫南，事情總會有不同的情況發生。但我認為從我們的角度來看，歷史是最好的人，對嗎？我認為，從我們的商業模式來看，我知道你們已經聽我們談過很多次，但作為起點的現金餘額相對較小，而且本質上是交易性或運營性的。

We've got a long-term average of around 5% or $7,000 per account. And when you look at that history, the primary factor that has moved those balances up and down is really based on the markets and where, and how advisers have their clients deployed.

我們每個賬戶的長期平均收益約為 5% 或 7,000 美元。當你回顧這段歷史時，會發現導致這些餘額上下波動的主要因素實際上取決於市場、地點以及顧問如何部署客戶。

And to your point on when that -- when those balances come down, it's typically come down to that 4%. We've seen it several times, most recently in 2021 if the market's really recovered post the onset of the pandemic. So that's what we're looking at. And I think it's a combination of the size of the balances and the history that we've seen.

至於你的觀點，當這些餘額下降時，通常會下降到 4%。我們已經見過好幾次了，最近一次是在 2021 年，如果市場在大流行爆發後真的複甦的話。這就是我們正在研究的。我認為這是餘額規模和我們所看到的歷史的結合。

Okay. All right. That's fair. And just a ticky-tacky one to follow-up. Yield on the money market sweeps has sort of seemed to compress a bit from where it was about a year ago, I had always thought of those as more or less fixed.

好的。好的。這還算公平。這只是一個棘手的後續問題。貨幣市場的收益率似乎比一年前有所壓縮，我一直認為這些收益率或多或少是固定的。

Is there some sort of mix dynamic that's happening where something that's causing that to compress? And how should we be thinking about that going forward? I know it's a small impact. Just kind of curious.

是否存在某種混合動態，導致壓縮？我們應該如何思考未來的發展？我知道這影響很小。只是有點好奇。

Yes. I think -- well, in recent periods, it's come up a little bit. You're referring to perhaps a few years ago, is that what you're looking at?

是的。我認為——嗯，最近一段時間，它出現了一些。你指的可能是幾年前，那是你現在看到的嗎？

No. The average yield in basis points on the money market sweep, it was 30. This quarter, it was 32 the prior quarter and then 38, in the third quarter...

不。貨幣市場的平均收益率為 30 個基點。本季度，上一季度為 32 個基點，第三季度為 38 個基點……

Yes. I just -- okay. So I'd put all those in a relatively similar zone not moving around a lot. Whenever you do see movement there, it's more about the mix is there a different firms or different paths. There's nothing from a pricing standpoint going on there. And as you said, the balances there are really small. So it's usually a mix.

是的。我只是——好吧。所以我會把所有這些都放在一個相對相似的區域，不會經常移動。每當你看到那裡的變化時，更多的是關於不同公司或不同路徑的混合。從定價的角度來看，沒有任何事情發生。正如你所說，那裡的餘額非常小。所以通常是混合的。

Our next question will come from Craig Siegenthaler of Bank of America.

我們的下一個問題將來自美國銀行的克雷格·西根塔勒。

So we saw that annuity sales were up a lot. I think commissions were up 52% year-on-year. I'm curious what type annuities are the clients buying? And have you seen an increase in surrenders of older annuities, just given the wide gap between where count rates are compared to where annuities were offered over the last decade.

所以我們看到年金銷售額增長了很多。我認為佣金同比增長了 52%。我很好奇客戶購買什麼類型的年金？鑑於過去十年的計數率與提供年金的情況相比存在巨大差距，您是否看到舊年金的退保有所增加。

Yes. I think the short answer to your question is what I said earlier that in this rate environment that we haven't seen for an extended period of time, there's an opportunity to use fixed annuities as a way to help people with their desires around yield or yield that leads to lifetime income.

是的。我認為對你問題的簡短回答就是我之前所說的，在我們已經很長一段時間沒有見過的利率環境中，有機會使用固定年金作為幫助人們實現收益或收益願望的一種方式。帶來終生收入的產量。

And that opportunity has largely been muted for an extended period of time. And so because of that, it's not surrenders or exchanges from prior annuities, I think you would have seen that coming are being forced to come out of variable annuities that were set up and created for a different focus. And so this is typically new money that has opportunity to find higher yields with the pent-up demand for those higher yields that are, I think, well positioned and suited to support their long-term income needs in retirement. So that's the primary driver of that.

而且這個機會在很長一段時間內基本上被抑制了。因此，這不是先前年金的退保或交換，我想您會看到，未來的年金被迫來自為不同焦點而設立和創建的可變年金。因此，這通常是新資金，有機會找到更高的收益率，而對這些更高收益率的被壓抑的需求，我認為，這些更高的收益率處於有利地位，適合支持他們退休後的長期收入需求。這是主要的驅動力。

And just 1 question on your advisory relationships. But what percentage of LPL advisers with advisory relationships, charge fees on total client AUA versus net client AUA after backing out client cash.

還有 1 個關於您的諮詢關係的問題。但是，擁有諮詢關係的 LPL 顧問在收回客戶現金後，按總客戶 AUA 與淨客戶 AUA 收取費用的比例是多少。

Yes. Well, so first of all, there's limits to the amount of cash that someone can hold for a period of time within an advisory account or they're required to either put that money to work or move those assets out of that advisory account. So that's your control relative to high amounts of cash inside advisory accounts. That said, their cash that they use inside of the account at a appropriate levels as we talked about before is part of the fee that is charged.

是的。嗯，首先，某人在諮詢賬戶中可以持有一段時間的現金數額是有限的，或者他們需要將這些錢投入使用或將這些資產從該諮詢賬戶中移出。因此，這就是您對諮詢賬戶內大量現金的控制權。也就是說，正如我們之前討論的那樣，他們在賬戶內以適當水平使用的現金是收取的費用的一部分。

And our next question will come from Michael Cho of JPMorgan.

我們的下一個問題將來自摩根大通的 Michael Cho。

I just wanted to follow up on capital allocation again. I mean you mentioned for the leverage continues to tick lower, and you've got $4 billion of firepower. If you think about the inorganic bucket, just given the changing backdrop and across [indsicernible] banking and I realize you just said nothing kind of near-term changes from recruiting or partnerships. But are there any segments or channels that you might be focused on more when you think about organic just as a LPL spire power just continues to grow. And then just relatedly, just in terms of the new liquidity and succession offering, it looks like you're having some good success there with the growing pipeline.

我只是想再次跟進一下資本配置。我的意思是你提到槓桿率持續走低，而你卻擁有 40 億美元的火力。如果你考慮一下無機桶，考慮到不斷變化的背景和[不可察覺的]銀行業，我意識到你只是沒有提到招聘或合作夥伴關係方面的近期變化。但是，當您考慮有機因素時，是否有任何細分市場或渠道是您可能會更關注的，就像 LPL 尖塔力量不斷增長一樣。與此相關的是，就新的流動性和繼任產品而言，隨著渠道的不斷增長，您似乎在這方面取得了一些良好的成功。

I mean can you just remind us how much capital you're looking to allocate there? And maybe just the capacity for a number of deals annually or a dollar amount. But just -- yes, if you can just provide an update there.

我的意思是，您能提醒我們您打算在那里分配多少資金嗎？也許只是每年進行一些交易或一筆金額的能力。但只是——是的，如果你能在那裡提供更新的話。

Sure. I'll start with liquidity and succession. I mean I think that if you look at what we did in the quarter, I think it's a good guide and the opportunity here to focus here from a capital standpoint is it's relatively small, right? We're deploying capital, using disciplined return thresholds, which usually leads to purchase multiples in the 6 to 8x EBITDA zone.

當然。我將從流動性和繼承開始。我的意思是，我認為，如果你看看我們在本季度所做的事情，我認為這是一個很好的指南，從資本的角度來看，關注這裡的機會相對較小，對吧？我們正在部署資本，使用嚴格的回報閾值，這通常會導致購買倍數在 6 到 8 倍 EBITDA 區域。

The size of the deals are usually relatively small in the $10 million to $20 million range. So it's less a big use of capital, and it's more about really the capability that we're that we've built there to help transition practices to the next generation, right? So that's the key for the offering.

交易規模通常相對較小，在 1000 萬美元至 2000 萬美元之間。因此，這並不是對資本的大量使用，而更多的是我們在那裡建立的真正能力，以幫助將實踐過渡到下一代，對吧？這就是產品的關鍵。

I think on your main -- I think on your first question, make sure we got it as far as the opportunity set in the interest in -- from an M&A standpoint. I mean I think when you just look at where we have participated as a company, it's across several channels, but anything that would really accelerate our strategy, whether it be in our advancing in our traditional markets, expanding into newer markets, so the employee channel is an example that we did. And if we can do so in a way that just matches our strategy, that we've got the operational capacity to do it really well and then it meets our disciplined financial hurdles. I think that's how we'd be interested from an M&A standpoint. Dan, anything you want to add to that?

我認為，關於你的主要問題——我認為關於你的第一個問題，確保我們從併購的角度來看，盡可能地抓住了感興趣的機會。我的意思是，我認為，當你看看我們作為一家公司參與的領域時，它是跨多個渠道的，但任何真正能夠加速我們戰略的事情，無論是在我們傳統市場的推進中，還是擴展到新市場中，所以員工頻道就是我們所做的一個例子。如果我們能夠以一種與我們的戰略相匹配的方式做到這一點，那麼我們就有能力做得很好，然後它就能滿足我們嚴格的財務障礙。我認為從併購的角度來看，這就是我們感興趣的方式。丹，你還有什麼要補充的嗎？

We also look always at capabilities, the interesting capabilities that will accelerate our strategy and create a better opportunity with interesting returns versus building them ourselves or renting them. We are always open for spring that too. So that's just the only other element of M&A that I might.

我們還始終關注能力，那些有趣的能力將加速我們的戰略，並創造更好的機會和有趣的回報，而不是我們自己構建或租賃它們。我們也總是對春天開放。所以這只是我可能考慮的併購的唯一其他要素。

And then just a quick follow-up on the G&A. I mean, now you talked about some flexibility throughout the year. just given how things kind of shake out in the big picture. But are there any certain projects or initiatives that you'd call out that again, you might call in terms of the accelerated investments where you may pause if the environment changes later in the year?

然後是對一般管理費用的快速跟進。我的意思是，現在您談到了全年的一些靈活性。只是考慮到事情在大局中是如何發生變化的。但是，是否有任何某些項目或舉措是您會再次提到的，您可能會稱其為加速投資，如果今年晚些時候環境發生變化，您可能會暫停這些項目或舉措？

Not particularly. I mean maybe just to emphasize the construct and how we build up to the 12% to 15%. I mean I think that from a prioritization standpoint, we're investing first and foremost to support the core business. right? And each of those categories is about a 4% to 5% growth in the year.

不是特別。我的意思是，也許只是為了強調結構以及我們如何達到 12% 到 15%。我的意思是，我認為從優先順序的角度來看，我們首先進行投資以支持核心業務。正確的？其中每個類別今年的增長率約為 4% 至 5%。

The second category is really about expanding our markets and scaling our new services. And then that third category is really being opportunistic given the environment to accelerate components of the strategy. So if we are pulling back, it would be more in that it would be first in that third category, which is less about a specific initiative and more about -- we're just doing some things that we would have otherwise have waited until 2024 over and beyond.

第二類實際上是關於擴大我們的市場和擴展我們的新服務。考慮到加速戰略組成部分的環境，第三類實際上是機會主義的。因此，如果我們撤回，更多的是因為它將成為第三類中的第一，這與具體舉措無關，更多的是——我們只是在做一些本來要等到 2024 年的事情超越。

And our last question will come from Bill Katz of Credit Suisse.

我們的最後一個問題將來自瑞士信貸銀行的比爾·卡茨。

Just coming back to the opportunity to sort of picks up versus flow. So it sounds like the 55% is about where you want to be. And sort understand that you've done a great job of managing through the rate cycle in the past. But to play devil's advocate for a moment, if you look at the forward curve, and its point is pretty sharp production, if you will. And you think that the sorting is sort of coming to a conclusion and the cash balances are starting to stabilize, why not try and fix out a bit more just to reduce some of the risk to earnings in '24 and '25?

只是回到了恢復與流動的機會。所以聽起來 55% 就是你想要的位置。並且要明白，您過去在管理利率週期方面做得很好。但暫時唱反調，如果你看看未來的曲線，你會發現它的要點是相當尖銳的生產，如果你願意的話。你認為排序已經結束，現金餘額開始穩定，為什麼不嘗試解決更多問題，以減少 24 和 25 年收益的一些風險呢？

Yes, Bill. I mean, I think when we form that target range of 50% to 75%, I mean, it was contemplated that would be the range we'd want to be in a range of interest rate environment. And it's not about being clear (inaudible) on rates and picking exactly when and how and what percentage to do. It's about increasing the stability of our earnings. And I think we like where we're positioned in that range I'm not saying we're going to -- we're going to sit there forever. That's how we feel today if the environment changes or the dynamic changes, we'll adjust. But I think we really like where we're positioned right now.

是的，比爾。我的意思是，我認為當我們形成 50% 至 75% 的目標範圍時，我的意思是，我們認為這將是我們在利率環境範圍內希望達到的範圍。這並不是要明確（聽不清）利率並準確選擇何時、如何以及以何種百分比進行。這是為了提高我們收入的穩定性。我認為我們喜歡我們在這個範圍內的定位，我並不是說我們會——我們會永遠坐在那裡。這就是我們今天的感受，如果環境發生變化或動態發生變化，我們就會進行調整。但我認為我們真的很喜歡我們現在的處境。

Okay. That's helpful. And then just coming back to capital for a moment. Thank you for the guidance on buyback into a new quarter. But if I take that and your dividend, it looks like the payout ratio on sort of consensus numbers for the quarter, plus or minus some updates from today is almost 80%, 90%. And when I look at your corporate cash, that number ex the $200 million bogey that you normally like to keep handy leaves very little incremental liquidity.

好的。這很有幫助。然後暫時回到首都。感謝您對新季度回購的指導。但如果我把這個和你的股息結合起來，看起來這個季度的共識數字的支付率，加上或減去今天的一些更新，幾乎是 80%、90%。當我查看你們公司的現金時，除了你們通常喜歡隨身攜帶的 2 億美元的現金之外，這個數字幾乎沒有增加流動性。

So as you think about inorganic opportunities, liquidity and succession, and other use of cash. How do you think about the interplay between free cash flow deployment and balance sheet leverage, particularly given the macro backdrop?

因此，當你考慮無機機會、流動性和繼承以及現金的其他用途時。您如何看待自由現金流部署和資產負債表槓桿之間的相互作用，特別是在宏觀背景下？

Yes. Well, I think the key thing there, Bill, is we'll manage liquidity based on our leverage ratio, right? So we're below the low end of our target range of 1.5 to 2.5. So we think about liquidity capacity across all 3 areas, right, investing for organic growth, M&A and returning capital to shareholders. I think we feel well positioned we're at that. We're below the low end of that range. So that's where we manage that and we feel good where we are.

是的。嗯，我認為關鍵的事情是，比爾，我們將根據我們的槓桿率來管理流動性，對吧？因此，我們低於目標範圍 1.5 至 2.5 的下限。因此，我們考慮所有三個領域的流動性能力，對吧，投資有機增長、併購以及向股東返還資本。我認為我們感覺自己處於有利位置。我們低於該範圍的下限。所以這就是我們管理的地方，我們感覺很好。

And I'm showing no further questions. I would now like to turn the conference back to Dan for closing remarks.

我沒有再提出任何問題。現在我想請丹來發表閉幕詞。

Thanks. And I just want to thank everyone for taking the time to join us this afternoon. We certainly appreciate your investment in time. We look forward to speaking with you again next quarter.

謝謝。我只想感謝大家今天下午抽出時間來參加我們的活動。我們當然感謝您的時間投入。我們期待下個季度再次與您交談。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。