(Source: Business Wire)
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) has released results
for fiscal 2009. Despite facing challenges related to struggling stock
markets, a near-zero interest rate environment and an economic
recession, the Company delivered a strong financial performance as a
result of record organic growth in client assets and trading activity.
The Company's results for the fiscal year ended Sept. 30, 2009 include
the following (year-over-year comparisons): (2)
Net income of $644 million, or $1.10 per diluted share
Record average client trades per day of approximately 372,000, an
increase of 23 percent(1)
Record net new assets of approximately $27 billion, or an annualized
growth rate of 10 percent on beginning client assets
Record gross new accounts of 737,000, an increase of 14 percent
Record spread-based balances of approximately $32 billion, an increase
of 25 percent
Fee-based balances of approximately $59 billion, a decrease of 16
percent
Net revenues of $2.4 billion, 46 percent of which were asset-based
Pre-tax income of $1.1 billion, or 44 percent of net revenues
EBITDA of $1.2 billion, or 51 percent of net revenues(3)
Liquid assets of $1.1 billion(3)
Client assets of approximately $302 billion, including $58 billion in
client cash
"Over the last year, we have leveraged our strong financial position and
client-centric business model to deliver record organic growth, despite
a very challenging market environment," said Fred Tomczyk, president and
chief executive officer. "Through all of the challenges of the last
year, we have remained focused on managing for the other side of the
cycle and positioning ourselves for continued growth in 2010 and beyond."
"In addition to delivering record organic growth, we took several steps
to strengthen our financial position in 2009," said Bill Gerber,
executive vice president and chief financial officer. "We utilized 70
percent of our net income to repurchase company stock worth more than
$450 million, at a weighted-average purchase price of $11.94 per share.
We also acquired a trading technology and education leader in
thinkorswim, earned a credit rating upgrade to Investment Grade,(4)
and positioned ourselves for earnings growth in a rising interest-rate
environment."
In addition, the Company has released its results for the quarter ended
Sept. 30, 2009, which include the following (year-over-year comparisons):
(2)
Record average client trades per day of approximately 411,000, an
increase of 35 percent(1)
Net new assets of approximately $5.4 billion, an annualized growth
rate of 8 percent
Record net revenues of $658 million, 41 percent of which were
asset-based
Pre-tax income of $255 million, or 39 percent of net revenues
Net income of $157 million, or $0.26 per diluted share
EBITDA of $301 million, or 46 percent of net revenues (3)
Fiscal 2010 Outlook
The Company has also released its guidance range for its 2010 fiscal
year and expects to earn between $1.10 and $1.40 per share.
More information on the fiscal 2010 forecast is available through the
Company's "Outlook Statement," located in the "Investor" section of its
Web site, www.amtd.com.
Company Hosts Conference Call
TD AMERITRADE will host its September Quarter conference call this
morning, Oct. 27, 2009, at 7:00 a.m. CDT. Participants may listen to the
call by dialing 877-440-5784. Interested parties may listen to a replay
of the call by dialing 888-203-1112 and the passcode 8336314. The
Company will Webcast the conference live at www.amtd.com
and will make all accompanying materials available for participants to
print prior to the call.
AMTD-E
About TD AMERITRADE Holding Corporation
TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,(5)
combines innovative trading technology, easy-to-use and understand
investment tools and services, investor education and a client-centric,
multi-channel sales and service model to create a market-leading
financial services experience. Now home to the award-winning thinkorswim
brokerage and dynamic trading platform(6) and the Investools
investor education program, TD AMERITRADE provides millions of retail
investors, traders and independent registered investment advisors (RIAs)
with the tools, service and support they need to help build confidence
in today's rapidly-changing market environment. The Company's common
stock trades under the ticker symbol AMTD. For more information, please
visit www.amtd.com.
Safe Harbor
This document contains forward-looking statements within the meaning of
the federal securities laws. We intend these forward-looking statements
to be covered by the safe harbor provisions of the federal securities
laws. In particular, any projections regarding our future revenues,
expenses, earnings, capital expenditures, effective tax rates, client
trading activity, accounts or stock price, as well as the assumptions on
which such expectations are based, are forward-looking statements. These
statements reflect only our current expectations and are not guarantees
of future performance or results. These statements involve risks,
uncertainties and assumptions that could cause actual results or
performance to differ materially from those contained in the
forward-looking statements. These risks, uncertainties and assumptions
include general economic and political conditions, interest rates,
market fluctuations and changes in client trading activity, increased
competition, systems failures and capacity constraints, ability to
service debt obligations, ability to realize the expected benefits from
the thinkorswim acquisition, regulatory and legal matters and
uncertainties and other risk factors described in our latest Annual
Report on Form 10-K, filed with the SEC on Nov. 26, 2008 and amended on
May 6, 2009, and our latest Quarterly Report on Form 10-Q filed
thereafter. These forward-looking statements speak only as of the date
on which the statements were made. We undertake no obligation to update
or revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
(1) Beginning with fiscal 2009, Average Trades Per Day were
adjusted to exclude non-revenue-generating mutual fund trades. For
comparability purposes, metrics for all periods in fiscal 2008 have been
adjusted to account for this change. More information is available on www.amtd.com.
(2) Results include assets acquired through the Company's
purchase of thinkorswim Group Inc. on June 11, 2009. Please see the
Glossary of Terms, located in "Investor" section of www.amtd.com
for more information on how these metrics are calculated.
(3) See attached reconciliation of non-GAAP financial
measures.
(4) Credit rating information based on disclosures from
Moody's Investor Services (Jan. 20, 2009 and April 21, 2009), Standard &
Poor's (Feb. 2, 2009) and Fitch Ratings (April 3, 2009).
(5) TD AMERITRADE, Inc., member FINRA (www.FINRA.org)
/SIPC (www.SIPC.org),
TD AMERITRADE Clearing, Inc., member FINRA/SIPC, and thinkorswim, Inc.,
member FINRA/SIPC/NFA (www.nfa.futures.org).
(6) thinkorswim was rated #1 overall online broker, "best for
frequent traders," and "best for options traders" in Barron's
ranking of online brokers, 3/16/2009. thinkorswim was evaluated versus
others in eight total categories, including trade experience/execution,
trading technology, usability, range of offerings, research amenities,
portfolio analysis & reporting, customer service & access and costs.
thinkorswim topped the list in 2009 with the highest weighted-average
score. Barron's is a registered trademark of Dow Jones & Company
©2009.
TD AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
In thousands, except per share amounts
(Unaudited)
Quarter Ended Fiscal Year Ended
Sept. 30, 2009 June 30, 2009 Sept. 30, 2008 Sept. 30, 2009 Sept. 30, 2008
Revenues:
Transaction-based revenues:
Commissions and transaction fees $ 362,149 $ 338,450 $ 263,439 $ 1,253,154 $ 1,017,456
Asset-based revenues:
Interest revenue 98,116 101,204 163,206 362,076 799,189
Brokerage interest expense (2,089 ) (2,564 ) (32,533 ) (15,165 ) (249,616 )
Net interest revenue 96,027 98,640 130,673 346,911 549,573
Insured deposit account fees 143,198 125,118 161,083 568,084 628,716
Investment product fees 27,995 39,085 86,178 184,341 309,420
Total asset-based revenues 267,220 262,843 377,934 1,099,336 1,487,709
Other revenues 28,562 12,475 7,876 55,436 32,191
Net revenues 657,931 613,768 649,249 2,407,926 2,537,356
Expenses:
Employee compensation and benefits 144,757 128,216 136,130 511,170 503,297
Fair value adjustments of compensation-related
derivative instruments - - - - 764
Clearing and execution costs 24,031 16,141 12,072 70,877 44,620
Communications 25,729 20,795 16,713 83,121 69,564
Occupancy and equipment costs 34,682 29,951 27,530 124,296 101,787
Depreciation and amortization 12,592 11,162 10,475 45,891 36,899
Amortization of acquired intangible assets 25,582 17,551 15,466 73,870 59,275
Professional services 34,215 43,949 31,446 127,572 108,271
Interest on borrowings 7,824 8,365 15,772 40,070 78,447
Other 23,902 14,513 25,475 58,701 62,934
Advertising 55,951 41,376 43,805 197,121 173,296
Losses on money market funds and client guarantees 13,829 - 35,628 13,829 35,628
Total expenses 403,094 332,019 370,512 1,346,518 1,274,782
Income before other income (expense) and income taxes 254,837 281,749 278,737 1,061,408 1,262,574
Other income (expense):
Gain (loss) on sale of investments - (2,003 ) - (2,003 ) 928
Pre-tax income 254,837 279,746 278,737 1,059,405 1,263,502
Provision for income taxes 98,097 109,209 106,738 415,700 459,585
Net income $ 156,740 $ 170,537 $ 171,999 $ 643,705 $ 803,917
Earnings per share - basic $ 0.27 $ 0.30 $ 0.29 $ 1.11 $ 1.35
Earnings per share - diluted $ 0.26 $ 0.30 $ 0.29 $ 1.10 $ 1.33
Weighted average shares outstanding - basic 586,544 563,792 592,778 578,972 593,746
Weighted average shares outstanding - diluted 595,052 571,772 602,334 587,252 603,133
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Note: Certain reclassifications have been made to prior periods to
conform to the current presentation.
TD AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(Unaudited)
Sept. 30, 2009 Sept.