Record Net New Client Assets over $11 billion, 12% annualized growth rate
Record Average Client Trades per Day of 439,000
March Quarter Earnings per Share of $0.30
OMAHA, Neb.--(BUSINESS WIRE)-- TD Ameritrade Holding Corporation (NASDAQ:AMTD) has released results for the second quarter of fiscal 2011. The Company continues to execute on its organic growth strategy, again delivering double-digit annualized net new client asset growth and record results in other key business metrics.
The Company's results for the quarter ended March 31, 2011 include the following (year-over-year comparisons):(1)
- Net income of $172 million, or $0.30 per diluted share
- Record net new client assets of $11.5 billion, an increase of 13 percent, an annualized growth rate of 12 percent of beginning client assets
- Record average client trades per day of approximately 439,000, an increase of 16 percent
- Record net revenues of $718 million, 49 percent of which were asset-based
- Operating income of $283 million, or 39 percent of net revenues
- Pre-tax income of $275 million, or 38 percent of net revenues
- EBITDA of $324 million, or 45 percent of net revenues(2)
- Record interest rate sensitive assets of $70 billion, an increase of 11 percent(3)
- Record client assets of approximately $412 billion, an increase of 21 percent
"We continued our organic growth momentum by delivering another strong quarter, highlighted by record results in net new assets, trades per day, net revenues and total client assets," said
Fred Tomczyk, president and chief executive officer. "We remain focused on enhancing our client value proposition, which was recently recognized by Barron's for its appeal to both long-term investors and active traders. And, we will continue to strategically invest to enhance our value proposition and build our long-term earnings power."
"TD Ameritrade has delivered double-digit organic net new asset growth in eight of the last 10 quarters," said
Bill Gerber, executive vice president and chief financial officer. "That bodes well for our future earnings power, as we have also reached a turning point with net yields from our insured deposit account increasing for the first time in over three years. Our strong cash position enabled us to continue our buy-back program, which together with our dividend payments, have resulted in our returning 48 percent of our net income to shareholders year-to-date."
During the second quarter of fiscal 2011, TD Ameritrade repurchased 2.0 million shares of its common stock at an average price of $21.03 per share, for approximately $43 million. The Company has 24.8 million shares remaining on its existing stock repurchase authorization.
The Company also announced that it has declared a $0.05 per share quarterly cash dividend, which is payable on May 17, 2011 to all holders of record of common stock as of May 3, 2011.
Credit Rating Upgrade
On Feb. 25, 2011, Standard & Poor's upgraded TD Ameritrade's credit rating for the second time since 2008 to A- from BBB+. The Company also received its second ratings upgrade from Fitch Ratings to A- from BBB+ on April 15, 2011. Both ratings carry a "Stable" outlook.
"Our strong free cash flow, solid balance sheet and prospects for future earnings growth have led to two credit ratings upgrades in the midst of this continuing difficult economic environment," Tomczyk continued.
TD Ameritrade was awarded an overall 4 ½ out of 5 Stars and was named "Best for Options Traders" in Barron's 2011 Online Broker Survey. TD Ameritrade also received the highest rating, 4 ½ out of 5 Stars, in the "Best for Long-term Investing" category, sharing that rating with only one other broker. TD Ameritrade was evaluated versus 23 other online brokers in eight total categories, including trade experience, trading technology, usability, range of offerings, research amenities, portfolio analysis and reporting, customer service and costs.
Company Hosts Conference Call
TD Ameritrade will host its March Quarter conference call this morning, April 18, 2011, at 7:30 a.m. CDT. Participants may listen to the call by dialing 877-881-2595. Interested parties may listen to a replay of the call by dialing 800-642-1687 and the passcode 41563791. 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.
About TD Ameritrade Holding Corporation
For more than 36 years, TD Ameritrade Holding Corporation (NASDAQ:AMTD) has been in the business of serving individual investors — either directly or through a network of independent registered investment advisors. Through its brokerage(4) and education(5) subsidiaries, TD Ameritrade combines innovative trading technology, easy-to-use trading tools, investment services and education, and superior client service to create a market-leading financial services experience. Home to Kiplinger's #1 online broker(6), Barron's #1 online broker for "Options Traders"(7), TD Ameritrade provides millions of retail investors, traders and independent registered investment advisors with the tools, service and support they need to help build confidence in today's rapidly changing market environment. For more information and resources for journalists, please visit the TD Ameritrade newsroom at www.amtd.com.
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, benefits of the thinkorswim acquisition, 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, new laws and regulations effecting our business, 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. 19, 2010 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 Please see the Glossary of Terms, located in "Investor" section of www.amtd.com for more information on how these metrics are calculated.
2 See attached reconciliation of non-GAAP financial measures.
3Interest rate sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of March 31, 2011.
4 TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org), and TD Ameritrade Clearing, Inc., member FINRA/SIPC.
5 Investools, Inc. is an education subsidiary of TD Ameritrade Holding Corporation. Investools does not provide financial advice and is not in the business of transacting trades. Investools, Inc. and TD Ameritrade, Inc. are separate but affiliated companies that are not responsible for each other's services or policies.
6 TD Ameritrade was ranked #1 and received an overall score of 5 stars (tied for first place with one other broker), in the Kiplinger's Online Broker Ratings, Kiplinger's Personal Finance, 02/2011. Fourteen brokers were rated in the categories: Costs, Web site usability, Investment choices, Customer service, and Research and tools.
7 TD Ameritrade was awarded an overall 4 ½ out of 5 Stars and was named "Best for Option Traders" in Barron's 2011 Online Broker Survey, 03/2011. TD Ameritrade also received the highest rating, 4 ½ out of 5 stars, in the "Best for Long-term Investing" category, sharing that rating with only one other broker. TD Ameritrade was evaluated versus 23 other online brokers in eight total categories, including trade experience, trading technology, usability, range of offerings, research amenities, portfolio analysis and reporting, customer service and education and costs. Barron's is a registered trademark of Dow Jones & Company © 2006-2011.