StockSelector.com
  Research, Select, & Monitor Wednesday, October 18, 2017 6:10:27 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
TD Ameritrade Holding Corporation$47.54$.32.68%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 TD Ameritrade Reports Record 2014 Earnings; Sixth Consecutive Year of Double-Digit Asset Gathering
   Tuesday, October 28, 2014 7:30:41 AM ET

--Record Net Revenues of $3.1B, up 13% Year-Over-Year

--Record Net New Client Assets of $53B, 10% Annualized Growth Rate

TD Ameritrade Holding Corporation (AMTD ) has released results for fiscal 2014. The Company gathered approximately $53 billion in net new client assets, maintaining its industry-leading double-digit net new client asset growth rate for the sixth consecutive year.

The Company’s results for the fiscal year ended Sept. 30, 2014 include the following: (1)

-- Record $1.42 earnings per diluted share on net income of $787 million

-- Record net new client assets of approximately $53 billion, an annualized growth rate of 10 percent

-- Record average client trades per day of approximately 427,000, an activity rate of 6.9 percent

-- Record net revenues of $3.1 billion, 55 percent of which were asset-based

-- Record investment product fee revenue of $309 million, up 24 percent year-over-year

-- Record pre-tax income of $1.3 billion, or 41 percent of net revenues

-- Record EBITDA(2) of $1.5 billion, or 47 percent of net revenues

-- Record interest rate sensitive assets(3) of $100 billion, up 5 percent year-over-year

-- Record client assets of approximately $653 billion, up 17 percent year-over-year

"With improved investor sentiment, retail investors returned to the markets in 2014, increasing engagement across our platforms and boosting trading volumes. Asset gathering remained strong, as we gathered a record $53 billion of net new client assets, our sixth consecutive year of double-digit growth. In fact, over the last five years, we have gathered a total of $219 billion of net new client assets, one-third of our total client assets," said Fred Tomczyk, president and chief executive officer. "We had a strong year and have good momentum as we start 2015. We will continue to adapt and evolve as an organization by optimizing newer technologies like big data, social media and mobile, in order to enhance our clients’ investing and trading experience and drive continued strong organic growth."

"We have worked through significant interest rate compression over the past five years, and yet we continue to strengthen our earning power," said Bill Gerber, executive vice president and chief financial officer. "Interest rate-sensitive assets have grown to a record $100 billion, mitigating the impact of the macroeconomic environment and giving us the flexibility to invest in and grow the business. As a result, fiscal 2014 earnings were a record $1.42 per diluted share, client assets are at an all-time high of $653 billion, and we effectively returned more than 90 percent of our net income to shareholders in the form of cash dividends and share repurchases. Our proven growth strategy, combined with prudent investments in our future, will help us continue delivering growth and value for our stakeholders in 2015 and beyond."

Fourth Quarter 2014 Results In addition, the Company has released its results for the quarter ended Sept. 30, 2014, which include the following: (1)

-- Net income of $211 million, or $0.38 per diluted share, up 6 percent year-over-year

-- Net new client assets of approximately $13 billion, an annualized growth rate of 8 percent

-- Average client trades per day of approximately 403,000, an activity rate of 6.4 percent

-- Net revenues of $795 million, 57 percent of which were asset-based

-- Investment product fee revenue of $83 million, up 24 percent year-over-year

-- Pre-tax income of $342 million, or 43 percent of net revenues

-- EBITDA(2)of $394 million, or 50 percent of net revenues

Capital Management During the 2014 fiscal year, the Company paid $540 million, or $0.98 per share, in cash dividends, which included four quarterly dividends of $0.12 per share, and a special dividend of $0.50 per share, paid in December 2013. The Company also repurchased approximately 6 million shares of its common stock at a weighted average share price of $31.37 per share.

The Company has declared a $0.15 per share quarterly cash dividend, an increase of 25 percent year-over-year, payable on Nov. 20, 2014 to all holders of record of common stock as of Nov. 6, 2014.

Additionally, on Oct. 22, 2014, the Company issued $500 million in senior notes, bearing an interest rate of 3.625 percent, that will mature on Apr. 1, 2025. The Company will use the net proceeds from the sale of the notes, together with cash on hand, to repay the $500 million aggregate principal amount of its 4.150 percent senior notes that mature on Dec. 1, 2014.

Fiscal 2015 Outlook The Company has also released an updated Outlook Statement which reflects expected earnings of $1.45 to $1.70 per diluted share for its 2015 fiscal year.

More information on the fiscal 2015 forecast is available through the Company’s Outlook Statement, located in the "Financials & reports" section of its corporate web site, www.amtd.com.

Company Hosts Conference Call TD Ameritrade will host its September Quarter conference call this morning, Oct. 28, 2014, at 8:30 a.m. EDT (7:30 a.m. CDT). Participants may listen to the conference call by dialing 866-270-1533. The Company will webcast the conference call through www.amtd.com, via the "Presentations & Events" page of the web site. A replay of the phone call will be available beginning at 10:30 a.m. EDT (9:30 a.m. CDT) on Oct. 28, 2014 by dialing 877-344-7529 and entering the Conference ID 10052174. The replay will be available until 9:00 a.m. EDT (8:00 a.m. CDT) on Nov. 5, 2014. A transcript of the call will be available on the Company’s corporate web site, www.amtd.com, via either the "Investor Relations" page or the "Presentations & Events" page beginning Wednesday, Oct. 29, 2014.

Information about the Company’s corporate events, including earnings conference calls and webcasts, can be found by visiting www.amtd.com and clicking on "Investor Relations" and "Presentations & Events." Click on the date of the event to access all pertinent links and resources. A high speed Internet connection is required in order to view the webcast.

The Company asks that interested parties visit or subscribe to newsfeeds at www.amtd.com for the most up-to-date corporate financial information, presentation announcements, transcripts and archives. The Company also communicates this information via Twitter, @TDAmeritradePR. Web site links, corporate titles and telephone numbers provided in this release, although correct when published, may change in the future.

About TD Ameritrade Holding Corporation Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (AMTD ) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 39 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at http://freshaccounts.amtd.com .

Source: TD Ameritrade Holding Corporation

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, but are not limited to: general economic and political conditions and other securities industry risks, fluctuations in interest rates, stock market fluctuations and changes in client trading activity, credit risk with clients and counterparties, increased competition, systems failures, delays and capacity constraints, network security risks, liquidity risks, new laws and regulations affecting 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. 22, 2013 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, except to the extent required by the federal securities laws.

(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.

(3)Interest rate-sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Sept. 30, 2014.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org).

                                                                                                                                                                                  TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                                  CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                                In millions, except per share amounts
                                                                                                                                                                                             (Unaudited)
                                                                                                                                                                                                                                 
                                                                                                                                                        Quarter Ended                                                                                                                                                             Fiscal Year Ended
                                                                   ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------
                                                                                   Sept. 30, 2014                                                       June 30, 2014                                                      Sept. 30, 2013                                                       Sept. 30, 2014                                                       Sept. 30, 2013
                                                                   -----------------------------------------------                     -----------------------------------------------                     -----------------------------------------------                     ------------------------------------------------                     -------------------------------------------------
Revenues:
   Transaction-based revenues:
      Commissions and transaction fees                             $                     332                                           $                     317                                           $                     306                                           $                    1,351                                           $                     1,171
                                                                                                                                                                                                                                                                                                                                                                                 
   Asset-based revenues:
      Interest revenue                                                                   161                                                                 150                                                                 120                                                                  587                                                                   476
      Brokerage interest expense                                       (2 )                                             (1 )                                             (1 )                                              (6 )                                               (7 )
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net interest revenue                                                               159                                                                 149                                                                 119                                                                  581                                                                   469
                                                                                                                                                                                                                                                                                                                                                                                 
      Insured deposit account fees                                                       208                                                                 202                                                                 201                                                                  820                                                                   804
      Investment product fees                                          83                            79                            67                            309                             250  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
         Total asset-based revenues                                                      450                                                                 430                                                                 387                                                                1,710                                                                 1,523
                                                                                                                                                                                                                                                                                                                                                                                 
   Other revenues                                                      13                            16                            16                             62                              70  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Net revenues                                                    795                           763                           709                          3,123                           2,764  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                     
Operating expenses:
   Employee compensation and benefits                                                    195                                                                 189                                                                 170                                                                  760                                                                   692
   Clearing and execution costs                                                           36                                                                  35                                                                  29                                                                  134                                                                   109
   Communications                                                                         31                                                                  29                                                                  27                                                                  116                                                                   113
   Occupancy and equipment costs                                                          41                                                                  39                                                                  40                                                                  156                                                                   160
   Depreciation and amortization                                                          23                                                                  24                                                                  23                                                                   95                                                                    86
   Amortization of acquired intangible assets                                             23                                                                  22                                                                  23                                                                   90                                                                    91
   Professional services                                                                  38                                                                  42                                                                  41                                                                  155                                                                   145
   Advertising                                                                            45                                                                  48                                                                  55                                                                  250                                                                   239
   Other                                                               25                            19                            22                             82                              73  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Total operating expenses                                        457                           447                           430                          1,838                           1,708  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
Operating income                                                                         338                                                                 316                                                                 279                                                                1,285                                                                 1,056
                                                                                                                                                                                                                                                                                                                                                     
Other expense (income):
   Interest on borrowings                                                                  6                                                                   6                                                                   6                                                                   25                                                                    25
   Gain on investments, net                                           (10 )                                              -                           (49 )                                             (10 )                                              (57 )
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
      Total other expense (income)                                     (4 )                                              6                           (43 )                                              15                             (32 )
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                 
Pre-tax income                                                                           342                                                                 310                                                                 322                                                                1,270                                                                 1,088
Provision for income taxes                                            131                           120                           122                            483                             413  
                                                                   -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
Net income                                                         $                     211                        $                     190                        $                     200                        $                      787                        $                       675  
                                                                   ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                 
Earnings per share - basic                                         $                    0.39                                           $                    0.34                                           $                    0.36                                           $                     1.43                                           $                      1.23
Earnings per share - diluted                                       $                    0.38                                           $                    0.34                                           $                    0.36                                           $                     1.42                                           $                      1.22
                                                                                                                                                                                                                                                                                                                                                                                 
Weighted average shares outstanding - basic                                              547                                                                 551                                                                 550                                                                  550                                                                   549
Weighted average shares outstanding - diluted                                            551                                                                 555                                                                 555                                                                  554                                                                   554
                                                                                                                                                                                                                                                                                                                                                                                 
Dividends declared per share                                       $                    0.12                                           $                    0.12                                           $                    0.09                                           $                     0.98                                           $                      0.86
                                                                                                                                                                                                                                                                                                                                                     
                                                                                   TD AMERITRADE HOLDING CORPORATION
                                                                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                              In millions
                                                                                              (Unaudited)
                                                                                                  
                                                                           Sept. 30, 2014                                           Sept. 30, 2013
                                                                                                          -----------------------------                     ------------------------------------------
Assets:
                     Cash and cash equivalents                                                            $                      1,460                      $                                   1,062
                     Segregated cash and investments                                                                             5,116                                                          5,894
                     Broker/dealer receivables                                                                                   1,108                                                          1,348
                     Client receivables, net                                                                                    11,639                                                          8,984
                     Goodwill and intangible assets                                                                              3,218                                                          3,308
                     Other                                                                                    1,290                                       1,240
                                                                                                          -------------------- -------                      -------------------- --------------------
                                          Total assets                                                    $                     23,831                      $                                  21,836
                                                                                                          ==================== =======                      ==================== ====================
                                                                                                                                                             
Liabilities and stockholders’ equity:
                                                                                                                                                             
Liabilities:
                     Broker/dealer payables                                                               $                      2,421                      $                                   1,973
                     Client payables                                                                                            14,497                                                         13,183
                     Notes payable                                                                                                 150                                                              -
                     Long-term debt                                                                                              1,101                                                          1,052
                     Other                                                                                      914                                         952
                                                                                                          -------------------- -------                      -------------------- --------------------
                                          Total liabilities                                                                     19,083                                                         17,160
                                                                                                                                                                                  
Stockholders’ equity                                                                                          4,748                                       4,676
                                                                                                          -------------------- -------                      -------------------- --------------------
                                          Total liabilities and stockholders’ equity                      $                     23,831                      $                                  21,836
                                                                                                          ==================== =======                      ==================== ====================
                                                                                                                                                             
                                                                                                          TD AMERITRADE HOLDING CORPORATION
                                                                                                               SELECTED OPERATING DATA
                                                                                                                     (Unaudited)
                                                                                                                               
                                                                                                  Quarter Ended                                                                             Fiscal Year Ended
                                                                                ---------------------------------------------------------------------------------                          ------------------------------------------------------
                                                                                Sept. 30, 2014                       June 30, 2014                     Sept. 30, 2013                      Sept. 30, 2014                         Sept. 30, 2013
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
                       Key Metrics:
----------------------------------------------------------
Net new assets (in billions)                                                             $13.4                              $13.4                               $10.1                               $53.4                                     $49.5
Net new asset growth rate (annualized)                                                      8%                                 9%                                  8%                                 10%                                       10%
Average client trades per day                                                          402,638                            401,468                             381,657                             426,888                                   373,630
                                                                                                                                                                                                                                
                  Profitability Metrics:
----------------------------------------------------------
Operating margin                                                                         42.5%                              41.4%                               39.4%                               41.1%                                     38.2%
Pre-tax margin                                                                           43.0%                              40.6%                               45.4%                               40.7%                                     39.4%
Return on average stockholders’ equity (annualized)                                      17.8%                              16.2%                               17.3%                               16.8%                                     15.1%
EBITDA(1) as a percentage of net revenues                                                49.6%                              47.4%                               52.8%                               47.4%                                     46.7%
                                                                                                                                                                                                                                
                    Liquidity Metrics:
----------------------------------------------------------
Interest on borrowings (in millions)                                                        $6                                 $6                                  $6                                 $25                                       $25
Interest coverage ratio (EBITDA(1)/interest on borrowings)                                65.7                               60.3                                62.3                                59.2                                      51.6
Liquid assets - management target(1) (in billions)                                        $0.8                               $0.8                                $0.9                                $0.8                                      $0.9
Cash and cash equivalents (in billions)                                                   $1.5                               $1.3                                $1.1                                $1.5                                      $1.1
                                                                                                                                                                                                                                
            Transaction-Based Revenue Metrics:
----------------------------------------------------------
Total trades (in millions)                                                                25.6                               25.3                                24.2                               106.9                                      92.8
Average commissions and transaction fees per trade(2)                                   $12.97                             $12.52                              $12.61                              $12.62                                    $12.61
Average client trades per funded account (annualized)                                     16.1                               16.2                                15.9                                17.4                                      15.8
Activity rate - funded accounts                                                           6.4%                               6.5%                                6.4%                                6.9%                                      6.3%
Trading days                                                                              63.5                               63.0                                63.5                               250.5                                     248.5
Order routing revenue (in millions)                                                        $77                                $72                                 $62                                $304                                      $236
                                                                                                                                                                                                                                
                Spread-Based Asset Metrics:
----------------------------------------------------------
Average interest-earning assets (in billions)                                            $19.3                              $18.8                               $16.8                               $18.6                                     $15.8
Average insured deposit account balances (in billions)                                    73.6                               72.4                                72.0                                72.9                                      68.0
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
   Average spread-based balance (in billions)                                            $92.9                              $91.2                               $88.8                               $91.5                                     $83.8
                                                                                ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                
Net interest revenue (in millions)                                                        $159                               $149                                $119                                $581                                      $469
Insured deposit account fee revenue (in millions)                                          208                                202                                 201                                 820                                       804
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
   Spread-based revenue (in millions)                                                     $367                               $351                                $320                              $1,401                                    $1,273
                                                                                ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                
Avg. annualized yield - interest-earning assets                                          3.23%                              3.13%                               2.77%                               3.09%                                     2.92%
Avg. annualized yield - insured deposit account fees                                     1.11%                              1.10%                               1.09%                               1.11%                                     1.17%
Net interest margin (NIM)                                                                1.55%                              1.52%                               1.41%                               1.51%                                     1.50%
                                                                                                                                                                                                                                
               Fee-Based Investment Metrics:
----------------------------------------------------------
Money market mutual fund fees:
----------------------------------------------------------
  Average balance (in billions)                                                           $5.5                               $5.2                                $5.3                                $5.3                                      $5.1
  Average annualized yield                                                               0.00%                              0.00%                               0.00%                               0.00%                                     0.02%
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
  Fee revenue (in millions)                                                                 $0                                 $0                                  $0                                  $0                                        $1
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                
Market fee-based investment balances:
----------------------------------------------------------
  Average balance (in billions)                                                         $138.5                             $133.3                              $117.0                              $131.4                                    $107.7
  Average annualized yield                                                               0.23%                              0.24%                               0.22%                               0.23%                                     0.23%
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
  Fee revenue (in millions)                                                                $83                                $79                                 $67                                $309                                      $249
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                
    Average fee-based investment balances (in billions)                                 $144.0                             $138.5                              $122.3                              $136.7                                    $112.8
    Average annualized yield                                                             0.23%                              0.23%                               0.21%                               0.22%                                     0.22%
                                                                                --------------                      -------------                      --------------                      --------------                      --------------------
    Investment product fee revenue (in millions)                                           $83                                $79                                 $67                                $309                                      $250
                                                                                ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                
(1) See attached reconciliation of non-GAAP financial
measures.
(2) Average commissions and transaction fees per trade
excludes TD Waterhouse UK business.
                                                                                                                                                                                                                                
NOTE: See Glossary of Terms on the Company’s web site at www.amtd.com
for definitions of the above metrics.
                                                                                                                                                                                                                                
                                                                                                              TD AMERITRADE HOLDING CORPORATION
                                                                                                                   SELECTED OPERATING DATA
                                                                                                                         (Unaudited)
                                                                                                                                        
                                                                                                           Quarter Ended                                                                             Fiscal Year Ended
                                                                                         ---------------------------------------------------------------------------------                          ------------------------------------------------------
                                                                                         Sept. 30, 2014                       June 30, 2014                     Sept. 30, 2013                      Sept. 30, 2014                         Sept. 30, 2013
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
              Client Account and Client Asset Metrics:
-------------------------------------------------------------------
Funded accounts (beginning of period)                                                         6,237,000                          6,146,000                           5,943,000                           5,993,000                                 5,764,000
Funded accounts (end of period)                                                               6,301,000                          6,237,000                           5,993,000                           6,301,000                                 5,993,000
Percentage change during period                                                                      1%                                 1%                                  1%                                  5%                                        4%
Client assets (beginning of period, in billions)                                                 $650.2                             $617.1                              $523.5                              $555.9                                    $472.3
Client assets (end of period, in billions)                                                       $653.1                             $650.2                              $555.9                              $653.1                                    $555.9
Percentage change during period                                                                      0%                                 5%                                  6%                                 17%                                       18%
                                                                                                                                                                                                                                         
                        Net Interest Revenue:
-------------------------------------------------------------------
Segregated cash:
-------------------------------------------------------------------
  Average balance (in billions)                                                                    $5.3                               $5.2                                $5.5                                $5.3                                      $4.6
  Average annualized yield                                                                        0.13%                              0.14%                               0.09%                               0.13%                                     0.12%
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
  Interest revenue (in millions)                                                                     $2                                 $2                                  $1                                  $7                                        $6
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                         
Client margin balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                   $11.2                              $11.0                                $8.5                               $10.5                                      $8.6
  Average annualized yield                                                                        3.69%                              3.79%                               3.95%                               3.81%                                     3.97%
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
  Interest revenue (in millions)                                                                   $105                               $105                                 $86                                $405                                      $345
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                         
Securities borrowing/lending:
-------------------------------------------------------------------
  Average securities borrowing balance (in billions)                                               $1.1                               $1.0                                $1.1                                $1.1                                      $1.0
  Average securities lending balance (in billions)                                                 $2.4                               $2.6                                $2.2                                $2.5                                      $2.1
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
  Net interest revenue - securities borrowing/lending (in millions)                                 $52                                $42                                 $31                                $169                                      $118
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                         
Other cash and interest-earning investments:
-------------------------------------------------------------------
  Average balance (in billions)                                                                    $1.7                               $1.6                                $1.7                                $1.7                                      $1.6
  Average annualized yield                                                                        0.05%                              0.06%                               0.09%                               0.07%                                     0.08%
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
  Interest revenue - net (in millions)                                                               $0                                 $0                                  $1                                  $1                                        $1
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                         
Client credit balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                   $11.8                              $11.5                               $10.1                               $11.2                                      $9.5
  Average annualized cost                                                                         0.01%                              0.01%                               0.01%                               0.01%                                     0.01%
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
  Interest expense (in millions)                                                                   ($0)                               ($0)                                ($0)                                ($1)                                      ($1)
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
                                                                                                                                                                                                                                         
Average interest-earning assets (in billions)                                                     $19.3                              $18.8                               $16.8                               $18.6                                     $15.8
Average annualized yield                                                                          3.23%                              3.13%                               2.77%                               3.09%                                     2.92%
                                                                                         --------------                      -------------                      --------------                      --------------                      --------------------
Net interest revenue (in millions)                                                                 $159                               $149                                $119                                $581                                      $469
                                                                                         ==============                      =============                      ==============                      ==============                      ====================
                                                                                                                                                                                                                                         
NOTE: See Glossary of Terms on the Company’s web site at www.amtd.com
for definitions of the above metrics.
 
                                                                                                                                                                                                                                     TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                                                                                     RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                                                                                                                                                                                     Dollars in millions
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
                                                                                                                                                                                                                                                                          Quarter Ended                                                                                                                                                                                                                                                                                          Fiscal Year Ended
                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Sept. 30, 2014                                                                                                                             June 30, 2014                                                                                                          Sept. 30, 2013                                                                                          Sept. 30, 2014                                                                                              Sept. 30, 2013
                                                                                             ---------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------
                                                                                                                     $                                                              % of Net Rev.                                                             $                                                              % of Net Rev.                                                              $                                             % of Net Rev.                                             $                                             % of Net Rev.                                             $                                                % of Net Rev.
                                                                                             ------------------------------------------------                     ------------------------------------------------                     -----------------------------------------------                     ------------------------------------------------                     ------------------------------------------------                     --------------                     ------------------------------------------------                     --------------                     ------------------------------------------------                     ---------------------
                               EBITDA (1)
----------------------------------------------------------------------
EBITDA                                                                                       $                      394                                                                 49.6 %                                         $                     362                                                                 47.4 %                                         $                      374                                             52.8 %                           $                    1,480                                             47.4 %                           $                    1,290                                                 46.7 %
Less:
                          Depreciation and amortization                                                             (23 )                                                               (2.9 %)                                                              (24 )                                                               (3.1 %)                                                               (23 )                                           (3.2 %)                                                 (95 )                                           (3.0 %)                                                 (86 )                                               (3.1 %)
                          Amortization of acquired intangible assets                                                (23 )                                                               (2.9 %)                                                              (22 )                                                               (2.9 %)                                                               (23 )                                           (3.2 %)                                                 (90 )                                           (2.9 %)                                                 (91 )                                               (3.3 %)
                          Interest on borrowings                                                                     (6 )                                                               (0.8 %)                                                               (6 )                                                               (0.8 %)                                                                (6 )                                           (0.8 %)                                                 (25 )                                           (0.8 %)                                                 (25 )                                               (0.9 %)
                          Provision for income taxes                                            (131 )                                                              (16.5 %)                                          (120 )                                                              (15.7 %)                                           (122 )                                          (17.2 %)                             (483 )                                          (15.5 %)                             (413 )                                              (14.9 %)
                                                                                             -------------------- ----- --------------------                                                                                           -------------------- ---- --------------------                                                                                           -------------------- ----- --------------------                                                         -------------------- ----- --------------------                                                         -------------------- ----- --------------------
Net income                                                                                   $                      211                                              26.5 %                                         $                     190                                              24.9 %                                         $                      200                          28.2 %                           $                      787                          25.2 %                           $                      675                              24.4 %
                                                                                             ==================== ===== ====================                                                                                           ==================== ==== ====================                                                                                           ==================== ===== ====================                                                         ==================== ===== ====================                                                         ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                            As of
                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Sept. 30                                                             June 30,                                                            Mar. 31,                                                             Dec. 31,                                                             Sept. 30,
                                                                                                                   2014                                                                 2014                                                                2014                                                                 2013                                                                 2013
                                                                                             ------------------------------------------------                     ------------------------------------------------                     -----------------------------------------------                     ------------------------------------------------                     ------------------------------------------------
                  Liquid Assets - Management Target (2)
----------------------------------------------------------------------
Liquid assets - management target                                                            $                      762                                           $                      767                                           $                     706                                           $                      707                                           $                      874
Plus:  Broker-dealer cash and cash equivalents                                                 1,090                                                                  871                                                                 508                                                                  926                                                                  540
                          Trust company cash and cash equivalents                                                    53                                                                   54                                                                  64                                                                   60                                                                   74
                          Investment advisory cash and cash equivalents                                              19                                                                    9                                                                  14                                                                   25                                                                   19
Less:                     Excess broker-dealer regulatory net capital                           (464 )                                            (441 )                                           (359 )                                            (409 )                                            (445 )
                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------
Cash and cash equivalents                                                                    $                    1,460                        $                    1,260                        $                     933                        $                    1,309                        $                    1,062  
                                                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Note: The term "GAAP" in the following explanation refers to
generally accepted accounting principles in the United States.
                      
(1)                                       EBITDA (earnings before interest, taxes, depreciation and
                                          amortization) is considered a non-GAAP financial measure as defined
                                          by SEC Regulation G. We consider EBITDA an important measure of our
                                          financial performance and of our ability to generate cash flows to
                                          service debt, fund capital expenditures and fund other corporate
                                          investing and financing activities. EBITDA is used as the
                                          denominator in the consolidated leverage ratio calculation for
                                          covenant purposes under our holding company’s senior revolving
                                          credit facility. EBITDA eliminates the non-cash effect of tangible
                                          asset depreciation and amortization and intangible asset
                                          amortization. EBITDA should be considered in addition to, rather
                                          than as a substitute for, pre-tax income, net income and cash flows
                                          from operating activities.
                                           
(2)                                       Liquid assets - management target is considered a non-GAAP financial
                                          measure as defined by SEC Regulation G. We include the excess
                                          capital of our broker-dealer subsidiaries in the calculation of
                                          liquid assets - management target, rather than simply including
                                          broker-dealer cash and cash equivalents, because capital
                                          requirements may limit the amount of cash available for dividend
                                          from the broker-dealer subsidiaries to the parent company. Excess
                                          capital, as defined below, is generally available for dividend from
                                          the broker-dealer subsidiaries to the parent company. We consider
                                          liquid assets - management target to be an important measure of our
                                          liquidity and of our ability to fund corporate investing and
                                          financing activities. Liquid assets - management target should be
                                          considered a supplemental measure of liquidity, rather than a
                                          substitute for cash and cash equivalents.
                                           
                                          We define liquid assets - management target as the sum of (a)
                                          corporate cash and cash equivalents, (b) corporate short-term
                                          investments and (c) regulatory net capital of (i) our clearing
                                          broker-dealer subsidiary in excess of 10% of aggregate debit items
                                          and (ii) our introducing broker-dealer subsidiaries in excess of a
                                          minimum operational target established by management ($50 million in
                                          the case of our primary introducing broker-dealer, TD Ameritrade,
                                          Inc.). Liquid assets - management target is based on more
                                          conservative measures of broker-dealer net capital than regulatory
                                          thresholds require because we prefer to maintain significantly more
                                          conservative levels of net capital at the broker-dealer
                                          subsidiaries. We consider liquid assets - management target to be a
                                          measure that reflects our liquidity that would be readily available
                                          for corporate investing and financing activities under normal
                                          operating circumstances.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20141028005278r1&sid=cmtx6&distro=nx&lang=en

SOURCE: TD Ameritrade Holding Corporation

TD Ameritrade Holding Corporation 
Kim Hillyer, 402-574-6523 
Director, Communications 
kim.hillyer@tdameritrade.com 
or 
Jeff Goeser, 402-597-8464 
Director, Investor Relations and Finance 
jeffrey.goeser@tdameritrade.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.