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TD Ameritrade Holding Corporation$43.79($.13)(.30%)

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 TD Ameritrade Reports Record 2017 Earnings
   Tuesday, October 24, 2017 7:30:01 AM ET

--Net Revenues of $3.7B, up 10% Year-Over-Year

--Net New Client Assets of $80B, 10% Annualized Growth Rate

TD Ameritrade Holding Corporation (AMTD ) has released results for its 2017 fiscal year. The Company’s core operating metrics were at record levels, driven by strong organic growth and the acquisition of Scottrade. The Company also introduced a Non-GAAP earnings per share metric to enhance comparisons to prior periods.

The Company’s results for the fiscal year ended Sept. 30, 2017 include the following:(1)

-- Net new client assets of approximately $80 billion, a growth rate of 10 percent

-- Record average client trades per day of approximately 511,000, up 10 percent year over year



-- Net revenues of $3.7 billion, 60 percent of which were asset-based

-- Client assets of approximately $1.1 trillion, up 45 percent year over year

-- $1.64 in GAAP earnings per diluted share, up 4 percent year over year, on net income of $872 million

-- $1.84 in Non-GAAP earnings per diluted share(2), up 10 percent year over year

-- Pre-tax income of $1.4 billion, or 38 percent of net revenues

-- Interest rate-sensitive assets(3) of $156 billion, up 31 percent year over year

"Fiscal 2017 was an outstanding year, enhanced by our acquisition of Scottrade, which we expect will improve the investing experience for millions of investors. Throughout the year, we delivered industry-leading, double-digit organic growth, made significant progress on our core strategic initiatives, and completed critical steps to enable the seamless integration of Scottrade into our business," said Tim Hockey, TD Ameritrade president and chief executive officer. "We finished the year strong in trading, averaging a record 511,000 trades per day, despite suppressed market volatility. And, we gathered a record $80 billion in net new client assets, driven by record asset gathering from our institutional channel, efficient and effective marketing efforts, and strong new business trends all around.

"We will carry that momentum with us into fiscal 2018 with a strengthened competitive position and increased scale, thanks to Scottrade, that will further accelerate our asset gathering capabilities," Hockey continued. "Over the next 12 months we will continue to ramp up our technology efficiency and throughput so we can further enhance the client experience, and accelerate and diversify revenue growth."

"Overall core results remained strong as we exited the fiscal year. Moving forward, we’ve decided to include Non-GAAP results in our reporting, which will enhance comparability by excluding the significant acquisition-related expenses we expect to incur. Both GAAP and Non-GAAP results were strong for the quarter and year," said Steve Boyle, executive vice president and chief financial officer. "We have good momentum right now and remain focused on delivering a successful integration, which we expect will drive incremental shareholder value. Our game plan is sound, and we expect to deliver better results than we originally modeled."

Fourth Quarter 2017 Results TD Ameritrade also released its results for the quarter ended Sept. 30, 2017, which include the following: (1)

-- Net new client assets of approximately $20 billion

-- Average client trades per day of approximately 529,000, up 19 percent year over year

-- Net revenues of $983 million, 64 percent of which were asset-based

-- $0.39 in GAAP earnings per diluted share, up 11 percent year over year, on net income of $211 million

-- $0.49 in Non-GAAP earnings per diluted share(2), up 29 percent year over year

-- Pre-tax income of $338 million, or 34 percent of net revenues

Capital Management During the 2017 fiscal year, the Company paid $379 million in cash dividends, which included four quarterly dividends of $0.18 per share.

The Company will increase its quarterly cash dividend by $0.03 per share, a 17 percent increase. It has declared a $0.21 per share quarterly cash dividend, payable on Nov. 21, 2017 to all holders of record of common stock as of Nov. 7, 2017.

Fiscal 2018 Outlook The Company has also released its outlook for the 2018 fiscal year, which reflects expected GAAP earnings of $1.50 to $2.00 per diluted share, or Non-GAAP earnings of $2.10 to $2.50 per diluted share(2) for its 2018 fiscal year.

More information on the fiscal 2018 forecast is available through the Company’s Outlook Statement, located in the "Financials and Reports" section of its corporate website, www.amtd.com.

Company Hosts Conference Call TD Ameritrade will host its September Quarter conference call this morning, Oct. 24, 2017, at 8:30 a.m. EDT (7:30 a.m. CDT). Participants may listen to the conference call by dialing 877-648-7976. The Company will webcast the conference call through www.amtd.com, via the "Presentations & Events" page of the website. A replay of the phone call will be available by dialing 855-859-2056 and entering the Conference ID 86495491 beginning at 11:30 a.m. EDT (10:30 a.m. CDT) on Oct. 24, 2017. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on Oct. 31, 2017. 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. 25, 2017.

Interested parties can 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. Website links, corporate titles and telephone numbers provided in this release, although correct when published, may change in the future.

Source: TD Ameritrade Holding Corporation

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 40 years. 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 Fresh Accounts.

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, stock price or any projections or expectations regarding the acquisition of Scottrade Financial Services, Inc., 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, difficulties and delays in integrating the Scottrade business or fully realizing cost savings and other benefits from the acquisition; business disruption following the Scottrade acquisition, changes in asset quality and credit risk, the inability to sustain revenue and earnings growth, changes in interest rates and capital markets, inflation, customer borrowing, repayment, investment and deposit practices, customer disintermediation, the introduction, withdrawal, success and timing of business initiatives, competitive conditions, disruptions due to Scottrade integration-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities, the inability to realize synergies or to implement integration plans and other consequences associated with mergers, acquisitions and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 18, 2016, in our Quarterly Reports on Form 10-Q filed thereafter and in our other filings with the SEC. 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 September 30, 2017.

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, 2017                                                          June 30, 2017                                                        Sept. 30, 2016                                                         Sept. 30, 2017                                                                Sept. 30, 2016
                                                                                        -----------------------------                                          ----------------------------                                          -----------------------------                                          -----------------------------                                          ------------------------------------------
Revenues:
  Transaction-based revenues:
    Commissions and transaction fees                                                              $              330                                                     $             335                                                     $              336                                                     $            1,384                                                     $                         1,372
  Asset-based revenues:
    Bank deposit account fees                                                                                    307                                                                   286                                                                    230                                                                  1,107                                                                                 926
    Net interest revenue                                                                                         210                                                                   175                                                                    151                                                                    690                                                                                 595
    Investment product fees                                                                   115                                                112                                                  98                                                 423                                                              374
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
       Total asset-based revenues                                                                                632                                                                   573                                                                    479                                                                  2,220                                                                               1,895
  Other revenues                                                                               21                                                 23                                                  14                                                  72                                                               60
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
      Net revenues                                                                            983                                                931                                                 829                                               3,676                                                            3,327
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
Operating expenses:
   Employee compensation and benefits                                                                            285                                                                   234                                                                    222                                                                    962                                                                                 839
   Clearing and execution costs                                                                                   37                                                                    38                                                                     34                                                                    149                                                                                 136
   Communications                                                                                                 33                                                                    34                                                                     38                                                                    131                                                                                 137
   Occupancy and equipment costs                                                                                  49                                                                    44                                                                     43                                                                    181                                                                                 171
   Depreciation and amortization                                                                                  28                                                                    25                                                                     24                                                                    102                                                                                  92
   Amortization of acquired intangible assets                                                                     22                                                                    19                                                                     20                                                                     79                                                                                  86
   Professional services                                                                                          82                                                                    67                                                                     57                                                                    260                                                                                 178
   Advertising                                                                                                    59                                                                    58                                                                     59                                                                    254                                                                                 260
   Other                                                                                       27                                                 18                                                  49                                                  92                                                              110
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
      Total operating expenses                                                                622                                                537                                                 546                                               2,210                                                            2,009
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
Operating income                                                                                                 361                                                                   394                                                                    283                                                                  1,466                                                                               1,318
Other expense:
   Interest on borrowings                                                                                         23                                                                    20                                                                     13                                                                     71                                                                                  53
   Loss on debt refinancing                                                                     -                                                  1                                                   -                                                   1                                                                -
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
      Total other expense                                                                      23                                                 21                                                  13                                                  72                                                               53
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
Pre-tax income                                                                                                   338                                                                   373                                                                    270                                                                  1,394                                                                               1,265
Provision for income taxes                                                                    127                                                142                                                  85                                                 522                                                              423
                                                                                        -------------------- -------                                           -------------------- ------                                           -------------------- -------                                           -------------------- -------                                           -------------------- --------------------
Net income                                                                                        $              211                                                     $             231                                                     $              185                                                     $              872                                                     $                           842
                                                                                        ==================== =======                                           ==================== ======                                           ==================== =======                                           ==================== =======                                           ==================== ====================
Earnings per share - basic                                                                        $             0.40                                                     $            0.44                                                     $             0.35                                                     $             1.65                                                     $                          1.59
Earnings per share - diluted                                                                      $             0.39                                                     $            0.44                                                     $             0.35                                                     $             1.64                                                     $                          1.58
Weighted average shares outstanding - basic                                                                      534                                                                   528                                                                    526                                                                    529                                                                                 531
Weighted average shares outstanding - diluted                                                                    536                                                                   530                                                                    529                                                                    531                                                                                 534
Dividends declared per share                                                                      $             0.18                                                     $            0.18                                                     $             0.17                                                     $             0.72                                                     $                          0.68
                                                                                                                                                                                                                                                                                                                                                                                                         
 
                                                                                 TD AMERITRADE HOLDING CORPORATION
                                                                               CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                            In millions
                                                                                            (Unaudited)
                                                                                     
                                                                                                  Sept. 30, 2017                                                           Sept. 30, 2016
                                                                                           -----------------------------                                          --------------------------------
Assets:
   Cash and cash equivalents                                                                         $            1,472                                                     $               1,855
   Segregated cash and investments                                                                               10,446                                                                     8,729
   Broker/dealer receivables                                                                                      1,334                                                                     1,190
   Client receivables, net                                                                                       17,151                                                                    11,941
   Investments available-for-sale, at fair value                                                                    746                                                                       757
   Goodwill and intangible assets                                                                                 5,683                                                                     3,042
   Other                                                                                       1,795                                                  1,304
                                                                                           -------------------- -------                                           -------------------- ----------
      Total assets                                                                                   $           38,627                                                     $              28,818
                                                                                           ==================== =======                                           ==================== ==========
                                                                                                                                                                   
Liabilities and stockholders’ equity:
                                                                                                                                                                   
Liabilities:
   Broker/dealer payables                                                                            $            2,504                                                     $               2,040
   Client payables                                                                                               25,107                                                                    19,055
   Long-term debt                                                                                                 2,555                                                                     1,817
   Other                                                                                       1,214                                                    855
                                                                                           -------------------- -------                                           -------------------- ----------
      Total liabilities                                                                                          31,380                                                                    23,767
Stockholders’ equity                                                                           7,247                                                  5,051
                                                                                           -------------------- -------                                           -------------------- ----------
      Total liabilities and stockholders’ equity                                                     $           38,627                                                     $              28,818
                                                                                           ==================== =======                                           ==================== ==========
                                                                                                                                                                   
NOTE: The Condensed Consolidated Balance Sheet as of September 30,
2017 includes provisional estimates related to the assets acquired
and liabilities assumed in the Scottrade acquisition. These
provisional estimates may be adjusted in the event new information
becomes available regarding facts and circumstances which existed at
the date of acquisition.
 
 
                                                                                                                                                                TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                     SELECTED OPERATING DATA
                                                                                                                                                                           (Unaudited)
                                                                                                                                                                                                     
                                                                                                                                                                  Quarter Ended                                                                                                                                  Fiscal Year Ended
                                                                                                        --------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------
                                                                                                        Sept. 30, 2017      June 30, 2017    Sept. 30, 2016                                           Sept. 30, 2017        Sept. 30, 2016
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
                         Key Metrics:
-------------------------------------------------------------
Net new assets (in billions)                                                                                     $19.9                                                   $22.0                                                    $15.1                                                    $80.1                                                          $60.3
Net new asset growth rate (annualized)                                                                              9%                                                     10%                                                       8%                                                      10%                                                             9%
Average client trades per day                                                                                  528,741                                                 510,358                                                  444,281                                                  510,710                                                        462,918
                    Profitability Metrics:
-------------------------------------------------------------
Operating margin                                                                                                 36.7%                                                   42.3%                                                    34.1%                                                    39.9%                                                          39.6%
Pre-tax margin                                                                                                   34.4%                                                   40.1%                                                    32.6%                                                    37.9%                                                          38.0%
Return on average stockholders’ equity (annualized)                                                              14.2%                                                   17.2%                                                    14.7%                                                    16.0%                                                          17.0%
Net profit margin                                                                                                21.5%                                                   24.8%                                                    22.3%                                                    23.7%                                                          25.3%
EBITDA(1) as a percentage of net revenues                                                                        41.8%                                                   46.9%                                                    39.4%                                                    44.8%                                                          45.0%
                      Liquidity Metrics:
-------------------------------------------------------------
Interest on borrowings (in millions)                                                                               $23                                                     $20                                                      $13                                                      $71                                                            $53
Interest coverage ratio (EBITDA(1)/interest on borrowings)                                                        17.9                                                    21.9                                                     25.2                                                     23.2                                                           28.2
Cash and cash equivalents (in billions)                                                                           $1.5                                                    $2.9                                                     $1.9                                                     $1.5                                                           $1.9
Liquid assets available for corporate investing and financing                                                     $0.2                                                    $1.8                                                     $0.7                                                     $0.2                                                           $0.7
activities(1)(2) (in billions)
              Transaction-Based Revenue Metrics:
-------------------------------------------------------------
Total trades (in millions)                                                                                        33.0                                                    32.2                                                     28.4                                                    127.7                                                          116.7
Average commissions per trade(3)                                                                                 $7.72                                                   $7.83                                                    $9.17                                                    $8.33                                                          $9.20
Trading days                                                                                                      62.5                                                    63.0                                                     64.0                                                    250.0                                                          252.0
Order routing revenue (in millions)                                                                                $75                                                     $83                                                      $75                                                     $320                                                           $299
                  Spread-Based Asset Metrics:
-------------------------------------------------------------
Average bank deposit account balances (in billions)                                                              $95.0                                                   $92.3                                                    $87.1                                                    $93.9                                                          $83.7
Average interest-earning assets (in billions)                                                                     26.7                                                    25.5                                                     23.8                                                     25.3                                                           22.7
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
   Average spread-based balances (in billions)                                                                  $121.7                                                  $117.8                                                   $110.9                                                   $119.2                                                         $106.4
                                                                                                        ==============                                           =============                                           ==============                                           ==============                                           ====================
Bank deposit account fee revenue (in millions)                                                                    $307                                                    $286                                                     $230                                                   $1,107                                                           $926
Net interest revenue (in millions)                                                                                 210                                                     175                                                      151                                                      690                                                            595
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
   Spread-based revenue (in millions)                                                                             $517                                                    $461                                                     $381                                                   $1,797                                                         $1,521
                                                                                                        ==============                                           =============                                           ==============                                           ==============                                           ====================
Avg. annualized yield - bank deposit account fees                                                                1.26%                                                   1.23%                                                    1.03%                                                    1.16%                                                          1.09%
Avg. annualized yield - interest-earning assets                                                                  3.08%                                                   2.71%                                                    2.48%                                                    2.69%                                                          2.59%
  Net interest margin (NIM)                                                                                      1.66%                                                   1.55%                                                    1.35%                                                    1.49%                                                          1.41%
                 Fee-Based Investment Metrics:
-------------------------------------------------------------
Money market mutual fund fees:
-------------------------------------------------------------
  Average balance (in billions)                                                                                   $3.6                                                    $3.6                                                     $5.3                                                     $3.6                                                           $5.7
  Average annualized yield                                                                                       0.43%                                                   0.43%                                                    0.28%                                                    0.42%                                                          0.19%
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Fee revenue (in millions)                                                                                         $4                                                      $4                                                       $4                                                      $16                                                            $11
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Market fee-based investment balances:
-------------------------------------------------------------
  Average balance (in billions)                                                                                 $196.2                                                  $186.1                                                   $163.7                                                   $181.5                                                         $155.0
  Average annualized yield                                                                                       0.22%                                                   0.23%                                                    0.22%                                                    0.22%                                                          0.23%
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Fee revenue (in millions)                                                                                       $111                                                    $108                                                      $94                                                     $407                                                           $363
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
    Average fee-based investment balances (in billions)                                                         $199.8                                                  $189.7                                                   $169.0                                                   $185.1                                                         $160.7
    Average annualized yield                                                                                     0.22%                                                   0.23%                                                    0.23%                                                    0.23%                                                          0.23%
                                                                                                        --------------                                           -------------                                           --------------                                           --------------                                           --------------------
    Investment product fee revenue (in millions)                                                                  $115                                                    $112                                                      $98                                                     $423                                                           $374
                                                                                                        ==============                                           =============                                           ==============                                           ==============                                           ====================
                                                                                                                                                                                                                                                                                                                                            
(1) See attached reconciliation of non-GAAP financial
measures.
(2) Effective in March 2017, the liquid assets available
for corporate investing and financing activities metric was revised.
Prior periods have been updated to conform to the current
presentation.
(3) Effective in September 2017, the average commissions
per trade metric was revised to exclude order routing revenue. Prior
periods have been updated to conform to the current presentation.
NOTE: See Glossary of Terms on the Company’s website 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, 2017      June 30, 2017    Sept. 30, 2016                                           Sept. 30, 2017        Sept. 30, 2016
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
              Client Account and Client Asset Metrics:
-------------------------------------------------------------------
Funded accounts (beginning of period)                                                                              7,279,000                                               7,189,000                                                6,872,000                                                6,950,000                                                      6,621,000
Funded accounts (end of period)                                                                                   11,004,000                                               7,279,000                                                6,950,000                                               11,004,000                                                      6,950,000
Percentage change during period                                                                                          51%                                                      1%                                                       1%                                                      58%                                                             5%
Client assets (beginning of period, in billions)                                                                      $882.4                                                  $846.7                                                   $736.3                                                   $773.8                                                         $667.4
Client assets (end of period, in billions)                                                                          $1,118.5                                                  $882.4                                                   $773.8                                                 $1,118.5                                                         $773.8
Percentage change during period                                                                                          27%                                                      4%                                                       5%                                                      45%                                                            16%
                        Net Interest Revenue:
-------------------------------------------------------------------
Segregated cash:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                         $7.7                                                    $8.0                                                     $8.0                                                     $8.3                                                           $7.0
  Average annualized yield                                                                                             0.93%                                                   0.67%                                                    0.27%                                                    0.58%                                                          0.21%
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Interest revenue (in millions)                                                                                         $18                                                     $14                                                       $5                                                      $49                                                            $15
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Client margin balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                        $13.8                                                   $12.6                                                    $11.7                                                    $12.5                                                          $11.8
  Average annualized yield                                                                                             4.08%                                                   3.81%                                                    3.60%                                                    3.79%                                                          3.65%
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Interest revenue (in millions)                                                                                        $144                                                    $121                                                     $107                                                     $482                                                           $436
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Securities borrowing/lending:
-------------------------------------------------------------------
  Average securities borrowing balance (in billions)                                                                    $1.1                                                    $1.0                                                     $1.2                                                     $1.0                                                           $0.9
  Average securities lending balance (in billions)                                                                      $2.4                                                    $2.1                                                     $1.9                                                     $2.0                                                           $2.1
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Net interest revenue - securities borrowing/lending (in millions)                                                      $41                                                     $34                                                      $37                                                     $139                                                           $141
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Other cash and interest-earning investments:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                         $4.1                                                    $3.9                                                     $2.9                                                     $3.5                                                           $3.0
  Average annualized yield                                                                                             0.79%                                                   0.67%                                                    0.28%                                                    0.63%                                                          0.18%
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Interest revenue - net (in millions)                                                                                    $8                                                      $6                                                       $2                                                      $22                                                             $5
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Client credit balances:
-------------------------------------------------------------------
  Average balance (in billions)                                                                                        $16.6                                                   $15.9                                                    $15.5                                                    $16.2                                                          $14.7
  Average annualized cost                                                                                              0.02%                                                   0.01%                                                    0.01%                                                    0.01%                                                          0.01%
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
  Interest expense (in millions)                                                                                        ($1)                                                    ($0)                                                     ($0)                                                     ($2)                                                           ($2)
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Average interest-earning assets (in billions)                                                                          $26.7                                                   $25.5                                                    $23.8                                                    $25.3                                                          $22.7
Average annualized yield                                                                                               3.08%                                                   2.71%                                                    2.48%                                                    2.69%                                                          2.59%
                                                                                                              --------------                                           -------------                                           --------------                                           --------------                                           --------------------
Net interest revenue (in millions)                                                                                      $210                                                    $175                                                     $151                                                     $690                                                           $595
                                                                                                              ==============                                           =============                                           ==============                                           ==============                                           ====================
                                                                                                                                                                                                                                                                                                                                                  
NOTE: See Glossary of Terms on the Company’s website at www.amtd.com
for definitions of the above metrics.
 
 
                                                                                                                                                                                                                                     TD AMERITRADE HOLDING CORPORATION
                                                                                                                                                                                                                                     RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                                                                                                                                                                                     Dollars in millions, except per share amounts
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                       Quarter Ended                                                                                                                                                                                                                                                                                                                                                           Fiscal Year Ended                                                                                                                                                                                                                                                             Fiscal Year Ending
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                           Sept. 30, 2017                                                                                                                                                                        Sept. 30, 2016                                                                                                                                                                       Sept. 30, 2017                                                                                                                                                                       Sept. 30, 2016                                                                                                                                                                      Sept. 30, 2018*
                                                                                                             -------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------
             Non-GAAP Net Income and Non-GAAP Diluted                                                                             Amount                                                                                   Diluted EPS                                                                                 Amount                                                                                   Diluted EPS                                                                                  Amount                                                                                   Diluted EPS                                                                                 Amount                                                                                  Diluted EPS                                                                                                                         Diluted EPS Range
                              EPS (1)
------------------------------------------------------------------                                           ----------------------------------------------                                             ---------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             ---------------------------------------------                                             ---------------------------------------------                                             ---------------------------------------------                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Net income and diluted EPS - GAAP                                                                            $                       211                                                                $                     0.39                                                                $                       185                                                                $                      0.35                                                                $                       872                                                                $                     1.64                                                                $                      842                                                                $                     1.58                                                                $                     1.50                                                                $                      2.00
Non-GAAP adjustments:
   Amortization of acquired intangible assets                                                                                         22                                                                                      0.04                                                                                         20                                                                                       0.04                                                                                         79                                                                                      0.15                                                                                        86                                                                                      0.16                                                                                      0.25                                                                                       0.25
   Acquisition-related expenses                                                                                                       61                                                                                      0.11                                                                                          6                                                                                       0.01                                                                                         88                                                                                      0.17                                                                                         6                                                                                      0.01                                                                                      0.72                                                                                       0.56
   Income tax effect of above adjustments                                                                         (31 )                                                                (0.05 )                                                                   (10 )                                                                 (0.02 )                                                                   (63 )                                                                (0.12 )                                                                  (35 )                                                                (0.07 )                                                                (0.37 )                                                                 (0.31 )
                                                                                                             -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Non-GAAP net income and non-GAAP diluted EPS                                                                 $                       263                                             $                     0.49                                             $                       201                                             $                      0.38                                             $                       976                                             $                     1.84                                             $                      899                                             $                     1.68                                             $                     2.10                                             $                      2.50  
                                                                                                             ==================== ====== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                  Quarter Ended                                                                                                                                                                                                                                                                                                                                                                                                                                           Fiscal Year Ended
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                           Sept. 30, 2017                                                                                                                                                                         June 30, 2017                                                                                                                                                                       Sept. 30, 2016                                                                                                                                                                       Sept. 30, 2017                                                                                                                                                                      Sept. 30, 2016
                                                                                                             -------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     $                                                                                    % of Net Rev.                                                                                   $                                                                                    % of Net Rev.                                                                                    $                                                                                    % of Net Rev.                                                                                   $                                                                                   % of Net Rev.                                                                                   $                                                                                   % of Net Rev.
                                                                                                             -------------------------------------------------                                          ------------------------------------------------                                          -------------------------------------------------                                          -------------------------------------------------                                          -------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------                                          -------------------------------------------------
                            EBITDA (2)
------------------------------------------------------------------
Net income - GAAP                                                                                            $                       211                                                                                      21.5 %                                                              $                       231                                                                                       24.8 %                                                              $                       185                                                                                      22.3 %                                                              $                      872                                                                                      23.7 %                                                              $                      842                                                                                       25.3 %
Add:
   Depreciation and amortization                                                                                                      28                                                                                       2.8 %                                                                                       25                                                                                        2.7 %                                                                                       24                                                                                       2.9 %                                                                                     102                                                                                       2.8 %                                                                                      92                                                                                        2.8 %
   Amortization of acquired intangible assets                                                                                         22                                                                                       2.2 %                                                                                       19                                                                                        2.0 %                                                                                       20                                                                                       2.4 %                                                                                      79                                                                                       2.1 %                                                                                      86                                                                                        2.6 %
   Interest on borrowings                                                                                                             23                                                                                       2.3 %                                                                                       20                                                                                        2.1 %                                                                                       13                                                                                       1.6 %                                                                                      71                                                                                       1.9 %                                                                                      53                                                                                        1.6 %
   Provision for income taxes                                                                                     127                                                                   12.9 %                                                                   142                                                                    15.3 %                                                                    85                                                                   10.3 %                                                                  522                                                                   14.2 %                                                                  423                                                                    12.7 %
                                                                                                             -------------------- ------ --------------------                                                                                                                                     -------------------- ------ --------------------                                                                                                                                      -------------------- ------ --------------------                                                                                                                                     -------------------- ----- --------------------                                                                                                                                     -------------------- ----- --------------------
EBITDA - non-GAAP                                                                                            $                       411                                                                   41.8 %                                                              $                       437                                                                    46.9 %                                                              $                       327                                                                   39.4 %                                                              $                    1,646                                                                   44.8 %                                                              $                    1,496                                                                    45.0 %
                                                                                                             ==================== ====== ====================                                                                                                                                     ==================== ====== ====================                                                                                                                                      ==================== ====== ====================                                                                                                                                     ==================== ===== ====================                                                                                                                                     ==================== ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                         As of
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 Sept. 30,                                                                                  June 30,                                                                                  Mar. 31,                                                                                   Dec. 31,                                                                                   Sept. 30,
                                                                                                                                   2017                                                                                       2017                                                                                      2017                                                                                       2016                                                                                       2016
                                                                                                             -------------------------------------------------                                          ------------------------------------------------                                          -------------------------------------------------                                          -------------------------------------------------                                          -------------------------------------------------
               Liquid Assets Available for Corporate
              Investing and Financing Activities (3)
------------------------------------------------------------------
Cash and cash equivalents - GAAP                                                                             $                     1,472                                                                $                    2,880                                                                $                     2,231                                                                $                     1,662                                                                $                     1,855
Less: Non-corporate cash and cash equivalents                                                                  (1,174 )                                                                 (973 )                                                                (1,286 )                                                                (1,203 )                                                                (1,363 )
                                                                                                             -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------
     Corporate cash and cash equivalents                                                                                             298                                                                                     1,907                                                                                        945                                                                                        459                                                                                        492
Corporate investments                                                                                                                714                                                                                       747                                                                                        747                                                                                        747                                                                                        757
Less: Corporate liquidity maintained for operational contingencies                                                                  (723 )                                                                                    (723 )                                                                                     (723 )                                                                                     (773 )                                                                                     (773 )
     Amounts maintained for corporate working capital                                                                                (87 )                                                                                     (87 )                                                                                      (87 )                                                                                      (87 )                                                                                      (87 )
     Amounts held as collateral for derivative contracts                                                          (40 )                                                                  (34 )                                                                   (40 )                                                                   (32 )                                                                   (93 )
                                                                                                             -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------
       Excess corporate cash and cash equivalents and investments                                                                    162                                                                                     1,810                                                                                        842                                                                                        314                                                                                        296
Excess regulatory net capital over management targets                                                              46                                                   8                                                  122                                                  478                                                  357  
                                                                                                             -------------------- ------ --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------
Liquid assets available for corporate investing and financing                                                $                       208                                             $                    1,818                                             $                       964                                             $                       792                                             $                       653  
activities - non-GAAP
                                                                                                             ==================== ====== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Note: The term "GAAP" in the following explanation refers to
generally accepted accounting principles in the United States.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
* Represents the range of the Non-GAAP Diluted EPS included within
the October 24, 2017 Outlook Statement.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
(1)   Non-GAAP net income and non-GAAP diluted earnings per share (EPS)
                         are non-GAAP financial measures as defined by SEC Regulation G. We
                         define non-GAAP net income as net income adjusted to remove the
                         after-tax effect of amortization of acquired intangible assets and
                         acquisition-related expenses. We consider non-GAAP net income and
                         non-GAAP diluted EPS as important measures of our financial
                         performance because they exclude certain items that may not be
                         indicative of our core operating results and business outlook and
                         will allow for a better evaluation of the operating performance of
                         the business and facilitate a meaningful comparison of our results
                         in the current period to those in prior and future periods.
                         Amortization of acquired intangible assets is excluded because
                         management does not believe it is indicative of our underlying
                         business performance. Acquisition-related expenses are excluded as
                         these costs are directly related to our acquisition of Scottrade
                         Financial Services, Inc. and are not representative of the costs of
                         running the Company’s on-going business. Non-GAAP net income and
                         non-GAAP diluted EPS should be considered in addition to, rather
                         than as a substitute for, GAAP net income and diluted EPS.
                          
(2)                      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 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, GAAP pre-tax income, net income and cash
                         flows from operating activities.
                          
(3)                      Liquid assets available for corporate investing and financing
                         activities is considered a non-GAAP financial measure as defined
                         by SEC Regulation G. We consider "liquid assets available for
                         corporate investing and financing activities" to be an important
                         measure of our liquidity. We include the excess capital of our
                         regulated subsidiaries in the calculation of liquid assets
                         available for corporate investing and financing activities, rather
                         than simply including the regulated subsidiaries’ cash and cash
                         equivalents, because capital requirements may limit the amount of
                         cash available for dividend from the regulated subsidiaries to the
                         parent company. Excess capital, as defined below, is generally
                         available for dividend from the regulated subsidiaries to the
                         parent company. Liquid assets available for corporate investing
                         and financing activities should be considered as a supplemental
                         measure of liquidity, rather than as a substitute for GAAP cash
                         and cash equivalents.
                          
                         We define liquid assets available for corporate investing and
                         financing activities as the sum of (a) excess corporate cash and
                         cash equivalents and investments, less securities sold under
                         agreements to repurchase and (b) our regulated subsidiaries net
                         capital in excess of minimum operational targets established by
                         management. Excess corporate cash and cash equivalents and
                         investments includes cash and cash equivalents from our investment
                         advisory subsidiaries and excludes (i) amounts being maintained to
                         provide liquidity for operational contingencies, including lending
                         to our broker-dealer and FCM/FDM subsidiaries under intercompany
                         credit agreements, (ii) amounts maintained for corporate working
                         capital and (iii) amounts held as collateral for derivative
                         contracts. Liquid assets available for corporate investing and
                         financing activities is based on more conservative measures of net
                         capital than regulatory requirements because we generally manage
                         to higher levels of net capital at our regulated subsidiaries than
                         the regulatory thresholds require.
                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171024005342r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20171024005342/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 
jeffrey.goeser@tdameritrade.com


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