TD Ameritrade Q4 and full year profit jumps

Source: TD Ameritrade Holding

TD Ameritrade Holding Corporation (NASDAQ:AMTD) has released results for fiscal 2007, a record year that included the largest client account integration in the Company's history and the launch of the next phase of its asset gathering strategy.

2007 Fiscal Year Highlights(1)
  • Record earnings of $1.06 per diluted share
  • Record net income of $646 million
  • Record pre-tax income of $1.0 billion, or 48 percent of net revenues
  • Record EBITDA of $1.2 billion, or 57 percent
  • Record net revenues of $2.2 billion
  • Return on average equity of 34 percent
  • Average client trades per day of approximately 253,000
  • 554,000 new accounts, up 30 percent from fiscal 2006, at an average cost per account of $263


"In 2007 we successfully completed the largest client integration in the history of our industry and continued the implementation of our client segmentation strategy. Over 80 percent of our revenue growth this year was asset-based, and we plan to take that momentum into 2008," said Joe Moglia, chief executive officer.

September Quarter Highlights(1)
  • Record earnings of $0.33 per diluted share, up 65 percent year over year
  • Record net income of $200 million
  • Record pre-tax income of $311 million, or 54 percent of net revenues
  • Record EBITDA of $359 million, or 62 percent
  • Record net revenues of $575 million
  • Record average client trades per day of approximately 278,000
  • Record client assets of approximately $302.7 billion, including $44.5 billion of client cash and money market funds
  • Liquid assets of $593 million; cash and cash equivalents of $414 million
  • 127,000 new accounts at an average cost per account of $241; 6,380,000 Total Accounts; 3,272,000 Qualified Accounts(2)
  • Average client margin balances of approximately $7.8 billion. On Sept. 30, 2007, client margin balances were approximately $7.7 billion.


"Market volatility led to increased client activity, including our largest trading day ever with 505,000 trades," Moglia continued. "While this certainly helped fuel our record results for the quarter, we were still able to earn approximately 60 percent of our net revenues from asset-based sources and achieve 54 percent pre-tax margins."

Fiscal 2008 Outlook

The Company has also released its guidance for fiscal 2008 and expects to earn between $1.15 and $1.39 per share, with a midpoint of $1.27. More information is available through the Company's revised "Outlook Statement," located in the "Investor" section of its corporate Web site.

Stock Buy-back Program

Since the stock buyback program was initiated, through Sept. 30, 2007, the Company has invested approximately $325 million in repurchasing 19 million of the 32 million shares authorized for the program at a weighted average price of $17.10 per share.

Other Corporate Matters

The Company has named Dave Kelley as its chief information officer. Kelley served in a number of technology leadership roles with Merrill Lynch before joining TD AMERITRADE in 2006.

(1) See attached reconciliation of non-GAAP financial measures.

(2) Total accounts include all open client accounts (funded and unfunded), except clearing accounts. Qualified accounts include all open client accounts with a total liquidation value greater than or equal to $2,000, except clearing accounts. See Glossary of Terms on the Company's web site for additional information.

Read the consolidated statement here:Download the document now 90.7 kb (PDF File)

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