TD Ameritrade Holding Corporation (NASDAQ: AMTD) has released results for its first quarter of fiscal 2009, reporting record average trades per day and continued traction in asset gathering, despite the difficult market environment.
The Company's results for the quarter ended Dec. 31, 2008 include the following (year-over-year comparisons): (1)
- Net income of $184 million, or $0.31 per diluted share
- Record average client trades per day of approximately 357,000, an increase of 15 percent
- Net new assets of approximately $8 billion, or 11 percent of beginning assets, annualized
- Fee-based balances of approximately $63 billion, an increase of seven percent
- Spread-based balances of approximately $25 billion, an increase of two percent (2)
- Net revenues of $611 million, 52 percent of which were asset-based
- Pre-tax income of $301 million, or 49 percent of net revenues
- EBITDA of $343 million, or 56 percent of net revenues (3)
- Annualized return on average stockholders' equity of 24 percent
- Client assets of approximately $234 billion, including $52 billion in client cash and money market funds
"Despite the difficult market environment, we are reporting one of the strongest quarters in our history. Prudent fiscal management has given us the flexibility to capitalize on opportunities to enhance our competitive position, through both organic growth initiatives and acquisitions like the thinkorswim transaction," said Fred Tomczyk, president and chief executive officer. "We will continue to focus on our growth strategy, maintaining our leadership position in trades and gathering new assets, as we manage for the other side of this cycle."
Fiscal 2009 Outlook
The Company has adjusted its guidance for fiscal 2009, releasing a new earnings per share range of $0.90 to $1.15. More information can be found in the Company's Outlook Statement, located in the "Investor" section of its Web site, amtd.com.
"Our fundamentals and balance sheet remain strong," said Bill Gerber, chief financial officer. "But we see no signs that the overall economic environment is strengthening and may not for the balance of our fiscal year. While we are doing several things to mitigate these near-term headwinds, we remain focused on managing through this cycle and positioning our firm for growth in the long-term."
(1) Results include assets acquired through the Company's purchase of a portion of Fiserv, Inc.'s investment support services business on Feb. 4, 2008, which added approximately $25 billion in total client assets, $1.2 billion of which were spread-based assets and $17.2 billion of which were fee-based investment balances. Please see the Glossary of Terms, located in "Investor" section of www.amtd.com for more information on how these metrics are calculated.
(2) Effective with the September 2008 quarter, spread-based assets is being presented excluding securities borrowing conduit-based assets.
(3) See attached reconciliation of non-GAAP financial measures.
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