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Share Name | Share Symbol | Market | Type |
---|---|---|---|
TD Ameritrade Holding Corporation | NASDAQ:AMTD | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 39.97 | 39.94 | 39.97 | 0 | 01:00:00 |
Net New Client Assets of $14B, Record Total Client Assets of $711B
Diluted Earnings per Share of $0.38
Record Net Revenues of $846M
TD Ameritrade Holding Corporation (Nasdaq:AMTD) has released results for the second quarter of fiscal 2016. The Company gathered approximately $14 billion in net new client assets, and reported record client trading activity.
The Company’s results for the quarter ended Mar. 31, 2016 include the following: (1)
“We continue to execute well, resulting in solid quarterly performances for each of our major revenue streams,” said Fred Tomczyk, chief executive officer. “Over what was a volatile quarter for the markets, we gathered $14 billion in net new client assets and helped our clients place a record 509,000 trades per day, on average. Our focus for the rest of fiscal 2016 will be maintaining our momentum, our CEO transition, aligning our business model with the Department of Labor Fiduciary Rule, and of course continued investments in our business.”
“Client cash balances grew again this quarter, driven by asset gathering efforts and the ongoing shift in investor sentiment. As a result, interest rate-sensitive assets increased to a record $112 billion,” said Steve Boyle, executive vice president and chief financial officer. “Expenses remain in check, with operating expenses declining 1 percent from last year, and we returned $322 million in capital to our shareholders through cash dividends and share repurchases. We will continue to focus on what we can control to grow our earnings power to the benefit of our clients, associates and shareholders.”
Capital Management
The Company paid $91 million in its second fiscal quarter, or $0.17 per share, in cash dividends. The Company also repurchased approximately 8 million shares of its common stock.
The Company has declared a $0.17 per share quarterly cash dividend, payable on May 17, 2016 to all holders of record of common stock as of May 3, 2016.
Company Hosts Conference Call
TD Ameritrade will host its March Quarter conference call this morning, Apr. 19, 2016, at 8:30 a.m. EDT (7:30 a.m. CDT). Participants may listen to the conference call by dialing 855-238-2333. The Company will webcast the conference call through www.amtd.com, via the “Presentations & Events” page of the web site. A replay of the phone call will be available by dialing 877-344-7529 and entering the Conference ID 10081386 beginning at 10:30 a.m. EDT (9:30 a.m. CDT) on Apr. 19, 2016. The replay will be available until 9:00 a.m. EDT (8:00 a.m. CDT) on Apr. 27, 2016. 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, Apr. 20, 2016.
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. Web site 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 (Nasdaq: 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. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information, or read our stories at http://freshaccounts.amtd.com.
Safe Harbor
This document contains forward-looking statements within the meaning of the federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws. In particular, any projections regarding our future revenues, expenses, earnings, capital expenditures, effective tax rates, client trading activity, accounts or stock price, as well as the assumptions on which such expectations are based, are forward-looking statements. These statements reflect only our current expectations and are not guarantees of future performance or results. These statements involve risks, uncertainties and assumptions that could cause actual results or performance to differ materially from those contained in the forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to: general economic and political conditions and other securities industry risks, fluctuations in interest rates, stock market fluctuations and changes in client trading activity, credit risk with clients and counterparties, increased competition, systems failures, delays and capacity constraints, network security risks, liquidity risks, new laws and regulations affecting our business, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 20, 2015 and our latest Quarterly Report on Form 10-Q filed thereafter. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
1 Please see the Glossary of Terms, located in “Investor” section of www.amtd.com for more information on how these metrics are calculated.
2See attached reconciliation of non-GAAP financial measures.
3Interest rate-sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Mar. 31, 2016.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org).
TD AMERITRADE HOLDING CORPORATION CONSOLIDATED STATEMENTS OF INCOMEIn millions, except per share amounts
(Unaudited) Quarter Ended Six Months Ended Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2015 Revenues: Transaction-based revenues: Commissions and transaction fees $ 360 $ 328 $ 350 $ 689 $ 708 Asset-based revenues: Insured deposit account fees 235 227 205 462 412 Net interest revenue 147 154 149 300 311 Investment product fees 88 92 85 181 168 Total asset-based revenues 470 473 439 943 891 Other revenues 16 11 14 27 22 Net revenues 846 812 803 1,659 1,621 Operating expenses: Employee compensation and benefits 208 201 208 408 406 Clearing and execution costs 37 30 37 67 72 Communications 33 32 30 66 61 Occupancy and equipment costs 43 43 39 85 81 Depreciation and amortization 22 22 23 44 46 Amortization of acquired intangible assets 22 22 22 45 45 Professional services 37 37 41 74 77 Advertising 81 62 82 143 145 Other 20 20 25 40 48 Total operating expenses 503 469 507 972 981 Operating income 343 343 296 687 640 Other expense: Interest on borrowings 13 12 9 26 17 Other - - - - 1 Total other expense 13 12 9 26 18 Pre-tax income 330 331 287 661 622 Provision for income taxes 125 119 98 244 221 Net income $ 205 $ 212 $ 189 $ 417 $ 401 Earnings per share - basic $ 0.38 $ 0.39 $ 0.35 $ 0.78 $ 0.74 Earnings per share - diluted $ 0.38 $ 0.39 $ 0.35 $ 0.78 $ 0.73 Weighted average shares outstanding - basic 533 537 544 535 544 Weighted average shares outstanding - diluted 535 540 547 538 547 Dividends declared per share $ 0.17 $ 0.17 $ 0.15 $ 0.34 $ 0.30 TD AMERITRADE HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS In millions (Unaudited) Mar. 31, 2016 Sept. 30, 2015 Assets: Cash and cash equivalents $ 2,476 $ 1,978 Segregated cash and investments 7,733 6,305 Broker/dealer receivables 1,307 862 Client receivables, net 11,396 12,770 Goodwill and intangible assets 3,083 3,128 Other 1,159 1,332 Total assets $ 27,154 $ 26,375 Liabilities and stockholders' equity: Liabilities: Broker/dealer payables $ 2,362 $ 2,707 Client payables 17,094 16,035 Long-term debt 1,814 1,800 Other 1,012 930 Total liabilities 22,282 21,472 Stockholders' equity 4,872 4,903 Total liabilities and stockholders' equity $ 27,154 $ 26,375 TD AMERITRADE HOLDING CORPORATION SELECTED OPERATING DATA (Unaudited) Quarter Ended Six Months EndedMar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Mar. 31, 2016
Mar. 31, 2015
Key Metrics:
Net new assets (in billions) $14.1 $17.5 $16.3 $31.6 $35.1 Net new asset growth rate (annualized) 8% 10% 10% 10% 11% Average client trades per day 509,120 438,108 476,590 473,041 466,761Profitability Metrics:
Operating margin 40.5% 42.2% 36.9% 41.4% 39.5% Pre-tax margin 39.0% 40.8% 35.7% 39.8% 38.4% Return on average stockholders' equity (annualized) 16.6% 17.1% 15.7% 16.9% 16.8% EBITDA(1) as a percentage of net revenues 45.7% 47.7% 42.5% 46.8% 45.0%Liquidity Metrics:
Interest on borrowings (in millions) $13 $12 $9 $26 $17 Interest coverage ratio (EBITDA(1)/interest on borrowings) 29.8 32.3 37.9 29.8 42.9Liquid assets available for corporate investing and financing activities(1) (in billions)
$0.7 $0.6 $0.7 $0.7 $0.7 Cash and cash equivalents (in billions) $2.5 $1.7 $1.3 $2.5 $1.3
Transaction-Based Revenue Metrics:
Total trades (in millions) 31.1 27.6 29.1 58.7 57.9 Average commissions and transaction fees per trade $11.60 $11.90 $12.02 $11.74 $12.23 Average client trades per funded account (annualized) 19.1 16.6 18.6 17.8 18.4 Activity rate - funded accounts 7.6% 6.6% 7.4% 7.1% 7.3% Trading days 61.0 63.0 61.0 124.0 124.0 Order routing revenue (in millions) $76 $70 $75 $147 $153Spread-Based Asset Metrics:
Average insured deposit account balances (in billions) $84.0 $80.3 $74.9 $82.2 $74.9 Average interest-earning assets (in billions) 21.8 22.2 19.4 22.0 19.4 Average spread-based balances (in billions) $105.8 $102.5 $94.3 $104.2 $94.3 Insured deposit account fee revenue (in millions) $235 $227 $205 $462 $412 Net interest revenue (in millions) 147 154 149 300 311 Spread-based revenue (in millions) $382 $381 $354 $762 $723 Avg. annualized yield - insured deposit account fees 1.11% 1.10% 1.09% 1.11% 1.09% Avg. annualized yield - interest-earning assets 2.66% 2.71% 3.09% 2.69% 3.16% Net interest margin (NIM) 1.43% 1.45% 1.50% 1.44% 1.51%Fee-Based Investment Metrics:
Money market mutual fund fees:
Average balance (in billions) $5.8 $5.7 $5.6 $5.8 $5.6 Average annualized yield 0.18% 0.06% 0.00% 0.12% 0.00% Fee revenue (in millions) $2 $1 $0 $4 $0Market fee-based investment balances:
Average balance (in billions) $147.3 $152.9 $149.5 $150.1 $147.3 Average annualized yield 0.23% 0.23% 0.23% 0.23% 0.23% Fee revenue (in millions) $86 $91 $85 $177 $168 Average fee-based investment balances (in billions) $153.1 $158.6 $155.1 $155.9 $152.9 Average annualized yield 0.23% 0.23% 0.22% 0.23% 0.22% Investment product fee revenue (in millions) $88 $92 $85 $181 $168 (1) See attached reconciliation of non-GAAP financial measures. 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 Six Months Ended Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2015Client Account and Client Asset Metrics:
Funded accounts (beginning of period) 6,686,000 6,621,000 6,371,000 6,621,000 6,301,000 Funded accounts (end of period) 6,777,000 6,686,000 6,467,000 6,777,000 6,467,000 Percentage change during period 1% 1% 2% 2% 3% Client assets (beginning of period, in billions) $695.3 $667.4 $672.4 $667.4 $653.1 Client assets (end of period, in billions) $711.2 $695.3 $695.3 $711.2 $695.3 Percentage change during period 2% 4% 3% 7% 6%Net Interest Revenue:
Segregated cash:
Average balance (in billions) $6.5 $6.2 $4.4 $6.4 $4.8 Average annualized yield 0.19% 0.09% 0.13% 0.14% 0.13% Interest revenue (in millions) $3 $1 $1 $4 $3Client margin balances:
Average balance (in billions) $11.6 $12.3 $11.9 $11.9 $11.7 Average annualized yield 3.79% 3.54% 3.60% 3.66% 3.65% Interest revenue (in millions) $111 $111 $107 $222 $215Securities borrowing/lending:
Average securities borrowing balance (in billions) $0.7 $0.8 $1.0 $0.7 $0.9 Average securities lending balance (in billions) $1.9 $2.4 $2.2 $2.2 $2.2 Net interest revenue - securities borrowing/lending (in millions) $32 $41 $41 $73 $93Other cash and interest-earning investments:
Average balance (in billions) $3.0 $2.9 $2.1 $3.0 $2.0 Average annualized yield 0.17% 0.05% 0.04% 0.11% 0.05% Interest revenue - net (in millions) $1 $1 $0 $2 $1Client credit balances:
Average balance (in billions) $14.4 $14.0 $12.0 $14.2 $12.1 Average annualized cost 0.01% 0.01% 0.01% 0.01% 0.01% Interest expense (in millions) ($0) ($0) ($0) ($1) ($1) Average interest-earning assets (in billions) $21.8 $22.2 $19.4 $22.0 $19.4 Average annualized yield 2.66% 2.71% 3.09% 2.69% 3.16% Net interest revenue (in millions) $147 $154 $149 $300 $311 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 (Unaudited) Quarter Ended Six Months Ended Mar. 31, 2016 Dec. 31, 2015 Mar. 31, 2015 Mar. 31, 2016 Mar. 31, 2015 $ % of Net Rev. $ % of Net Rev. $ % of Net Rev. $ % of Net Rev. $ % of Net Rev.EBITDA (1)
EBITDA $ 387 45.7 % $ 387 47.7 % $ 341 42.5 % $ 776 46.8 % $ 730 45.0 % Less: Depreciation and amortization (22 ) (2.6 %) (22 ) (2.7 %) (23 ) (2.9 %) (44 ) (2.7 %) (46 ) (2.8 %) Amortization of acquired intangible assets (22 ) (2.6 %) (22 ) (2.7 %) (22 ) (2.7 %) (45 ) (2.7 %) (45 ) (2.8 %) Interest on borrowings (13 ) (1.5 %) (12 ) (1.5 %) (9 ) (1.1 %) (26 ) (1.6 %) (17 ) (1.0 %) Provision for income taxes (125 ) (14.8 %) (119 ) (14.7 %) (98 ) (12.2 %) (244 ) (14.7 %) (221 ) (13.6 %) Net income $ 205 24.2 % $ 212 26.1 % $ 189 23.5 % $ 417 25.1 % $ 401 24.7 % As of Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2016 2015 2015 2015 2015Liquid Assets Available for Corporate Investing andFinancing Activities (2)
Liquid assets available for corporate investing and financing activities $ 713 $ 584 $ 530 $ 581 $ 740 Plus: Non-corporate cash and cash equivalents 1,430 934 909 1,116 662 Corporate liquidity maintained for operational contingencies 764 764 750 750 750 Less: Corporate short-term investments - (201 ) - - (501 ) Excess broker-dealer regulatory net capital (431 ) (346 ) (211 ) (214 ) (371 ) Cash and cash equivalents $ 2,476 $ 1,735 $ 1,978 $ 2,233 $ 1,280 Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States. (1) EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a non-GAAP financial measure as defined by SEC Regulation G. We consider EBITDA an important measure of our financial performance and of our ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA is used as the denominator in the consolidated leverage ratio calculation for covenant purposes under our holding company's senior revolving credit facility. EBITDA eliminates the non-cash effect of tangible asset depreciation and amortization and intangible asset amortization. EBITDA should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities. (2) Liquid assets 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 broker-dealer subsidiaries in the calculation of liquid assets available for corporate investing and financing activities, rather than simply including broker-dealer cash and cash equivalents, because capital requirements may limit the amount of cash available for dividend from the broker-dealer subsidiaries to the parent company. Excess capital, as defined below, is generally available for dividend from the broker-dealer subsidiaries to the parent company. Liquid assets available for corporate investing and financing activities should be considered as a supplemental measure of liquidity, rather than as a substitute for cash and cash equivalents. We define liquid assets available for corporate investing and financing activities as the sum of (a) corporate cash and cash equivalents and short-term investments, excluding an amount that is being maintained to provide liquidity for operational contingencies, including lending to our broker-dealer, futures commission merchant and forex dealer member subsidiaries under intercompany credit agreements and (b) regulatory net capital of (i) our clearing broker-dealer subsidiary in excess of 10% of aggregate debit items and (ii) our introducing broker-dealer subsidiaries in excess of a minimum operational target established by management ($50 million in the case of our primary introducing broker-dealer, TD Ameritrade, Inc.). Liquid assets available for corporate investing and financing activities is based on more conservative measures of broker-dealer net capital than regulatory requirements because we generally manage to higher levels of net capital at the broker-dealer subsidiaries than the regulatory thresholds require.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160419005490/en/
At the CompanyTD Ameritrade Holding CorporationKim Hillyer, 402-574-6523Director, Communicationskim.hillyer@tdameritrade.comorJeff Goeser, 402-597-8464Director, Investor Relations and Financejeffrey.goeser@tdameritrade.com
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