TD Ameritrade Delivers Pre-Tax Margins over 50% and Record NNA
OMAHA, Neb.--(BUSINESS WIRE)--Jan 22, 2019--TD Ameritrade Holding Corporation (Nasdaq: AMTD) has released results for the first quarter of fiscal 2019. The Company gathered a record $32 billion in net new client assets and reported client trading activity of approximately 928,000 client trades per day, on average.
Financial results for the quarter ended Dec. 31, 2018 include the following: (2)Net new client assets of approximately $32 billion, an annualized growth rate of 10 percent Average client trades per day of approximately 928,000, up 28 percent year over year Record net revenues of $1.5 billion, up 21 percent year-over-year $1.07 in GAAP earnings per diluted share, up 106 percent year over year, on net income of $604 million $1.11 in Non-GAAP earnings per diluted share, (1) up 39 percent year over year Pre-tax GAAP income of $778 million, or 51 percent of net revenues
“We had a very strong start to fiscal 2019 with record asset gathering in both our retail and institutional channels. After a year of transition, we achieved double-digit net new asset growth rates,” said Tim Hockey, TD Ameritrade president and chief executive officer. “Trading was also strong in the quarter with 14 days eclipsing 1 million trades, and mobile trading reaching new highs, averaging 240,000 mobile trades per day – up more than 50 percent from last year.”
“Investor sentiment shifted in the quarter as anxiety and macroeconomic uncertainty started moving the markets, underscoring the importance of our client-centric value proposition. Times like these are when our clients need us most, and when they’re most likely to turn to our award-winning investor education. It’s little surprise then that the number of clients accessing our education increased by more than 60 percent from last year,” Hockey continued. “We’re focused on building a best-in-class client experience and driving a concentrated effort to further increase our operational agility and efficiency while delivering against our financial targets.”
“The power, scale and diversity of our business model were on display this quarter as we drove strong results, with pre-tax margins of 51 percent, in a volatile market,” said Steve Boyle, executive vice president and chief financial officer. “We have a strong balance sheet and profitability that allow us to fund our strong growth while continuing to deliver significant returns to our shareholders. It’s a good way to start the year – with plenty of opportunities to deliver on our goals and drive value for our clients, employees and shareholders. Looking ahead to the remainder of 2019, we will remain focused on those things we can control, particularly maintaining organic growth and building our long-term earnings power.”
Capital Management The Company paid $168 million in cash dividends its first fiscal quarter, or $0.30 per share.
The Company has declared a $0.30 per share quarterly cash dividend, payable on Feb. 19, 2019 to all holders of record of common stock as of Feb. 5, 2019.
During the December quarter, the Company paid $145 million in cash to repurchase 2.9 million shares. As of Dec. 31, 2018, the Company has approximately 18 million shares remaining for share repurchases under its stock repurchase program.
Company Hosts Conference Call TD Ameritrade will hold its first quarter conference call tomorrow morning, January 23, 2019, at 8:30 a.m. EST (7:30 a.m. CST) to take questions from analysts. Participants may listen to the conference call by dialing 866-393-4306. A complete audio recording of management’s remarks, an abridged text version of the remarks and a company overview are now available on the “” page of under the header “Investor Relations’ Highlights.” Conference call participants are encouraged to reference these materials prior to the call.
A replay of the phone call will be available by dialing 855-859-2056 and entering the Conference ID 5961878 beginning at 1:30 p.m. EST (12:30 p.m. CST) on January 23, 2019. The replay will be available until 11:59 p.m. EST (10:59 p.m. CST) on January 30, 2019. A transcript of the call will be available on the Company’s corporate web site, www.amtd.com, via the “ Financial Reports ” page beginning Thursday, January 24, 2019.
More information about TD Ameritrade’s upcoming corporate events and management speaking engagements, such as quarterly earnings conference calls, is available on the Company’s Corporate Event Calendar. Look for the link “Where are we?” on the “ Investor Relations ” page of www.amtd.com.
Interested parties should visit or subscribe to newsfeeds at www.amtd.com for the most up-to-date information on corporate financial reports, press releases, SEC filings and events. 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 TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 900,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, 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, forward-looking statements contained in this discussion include our expectations regarding: the effect of client trading activity on our results of operations; the effect of changes in interest rates on our net interest spread; the amount of net revenues; average commissions per trade; the amounts of total operating expenses and advertising expense; our effective income tax rate; our capital and liquidity needs and our plans to finance such needs; and our plans to return capital to stockholders through cash dividends and share repurchases. 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: economic, social and political conditions and other securities industry risks; interest rate risks; liquidity risks; credit risk with clients and counterparties; risk of liability for errors in clearing functions; systemic risk; systems failures, delays and capacity constraints; network security risks; competition; reliance on external service providers; new laws and regulations affecting our business; net capital requirements; extensive regulation, regulatory uncertainties and legal matters; difficulties and delays in integrating the Scottrade Financial Services, Inc. (“Scottrade”) business or fully realizing cost savings and other benefits from the acquisition; disruptions from the Scottrade acquisition; or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; the inability to achieve synergies or to implement integration plans and other consequences associated with other acquisitions; and the other risks and uncertainties set forth under Item 1A. – Risk Factors of the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2018. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws.
1 See attached reconciliation of non-GAAP financial measures.
2 Please see the Glossary of Terms, located in the “Investor relations” section of www.amtd.com under the “Financial Reports” heading for more information on how these metrics are calculated.
Advisory services are provided by TD Ameritrade Investment Management, LLC (“TD Ameritrade Investment Management”), a registered investment advisor. Brokerage services provided by TD Ameritrade, Inc. TD Ameritrade Investment Management provides discretionary advisory services for a fee. Risks applicable to any portfolio are those associated with its underlying securities. For more information, please see the Disclosure Brochure (Form ADV Part 2A) http://www.tdameritrade.com/forms/TDA4855.pdf
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CONTACT: Becky Niiya
Director, Corporate Communications
Managing Director, Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA NEBRASKA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE
SOURCE: TD Ameritrade Holding Corporation
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PUB: 01/22/2019 04:01 PM/DISC: 01/22/2019 04:01 PM