Ameritrade Achieves Best Quarter in Company History; Elimination of Bank Debt and Tripling of Operating Income Highlight Quarter.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--Jan. 22, 2002 Ameritrade Holding Corporation (Nasdaq:AMTD AMTD Arithmetic Mean Temperature Difference AMTD Automatic Magnetic Tape Distribution AMTD Affordability and Manufacturing Technology Demonstration ) executed on its financial and growth strategies, generating record net income of $9.0 million for the Company's first fiscal quarter ended December December: see month. 31, 2001. Additionally, as of last week the Company completely repaid its bank debt, further strengthening its balance sheet. First Quarter Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. -- Net income of $9.0 million or $0.04 per share, compared to break-even results from ongoing operations in the previous quarter and $0.13 net loss during the same quarter last year; -- Third consecutive quarter of positive cash flow, generating $22.2 million in cash; -- Operating margin of 28%, or $29.8 million, triple the level of ongoing operating margin in the previous quarter; -- 64,000 new accounts opened at an average cost per account of $228, underscoring the power of the Ameritrade(R) brand and client proposition; -- Converted NDB.com accounts to Ameritrade's clearing platform in late November; providing additional revenues and further cost savings; -- Net revenues of $108.2 million, compared to $92.2 million last quarter and $130.9 million during the same quarter last year; and -- Average trades per day of 86,000 compared to 73,000 last quarter and 111,000 during the same quarter last year. "We had a great quarter," said Joe Moglia Joe Moglia is the current CEO of TD Ameritrade, the largest online discount brokerage firm in the world. Born in Queens, New York, Moglia was a football coach for 16 years, finishing as a Dartmouth College assistant from 1981-1983. , chief executive officer of Ameritrade. "We had record net income, tripled our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , completely repaid our bank debt, and generated positive cash flow for the third consecutive quarter." Moglia added, "Going forward, we remain absolutely committed to profitability and growth; we are completely focused on our clients, shareholders and employees; and we are committed to continue to make money, even in difficult market conditions." Segmentation Strategy Results Private Client Division Ameritrade introduced two new individual investor offerings to provide more choice and customization for clients. -- Ameritrade Pro(TM) for semi-professional A semi-professional athlete is one who is paid to play and thus is not an amateur, but for whom sport is not a full-time occupation, generally because the level of pay is too low to make a reasonable living based solely upon that source, thus making the athlete not a full and highly active traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. , launched version 4.2 today. The enhancements provide new streaming tickers, customizable keystroke key·stroke n. A stroke of a key, as on a word processor. key  stroke functions,tailored smart order routing, a charting toolbar A row or column of on-screen buttons used to activate functions in the application. Many toolbars are customizable, letting you add and delete buttons as required. Toolbars may be fixed in position or may float, which means they can be dragged to a more convenient location in the and an enhanced stock window. -- Ameritrade Plus(TM) was introduced with the conversion of NDB NDB Nondirectional Radio Beacon NDB Non Directional Beacon NDB Neue Deutsche Biographie (German) NDB National Development Bank (Sri Lanka) NDB National Discount Brokers NDB Next Business Day .com on November November: see month. 27 and is the foundation for a portfolio-driven investor segment. Institutional Client Division Ameritrade announced two new partnerships with Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. and GMAC GMAC General Motors Acceptance Corporation GMAC Graduate Management Admission Council GMAC Give Me A Call GMAC Genetic Manipulation Advisory Committee GMAC Genetic Modification Advisory Committee (Singapore) GMAC Give Me A Chance Bank, leveraging the Ameritrade brand and its investment services. "The strength of our brand and low-cost structure is viewed as an attractive benefit to our partners," said Moglia. "To maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value, we know that we must fully leverage the competitive advantages that we derive de·rive v. 1. To obtain or receive from a source. 2. To produce or obtain a chemical compound from another substance by chemical reaction. from our technology and our efficient operating platform." Annual Report Ameritrade's Annual Report is now available at www.amtd.com/ar2001. About Ameritrade Ameritrade Holding Corporation (www.amtd.com) is a pioneer in the online brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. industry with a 26-year history of providing clients a self-directed self-di·rect·ed adj. Directed or guided by oneself, especially as an independent agent: the self-directed study of a language. self approach to investment services. The award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" Company, through its Private Client and Institutional Client divisions, provides tiered tier 1 n. 1. One of a series of rows placed one above another: a stadium with four tiers of seats. 2. A rank or class. tr. & intr.v. levels of brokerage products and services tailored to meet the varying investing, trading and execution needs of individual investors, financial institutions and corporations. This document contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding future events or the future performance of the Company. Various factors could cause actual results to differ materially from those anticipated. Readers of this document are advised to check the documents filed by the Company with the U.S. Securities & Exchange Commission, including Forms 10-K and 10-Q for descriptions of risks and uncertainties related to forward-looking statements. Ameritrade is a registered service mark of Ameritrade Holding Corporation. Ameritrade Pro and Ameritrade Plus are trademarks of Ameritrade Holding Corporation. Ameritrade Pro, Division of TradeCast Securities, Ltd. Member NASD/SIPC. All rights reserved.
AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
Quarter ended
-------------
Dec. 31, 2001 Dec. 31, 2000
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Revenues:
Commissions and clearing fees $ 65,659 $ 82,081
Interest revenue 29,126 61,376
Other 16,500 4,989
------------- -------------
Total revenues 111,285 148,446
Client interest expense 3,095 17,524
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Net revenues 108,190 130,922
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Operating expenses:
Employee compensation and benefits 32,925 39,372
Communications 9,960 8,990
Occupancy and equipment costs 13,566 16,205
Depreciation and amortization 6,737 8,120
Professional services 7,290 17,478
Interest on borrowings 1,826 4,682
Other 6,066 9,748
------------- -------------
Total operating expenses 78,370 104,595
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Operating margin 29,820 26,327
Advertising 14,580 63,489
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Income (loss) before income taxes 15,240 (37,162)
Income tax expense (benefit) 6,237 (14,130)
------------- -------------
Net income (loss) $ 9,003 $ (23,032)
============= =============
Basic earnings (loss) per share $ 0.04 $ (0.13)
Diluted earnings (loss) per share $ 0.04 $ (0.13)
Weighted average shares outstanding -
basic 215,538 176,558
Weighted average shares outstanding -
diluted 216,397 176,558
AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
Dec. 31, 2001 Sept. 28, 2001
------------- --------------
Assets:
Cash and cash equivalents $41,713 $24,134
Segregated cash and investments 2,425,956 2,044,257
Client receivables 1,287,848 971,823
Other 760,731 613,657
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Total assets $4,516,248 $3,653,871
========== ==========
Liabilities and stockholders' equity
Liabilities:
Client payables $3,323,155 $2,777,916
Notes payable 60,145 70,145
Other 732,259 434,377
---------- ----------
Total liabilities 4,115,559 3,282,438
Stockholders' equity 400,689 371,433
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Total liabilities and stockholders'
equity $4,516,248 $3,653,871
========== ==========
AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA
Quarter ended
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Dec. 31, Sept. 28, June 29,
2001 2001 2001
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Trading days 64 59 63
Average client trades per day 86,028 73,100 109,337
Assets in client accounts (in billions) $31.6 $26.1 $26.2
Core brokerage open accounts(a) 1,829,000 1,794,000 1,545,000
(a) This relates to the core brokerage account base only. Total client
base including core accounts and non-core accounts (primarily clearing
accounts, stock option administration accounts and bank referral
accounts) total 2,104,000 at 12/31/01.
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