TD AMERITRADE Delivers Best Quarter in History.Pre-Tax Margin of 45% Amidst Integration 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 -- TD AMERITRADE Holding Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMTD AMTD Arithmetic Mean Temperature Difference AMTD Automatic Magnetic Tape Distribution AMTD Affordability and Manufacturing Technology Demonstration ) today announced that record net income increased 14% from the prior quarter to $146 million for the Company's first fiscal quarter ended December 31, 2006. December Quarter Highlights(1) * Record net income of $146 million, or $0.24 per diluted share * Record non-GAAP net income of $173 million, or $0.28 per diluted share * Record pre-tax income of $239 million, or 45 percent of net revenues * Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of $278 million, or 52 percent * Record EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $291 million, or 54 percent * Net revenues of $535 million * Average client trades per day of approximately 238,000 * Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on equity of 34 percent for the quarter * Client assets of approximately $278.2 billion, including $39.8 billion of client cash and money market funds * Liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. of $499 million; cash and cash equivalents of $441 million * 109,000 new accounts at an average cost per account of $360; 40,000 closed accounts; 6,260,000 Total Accounts; 3,255,000 Qualified Accounts(2) * Average client margin balances of approximately $7.3 billion. On Dec. 31, 2006, client margin balances were approximately $7.6 billion. "After 4 record years, we've begun the new year with our best quarter ever. Pre-tax margin of 45 percent and ROE of 34 percent puts us near the 90th percentile of the S&P 500," said Joe Moglia, chief executive officer. "We've delivered all of this while executing on the integration of TD Waterhouse and our client segmentation strategy." Expanded Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program As part of its active management of equity capital, the Company utilized $130 million to repurchase 7.7 million shares of its common stock during the quarter. As of Dec. 31, 2006, TD AMERITRADE had repurchased approximately 11.5 million shares under the expanded 32 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Reconfirming Guidance The Company also reaffirmed the midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. of $1.10 earnings per share for fiscal 2007 in the "Outlook Statement" section of its corporate Web site located at www.amtd.com. Company Hosts Conference Call TD AMERITRADE will host its December Quarter conference call this morning, Jan. 16, 2007, at 7:30 a.m. CT. Participants may listen to the call by dialing 800-819-9193. The Company will Webcast the call at www.amtd.com. As the Company will be discussing a number of financial metrics, participants are encouraged to download the slides associated with the presentation from the Web site before the start of the call. A podcast and an archived version of the presentation, including the materials discussed, will be available following the call. AMTD-E About TD AMERITRADE Holding Corporation TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,(3) provides a dynamic balance of investment products and services that furthers the Independent Spirit of individual investors. The Company's full spectrum of services include a leading active trader program and long-term investor Long-term investor A person who makes investments for a period of at least five years in order to finance his or her long-term goals. solutions, including a national branch system, as well as relationships with one of the largest networks of independent registered investment advisors. The Company's common stock trades under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors AMTD. For more information, please visit www.amtd.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 statements regarding financial guidance and future operations are forward-looking statements. These statements reflect only our current expectations or plans and are not guarantees of future performance, results or operations. 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 general economic and political conditions, interest rates, market fluctuations and changes in client trading activity, increased competition, systems failures and capacity constraints, ability to service debt obligations, integration associated with the TD Waterhouse transaction, realization of synergies from the TD Waterhouse transaction, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K . 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. (1)See attached reconciliation of non-GAAP financial measures. All records referenced exclude a one-time gain realized on the sale of the Company's investment in Knight Capital Group, Inc. when comparing to the second fiscal quarter of 2006. (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 at www.amtd.com for additional information. (3) TD AMERITRADE, Inc., member NASD/SIPC, receives clearing and custodial services from Ameritrade, Inc., member NASD/SIPC, and National Investor Services Corporation (NISC NISC National Institute of Senior Centers NISC National Information Services Corporation NISC National Information Solutions Cooperative NISC NGO (Non-Governmental Organisation) Information and Support Centre ), member NASD/SIPC. TD AMERITRADE, Ameritrade and NISC are subsidiaries of TD AMERITRADE Holding Corporation. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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