TD Ameritrade Gathers a Record $16 Billion in Net New Client Assets

TD Ameritrade Gathers a Record $16 Billion in Net New Client Assets

Record 13% Annualized Net New Client Asset Growth Rate

Diluted Earnings per Share of $0.27

Record Market Fee-based Revenue of $55 Million, up 28% Year-Over-Year

OMAHA, Neb.--(BUSINESS WIRE)-- TD Ameritrade Holding Corporation (NYS: AMTD) has released results for the first quarter of fiscal 2013. The Company gathered record net new client assets of $16 billion - a 13 percent annualized growth rate - up more than 50 percent from the same quarter a year ago.

The Company's results for the quarter ended Dec. 31, 2012 include the following:(1)

  • Net income of $147 million, or $0.27 per diluted share
  • Record net new client assets of approximately $16 billion, a record annualized growth rate of 13 percent
  • Average client trades per day of approximately 334,000, an activity rate of 5.8 percent(2)
  • Net revenues of $651 million, 58 percent of which were asset-based
  • Record market fee-based revenue of $55 million, up 28 percent year-over-year
  • Pre-tax income of $237 million, or 36 percent of net revenues
  • EBITDA of $286 million, or 44 percent of net revenues(3)
  • Record interest rate sensitive assets(4) of $90 billion, up 14 percent year-over-year
  • Client assets of approximately $481 billion

"Record net new client assets of $16 billion and earnings per share of 27 cents is a significant achievement in this environment, and a strong start to our fiscal year," said Fred Tomczyk, president and chief executive officer. "In the face of continued investor uncertainty, we maintained our strong organic growth momentum and had record sales of guidance and advice solutions, all while keeping our expenses in check."

"TD Ameritrade continues to benefit from strong organic growth and disciplined management of our balance sheet," said Bill Gerber, executive vice president and chief financial officer. "Our record organic growth this quarter helped grow interest rate sensitive assets to a record $90 billion, up 14 percent from last year, leaving us even better-positioned for rising interest rates. In addition, market fee-based revenue is up 28 percent year-over-year, driven by our effective referral and sales processes. We remain focused on maintaining our momentum as we move forward."

Capital Deployment
The Company has declared a $0.09 per share quarterly cash dividend, payable on Feb. 15, 2013 to all holders of record of common stock as of Feb. 1, 2013.

"In addition to the quarterly dividend, TD Ameritrade paid down a maturing tranche of debt and issued a special dividend of 50 cents per share in the first quarter," Tomczyk continued. "Strong cash flow, combined with a clean and stable balance sheet gives us the flexibility to return or deploy capital to the benefit of our shareholders while maintaining our ability to be opportunistic."

Company Hosts Conference Call
TD Ameritrade will host its December Quarter conference call this morning, Jan. 22, 2013, at 8:30 a.m. EST (7:30 a.m. CST). Participants may listen to the call by dialing 877-881-2595. The Company will also webcast the conference live at and will make all accompanying materials available to participants prior to the call. A phone replay of the call will be available by dialing 855-859-2056 and entering the Conference ID 75110688 beginning at 11:30 a.m. EST (10:30 a.m. CST) on January 22, 2013.

The Company asks that interested parties visit or subscribe to newsfeeds at for the most up-to-date corporate financial information, presentation announcements, transcripts and archives. You can also follow the Company on Twitter, @TDAmeritradePR. Web site links, corporate titles and telephone numbers provided in this release, although correct when published, may change in the future.


About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade's (NYS: 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 38 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit the TD Ameritrade newsroom or for more information.

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. 26, 2012. 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 for more information on how these metrics are calculated.

2 Funded account activity rate (AR%). Average client trades per day during the period divided by the average number of total funded accounts during the period.

3See attached reconciliation of non-GAAP financial measures.

4Interest rate-sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of December 31, 2012.

Brokerage services provided by TD Ameritrade, Inc., member FINRA ( /SIPC ( /NFA (

In millions, except per share amounts
Quarter Ended
Dec. 31, 2012Sept. 30, 2012Dec. 31, 2011
Transaction-based revenues:
Commissions and transaction fees$257$256$273
Asset-based revenues:
Interest revenue118117111
Brokerage interest expense (2) (1) (2)
Net interest revenue116116109
Insured deposit account fees205207205
Investment product fees 56  52  44 
Total asset-based revenues377375358
Other revenues 17  16  22 
Net revenues 651  647  653 
Operating expenses:
Employee compensation and benefits168167173
Clearing and execution costs242320
Occupancy and equipment costs393838
Depreciation and amortization201917
Amortization of acquired intangible assets232323
Professional services343945
Other 22  20  24 
Total operating expenses 410  415  425 
Operating income241232228
Other expense (income):
Interest on borrowings677
Gain on sale of investments (2) -  - 
Total other expense (income) 4  7  7 
Pre-tax income237225221
Provision for income taxes 90  82  69 
Net income$147 $143 $152 
Earnings per share - basic$0.27$0.26$0.28
Earnings per share - diluted$0.27$0.26$0.27
Weighted average shares outstanding - basic546546550
Weighted average shares outstanding - diluted551551555
Dividends declared per share$0.59$0.06$0.06
In millions
Dec. 31, 2012Sept. 30, 2012
Cash and cash equivalents$1,852$915
Short-term investments4154
Segregated cash and investments4,6824,030
Broker/dealer receivables9481,110
Client receivables, net8,7998,647
Goodwill and intangible assets3,3763,399
Other 1,357 1,258
Total assets$21,018$19,513
Liabilities and stockholders' equity:
Broker/dealer payables$1,941$1,992
Client payables12,45910,728
Notes payable275-
Long-term debt1,0871,345
Other 978 1,023
Stockholders' equity 4,278 4,425
Total liabilities and stockholders' equity$21,018$19,513
  Quarter Ended
Dec. 31, 2012  Sept. 30, 2012  Dec. 31, 2011

Key Metrics:

Net new assets (in billions)$15.6$10.1$10.2
Net new asset growth rate (annualized)13%9%11%
Average client trades per day334,035328,280367,479

Profitability Metrics:

Operating margin37.0%35.9%34.9%
Pre-tax margin36.4%34.8%33.8%
Return on client assets (annualized)0.20%0.20%0.22%
Return on average stockholders' equity (annualized)13.3%13.1%14.8%
EBITDA(1) as a percentage of net revenues43.9%42.3%41.0%

Debt and Liquidity Metrics:

Interest on borrowings (in millions)$6$7$7
Average debt outstanding (in billions)$1.2$1.3$1.3
Leverage ratio (average debt/annualized EBITDA(1))
Interest coverage ratio (EBITDA(1)/interest on borrowings)45.439.838.0
Liquid assets - management target(1) (in billions)$0.8$1.1$0.9
Liquid assets - regulatory threshold(1) (in billions)$1.3$1.6$1.4
Cash and cash equivalents (in billions)$1.9$0.9$
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