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TD Ameritrade Holding – Maintaining industry-leading growth rate

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TD Ameritrade Holding Corporation (NASDAQ:AMTD) has released results for the first quarter of fiscal 2012. The Company continued to gather assets at an industry-leading, double-digit growth rate while returning over 90 percent of its earnings to shareholders, demonstrating the resilience of its strategy in the midst of a difficult market environment.

The Company’s results for the quarter ended December 31, 2011 include the following (year-over-year comparisons)

  • Net income of $152 million, or $0.27 per diluted share
  • Net new client assets of $10.2 billion, an annualized growth rate of 11 percent of beginning client assets
  • Average client trades per day of approximately 367,000, essentially flat
  • Net revenues of $653 million, 55 percent of which were asset-based
  • Operating income of $229 million, or 35 percent of net revenues
  • Pre-tax income of $221 million, or 34 percent of net revenues
  • EBITDA(2) of $269 million, or 41 percent of net revenues
  • Record interest rate sensitive assetsof $79 billion, an increase of 16 percent
  • Client assets of approximately $406 billion, an increase of 5 percent

“We continue to execute well against our growth strategy in the face of a difficult market environment,” said Fred Tomczyk, president and chief executive officer. “Maintaining our industry-leading growth rate, we gathered $10.2 billion in net new client assets, an annualized growth rate of 11 percent. We remain focused on maintaining this organic growth momentum, keeping our expenses in check and using our strong balance sheet and free cash flow to take advantage of opportunities as they present themselves.”


“Our focus on what we can control continues to drive our results,” said Bill Gerber, executive vice president and chief financial officer. “Adhering to this approach, we grew interest rate sensitive balances to a record $79 billion, reduced operating expenses excluding advertising(2) by $18 million, or 5 percent over the last quarter, and returned 92 percent of earnings to shareholders through a combination of dividends and share repurchases. We bought back over 1 percent of our outstanding shares during the quarter. Our growth continues despite the challenging economic environment, and we are well-positioned for an improved economic environment.”

Stock Repurchases

During the first quarter of fiscal 2012, TD Ameritrade repurchased 6.7 million shares of its common stock at an average price of $15.91 per share, for approximately $107 million. Over the last 12 months, the Company has used $451 million to repurchase 26.8 million shares at an average price of $16.82 per share.

As of Dec. 31, 2011, the Company had 30 million shares remaining on its existing stock repurchase authorization.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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