TD Ameritrade Holding Corporation (Nasdaq: AMTD) has released results for the third quarter of fiscal 2019.
Financial results for the quarter ended June 30, 2019 include the following:(2)
- Net revenues of $1.5 billion, up 8 percent year-over-year
- $1.00 in GAAP earnings per diluted share, up 27 percent year over year, on net income of $555 million
- $1.04 in Non-GAAP earnings per diluted share,(1) up 17 percent year over year
- Pre-tax GAAP income of $743 million, or 50 percent of net revenues
- Net new client assets of approximately $19.5 billion, an annualized growth rate of 6 percent
- Average client trades per day of approximately 825,000, up 5 percent year over year
“After markets hit new record highs early in the quarter and then pulled back sharply in May, the S&P 500 posted its strongest June return in more than 60 years. Investors are pleased with the market’s strong 2019 performance although they are mindful of persisting uncertainty related to U.S. trade relations and global economic growth,” said Tim Hockey, president and chief executive officer, TD Ameritrade. “One sign of optimism and a driver of investor engagement this quarter was a robust season of high profile IPOs which reinforces the broad-based desire of retail investors to invest in the brands they know and trust.
“Our business fundamentals are solid and we’re pleased with our year-to-date performance that reflects the strength and diversity of our business model,” Hockey continued. “Client satisfaction scores are on the rise as our focused efforts to transform the client experience are gaining momentum. At TD Ameritrade, the client is at the center of everything we do, and we’re well positioned to deliver an easy, personal and enlightening experience for them in any macroeconomic environment.”
“We delivered strong results in the quarter which were further enhanced as we recognized some notable items that were net favorable to earnings,” said Steve Boyle, executive vice president and chief financial officer, TD Ameritrade. “Both revenue and pre-tax margins rose, buoying our strong balance sheet. As we have demonstrated in the past, our sound financial position, disciplined expense management and long-term view will help us successfully navigate through various market cycles and deliver on our financial targets.”
Capital Management
The company paid $166 million in cash dividends its third fiscal quarter, or $0.30 per share.
The company has declared a $0.30 per share quarterly cash dividend, payable on August 20, 2019 to all holders of record of common stock as of August 6, 2019.
During the June quarter, the company paid $242 million in cash to repurchase 4.7 million shares. As of June 30, 2019, the company has approximately 7 million shares remaining for share repurchases under its stock repurchase program.
*NEW* Company Updates Time of Conference Call
TD Ameritrade will hold a conference call to discuss these financial results, as well as a special leadership announcement, and to take questions from analysts today, July 22, 2019, at 5:00 p.m. EDT (4:00 p.m. CDT). Participants may listen to the conference call by dialing 866-393-4306.
A replay of the phone call will be available by dialing 855-859-2056 and entering the Conference ID 9195175 beginning at 8:00 p.m. EDT (7:00 p.m. CDT) on July 22, 2019. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on July 29, 2019. A transcript of the call will be available on the company’s corporate web site, www.amtd.com, via the “Earnings" page beginning Friday, July 26, 2019.
More information about TD Ameritrade’s upcoming corporate events and management speaking engagements, such as quarterly earnings conference calls, is available via the company’s Calendar which is located 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 $1.3 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 800,000 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.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org)
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.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org).
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
| TD AMERITRADE HOLDING CORPORATION | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| In millions, except per share amounts | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||
| June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||
Revenues: | |||||||||||||||||
| Transaction-based revenues: | |||||||||||||||||
| Commissions and transaction fees | $ | 477 | $ | 487 | $ | 490 | $ | 1,500 | $ | 1,487 | |||||||
| Asset-based revenues: | |||||||||||||||||
| Bank deposit account fees | 421 | 430 | 387 | 1,280 | 1,149 | ||||||||||||
| Net interest revenue | 383 | 362 | 332 | 1,120 | 916 | ||||||||||||
| Investment product fees | 151 | 137 | 140 | 431 | 414 | ||||||||||||
| Total asset-based revenues | 955 | 929 | 859 | 2,831 | 2,479 | ||||||||||||
| Other revenues | 59 | 35 | 33 | 126 | 88 | ||||||||||||
| Net revenues | 1,491 | 1,451 | 1,382 | 4,457 | 4,054 | ||||||||||||
| Operating expenses: | |||||||||||||||||
Employee compensation and benefits | 325 | 340 | 352 | 982 | 1,228 | ||||||||||||
| Clearing and execution costs | 59 | 53 | 46 | 161 | 149 | ||||||||||||
| Communications | 39 | 38 | 42 | 119 | 141 | ||||||||||||
| Occupancy and equipment costs | 67 | 65 | 67 | 199 | 226 | ||||||||||||
| Depreciation and amortization | 38 | 36 | 37 | 109 | 106 | ||||||||||||
| Amortization of acquired intangible assets | 31 | 31 | 32 | 93 | 107 | ||||||||||||
| Professional services | 71 | 74 | 70 | 218 | 230 | ||||||||||||
| Advertising | 80 | 74 | 63 | 213 | 218 | ||||||||||||
| Other | 61 | 35 | 42 | 142 | 286 | ||||||||||||
| Total operating expenses | 771 | 746 | 751 | 2,236 | 2,691 | ||||||||||||
| Operating income | 720 | 705 | 631 | 2,221 | 1,363 | ||||||||||||
| Other expense (income): | |||||||||||||||||
| Interest on borrowings | 37 | 37 | 28 | 107 | 72 | ||||||||||||
| Gain on business-related divestiture | (60 | ) | - | - | (60 | ) | - | ||||||||||
| Loss on sale of investments | - | - | - | - | 11 | ||||||||||||
| Other | - | - | - | (14 | ) | 2 | |||||||||||
| Total other expense (income) | (23 | ) | 37 | 28 | 33 | 85 | |||||||||||
| Pre-tax income | 743 | 668 | 603 | 2,188 | 1,278 | ||||||||||||
| Provision for income taxes(1) | 188 | 169 | 152 | 530 | 259 | ||||||||||||
| Net income | $ | 555 | $ | 499 | $ | 451 | $ | 1,658 | $ | 1,019 | |||||||
| Earnings per share - basic | $ | 1.01 | $ | 0.89 | $ | 0.79 | $ | 2.97 | $ | 1.80 | |||||||
| Earnings per share - diluted | $ | 1.00 | $ | 0.89 | $ | 0.79 | $ | 2.96 | $ | 1.79 | |||||||
| Weighted average shares outstanding - basic | 552 | 560 | 568 | 558 | 567 | ||||||||||||
| Weighted average shares outstanding - diluted | 554 | 562 | 570 | 560 | 570 | ||||||||||||
| Dividends declared per share | $ | 0.30 | $ | 0.30 | $ | 0.21 | $ | 0.90 | $ | 0.63 | |||||||
| (1) The provision for income taxes was lower for the nine months ended June 30, 2018, primarily due to the realization of approximately $78 million of after-tax benefits recognized during the quarter ended December 31, 2017. These after-tax benefits were primarily attributable to the enactment of the Tax Cuts and Jobs Act. | |||||||||||||||||
| TD AMERITRADE HOLDING CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| In millions | ||||||
| (Unaudited) | ||||||
| June 30, 2019 | Sept. 30, 2018 | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ | 2,953 | $ | 2,690 | ||
| Segregated cash and investments | 7,124 | 3,185 | ||||
| Broker/dealer receivables | 1,780 | 1,374 | ||||
| Client receivables, net | 20,847 | 22,616 | ||||
| Investments available-for-sale, at fair value | 1,129 | 484 | ||||
| Goodwill and intangible assets | 5,463 | 5,556 | ||||
| Other | 1,823 | 1,615 | ||||
| Total assets | $ | 41,119 | $ | 37,520 | ||
| Liabilities and stockholders' equity: | ||||||
| Liabilities: | ||||||
| Broker/dealer payables | $ | 3,210 | $ | 2,980 | ||
| Client payables | 24,588 | 22,884 | ||||
| Long-term debt and other borrowings | 3,574 | 2,535 | ||||
| Other | 1,254 | 1,118 | ||||
| Total liabilities | 32,626 | 29,517 | ||||
| Stockholders' equity | 8,493 | 8,003 | ||||
| Total liabilities and stockholders' equity | $ | 41,119 | $ | 37,520 | ||
| TD AMERITRADE HOLDING CORPORATION | ||||||||||||||||||||
| SELECTED OPERATING DATA | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||
| June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||
| Key Metrics: | ||||||||||||||||||||
| Net new assets (in billions) | $ | 19.5 | $ | 19.6 | $ | 19.8 | $ | 71.0 | $ | 68.4 | ||||||||||
| Net new asset growth rate (annualized) | 6 | % | 7 | % | 7 | % | 7 | % | 8 | % | ||||||||||
| Average client trades per day | 824,600 | 860,359 | 783,665 | 870,744 | 816,445 | |||||||||||||||
| Profitability Metrics: | ||||||||||||||||||||
| Operating margin | 48.3 | % | 48.6 | % | 45.7 | % | 49.8 | % | 33.6 | % | ||||||||||
| Pre-tax margin | 49.8 | % | 46.0 | % | 43.6 | % | 49.1 | % | 31.5 | % | ||||||||||
| Return on average stockholders' equity (annualized) | 26.5 | % | 23.7 | % | 23.3 | % | 26.5 | % | 18.0 | % | ||||||||||
| Net profit margin | 37.2 | % | 34.4 | % | 32.6 | % | 37.2 | % | 25.1 | % | ||||||||||
| EBITDA(1) as a percentage of net revenues | 56.9 | % | 53.2 | % | 50.7 | % | 56.0 | % | 38.6 | % | ||||||||||
| Liquidity Metrics: | ||||||||||||||||||||
| Interest on borrowings (in millions) | $ | 37 | $ | 37 | $ | 28 | $ | 107 | $ | 72 | ||||||||||
| Interest coverage ratio (EBITDA(1)/interest on borrowings) | 22.9 | 20.9 | 25.0 | 23.3 | 21.7 | |||||||||||||||
| Cash and cash equivalents (in billions) | $ | 3.0 | $ | 2.7 | $ | 1.3 | $ | 3.0 | $ | 1.3 | ||||||||||
| Liquid assets(1) (in billions) | $ | 2.8 | $ | 2.6 | $ | 0.9 | $ | 2.8 | $ | 0.9 | ||||||||||
| Transaction-Based Revenue Metrics: | ||||||||||||||||||||
| Total trades (in millions) | 51.9 | 52.5 | 50.2 | 162.0 | 153.1 | |||||||||||||||
| Average commissions per trade | $ | 6.92 | $ | 7.01 | $ | 7.40 | $ | 7.01 | $ | 7.48 | ||||||||||
| Trading days | 63.0 | 61.0 | 64.0 | 186.0 | 187.5 | |||||||||||||||
| Order routing revenue (in millions) | $ | 117 | $ | 119 | $ | 119 | $ | 365 | $ | 341 | ||||||||||
| Spread-Based Asset Metrics: | ||||||||||||||||||||
| Average bank deposit account balances (in billions) | $ | 110.3 | $ | 114.7 | $ | 116.3 | $ | 113.1 | $ | 117.9 | ||||||||||
| Average interest-earning assets (in billions) | 32.6 | 31.0 | 30.3 | 31.2 | 31.3 | |||||||||||||||
| Average spread-based balances (in billions) | $ | 142.9 | $ | 145.7 | $ | 146.6 | $ | 144.3 | $ | 149.2 | ||||||||||
| Bank deposit account fee revenue (in millions) | $ | 421 | $ | 430 | $ | 387 | $ | 1,280 | $ | 1,149 | ||||||||||
| Net interest revenue (in millions) | 383 | 362 | 332 | 1,120 | 916 | |||||||||||||||
| Spread-based revenue (in millions) | $ | 804 | $ | 792 | $ | 719 | $ | 2,400 | $ | 2,065 | ||||||||||
| Avg. annualized yield - bank deposit account fees | 1.51 | % | 1.50 | % | 1.32 | % | 1.49 | % | 1.28 | % | ||||||||||
| Avg. annualized yield - interest-earning assets | 4.65 | % | 4.66 | % | 4.34 | % | 4.73 | % | 3.86 | % | ||||||||||
| Net interest margin (NIM) | 2.23 | % | 2.17 | % | 1.94 | % | 2.19 | % | 1.83 | % | ||||||||||
| (1) See attached reconciliation of non-GAAP financial measures. | ||||||||||||||||||||
| NOTE: See Glossary of Terms on the Company's website at www.amtd.com for definitions of the above metrics. | ||||||||||||||||||||
| TD AMERITRADE HOLDING CORPORATION | |||||||||||||||
| SELECTED OPERATING DATA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||
| June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
| Client Account and Client Asset Metrics: | |||||||||||||||
| Funded accounts (beginning of period) | 11,763,000 | 11,630,000 | 11,266,000 | 11,514,000 | 11,004,000 | ||||||||||
| Funded accounts (end of period) | 11,876,000 | 11,763,000 | 11,399,000 | 11,876,000 | 11,399,000 | ||||||||||
| Percentage change during period | 1 | % | 1 | % | 1 | % | 3 | % | 4 | % | |||||
| Client assets (beginning of period, in billions) | $1,297.1 | $1,161.6 | $1,185.7 | $1,297.5 | $1,118.5 | ||||||||||
| Client assets (end of period, in billions) | $1,306.6 | $1,297.1 | $1,229.6 | $1,306.6 | $1,229.6 | ||||||||||
| Percentage change during period | 1 | % | 12 | % | 4 | % | 1 | % | 10 | % | |||||
| Net Interest Revenue: | |||||||||||||||
| Segregated cash: | |||||||||||||||
| Average balance (in billions) | $5.7 | $5.8 | $5.6 | $4.8 | $8.1 | ||||||||||
| Average annualized yield | 2.37 | % | 2.26 | % | 1.61 | % | 2.25 | % | 1.29 | % | |||||
| Interest revenue (in millions) | $34 | $33 | $23 | $82 | $79 | ||||||||||
| Client margin balances: | |||||||||||||||
| Average balance (in billions) | $20.6 | $19.4 | $20.6 | $20.7 | $19.1 | ||||||||||
| Average annualized yield | 5.19 | % | 5.28 | % | 4.69 | % | 5.19 | % | 4.47 | % | |||||
| Interest revenue (in millions) | $271 | $257 | $244 | $816 | $648 | ||||||||||
| Securities borrowing/lending: | |||||||||||||||
| Average securities borrowing balance (in billions) | $1.3 | $0.9 | $0.8 | $0.9 | $0.9 | ||||||||||
| Average securities lending balance (in billions) | $3.0 | $2.3 | $3.1 | $2.7 | $2.9 | ||||||||||
| Net interest revenue - securities borrowing/lending (in millions) | $54 | $49 | $55 | $158 | $168 | ||||||||||
| Other cash and interest-earning investments: | |||||||||||||||
| Average balance (in billions) | $5.0 | $4.9 | $3.3 | $4.8 | $3.2 | ||||||||||
| Average annualized yield | 2.03 | % | 2.03 | % | 1.49 | % | 1.97 | % | 1.12 | % | |||||
| Interest revenue - net (in millions) | $26 | $25 | $12 | $71 | $27 | ||||||||||
| Client credit balances: | |||||||||||||||
| Average balance (in billions) | $19.0 | $19.2 | $19.6 | $19.2 | $20.8 | ||||||||||
| Average annualized cost | 0.05 | % | 0.05 | % | 0.04 | % | 0.05 | % | 0.03 | % | |||||
Interest expense (in millions) | ($2 | ) | ($2 | ) | ($2 | ) | ($7 | ) | ($6 | ) | |||||
| Average interest-earning assets (in billions) | $32.6 | $31.0 | $30.3 | $31.2 | $31.3 | ||||||||||
| Average annualized yield | 4.65 | % | 4.66 | % | 4.34 | % | 4.73 | % | 3.86 | % | |||||
| Net interest revenue (in millions) | $383 | $362 | $332 | $1,120 | $916 | ||||||||||
| Investment Product Fee Revenue: | |||||||||||||||
| Fee-based investment balances: | |||||||||||||||
| Average balance (in billions) | $290.6 | $273.7 | $256.8 | $275.9 | $246.1 | ||||||||||
| Average annualized yield | 0.21 | % | 0.20 | % | 0.22 | % | 0.21 | % | 0.22 | % | |||||
| Investment product fee revenue (in millions) | $151 | $137 | $140 | $431 | $414 | ||||||||||
| NOTE: See Glossary of Terms on the Company's website at www.amtd.com for definitions of the above metrics. | |||||||||||||||
| TD AMERITRADE HOLDING CORPORATION | |||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||||||||||||
| Dollars in millions, except per share amounts | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||
| Non-GAAP Net Income and Non-GAAP Diluted EPS (1) | Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | Amount | Diluted EPS | |||||||||||||||||||||||||||||||
| Net income and diluted EPS - (GAAP) | $ | 555 | $ | 1.00 | $ | 499 | $ | 0.89 | $ | 451 | $ | 0.79 | $ | 1,658 | $ | 2.96 | $ | 1,019 | $ | 1.79 | |||||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 31 | 0.06 | 31 | 0.06 | 32 | 0.06 | 93 | 0.17 | 107 | 0.19 | |||||||||||||||||||||||||||||||
| Acquisition-related expenses | - | - | - | - | 46 | 0.08 | - | - | 384 | 0.67 | |||||||||||||||||||||||||||||||
| Income tax effect of above adjustments | (8 | ) | (0.02 | ) | (8 | ) | (0.02 | ) | (21 | ) | (0.04 | ) | (24 | ) | (0.05 | ) | (133 | ) | (0.23 | ) | |||||||||||||||||||||
| Non-GAAP net income and non-GAAP diluted EPS | $ | 578 | $ | 1.04 | $ | 522 | $ | 0.93 | $ | 508 | $ | 0.89 | $ | 1,727 | $ | 3.08 | $ | 1,377 | $ | 2.42 | |||||||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
| June 30, 2019 | Mar. 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||
$ | % of Net Rev. | $ | % of Net Rev. | $ | % of Net Rev. | $ | % of Net Rev. | $ | % of Net Rev. | ||||||||||||||||||||||||||||||||
| EBITDA (2) | |||||||||||||||||||||||||||||||||||||||||
| Net income - (GAAP) | $ | 555 | 37.2 | % | $ | 499 | 34.4 | % | $ | 451 | 32.6 | % | $ | 1,658 | 37.2 | % | $ | 1,019 | 25.1 | % | |||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 38 | 2.5 | % | 36 | 2.5 | % | 37 | 2.7 | % | 109 | 2.4 | % | 106 | 2.6 | % | ||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 31 | 2.1 | % | 31 | 2.1 | % | 32 | 2.3 | % | 93 | 2.1 | % | 107 | 2.6 | % | ||||||||||||||||||||||||||
| Interest on borrowings | 37 | 2.5 | % | 37 | 2.5 | % | 28 | 2.0 | % | 107 | 2.4 | % | 72 | 1.8 | % | ||||||||||||||||||||||||||
| Provision for income taxes | 188 | 12.6 | % | 169 | 11.6 | % | 152 | 11.0 | % | 530 | 11.9 | % | 259 | 6.4 | % | ||||||||||||||||||||||||||
| EBITDA - (non-GAAP) | $ | 849 | 56.9 | % | $ | 772 | 53.2 | % | $ | 700 | 50.7 | % | $ | 2,497 | 56.0 | % | $ | 1,563 | 38.6 | % | |||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||||||||||||||||||||||||
2019 | 2019 | 2018 | 2018 | 2018 | |||||||||||||||||||||||||||||||||||||
| Liquid Assets (3) | |||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents - (GAAP) | $ | 2,953 | $ | 2,674 | $ | 5,117 | $ | 2,690 | $ | 1,343 | |||||||||||||||||||||||||||||||
| Less: Non-corporate cash and cash equivalents | (2,004 | ) | (2,020 | ) | (4,247 | ) | (2,307 | ) | (1,044 | ) | |||||||||||||||||||||||||||||||
| Corporate cash and cash equivalents | 949 | 654 | 870 | 383 | 299 | ||||||||||||||||||||||||||||||||||||
| Corporate investments | 1,129 | 894 | 884 | 386 | 388 | ||||||||||||||||||||||||||||||||||||
| Excess regulatory net capital over management targets | 689 | 1,061 | 862 | 296 | 166 | ||||||||||||||||||||||||||||||||||||
| Liquid assets - (non-GAAP) | $ | 2,767 | $ | 2,609 | $ | 2,616 | $ | 1,065 | $ | 853 | |||||||||||||||||||||||||||||||
| Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States. | |||||||||||||||||||||||||||||||||||||||||
(1) | Non-GAAP net income and non-GAAP diluted earnings per share (EPS) are non-GAAP financial measures as defined by SEC Regulation G. We define non-GAAP net income as net income adjusted to remove the after-tax effect of amortization of acquired intangible assets and acquisition-related expenses. We consider non-GAAP net income and non-GAAP diluted EPS as important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of our underlying business performance. Acquisition-related expenses are excluded as these costs are not representative of the costs of running the Company’s on-going business. Non-GAAP net income and non-GAAP diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net income and diluted EPS. | ||||||||||||||||||||
(2) | EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a non-GAAP financial measure as defined by SEC Regulation G. We consider EBITDA to be an important measure of our financial performance and of our ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA is used as the denominator in the consolidated leverage ratio calculation for covenant purposes under our senior revolving credit facility. EBITDA eliminates the non-cash effect of tangible asset depreciation and amortization and intangible asset amortization. EBITDA should be considered in addition to, rather than as a substitute for, GAAP pre-tax income, net income and cash flows from operating activities. | ||||||||||||||||||||
(3) | Liquid assets is considered a non-GAAP financial measure as defined by SEC Regulation G. Liquid assets represents available capital, including any capital from our regulated subsidiaries in excess of established management operational targets. We include the excess capital of our regulated subsidiaries in the calculation of liquid assets, rather than simply including regulated subsidiaries' cash and cash equivalents, because capital requirements may limit the amount of cash available for dividend from the regulated subsidiaries to the parent company. Excess capital, as defined below, is generally available for dividend from the regulated subsidiaries to the parent company. Liquid assets should be considered as a supplemental measure of liquidity, rather than as a substitute for GAAP cash and cash equivalents. | ||||||||||||||||||||
| Liquid assets may be utilized for general corporate purposes and is defined as the sum of (a) corporate cash and cash equivalents, (b) corporate investments, less securities sold under agreements to repurchase, and (c) our regulated subsidiaries' net capital in excess of minimum operational targets established by management. Corporate cash and cash equivalents includes cash and cash equivalents from our investment advisory subsidiaries. Liquid assets is based on more conservative measures of net capital than regulatory requirements because we generally manage to higher levels of net capital at our regulated subsidiaries than the regulatory thresholds require. | |||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190722005657/en/
Contacts:
Becky Niiya
Director, Corporate Communications
(402) 574-6652
rebecca.niiya@tdameritrade.com
