Td Ameritrade Holding Corp (AMTD) SEC Filing 10-K Annual report for the fiscal year ending Monday, September 30, 2019

Earnings Press Release
10-K Annual Report
10-K YoY Changes
Td Ameritrade Holding Corp
Ticker: AMTD CIK: 1173431

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE


At the Company
Becky Niiya				Jeffrey Goeser
Director, Corporate Communications				Managing Director, Investor Relations
(402) 574-6652				(402) 597-8464
rebecca.niiya@tdameritrade.com				jeffrey.goeser@tdameritrade.com

TD Ameritrade Reports Strong Fiscal Year 2019 Earnings

GAAP Diluted EPS $3.96; Non-GAAP Diluted EPS $4.13⁽¹⁾

Net New Client Assets of $93B, 7% Annualized Growth Rate

Capital Return of 72% of Non-GAAP Net Income

Move to Zero Commissions Expected to Have 15-16% Adverse Impact on Net Revenues

OMAHA, Neb., October 21, 2019 – TD Ameritrade Holding Corporation (Nasdaq: AMTD) has released results for its 2019 fiscal year.

The company’s results for the fiscal year ended Sept. 30, 2019 include the following:⁽²⁾

•

Record net new client assets of approximately $93 billion, a year-over-year growth rate of 7 percent

•

Record average client trades per day of approximately 860,000, up 6 percent year over year

•

Record net revenues of $6 billion, up 10 percent year over year

•

Ending client assets of approximately $1.3 trillion, up 2 percent year over year

•

$3.96 in GAAP earnings per diluted share, up 53 percent year over year, on net income of $2.2 billion

•

$4.13 in Non-GAAP earnings per diluted share,⁽¹⁾ up 24 percent year over year

•

Pre-tax GAAP income of $2.9 billion, or 49 percent of net revenues, versus 35 percent of net revenues for the comparable prior period

•

Ending interest rate-sensitive assets of $160 billion, up 9 percent year over year

“Fiscal 2019 was another good year for TD Ameritrade, as we enhanced the investing experience for our clients and delivered strong results across all core metrics. We saw record trading in the fiscal year, averaging 860,000 trades per day, and gathered a record $93 billion in net new client assets, driven by strong asset gathering from both our institutional and retail channels,” said Tim Hockey, president and chief executive officer, TD Ameritrade. “It was a year of significant accomplishment and change as we took full advantage of our scale to deliver on our financial targets, diversify revenue, and further increase our operational efficiency.”

“Despite the volatile year in the market and interest rate variations, our strong full-year results demonstrate the strength of the diversity of our business,” said Steve Boyle, executive vice president and chief financial officer, TD Ameritrade. “Integrating greater efficiency and long-term resiliency throughout our business has allowed us to keep expense growth in check, making it easier for us to respond to shifting market and competitive dynamics.”

The following information was filed by Td Ameritrade Holding Corp (AMTD) on Monday, October 21, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Td Ameritrade Holding Corp's 10-K Annual Report:

Revenue - Product Highlight
Net interest revenue increased 84% to $1.27 billion due to a 58% increase in average client margin balances, primarily due to the Scottrade acquisition, increases in the average yields earned on client margin balances, segregated cash and other cash and interest-earning investments as a result of the federal funds rate increases during fiscal years 2017 and 2018, as described above, and an $83 million increase in net interest revenue from our securities borrowing/lending program.

Revenue - Product Highlight
Net interest revenue increased 21% to $1.53 billion, primarily due to increases in the average yields earned on client margin balances, segregated cash and other cash and interest-earning investments, a 4% increase in average client margin balances and a $26 million increase in net interest revenue from our securities borrowing/lending program.
Revenue - Product Highlight
Asset-based revenues increased 52% to $3.37 billion for fiscal year 2018, primarily due to increases in average spread-based assets, net interest margin earned on spread-based assets and average market fee-based investment balances.
Revenue - Product Highlight
Bank deposit account fees - Revenues generated from a sweep program that is offered to eligible clients of the Company whereby clients' uninvested cash is swept to FDIC-insured (up to specified limits) money market deposit accounts at affiliated and non-affiliated third-party financial institutions participating in the program.
Financial - Earnings Highlight
Our diluted earnings per share increased 58% to $2.59 for fiscal year 2018 compared to $1.64 for fiscal year 2017, primarily due to higher net income, partially offset by a 7% increase in the weighted average diluted shares outstanding as a result of the issuance of our common stock in connection with the Scottrade acquisition.
Other - Other
The average yield earned on...Read more
Financial - Expense
Communications expense decreased 13% to...Read more
Other - Other
Bank deposit account fees increased...Read more
Financial - Expense
Occupancy and equipment costs decreased...Read more
Financial - Expense
Other operating expenses increased 280%...Read more
Other - Other
The average yield earned on...Read more
Financial - Expense
Clearing and execution costs include...Read more
Financial - Earnings
The increase in net interest...Read more
Financial - Earnings
The increase in net interest...Read more
Financial - Expense
Other operating expenses include provision...Read more
Financial - Income
The effective income tax rate...Read more
Financial - Expense
Advertising expense increased 15% to...Read more
Financial - Income
Establishing or increasing a valuation...Read more
Revenue - Product
Gain on business-related divestiture represents...Read more
Other - Other
The favorable impact from the...Read more
Revenue - Product
Other revenues increased 57% to...Read more
Revenue - Product
Asset-based revenues increased 14% to...Read more
Other - Other
The increases in the average...Read more
Financial - Expense
Employee compensation and benefits expense...Read more
Financial - Expense
We expect total operating expenses...Read more
Revenue - Product
Gain on business-related divestiture consists...Read more
Revenue - Product
Transaction-based revenues - Revenues generated...Read more
Financial - Shares
On November 20, 2015, our...Read more
Financial - Shares
On September 11, 2019, our...Read more
M & A - Other
Important factors that may cause...Read more
M & A - Other
We expect amortization of acquired...Read more
Revenue - Product
Our EBITDA increased 38% for...Read more
Financial - Expense
Occupancy and equipment costs include...Read more
Other - Other
Investment product fees consists of...Read more
M & A - Other
Amortization of acquired intangible assets...Read more
Financial - Income
The effective income tax rate...Read more
Financial - Income
The effective income tax rate...Read more
Financial - Earnings
The following tables summarize our...Read more
Other - Other
Investment product fees increased 5%...Read more
Financial - Expense
Occupancy and equipment costs increased...Read more
Financial - Expense
Clearing and execution costs increased...Read more
Other - Other
We have established liquidity and...Read more
Other - Other
Effective October 3, 2019, we...Read more
Other - Other
Effective October 3, 2019, we...Read more
Other - Other
Effective October 3, 2019, we...Read more
Revenue - Product
Other revenues increased 58% to...Read more
Other - Other
TD Ameritrade Futures & Forex...Read more
Financial - Cash Flow
We consider EBITDA to be...Read more
Financial - Cash Flow
We consider EBITDA to be...Read more
Revenue - Product
We expect net revenues to...Read more
Financial - Income
Our effective income tax rate...Read more
Financial - Income
Our effective income tax rate...Read more
Revenue - Product
Commissions and transaction fees -...Read more
Other - Other
As of September 30, 2019,...Read more
Other - Other
Key information about the Senior...Read more
M & A - Other
Amortization of acquired intangible assets...Read more
Financial - Earnings
During fiscal year 2019, we...Read more
Legal - Other
Accruals for contingent liabilities, such...Read more
Other - Other
Under the IDA agreement, TD...Read more
Other - Other
There were no borrowings outstanding...Read more
Other - Other
There were no borrowings outstanding...Read more
Other - Other
There were no borrowings outstanding...Read more
Other - Other
There were no borrowings outstanding...Read more
Other - Other
There were no borrowings outstanding...Read more
Other - Other
These sweep arrangements enable our...Read more
M & A - Other
The growth in the average...Read more
M & A - Other
Amortization of acquired intangible assets...Read more
Revenue - Product
Our EBITDA increased 47% for...Read more
Legal - Other
Because the application of tax...Read more
Revenue - Product
Order routing revenue increased 7%...Read more
Revenue - Product
Order routing revenue increased 43%...Read more
Financial - Dividend
We include the excess capital...Read more
Financial - Dividend
We include the excess capital...Read more
Financial - Expense
Advertising expense increased 2% to...Read more
Other - Other
We also are subject to...Read more
Financial - Expense
These increases were partially offset...Read more
Financial - Debt
Cash and investments segregated for...Read more
Financial - Expense
Professional services expense increased 17%...Read more
Financial - Earnings
Average balances consist primarily of...Read more
Revenue - Geography
Some of our subsidiaries are...Read more
Other - Other
Liquid assets represents available capital,...Read more
Other - Other
The timing of payments, if...Read more
Other - Other
We provide marketing, recordkeeping and...Read more
Revenue - Product
In particular, forward-looking statements contained...Read more
Financial - Income
The effective income tax rate...Read more
M & A - Other
The growth in average spread-based...Read more
Other - Other
Note 1, under Item 8,...Read more
Other - Other
Depreciation and amortization includes depreciation...Read more
Other - Other
Securities borrowing - We borrow...Read more
Financial - Expense
Operating Expenses Total operating expenses...Read more
Financial - Shares
Effective March 6, 2017, we...Read more
Financial - Expense
Communications expense increased 37% to...Read more
Financial - Dividend
Net capital in excess of...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Cover Page
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Income
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Stockholders' Equity
Consolidated Statements Of Stockholders' Equity (Parenthetical)
Consolidated Statements Of Cash Flows
Nature Of Operations And Summary Of Significant Accounting Policies
Business Acquisition
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents
Cash And Investments Segregated And On Deposit For Regulatory Purposes
Investments Available-For-Sale
Receivable From And Payable To Brokers, Dealers And Clearing Organizations
Allowance For Doubtful Accounts On Receivables
Property And Equipment
Goodwill And Acquired Intangible Assets
Exit Liabilities
Long-Term Debt And Other Borrowings
Income Taxes
Capital Requirements
Stock-Based Compensation
Employee Benefit Plans
Commitments And Contingencies
Fair Value Disclosures
Offsetting Assets And Liabilities
Accumulated Other Comprehensive Income (Loss)
Segment And Geographic Area Information
Accelerated Stock Repurchase Agreements
Revenue Recognition
Related Party Transactions
Condensed Financial Information (Parent Company Only)
Quarterly Data (Unaudited)
Subsequent Event
Nature Of Operations And Summary Of Significant Accounting Policies (Policies)
Business Acquisition (Tables)
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents (Tables)
Cash And Investments Segregated And On Deposit For Regulatory Purposes (Tables)
Investments Available-For-Sale (Tables)
Receivable From And Payable To Brokers, Dealers And Clearing Organizations (Tables)
Allowance For Doubtful Accounts On Receivables (Tables)
Property And Equipment (Tables)
Goodwill And Acquired Intangible Assets (Tables)
Exit Liabilities (Tables)
Long-Term Debt And Other Borrowings (Tables)
Income Taxes (Tables)
Capital Requirements (Tables)
Stock-Based Compensation (Tables)
Commitments And Contingencies (Tables)
Fair Value Disclosures (Tables)
Offsetting Assets And Liabilities (Tables)
Accumulated Other Comprehensive Income (Loss) (Tables)
Revenue Recognition (Tables)
Related Party Transactions (Tables)
Condensed Financial Information (Parent Company Only) (Tables)
Quarterly Data (Unaudited) (Tables)
Nature Of Operations And Summary Of Significant Accounting Policies - Additional Information (Details)
Business Acquisition - Additional Information (Details)
Business Acquisition - Pro Forma Financial Information (Unaudited) (Details)
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents - Summary Of Cash And Cash Equivalents (Details)
Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents - Reconciliation Of Cash, Cash Equivalents, Restricted Cash And Restricted Cash Equivalents (Detail)
Cash And Investments Segregated And On Deposit For Regulatory Purposes (Detail)
Investments Available-For-Sale - Schedule Of Amortized Cost And Fair Value Of Available-For-Sale Securities (Details)
Investments Available-For-Sale - Narrative (Details)
Investments Available-For-Sale - Schedule Of Contractual Maturities Of Available-For-Sale Securities (Details)
Receivable From And Payable To Brokers, Dealers And Clearing Organizations - Amounts Receivable From And Payable To Brokers, Dealers And Clearing Organizations (Details)
Allowance For Doubtful Accounts On Client And Other Receivables (Details)
Property And Equipment - Schedule Of Property And Equipment (Details)
Goodwill And Acquired Intangible Assets - Changes In Carrying Amount Of Goodwill (Details)
Goodwill And Acquired Intangible Assets - Acquired Intangible Assets (Details)
Goodwill And Acquired Intangible Assets - Additional Information (Details)
Goodwill And Acquired Intangible Assets - Estimated Future Amortization Expense For Acquired Intangible Assets (Details)
Exit Liabilities - Summary Of The Activity In Exit Liabilities (Details)
Exit Liabilities - Additional Information (Details)
Exit Liabilities - Summary Of The Cumulative Acquisition-Related Exit Costs (Details)
Long-Term Debt And Other Borrowings - Schedule Of Long-Term Debt And Other Borrowings (Details)
Long-Term Debt And Other Borrowings - Fiscal Year Maturities On Long-Term Debt Outstanding (Details)
Long-Term Debt And Other Borrowings - Key Information Of Senior Notes And Lines Of Credit (Details)
Long-Term Debt And Other Borrowings - Senior Notes, Lines Of Credit And Securities Sold Under Agreements To Repurchase - Additional Information (Details)
Long-Term Debt And Other Borrowings - Fair Value Hedging - Additional Information (Details)
Long-Term Debt And Other Borrowings - Gains And Losses Resulting From Changes In Fair Value Of Interest Rate Swaps And Hedged Fixed Rate Debt (Details)
Long-Term Debt And Other Borrowings - Cash Flow Hedging - Additional Information (Details)
Long-Term Debt And Other Borrowings - Fair Value Of Outstanding Derivatives Designated As Hedging Instruments (Details)
Long-Term Debt And Other Borrowings - Balance Sheet Impact Of Hedging Instruments - Additional Information (Details)
Long-Term Debt And Other Borrowings - Credit Agreements - Additional Information (Details)
Income Taxes - Provision For Income Taxes (Details)
Income Taxes - Reconciliation Of Federal Statutory Tax Rate To Effective Tax Rate (Details)
Income Taxes - Additional Information (Details)
Income Taxes - Deferred Tax Assets (Liabilities) (Details)
Income Taxes - Reconciliation Of Activity Related To Unrecognized Tax Benefits (Details)
Capital Requirements - Additional Information (Details)
Capital Requirements - Net Capital And Net Capital Requirements For Company's Subsidiaries (Details)
Stock-Based Compensation - Additional Information (Details)
Stock-Based Compensation - Summary Of Option Activity In Stock Incentive Plans (Details)
Stock-Based Compensation - Summary Of Restricted Stock Unit And Performance Restricted Stock Unit Activity In Stock Incentive Plans (Details)
Stock-Based Compensation - Assumptions For Estimation Of Fair Value Of Awards Granted (Details)
Employee Benefit Plans - Additional Information (Details)
Commitments And Contingencies - Future Minimum Rental Commitments Under Non-Cancelable Operating Leases (Details)
Commitments And Contingencies - Additional Information (Details)
Commitments And Contingencies - Collateral Available, Loaned Or Repledged (Details)
Commitments And Contingencies - Summary Of Cash Deposited With And Securities Pledged To Clearinghouses (Details)
Fair Value Disclosures - Fair Value Hierarchy For Assets And Liabilities Measured On Recurring Basis (Details)
Fair Value Disclosures - Additional Information (Details)
Offsetting Assets And Liabilities - Effect Of Rights Of Setoff Associated With Company's Recognized Assets And Liabilities (Details)
Offsetting Assets And Liabilities - Disaggregation Of Secured Lending Transactions (Details)
Accumulated Other Comprehensive Income (Loss) - Net Change (Details)
Accumulated Other Comprehensive Income (Loss) - Balance Rollforward (Details)
Accelerated Stock Repurchase Agreements - Additional Information (Details)
Revenue Recognition - Impact Of Adoption (Details)
Revenue Recognition - Disaggregation Of Revenues (Details)
Revenue Recognition - Schedule Of Investment Product Fees (Details)
Revenue Recognition - Schedule Of Contract Balances (Details)
Related Party Transactions - Additional Information (Details)
Related Party Transactions - Summary Of Revenues Resulting From Transactions With Related Parties (Details)
Related Party Transactions - Summary Of Expenses Resulting From Transactions With Related Parties (Details)
Related Party Transactions - Summary Of Classification And Amount Of Receivables From And Payables To Affiliates Of Company (Details)
Condensed Financial Information (Parent Company Only) - Schedule Of Condensed Balance Sheets (Details)
Condensed Financial Information (Parent Company Only) - Schedule Of Condensed Statements Of Income (Details)
Condensed Financial Information (Parent Company Only) - Schedule Of Condensed Statements Of Cash Flows (Details)
Quarterly Data - Schedule Of Quarterly Financial Data (Details)
Subsequent Event (Details)

Material Contracts, Statements, Certifications & more

Td Ameritrade Holding Corp provided additional information to their SEC Filing as exhibits

Ticker: AMTD
CIK: 1173431
Form Type: 10-K Annual Report
Accession Number: 0001173431-19-000117
Submitted to the SEC: Fri Nov 15 2019 11:46:53 AM EST
Accepted by the SEC: Fri Nov 15 2019
Period: Monday, September 30, 2019
Industry: Security Brokers Dealers And Flotation Companies