TD Ameritrade Reports Second Quarter Fiscal 2019 Results

TD Ameritrade Holding Corporation (Nasdaq: AMTD) has released results for the second quarter of fiscal 2019. The Company gathered $20 billion in net new client assets and reported client trading activity of approximately 860,000 client trades per day, on average.

Financial results for the quarter ended March 31, 2019 include the following:⁽²⁾

• Net revenues of $1.5 billion, up 2 percent year-over-year
• $0.89 in GAAP earnings per diluted share, up 85 percent year over year, on net income of $499 million
• $0.93 in Non-GAAP earnings per diluted share,⁽¹⁾ up 27 percent year over year
• Pre-tax GAAP income of $668 million, or 46 percent of net revenues
• Net new client assets of approximately $20 billion, an annualized growth rate of 7 percent
• Average client trades per day of approximately 860,000, down 9 percent year over year from a record quarter

"Markets rebounded in the quarter with the S&P 500 climbing more than 13 percent as stocks rounded out one of the best quarters in nearly 10 years. At the same time, reaction to the market correction at the end of 2018, and worries about a slowing global economy, tempered some investor engagement,” said Tim Hockey, TD Ameritrade president and chief executive officer. "It’s important for us to help our clients understand why these market conditions matter to them so they can make the appropriate investments to meet their needs.

"We are confident in our long-term strategy to compete and win on the client experience for both individual investors and registered investment advisors,” Hockey continued. "While net new asset growth slowed in the quarter, net new assets are up 6 percent year-to-date from last year.”

"Calmer markets dampened trading volume this quarter and the prospect of the end of rate hikes caused advisors to put their clients’ money to work,” said Steve Boyle, executive vice president and chief financial officer. "Our focus is on the long-term and we’re committed to driving profitable, sustainable top- and bottom-line growth to deliver on our financial targets. As we look to the second half of the year, we’re prepared to navigate any potential short-term revenue headwinds while continuing to invest in our business.”

Capital Management
The Company paid $169 million in cash dividends its second fiscal quarter, or $0.30 per share.

The Company has declared a $0.30 per share quarterly cash dividend, payable on May 21, 2019 to all holders of record of common stock as of May 7, 2019.

During the March quarter, the Company paid $317 million in cash to repurchase 6.5 million shares. As of March 31, 2019, the Company has approximately 12 million shares remaining for share repurchases under its stock repurchase program.

Company Hosts Conference Call
TD Ameritrade will hold its second quarter conference call tomorrow morning, April 24, 2019, at 8:30 a.m. EDT (7:30 a.m. CDT) to take questions from analysts. Participants may listen to the conference call by dialing 866-393-4306. A complete audio recording of management’s remarks, an abridged text version of the remarks and a company overview are now available on the "Investor Relations" page of www.amtd.com under the "Earnings" header. Conference call participants are encouraged to reference these materials prior to the call.

A replay of the phone call will be available by dialing 855-859-2056 and entering the Conference ID 2286029 beginning at 11:30 a.m. EDT (10:30 a.m. CDT) on April 24, 2019. The replay will be available until 11:59 p.m. EDT (10:59 p.m. CDT) on May 1, 2019. A transcript of the call will be available on the Company’s corporate web site, www.amtd.com, via the "Earnings" page beginning Thursday, April 25, 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 850,000 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.

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

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