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
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.”
Fourth Quarter 2019 Results TD Ameritrade also released
results for the quarter ended Sept. 30, 2019, which include the
following: (2)
- Net revenues of $1.6 billion, 65 percent of which were
asset-based
- $1.00 in GAAP earnings per diluted share, up 25 percent year
over year, on net income of $551 million
- $1.05 in Non-GAAP earnings per diluted share,(1) up 14 percent
year over year
- Pre-tax GAAP income of $741 million, or 48 percent of net
revenues, versus 44 percent of net revenues versus prior year
- Net new client assets of approximately $22 billion, an
annualized growth rate of 7 percent
- Average client trades per day of approximately 837,000, up 5
percent year over year
Company Hosts Conference Call TD Ameritrade will hold its
September Quarter conference call tomorrow morning, Oct. 22, 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. Management’s 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 9987126 beginning at
11:30 a.m. EDT (10:30 a.m. CDT) on Oct. 22, 2019. The replay will
be available until 11:59 p.m. EDT (10:59 p.m. CDT) on Oct. 29,
2019. A transcript of the call will be available on the company’s
corporate website, www.amtd.com, via the “Earnings" page beginning
Wednesday, Oct. 23, 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.
Expected Impacts of Zero Commision Environment Effective
Oct. 3, 2019, TD Ameritrade eliminated commissions for its online
exchange-listed stock, ETF and option trades, moving from $6.95 to
$0. As previously disclosed, the company expects this decision to
have a revenue impact of approximately $220-240 million per
quarter, or approximately 15-16 percent of net revenues, based on
June Quarter fiscal 2019 revenue.
“We were well positioned to quickly respond and are entering the
new zero-commission environment from a position of strength. TD
Ameritrade has been taking market share with a premium price point,
and now with zero commissions, we’re even more confident in our
competitive position and total value proposition. With price no
longer in the mix, we will compete on the value of our offering
with an exceptional client experience via our award-winning
platforms and investor education, cutting-edge technology, and a
full range of offerings,” Hockey continued. “We are working
diligently to take advantage of new revenue opportunities and
control expenses to replace the lost economics.”
Regarding fiscal year 2020 expectations, Boyle said: “The
commission pricing changes implemented on October 3 represent
near-term challenges for us. However, our focus is on balancing
them with the long-term opportunity. Earnings are expected to
decline in the first quarter of fiscal year 2020, but with a
stronger competitive position, we expect to see stronger organic
growth. TD Ameritrade is methodically working on new plans for
profitable growth and will take measured strategic actions as
needed. We will continue to invest in our business and expect
results to provide significant shareholder value.”
$0 commission applies to online U.S. exchange-listed stocks,
ETFs, and option trades. $0.65 per options contract fee applies to
options trades, with no exercise or assignment fees. A $6.95
commission applies to online trades of over-the-counter (OTC)
stocks which includes stocks not listed on a U.S. exchange.
Capital Management During the 2019 fiscal year, the
company paid $667 million in cash dividends, which included four
quarterly dividends of $0.30 per share.
The company will increase its quarterly cash dividend by $0.01
per share for fiscal 2020 to $0.31, a 3 percent increase from
fiscal 2019. It has declared a $0.31 per share quarterly cash
dividend, payable on Nov. 19, 2019 to all holders of record of
common stock as of Nov. 5, 2019.
During the September Quarter, the company paid $295 million in
cash to repurchase 5.8 million shares, and the board authorized an
additional 30 million shares for repurchases. As of Sept. 30, 2019,
the company has 32 million shares remaining for share repurchases
under its stock repurchase programs.
Fiscal 2020 Outlook The company has also released its
outlook for the 2020 fiscal year, which reflects a range of $4.9
billion to $5.3 billion in revenue and a range of $2.8 billion to
$3.0 billion of GAAP operating expense.
More information on the fiscal 2020 forecast is available in the
company overview document, located on the "Investor Relations" page
of www.amtd.com under the “Earnings" heading.
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.
Forward-Looking Statements Subject to Risks, Uncertainties
and Assumptions 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,
the forward-looking statements contained in this document include
all statements made under the captions “Expected Impacts of Zero
Commission Environment” and “Fiscal 2020 Outlook” above.
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. In particular, we need
to introduce new products and services and update or enhance
existing products and services to remain competitive. Inability to
do so could have adverse effects on our business and results of
operations. Other risks, uncertainties and assumptions that could
cause our actual results or performance to differ materially from
those contained in our forward-looking statements include, but are
not limited to: economic, social and political conditions and other
securities industry risks; interest rate risks; liquidity risks;
client and counterparty credit risks; clearing function risks;
systemic risk; aggressive competition; information system risks,
network security risks; investment advisory services risks; merger
and acquisition risks; external service provider risks; employee
misconduct risks; LIBOR phase-out risks; new laws, rules,
regulations and regulatory guidance affecting our business; net
capital requirements; extensive regulation and regulatory
uncertainties; and litigation, investigations and proceedings
involving our business. We also are subject to other risks,
uncertainties and assumptions set forth under Item 1A. – Risk
Factors of the Company's annual report on Form 10-K for the fiscal
year ended Sept. 30, 2018 and in other periodic reports of the
Company filed with the SEC after that Form 10-K, as well as the
risk that our risk management practices may leave us exposed to
unidentified or unanticipated risks.
Our forward-looking statements speak only as of the date on
which they were made. We undertake no obligation to publicly update
or revise such statements, whether as a result of new information,
future events or otherwise, except to the extent required by the
federal securities laws.
Source: TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to approximately 12
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)
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 Fiscal Year Ended
Sept. 30, 2019 June 30, 2019 Sept. 30,
2018 Sept. 30, 2019 Sept. 30, 2018 Revenues:
Transaction-based revenues: Commissions and
transaction fees
$
502
$
477
$
482
$
2,002
$
1,969
Asset-based revenues: Bank deposit account fees
437
421
392
1,717
1,541
Net interest revenue
413
383
356
1,533
1,272
Investment product fees
155
151
142
586
557
Total asset-based revenues
1,005
955
890
3,836
3,370
Other revenues
51
59
26
178
113
Net revenues
1,558
1,491
1,398
6,016
5,452
Operating expenses: Employee compensation and benefits
341
325
327
1,322
1,555
Clearing and execution costs
48
59
40
209
189
Communications
36
39
38
155
179
Occupancy and equipment costs
67
67
76
267
302
Depreciation and amortization
39
38
37
148
142
Amortization of acquired intangible assets
32
31
34
125
141
Professional services
75
71
73
294
303
Advertising
85
80
75
298
293
Other
55
61
63
197
350
Total operating expenses
778
771
763
3,015
3,454
Operating income
780
720
635
3,001
1,998
Other expense (income): Interest on borrowings
37
37
26
144
99
Gain on business-related divestiture
-
(60
)
-
(60
)
-
Loss on sale of investments
-
-
-
-
11
Other, net
2
-
-
(12
)
1
Total other expense (income)
39
(23
)
26
72
111
Pre-tax income
741
743
609
2,929
1,887
Provision for income taxes(1)
190
188
155
721
414
Net income
$
551
$
555
$
454
$
2,208
$
1,473
Earnings per share - basic
$
1.01
$
1.01
$
0.80
$
3.98
$
2.60
Earnings per share - diluted
$
1.00
$
1.00
$
0.80
$
3.96
$
2.59
Weighted average shares outstanding - basic
547
552
567
555
567
Weighted average shares outstanding - diluted
549
554
569
557
569
Dividends declared per share
$
0.30
$
0.30
$
0.21
$
1.20
$
0.84
(1) The provision for income taxes was lower for the
fiscal year ended September 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)
Sept. 30, 2019
Sept. 30, 2018 Assets: Cash and cash
equivalents
$
2,852
$
2,690
Segregated cash and investments
8,684
3,185
Broker/dealer receivables
2,439
1,374
Client receivables, net
20,618
22,616
Investments available-for-sale, at fair value
1,668
484
Goodwill and intangible assets
5,431
5,556
Other
2,094
1,615
Total assets
$
43,786
$
37,520
Liabilities and stockholders' equity: Liabilities:
Broker/dealer payables
$
3,308
$
2,980
Client payables
27,067
22,884
Long-term debt and other borrowings
3,594
2,535
Other
1,117
1,118
Total liabilities
35,086
29,517
Stockholders' equity
8,700
8,003
Total liabilities and stockholders' equity
$
43,786
$
37,520
TD AMERITRADE HOLDING CORPORATION SELECTED OPERATING
DATA (Unaudited)
Quarter Ended
Fiscal Year Ended Sept. 30, 2019
June 30, 2019 Sept. 30, 2018 Sept.
30, 2019 Sept. 30, 2018 Key Metrics:
Net new assets (in billions)
$22.0
$19.5
$23.9
$93.1
$92.3
Net new asset growth rate (annualized)
7
%
6
%
8
%
7
%
8
%
Average client trades per day
837,009
824,600
795,104
862,158
811,110
Profitability Metrics:
Operating margin
50.1
%
48.3
%
45.4
%
49.9
%
36.6
%
Pre-tax margin
47.6
%
49.8
%
43.6
%
48.7
%
34.6
%
Return on average stockholders' equity (annualized)
25.6
%
26.5
%
22.6
%
26.3
%
19.2
%
Net profit margin
35.4
%
37.2
%
32.5
%
36.7
%
27.0
%
EBITDA(1) as a percentage of net revenues
54.5
%
56.9
%
50.5
%
55.6
%
41.6
%
Liquidity Metrics:
Interest on borrowings (in millions)
$37
$37
$26
$144
$99
Interest coverage ratio (EBITDA(1)/interest on borrowings)
22.9
22.9
27.2
23.2
22.9
Cash and cash equivalents (in billions)
$2.9
$3.0
$2.7
$2.9
$2.7
Liquid assets(1) (in billions)
$2.9
$2.8
$1.1
$2.9
$1.1
Transaction-Based Revenue
Metrics:
Total trades (in millions)
53.2
51.9
49.7
215.1
202.8
Average commissions per trade
$7.04
$6.92
$7.35
$7.02
$7.45
Trading days
63.5
63.0
62.5
249.5
250.0
Order routing revenue (in millions)
$128
$117
$117
$492
$458
Spread-Based Asset Metrics:
Average bank deposit account balances (in billions)
$111.5
$110.3
$113.1
$112.7
$116.7
Average interest-earning assets (in billions)
35.3
32.6
29.6
32.2
30.8
Average spread-based balances (in billions)
$146.8
$142.9
$142.7
$144.9
$147.5
Bank deposit account fee revenue (in millions)
$437
$421
$392
$1,717
$1,541
Net interest revenue (in millions)
413
383
356
1,533
1,272
Spread-based revenue (in millions)
$850
$804
$748
$3,250
$2,813
Avg. annualized yield - bank deposit account fees
1.54
%
1.51
%
1.36
%
1.50
%
1.30
%
Avg. annualized yield - interest-earning assets
4.58
%
4.65
%
4.70
%
4.69
%
4.07
%
Net interest margin (NIM)
2.27
%
2.23
%
2.05
%
2.21
%
1.88
%
(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 Fiscal Year Ended Sept. 30,
2019 June 30, 2019 Sept. 30, 2018
Sept. 30, 2019 Sept. 30, 2018
Client Account and Client Asset
Metrics: Funded
accounts (beginning of period)
11,876,000
11,763,000
11,399,000
11,514,000
11,004,000
Funded accounts (end of period)
11,971,000
11,876,000
11,514,000
11,971,000
11,514,000
Percentage change during period
1
%
1
%
1
%
4
%
5
%
Client assets (beginning of period, in billions)
$1,306.6
$1,297.1
$1,229.6
$1,297.5
$1,118.5
Client assets (end of period, in billions)
$1,327.7
$1,306.6
$1,297.5
$1,327.7
$1,297.5
Percentage change during period
2
%
1
%
6
%
2
%
16
%
Net Interest Revenue:
Segregated
cash: Average balance (in
billions)
$7.6
$5.7
$3.1
$5.5
$6.8
Average annualized yield
2.10
%
2.37
%
2.00
%
2.20
%
1.37
%
Interest revenue (in millions)
$41
$34
$16
$123
$95
Client margin balances:
Average balance (in billions)
$20.4
$20.6
$22.0
$20.6
$19.8
Average annualized yield
4.98
%
5.19
%
4.85
%
5.14
%
4.58
%
Interest revenue (in millions)
$259
$271
$273
$1,075
$920
Securities borrowing/lending:
Average securities borrowing balance
(in billions)
$1.7
$1.3
$0.9
$1.1
$0.9
Average securities lending balance (in billions)
$3.3
$3.0
$3.0
$2.8
$2.9
Net interest revenue - securities borrowing/lending (in millions)
$91
$54
$54
$248
$222
Other cash and interest-earning
investments: Average
balance (in billions)
$5.6
$5.0
$3.6
$5.0
$3.3
Average annualized yield
1.88
%
2.03
%
1.63
%
1.94
%
1.26
%
Interest revenue - net (in millions)
$27
$26
$15
$98
$42
Client credit balances:
Average balance (in billions)
$19.6
$19.0
$19.2
$19.3
$20.4
Average annualized cost
0.09
%
0.05
%
0.04
%
0.06
%
0.03
%
Interest expense (in millions)
($5
)
($2
)
($2
)
($11
)
($7
)
Average interest-earning assets (in billions)
$35.3
$32.6
$29.6
$32.2
$30.8
Average annualized yield
4.58
%
4.65
%
4.70
%
4.69
%
4.07
%
Net interest revenue (in millions)
$413
$383
$356
$1,533
$1,272
Investment Product Fee Revenue:
Fee-based
investment balances:
Average balance (in billions)
$267.1
$290.6
$271.6
$273.7
$252.5
Average annualized yield
0.23
%
0.21
%
0.21
%
0.21
%
0.22
%
Investment product fee revenue (in millions)
$155
$151
$142
$586
$557
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 Fiscal Year Ended Sept. 30,
2019 June 30, 2019 Sept. 30, 2018 Sept. 30,
2019 Sept. 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)
$
551
$
1.00
$
555
$
1.00
$
454
$
0.80
$
2,208
$
3.96
$
1,473
$
2.59
Non-GAAP adjustments: Amortization of acquired intangible
assets
32
0.06
31
0.06
34
0.06
125
0.22
141
0.25
Acquisition-related expenses
-
-
-
-
61
0.11
-
-
445
0.78
Income tax effect of above adjustments
(8
)
(0.01
)
(8
)
(0.02
)
(26
)
(0.05
)
(32
)
(0.05
)
(158
)
(0.28
)
Non-GAAP net income and non-GAAP diluted EPS
$
575
$
1.05
$
578
$
1.04
$
523
$
0.92
$
2,301
$
4.13
$
1,901
$
3.34
Quarter Ended Fiscal Year Ended
Sept. 30, 2019 June 30, 2019 Sept. 30,
2018 Sept. 30, 2019 Sept. 30, 2018
$
% of Net Rev.
$
% of Net Rev.
$
% of Net Rev.
$
% of Net Rev.
$
% of Net Rev. EBITDA (2)
Net income - (GAAP)
$
551
35.4
%
$
555
37.2
%
$
454
32.5
%
$
2,208
36.7
%
$
1,473
27.0
%
Add: Depreciation and amortization
39
2.5
%
38
2.5
%
37
2.6
%
148
2.5
%
142
2.6
%
Amortization of acquired intangible assets
32
2.1
%
31
2.1
%
34
2.4
%
125
2.1
%
141
2.6
%
Interest on borrowings
37
2.4
%
37
2.5
%
26
1.9
%
144
2.4
%
99
1.8
%
Provision for income taxes
190
12.2
%
188
12.6
%
155
11.1
%
721
12.0
%
414
7.6
%
EBITDA - (non-GAAP)
$
849
54.5
%
$
849
56.9
%
$
706
50.5
%
$
3,346
55.6
%
$
2,269
41.6
%
As of Sept. 30, June
30, Mar. 31, Dec. 31, Sept. 30,
2019
2019
2019
2018
2018
Liquid Assets (3) Cash
and cash equivalents - (GAAP)
$
2,852
$
2,953
$
2,674
$
5,117
$
2,690
Less: Non-corporate cash and cash equivalents
(2,478
)
(2,004
)
(2,020
)
(4,247
)
(2,307
)
Corporate cash and cash equivalents
374
949
654
870
383
Corporate investments
1,668
1,129
894
884
386
Excess regulatory net capital over management targets
859
689
1,061
862
296
Liquid assets - (non-GAAP)
$
2,901
$
2,767
$
2,609
$
2,616
$
1,065
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 GAAP 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/20191021005698/en/
Becky Niiya Director, Corporate Communications (402) 574-6652
rebecca.niiya@tdameritrade.com
Jeffrey Goeser Managing Director, Investor Relations (402)
597-8464 jeffrey.goeser@tdameritrade.com
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