Waterhouse: Financials & other interesting tidbits and facts.
eD.com:
Though the total outstanding shares after the offering will be approx 365,000,000,TD is only offering 32 million (with possibility of over allotment of another 4.8 mil if there is demand) to the public through the IPO which represents approx 8.7% of the total outstanding. shares,the remaining 91 and change % TD is going to hold for the 'foreseeable future' which in turn will make the float between 32-37 million at the most.
==============================
Highlights.
TD Waterhouse has the second-largest discount brokerage operation globally, with more than 2.6 million customer accounts and more than $105 billion in customer assets as of April 30, it said.
It has the third-largest online discount brokerage operation globally by trading volume and customer assets, along with a big international presence in the United States, Canada, Australia, Britain and Hong Kong.
In the most recent fiscal quarter ended April 30, 59 percent of its average daily trading volume of 118,000 trades was conducted online.
The 32 million shares represent 8.7 percent of the total number of outstanding common shares that the company will have after the offering.
After the IPO, Toronto-based Toronto-Dominion Bank will beneficially own 91.2 percent of TD Waterhouse's outstanding common stock. As of April 30, the bank ranked as the largest Canadian bank in terms of market capitalization and the fifth largest based on total assets.
The bank told TD Waterhouse its present intention was to maintain majority ownership ''for the foreseeable future,'' according to the SEC filing.
IPO share allocation by country/region
TD Waterhouse said it was offering 20.8 million of the shares in the United States through a syndicate of U.S. underwriters, 8 million shares in Canada through Canadian underwriters and 3.2 million shares outside of the United States and Canada through international managers.
(If there is heavy demand for the shares, then the underwriters and managers have an option to buy up to 4.8 million additional shares.)
==============================
YEAR ENDED OCTOBER 31,
------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998
----------------------- ------------------------ PRO FORMA HISTORICAL HISTORICAL
CANADA U.S. CANADA U.S. COMBINED COMBINED COMBINED
---------- ---------- ---------- ----------- --------- ---------- ----------
(IN THOUSANDS, EXCEPT SHARE DATA)
STATEMENT OF INCOME DATA:
Revenues
Commissions and fees.............. $77,398 $83,917 $64,833 $113,881 $ 270,505 $ 313,572 $ 409,432
Mutual fund and related revenue... -- 6,018 5,831 9,286 23,515 35,762 59,022
Net interest revenue.............. 26,604 13,056 28,660 18,888 53,085 68,874 117,733
Other............................. 9,863 1,603 14,493 1,375 23,681 28,424 28,274
------- ------- ------- -------- --------- --------- ---------
TOTAL REVENUES.................. 113,865 104,594 113,817 143,430 370,786 446,632 614,461
------- ------- ------- -------- --------- --------- ---------
Expenses
Employee compensation and
benefits........................ 35,136 32,272 31,414 43,259 107,137 138,261 183,377
Execution and clearing costs...... 18,312 11,983 17,219 14,989 47,510 63,316 95,523
Occupancy and equipment........... 8,555 10,223 10,221 12,992 44,413 43,485 56,596
Advertising and marketing......... 3,120 4,677 3,572 9,441 14,439 18,511 33,184
Communications.................... 7,330 4,189 6,718 6,032 19,154 22,981 30,809
Amortization of goodwill.......... 1,638 -- 1,623 -- 21,121 21,630 33,000
Professional fees................. 4,172 2,480 5,799 4,095 15,034 14,871 15,350
Other............................. 15,219 9,477 11,313 13,969 34,311 44,956 63,144
------- ------- ------- -------- --------- --------- ---------
TOTAL EXPENSES.................. 93,482 75,301 87,879 104,777 303,119 368,011 510,983
------- ------- ------- -------- --------- --------- ---------
Income before income taxes......... 20,383 29,293 25,938 38,653 67,667 78,621 103,478
Income tax provision............... 9,689 11,731 12,127 15,228 41,363 42,416 54,765
------- ------- ------- -------- --------- --------- ---------
NET INCOME...................... $10,694 $17,562 $13,811 $ 23,425 $ 26,304 $ 36,205 $ 48,713
======= ======= ======= ======== ========= ========= =========
Pro forma earnings per share....... $
---------
Shares used to compute pro forma
per share data (1)................
=========
THREE MONTHS ENDED
JANUARY 31,
-----------------------
1998 1999
HISTORICAL HISTORICAL
COMBINED COMBINED
---------- ----------
STATEMENT OF INCOME DATA:
Revenues
Commissions and fees.............. $ 83,871 $ 152,044
Mutual fund and related revenue... 10,583 20,783
Net interest revenue.............. 23,768 34,004
Other............................. 6,277 8,204
--------- ---------
TOTAL REVENUES.................. 124,499 215,035
--------- ---------
Expenses
Employee compensation and
benefits........................ 40,181 59,859
Execution and clearing costs...... 19,259 34,679
Occupancy and equipment........... 12,403 17,754
Advertising and marketing......... 7,695 11,569
Communications.................... 6,639 10,717
Amortization of goodwill.......... 7,678 9,279
Professional fees................. 3,118 4,082
Other............................. 11,804 28,999
--------- ---------
TOTAL EXPENSES.................. 108,777 176,938
--------- ---------
Income before income taxes......... 15,722 38,097
Income tax provision............... 9,222 18,031
--------- ---------
NET INCOME...................... $ 6,500 $ 20,066
========= =========
Pro forma earnings per share....... $
---------
Shares used to compute pro forma
per share data (1)................
=========
YEAR ENDED OCTOBER 31,
-------------------------------------------------------------------------------------------
1994 1995 1996 1997 1998
----------------------- ------------------------ PRO FORMA HISTORICAL HISTORICAL
CANADA U.S. CANADA U.S. COMBINED COMBINED COMBINED
---------- ---------- ---------- ----------- ---------- ---------- ----------
OTHER OPERATING DATA:
Pre-tax operating margin,
excluding goodwill........... 19.3% 30.3% 24.2% 29.2% 23.9% 22.4% 22.2%
Average commissions per
revenue trade................ $ 62.42 $ 46.77 $ 47.42 $ 45.61 $ 47.72 $ 39.73 $ 28.82
Average trades per day
Electronic................... 650 209 970 1,645 5,415 11,200 28,621
Total........................ 6,488 6,431 6,532 8,774 23,197 32,471 56,173
Total accounts................ 335,000 363,000 358,000 455,000 1,028,000 1,373,000 2,302,000
Total active accounts(2)...... 235,000 171,000 251,000 251,000 708,000 960,000 1,609,000
Number of new accounts........ 78,000 82,000 83,000 90,000 246,000 324,000 531,000
Total customer assets (in
billions).................... $ 9.2 $ 7.3 $ 11.0 $ 11.6 $ 28.7 $ 42.0 $ 75.9
Total employees............... 990 655 916 1,023 2,773 3,006 4,217
Total branches................ 24 66 27 73 119 144 192
THREE MONTHS ENDED
JANUARY 31,
-----------------------
1998 1999
HISTORICAL HISTORICAL
COMBINED COMBINED
---------- ----------
OTHER OPERATING DATA:
Pre-tax operating margin,
excluding goodwill........... 18.8% 22.0%
Average commissions per
revenue trade................ $ 32.79 $ 24.14
Average trades per day
Electronic................... 19,038 61,562
Total........................ 42,237 97,981
Total accounts................ 1,695,000 2,467,000
Total active accounts(2)...... 1,172,000 1,736,000
Number of new accounts........ 99,000 167,000
Total customer assets (in
billions).................... $ 52.0 $ 95.7
Total employees............... 3,470 4,534
Total branches................ 167 200
6
JANUARY 31, 1999
-------------------------
ACTUAL AS ADJUSTED
---------- -----------
(IN THOUSANDS)
COMBINED STATEMENT OF FINANCIAL CONDITION DATA:
Cash and cash equivalents................................... $ 484,137 $
Securities owned, at market value........................... 62,077
Receivable from customers................................... 3,470,265
Total assets................................................ 5,482,699
Deposits received for securities loaned..................... 2,048,999
Payable to customers........................................ 1,903,272
Equity...................................................... 1,035,648
|
