Here it is, folks....
RECORD INCOME AND REVENUES HIGHLIGHT
Ameritrade's Second Quarter Results
Record Number of New Accounts Opened
OMAHA, Neb., April 14 /PRNewswire/ -- Ameritrade Holding Corporation (Nasdaq: AMTD) today reported record net income of $8.1 million or
$0.14 per share, in the second quarter of fiscal 1999, compared to a net loss of $0.3 million or $0.00 per share, in the second quarter of fiscal
1998.
Ameritrade also reported record net revenues of $63.7 million for the second quarter of fiscal 1999, a 112 percent increase over the second
quarter, fiscal 1998, and a 22 percent sequential increase over the first quarter of fiscal 1999. The sequential revenue increase was achieved
despite having nine fewer trading days in the second quarter as compared to the first quarter of fiscal 1999.
The Company opened a record 82,000 new accounts in the second quarter of fiscal 1999 as individual investors enthusiastically embraced
the Ameritrade message.
"We are very proud of our second quarter results," said J. Joe Ricketts, Chairman and Co-Chief Executive Officer. "The market has been terrific,
and we are positioned beautifully to seize the opportunity. We achieved record results in virtually every key operating and financial metric this
quarter. We have demonstrated that Ameritrade is the on-line broker of choice."
Advertising expenditures were $13.2 million in the second quarter of 1999, compared to $9.6 million in the second quarter of fiscal 1998.
Pre-advertising net income before taxes (NIBT) totaled $25.8 million in the second quarter of fiscal 1999, a 177 percent increase over the
second quarter of fiscal 1998 and a 66 percent sequential increase over the first quarter of fiscal 1999.
New records were also set in customer trading activity and assets in customer accounts. Average trades per day reached 52,218 in the
second quarter, fiscal 1999, an increase of 197 percent over second quarter fiscal 1998 and a 56 percent sequential increase over the first
quarter of fiscal 1999. Assets in customer accounts reached a record $19.5 billion at March 26, 1999, a 93 percent increase over the
year-earlier assets of $10.1 billion, and a 31 percent increase over $14.9 billion total at December 31, 1998. The 82,000 new accounts
opened in the quarter on top of a base of 354,000 accounts at December 31, 1998, brought the period end total to 428,000 core discount
brokerage accounts after factoring in attrition of 8,000 accounts for the second quarter.
Net revenues for the six months of fiscal 1999 increased 108 percent to $115.8 million from $55.8 million for the same period in fiscal 1998.
Net income for the six months of fiscal 1999 was $11.8 million as compared to a net loss of $11.5 million in fiscal 1998. Pre-advertising NIBT
for the six months of fiscal 1999 totaled $41.3 million, a 147 percent jump from the $16.7 million generated in the six-month period of fiscal
1998.
Executive Appointments
Ameritrade strengthened its executive ranks with several key
appointments in the second quarter. Thomas K. Lewis, Jr., was named
Co-Chief Executive Officer of Ameritrade Holding Corporation. Lewis,
who at one time was head of technology for the Executive Office of the
President of the United States, brings a record of exceptional
achievement in building technologically advanced business
organizations.
James Ditmore has been appointed Chief Information Officer for Ameritrade Holding Corporation. Ditmore brings considerable experience as a
technology and information officer for large financial services companies.
Jack McDonnell was appointed Chief Executive Officer of Ameritrade (Inc.), the online discount brokerage subsidiary of Ameritrade Holding
Corporation. McDonnell brings a record of solid success in the operating leadership of financial services institutions.
"These fine executives have the ability to lead Ameritrade through the growth opportunities and challenges that lie before us," said Ricketts.
Outlook
"The growth in customer numbers is the most important measure of
our success," continued Ricketts. "We are beginning the second half of
our fiscal year with 428,000 core discount brokerage accounts, after
achieving more than a four-fold increase in our core customer base in
just six quarters. Acquisition cost per new account was $160 for the
quarter and now stands at $168 for the first six months. The growth in
our customer base provides us with a platform for continued success in
the second half of the year."
This press release contains forward-looking statements and comments on market conditions, expense management, and outlook. Any
number of conditions may occur which would affect important factors in this analysis and materially change expectations. These factors
include, but are not limited to, customer trading activity, changes in technology, shifts in competitive patterns, decisions with regard to products
and services, changes in revenues and profits, and significant changes in the market environment at home or abroad.
Ameritrade Holding Corporation is a financial services firm located in Omaha, Neb., offering discount brokerage and securities clearing. Press
releases and other information can be found on the Company web site at www.amtd.com. Ameritrade Holding Corporation trades on the
Nasdaq Stock Market under the symbol "AMTD".
AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Quarter ended Six months ended
Mar. 26, Mar. 27, Mar. 26, Mar. 27,
1999 1998 1999 1998
Revenues:
Commissions and
clearing fees $46,853,025 $19,434,307 $83,566,382 $35,209,381
Interest revenue 24,675,250 14,798,690 47,715,180 27,908,539
Equity income
from investments -- 1,204,639 -- 2,527,693
Other 2,391,457 1,324,060 4,614,844 2,480,749
Total revenues 73,919,732 36,761,696 135,896,406 68,126,362
Interest expense 10,257,651 6,684,080 20,117,417 12,373,053
Net revenues 63,662,081 30,077,616 115,778,989 55,753,309
Expenses excluding
interest:
Employee
compensation
and benefits 14,932,223 7,927,199 28,364,340 14,691,907
Commissions and
clearance 2,166,869 1,296,841 4,032,907 2,272,429
Communications 4,518,520 3,332,028 7,971,435 6,456,836
Occupancy and
equipment costs 4,613,797 2,269,363 8,736,185 4,213,046
Advertising 13,154,599 9,572,470 22,797,109 34,513,770
Other 11,646,463 5,996,445 25,355,684 11,417,773
Total expenses
excluding
interest 51,032,471 30,394,346 97,257,660 73,565,761
Income before
provision for
income taxes 12,629,610 (316,730) 18,521,329 (17,812,452)
Provision for
income taxes 4,551,389 (45,856) 6,701,601 (6,292,236)
Net Income $8,078,221 $(270,874) $11,819,728 $(11,520,216)
Basic earnings
per share
(split adjusted) $0.14 $(0.00) $ 0.20 $(0.20)
Diluted earnings per
share (split
adjusted) $0.14 $(0.00) $ 0.20 $(0.20)
Weighted average
shares outstanding
- basic 58,111,569 58,070,419 58,082,441 58,069,915
Weighted average
shares outstanding
- diluted 58,575,690 58,105,164 58,509,462 58,106,758
AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
Mar. 26, 1999 Sept. 25, 1998
Assets:
Cash and segregated
investments $606,285,762 $527,982,289
Customer receivables 1,220,290,648 647,121,854
Other 278,412,212 115,297,533
Total assets $2,104,988,622 $1,290,401,676
Liabilities and Stockholders' Equity
Liabilities:
Customer payables $1,686,377,780 $1,136,082,337
Note payable to bank 38,000,000 11,000,000
Other 176,306,307 58,747,255
Total liabilities 1,900,684,087 1,205,829,592
Stockholders' equity 204,304,535 84,572,084
Total liabilities and
stockholders' equity $2,104,988,622 $1,290,401,676
AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA
Quarter ended
Mar. 26, Dec. 31, Sept. 25,
1999 1998 1998
Trading days 58 67 63
Average customer trades
per day 52,218 33,489 24,328
Assets in customer
accounts (in billions) $19.5 $14.9 $11.4
Core discount brokerage(a):
Open accounts 428,000 354,000 306,000
Source of customer trades:
Internet 78% 75% 72%
Other on-line 6% 7% 8%
Registered representative 16% 18% 20%
(a) Statistics below relate to the core discount brokerage account base
only. Total customer base including core accounts and non-core
accounts (primarily clearing accounts and bank referral accounts)
total 569,000 at 3/26/99.
SOURCE Ameritrade Holding Corporation
04/14/99 /NOTE TO EDITORS: For more
information on Ameritrade Holding Corp., dial 1-800-PRO-INFO and enter
the ticker "AMTD" (a no-cost fax-on-demand service) or visit the
Company web site/
/CONTACT: Kris Lutz, Director, Investor Relations of Ameritrade,
800-237-8692, ext. 7755; or Media, Kim Shepherd, or Analysts, Jim
Fitzpatrick, 312-553-0700, both of The Dilenschneider Group/
(AMTD)
CO: Ameritrade Holding Corporation ST: Nebraska IN: FIN SU: ERN |
