TD Ameritrade Holding Corp (NASDAQ:AMTD) Q4 2015 Earnings Conference Call - Preliminary Transcript

Oct 27, 2015 • 08:30 am ET

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TD Ameritrade Holding Corp (NASDAQ:AMTD) Q4 2015 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day everyone, and welcome to the TD Ameritrade Holding Corporation's September Quarter Earnings Results Conference Call. This call is being recorded. With us today from the company is President, and Chief Executive Officer, Fred Tomczyk; and Chief Financial Officer, Steve Boyle.

At this time, I would like to turn the call over to Bill Murray, Managing Director of Investor Relations. Please go ahead, sir.

Executive
Bill Murray

Thank you, operator.

Good morning, everyone and welcome to our September quarter, and full year earnings call. Please refer to our press release, and September quarter earnings presentation, which can be found on amtd.com. The earnings presentation, includes our Safe Harbor statement, and reconciliation of certain Non-GAAP financial measures to our most comparable GAAP financial measures.

Description of risk factors are included in our most recent financial reports Forms 10-Q and 10-K. As usual this call is intended for investors and analysts, and may not be reproduced in the media, in whole or in part, without prior consent of TD Ameritrade. As is our normal custom please limit your questions to two, so we can cover as many analysts as possible.

With that, let me turn the call over to Fred.

Executive
Fredric J. Tomczyk

Thank you, Bill. Good morning and welcome, everyone.

Well, we've come to the end of our 2015 fiscal year. Strong trading and asset gathering continued to help us offset a difficult interest rate environment, which has allowed us to deliver growth and earnings, and provides us with good momentum as we start 2016. Let's start with a look at the fourth quarter highlights on Slide 3. Average client trades per day were 479,000 in the September quarter, an activity rate of 7.3%.

Net new client assets were $16.2 billion, a 9% annualized growth rate, and up 21% year-over-year. Client assets ended the quarter at $667 billion, up 2% from last year. And we earned record net revenues of $831 million, up 5% year-over-year. This resulted in our delivering $0.40 of diluted earnings per share for the quarter, which is up 5%.

We also reengaged our share buyback this quarter, repurchasing more than 7 million shares. Now let's turn to Slide 4, for a look at the full fiscal year. 2015 was a record year, with continued momentum and strength in nearly every area of our business. Average client trades per day were a record 462,000, an activity rate of 7.1% and up 8% year-over-year.

Net new client assets were a record $63 billion, a 10% annualized growth rate, our second -- our seventh consecutive year of double-digit net new client asset growth. Fee-based investment balances ended the year at $152 billion, up 6% year-over-year. Interest-sensitive assets were a record $108 billion, up 8% year-over-year.

And we earned record net revenues of $3.2 billion, up 4% from last year. This resulted in our delivering a record $1.49 in diluted earnings per share for the year, which is up 5%. And finally, we returned approximately 80% of our net income, excluding the amortization of intangibles through a