TD AMERITRADE Delivers Record Organic Growth in Fiscal 2009

Record Net New Assets of $27 billion
Record Gross New Accounts of 737,000
Record Trades Per Day of 372,000⁽¹⁾
Fiscal Year Earnings Per Share of $1.10

• Press Release
• Source: TD AMERITRADE Holding Corporation
• On 7:30 am EDT, Tuesday October 27, 2009

OMAHA, Neb.--(BUSINESS WIRE)--TD AMERITRADE Holding Corporation (NASDAQ: AMTD - News) has released results for fiscal 2009. Despite facing challenges related to struggling stock markets, a near-zero interest rate environment and an economic recession, the Company delivered a strong financial performance as a result of record organic growth in client assets and trading activity.

Related Quotes

Symbol	Price	Change
AMTD	20.24	-0.67

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The Company’s results for the fiscal year ended Sept. 30, 2009 include the following (year-over-year comparisons): ⁽²⁾

• Net income of $644 million, or $1.10 per diluted share
• Record average client trades per day of approximately 372,000, an increase of 23 percent⁽¹⁾
• Record net new assets of approximately $27 billion, or an annualized growth rate of 10 percent on beginning client assets
• Record gross new accounts of 737,000, an increase of 14 percent
• Record spread-based balances of approximately $32 billion, an increase of 25 percent
• Fee-based balances of approximately $59 billion, a decrease of 16 percent
• Net revenues of $2.4 billion, 46 percent of which were asset-based
• Pre-tax income of $1.1 billion, or 44 percent of net revenues
• EBITDA of $1.2 billion, or 51 percent of net revenues⁽³⁾
• Liquid assets of $1.1 billion⁽³⁾
• Client assets of approximately $302 billion, including $58 billion in client cash

“Over the last year, we have leveraged our strong financial position and client-centric business model to deliver record organic growth, despite a very challenging market environment,” said Fred Tomczyk, president and chief executive officer. “Through all of the challenges of the last year, we have remained focused on managing for the other side of the cycle and positioning ourselves for continued growth in 2010 and beyond.”

“In addition to delivering record organic growth, we took several steps to strengthen our financial position in 2009,” said Bill Gerber, executive vice president and chief financial officer. “We utilized 70 percent of our net income to repurchase company stock worth more than $450 million, at a weighted-average purchase price of $11.94 per share. We also acquired a trading technology and education leader in thinkorswim, earned a credit rating upgrade to Investment Grade,⁽⁴⁾ and positioned ourselves for earnings growth in a rising interest-rate environment.”

In addition, the Company has released its results for the quarter ended Sept. 30, 2009, which include the following (year-over-year comparisons): ⁽²⁾

• Record average client trades per day of approximately 411,000, an increase of 35 percent⁽¹⁾
• Net new assets of approximately $5.4 billion, an annualized growth rate of 8 percent
• Record net revenues of $658 million, 41 percent of which were asset-based
• Pre-tax income of $255 million, or 39 percent of net revenues
• Net income of $157 million, or $0.26 per diluted share
• EBITDA of $301 million, or 46 percent of net revenues ⁽³⁾

Fiscal 2010 Outlook

The Company has also released its guidance range for its 2010 fiscal year and expects to earn between $1.10 and $1.40 per share.

More information on the fiscal 2010 forecast is available through the Company’s “Outlook Statement,” located in the “Investor” section of its Web site, www.amtd.com.

Company Hosts Conference Call

TD AMERITRADE will host its September Quarter conference call this morning, Oct. 27, 2009, at 7:00 a.m. CDT. Participants may listen to the call by dialing 877-440-5784. Interested parties may listen to a replay of the call by dialing 888-203-1112 and the passcode 8336314. The Company will Webcast the conference live at www.amtd.com and will make all accompanying materials available for participants to print prior to the call.

AMTD-E

About TD AMERITRADE Holding Corporation

TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,⁽⁵⁾ combines innovative trading technology, easy-to-use and understand investment tools and services, investor education and a client-centric, multi-channel sales and service model to create a market-leading financial services experience. Now home to the award-winning thinkorswim brokerage and dynamic trading platform⁽⁶⁾ and the Investools investor education program, TD AMERITRADE provides millions of retail investors, traders and independent registered investment advisors (RIAs) with the tools, service and support they need to help build confidence in today’s rapidly-changing market environment. The Company’s common stock trades under the ticker symbol AMTD. For more information, please visit www.amtd.com.

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, any projections regarding our future revenues, expenses, earnings, capital expenditures, effective tax rates, client trading activity, accounts or stock price, as well as the assumptions on which such expectations are based, are forward-looking statements. 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 general economic and political conditions, interest rates, market fluctuations and changes in client trading activity, increased competition, systems failures and capacity constraints, ability to service debt obligations, ability to realize the expected benefits from the thinkorswim acquisition, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 26, 2008 and amended on May 6, 2009, and our latest Quarterly Report on Form 10-Q filed thereafter. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

⁽¹⁾ Beginning with fiscal 2009, Average Trades Per Day were adjusted to exclude non-revenue-generating mutual fund trades. For comparability purposes, metrics for all periods in fiscal 2008 have been adjusted to account for this change. More information is available on www.amtd.com.

⁽²⁾ Results include assets acquired through the Company's purchase of thinkorswim Group Inc. on June 11, 2009. Please see the Glossary of Terms, located in “Investor” section of www.amtd.com for more information on how these metrics are calculated.

⁽³⁾ See attached reconciliation of non-GAAP financial measures.

⁽⁴⁾ Credit rating information based on disclosures from Moody’s Investor Services (Jan. 20, 2009 and April 21, 2009), Standard & Poor’s (Feb. 2, 2009) and Fitch Ratings (April 3, 2009).

⁽⁵⁾ TD AMERITRADE, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org), TD AMERITRADE Clearing, Inc., member FINRA/SIPC, and thinkorswim, Inc., member FINRA/SIPC/NFA (www.nfa.futures.org).

⁽⁶⁾ thinkorswim was rated #1 overall online broker, “best for frequent traders,” and “best for options traders” in Barron’s ranking of online brokers, 3/16/2009. thinkorswim was evaluated versus others in eight total categories, including trade experience/execution, trading technology, usability, range of offerings, research amenities, portfolio analysis & reporting, customer service & access and costs. thinkorswim topped the list in 2009 with the highest weighted-average score. Barron’s is a registered trademark of Dow Jones & Company ©2009.

Note: Certain reclassifications have been made to prior periods to conform to the current presentation.

⁽¹⁾ Effective in October 2007, total trades have been revised to exclude non-revenue generating mutual fund trades.

⁽²⁾ Average commissions and transaction fees per trade excludes thinkorswim active trader business.

NOTE: See Glossary of Terms on the Company's web site at www.amtd.com for definitions of the above metrics.

NOTE: See Glossary of Terms on the Company's web site at www.amtd.com for definitions of the above metrics.

Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States.

⁽¹⁾ EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a Non-GAAP financial measure as defined by SEC Regulation G.  We consider EBITDA 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 our senior credit facilities.  The consolidated leverage ratio determines the interest rate margin charged on the senior credit facilities.  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, pre-tax income, net income and cash flows from operating activities.

⁽²⁾ Liquid assets is considered a Non-GAAP financial measure as defined by SEC Regulation G.  We define liquid assets as the sum of (a) corporate cash and cash equivalents, (b) corporate short-term investments, (c) regulatory net capital of (i) our clearing broker-dealer subsidiary in excess of 5% of aggregate debit items and (ii) our introducing broker-dealer subsidiaries in excess of 120% of the minimum dollar net capital requirement or in excess of 8 1/3% of aggregate indebtedness and (d) Tier 1 capital of our trust company in excess of the minimum dollar requirement.  We include the excess capital of our broker-dealer and trust company subsidiaries in liquid assets, rather than simply including broker-dealer and trust cash and cash equivalents, because capital requirements may limit the amount of cash available for dividend from the broker-dealer and trust subsidiaries to the parent company.  Excess capital, as defined under clauses (c) and (d) above, is generally available for dividend from the broker-dealer and trust subsidiaries to the parent company.  We consider liquid assets an important measure of our liquidity and of our ability to fund corporate investing and financing activities.  Liquid assets should be considered as a supplemental measure of liquidity, rather than as a substitute for cash and cash equivalents.

TD AMERITRADE Holding Corporation
Kim Hillyer, 402-574-6523
Senior Manager, Communications
kim.hillyer@tdameritrade.com
or
Jeff Goeser, 402-597-8464
Director, Investor Relations and Finance
jeffrey.goeser@tdameritrade.com