| Ameritrade Holding Corporation Datek Online Holdings Corp. Commission File Number 0-22163 |
FOR IMMEDIATE RELEASE
| At Ameritrade: Donna Kush, Ameritrade Director, Corp. Communications (402) 827-8931 dkush@ameritrade.com | For Media: Ann Pinkerton, Magnet Communications (212) 367-6865 apinkerton@magnetcom.com |
For Investors and Analysts:
Dave Pleiss, Ameritrade
Director, Investor Relations
(402) 597-5658
dpleiss@ameritrade.com
AMERITRADE POSTS FOURTH CONSECUTIVE PROFITABLE QUARTER
Continues Positive Cash Flow
Datek Merger Will Be Immediately Accretive & Increase Long-term Earnings Growth
OMAHA, Neb., April 23, 2002 — Announcing earnings for the fiscal quarter ended March 29, 2002, Ameritrade Holding Corporation (Nasdaq:AMTD) today demonstrated its ability to continue to manage for profitability despite market conditions.
Second Quarter Highlights and Year-Over-Year Comparisons:
| • | Net income of $1.9 million or $0.01 per share, compared to a loss of $54.2 million or $0.30 loss per share; | |
| • | Operating margin of 24%, or $25.8 million, compared to 13% or $15.6 million; | |
| • | 76,000 new accounts opened at an average cost per account of $294, bringing total core brokerage accounts to 1,877,000, an increase of 27%; | |
| • | Net revenues of $106.7 million, compared to $119.0 million; | |
| • | Average trades per day of 89,129, compared to 113,164. |
“Even though trading levels are still down, we have clearly shown that we are effectively managing the factors within our control in order to maintain one of the best operating margins in the industry,” said Joe Moglia, chief executive officer of Ameritrade.
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| Ameritrade Holding Corporation Datek Online Holdings Corp. Commission File Number 0-22163 |
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Following the Company’s recent landmark merger agreement with Datek Holding Corporation, Mr. Moglia added, “We are creating a new leader in online equity trades and uniting two firms with the fastest growing account bases, lowest cost operations and highest operating margins among our peer group. By combining Datek’s products, tools and technology with Ameritrade’s excellent client service, we will create a new standard for self-directed investors. All of this, in addition to the synergies we expect to realize, makes us well-positioned for exceptional growth and profitability.”
Outlook
Ameritrade has updated its current projections for fiscal years 2002 and 2003 in the “Outlook Statement” section of its corporate website located at www.amtd.com.
About the Datek Transaction
Information about the proposed merger with Datek Online is available at www.amtd.com
SHAREHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS THAT WILL BE INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-4 CONCERNING THIS TRANSACTION TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. INVESTORS WILL BE ABLE TO OBTAIN THIS DOCUMENT WHEN FILED FOR FREE FROM THE COMMISSION’S WEB SITE AT WWW.SEC.GOV OR FROM AMERITRADE BY CONTACTING ITS CORPORATE SECRETARY.
About Ameritrade
Ameritrade Holding Corporation (www.amtd.com) is a pioneer in the online brokerage industry with a 27-year history of providing clients a self-directed approach to investment services. The award-winning Company, through its Private Client and Institutional Client divisions, provides tiered levels of brokerage products and services tailored to meet the varying investing, trading and execution needs of individual investors, financial institutions and corporations.
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| Ameritrade Holding Corporation Datek Online Holdings Corp. Commission File Number 0-22163 |
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Safe Harbor
This document contains forward-looking statements regarding future events or the future performance of the Company. Various factors could cause actual results to differ materially from those anticipated. Readers of this document are advised to check the documents filed by the Company with the U.S. Securities & Exchange Commission, including Forms 10-K and 10-Q for descriptions of risks and uncertainties related to forward-looking statements.
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| Ameritrade Holding Corporation Datek Online Holdings Corp. Commission File Number 0-22163 |
AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
(Unaudited)
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||
| Mar. 29, 2002 | Mar. 30, 2001 | Mar. 29, 2002 | Mar. 30, 2001 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Commissions and clearing fees | $ | 63,789 | $ | 76,378 | $ | 129,448 | $ | 158,459 | ||||||||||||||||||
| Interest revenue | 27,647 | 52,287 | 56,773 | 113,663 | ||||||||||||||||||||||
| Other | 17,873 | 5,141 | 34,373 | 10,130 | ||||||||||||||||||||||
| Total revenues | 109,309 | 133,806 | 220,594 | 282,252 | ||||||||||||||||||||||
| Client interest expense | 2,573 | 14,819 | 5,668 | 32,344 | ||||||||||||||||||||||
| Net revenues | 106,736 | 118,987 | 214,926 | 249,908 | ||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Employee compensation and benefits | 33,659 | 42,295 | 66,584 | 81,667 | ||||||||||||||||||||||
| Communications | 8,902 | 10,703 | 18,862 | 19,693 | ||||||||||||||||||||||
| Occupancy and equipment costs | 14,733 | 15,882 | 28,298 | 32,087 | ||||||||||||||||||||||
| Depreciation and amortization | 7,054 | 7,236 | 13,791 | 15,355 | ||||||||||||||||||||||
| Professional services | 9,212 | 15,949 | 16,502 | 33,427 | ||||||||||||||||||||||
| Interest on borrowings | 1,065 | 2,856 | 2,891 | 7,537 | ||||||||||||||||||||||
| Other | 6,341 | 8,461 | 12,407 | 18,210 | ||||||||||||||||||||||
| Total operating expenses | 80,966 | 103,382 | 159,335 | 207,976 | ||||||||||||||||||||||
| Operating margin | 25,770 | 15,605 | 55,591 | 41,932 | ||||||||||||||||||||||
| Advertising | 22,342 | 44,343 | 36,922 | 107,832 | ||||||||||||||||||||||
| Debt conversion expense | 0 | 62,082 | 0 | 62,082 | ||||||||||||||||||||||
| Income (loss) before income taxes | 3,428 | (90,820 | ) | 18,669 | (127,982 | ) | ||||||||||||||||||||
| Income tax expense (benefit) | 1,481 | (36,629 | ) | 7,719 | (50,759 | ) | ||||||||||||||||||||
| Net income (loss) | $ | 1,947 | $ | (54,191 | ) | $ | 10,950 | $ | (77,223 | ) | ||||||||||||||||
| Basic earnings (loss) per share | $ | 0.01 | $ | (0.30 | ) | $ | 0.05 | $ | (0.43 | ) | ||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.01 | $ | (0.30 | ) | $ | 0.05 | $ | (0.43 | ) | ||||||||||||||||
| Weighted average shares outstanding — basic | 215,917 | 179,462 | 215,722 | 179,378 | ||||||||||||||||||||||
| Weighted average shares outstanding — diluted | 216,890 | 179,462 | 216,631 | 179,378 | ||||||||||||||||||||||
| Ameritrade Holding Corporation Datek Online Holdings Corp. Commission File Number 0-22163 |
AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(Unaudited)
| Mar. 29, 2002 | Sept. 28, 2001 | |||||||||
| Assets: | ||||||||||
| Cash and cash equivalents | $ | 27,874 | $ | 24,134 | ||||||
| Segregated cash and investments | 2,560,097 | 2,044,257 | ||||||||
| Client receivables | 1,325,543 | 971,823 | ||||||||
| Other | 986,389 | 613,657 | ||||||||
| Total assets | $ | 4,899,903 | $ | 3,653,871 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Liabilities: | ||||||||||
| Client payables | $ | 3,295,684 | $ | 2,777,916 | ||||||
| Notes payable | 47,645 | 70,145 | ||||||||
| Other | 1,172,245 | 434,377 | ||||||||
| Total liabilities | 4,515,574 | 3,282,438 | ||||||||
| Stockholders’ equity | 384,329 | 371,433 | ||||||||
| Total liabilities and stockholders’ equity | $ | 4,899,903 | $ | 3,653,871 | ||||||
AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA
| Quarter ended | ||||||||||||||||
| Mar. 29, 2002 | Dec. 31, 2001 | Sept. 28, 2001 | ||||||||||||||
| Trading days | 60 | 64 | 59 | |||||||||||||
| Average client trades per day | 89,129 | 86,028 | 73,100 | |||||||||||||
| Assets in client accounts (in billions) | $ | 31.6 | $ | 31.6 | $ | 26.1 | ||||||||||
| Core brokerage open accounts(*) | 1,877,000 | 1,829,000 | 1,794,000 | |||||||||||||
* This relates to the core brokerage account base only. Total client base including core accounts and non-core accounts (primarily clearing accounts, stock option administration accounts and bank referral accounts) total 2,220,000 at 3/29/02.
