TD Ameritrade Holding 8K TD Ameritrade Achieves Record Quarter | SEC 18 Jul 06

Exhibit 99.1


At the Company:		For Investors:
Katrina Becker		Tim Nowell
Director, Corporate Communications		Director, Investor Relations
(402) 578-3193		(402) 597-8440
katrina.becker@tdameritrade.com		timothy.nowell@tdameritrade.com

TD AMERITRADE ACHIEVES RECORD QUARTER

Asset-Based Revenues Soar to Nearly 59 Percent

OMAHA, Neb., July 18, 2006—Increased interest rates, spreads and client cash balances have helped TD AMERITRADE Holding Corporation (NASDAQ: AMTD) close the books on a record quarter,⁽¹⁾ furthering its long-term growth strategy as asset-based revenues close in on 60 percent for the first time.

Results for the quarter ended June 30, 2006, are further illustrated by the following:

	•		Record net income⁽¹⁾ of $140 million, or $0.23 per diluted share;

	•		Record non-GAAP EPS⁽²⁾ of $0.27;

	•		Record pre-tax income⁽¹⁾ of $233 million, or 43 percent of net revenues;

	•		Record operating margin⁽²⁾ of $288 million, or 53 percent;

	•		Record EBITDA^{(1) (2)} of $287 million, or 53 percent;

	•		Record net revenues of $540 million;

	•		Average client trades per day of approximately 253,000;

	•		Annualized return on equity of 36 percent for the quarter;

	•		Client assets of approximately $255.3 billion, including $37.5 billion of client cash and money market funds;

	•		Liquid assets⁽²⁾ of $421 million; cash and cash equivalents of $395 million;

	•		128,000 new accounts at an average cost of $432 per account, 59,000 closed accounts, 6,139,000 Total Accounts, 3,260,000 Qualified Accounts;⁽³⁾ and

	•		Average client margin balances of approximately $7.9 billion. On June 30, 2006, client margin balances were approximately $7.8 billion.

“Despite a decline in investor activity in June, we realized a record quarter, thanks in part to an increase in asset-based revenues,” said Joe Moglia, chief executive officer.

Updating Guidance

The Company has increased its earnings projections for fiscal year 2007 to $0.99 to $1.21 per share and confirms its guidance for the fourth quarter of fiscal year 2006. Guidance for fiscal 2006 has been

tightened to $0.94 to $1.00, or $0.87 to $0.93 excluding a one-time gain realized on the sale of the Company’s investment in Knight Capital Group, Inc.⁽²⁾ Further details can be found in the “Outlook Statement” section of the Company’s corporate Web site, located at www.amtd.com.

“We continue to focus on completing the TD Waterhouse integration and positioning TD AMERITRADE for growth in the long-term investor segment,” Moglia continued. “Over the next year, we expect the investments we are making in our technology, value propositions and brand to deliver results that will enhance our growth and strengthen our market position going into 2008.”

Company Hosts Conference Call

The Company will host its June Quarter conference call this morning, July 18, 2006, at 7:30 a.m. CT. Participants may listen to the call by dialing 800-811-7286. The Company will Webcast the call atwww.amtd.com

As the Company will be discussing a number of financial metrics, participants are encouraged to download the slides associated with the presentation from the Web site before the start of the call. A podcast and an archived version of the presentation, including the materials discussed, will be available following the call.

AMTD-E

About TD AMERITRADE Holding Corporation

TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,⁽⁴⁾ provides a dynamic balance of investment products and services that furthers the Independent Spirit of individual investors. The Company’s full spectrum of services include a leading active trader program and long-term investor solutions, including a national branch system, as well as relationships with one of the largest networks of independent registered investment advisors. The Company’s common stock trades under the ticker symbol AMTD. For more information, please visitwww.amtd.com.

Forward-looking Statements

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 statements regarding financial guidance and future operations are forward-looking statements. These statements reflect only our current expectations or plans and are not guarantees of future performance, results or operations. 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, integration associated with the TD Waterhouse transaction, realization of synergies from the TD Waterhouse transaction, regulatory and legal matters and uncertainties and other risk factors described in our latest Quarterly Report on Form 10-Q filed with the SEC on May 9, 2006 and our latest Annual Report on Form 10-K filed with the SEC on Dec. 14, 2005. 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⁾		Record quarter references $0.23 earnings per share, which was also achieved in the fourth fiscal quarter of 2005. All records referenced exclude a one-time gain realized on the sale of the Company’s investment in Knight Capital Group, Inc. when comparing to the second fiscal quarter of 2006.

⁽²⁾		See attached reconciliation of financial measures.

⁽³⁾		Total Accounts include all open client accounts (funded and unfunded), except clearing accounts, and include those accounts purchased in the TD Waterhouse acquisition and excludes those accounts included in the sale of Ameritrade Canada to TD Bank Financial Group. Qualified Accounts include all open client accounts with a total liquidation value greater than or equal to $2,000, except clearing accounts. See Glossary of Terms on the Company’s web site atwww.amtd.com for additional information.

⁽⁴⁾		TD AMERITRADE, Inc., member NASD/SIPC, receives clearing and custodial services from Ameritrade, Inc., member NASD/SIPC, and National Investor Services Corporation (NISC), member NYSE/SIPC. TD AMERITRADE, Ameritrade and NISC are subsidiaries of TD AMERITRADE Holding Corporation.

TD AMERITRADE HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
In thousands, except per share data
(Unaudited)


	Quarter Ended						Nine Months Ended
	June 30, 2006			June 24, 2005			June 30, 2006			June 24, 2005
Revenues:
Transaction-based revenues:
Commissions and transaction fees	$	213,173		$	113,077		$	564,366		$	394,596

Asset-based revenues:
Interest revenue		297,949			137,396			729,351			366,797
Brokerage interest expense		(98,580	)		(38,678	)		(228,982	)		(93,526	)

Net interest revenue		199,369			98,718			500,369			273,271

Money market deposit account fees		69,043			—			114,350			—
Money market and other mutual fund fees		49,492			6,347			89,656			17,840

Total asset-based revenues		317,904			105,065			704,375			291,111

Other revenues		9,265			16,212			46,088			43,133

Net revenues		540,342			234,354			1,314,829			728,840


Expenses:
Employee compensation and benefits		90,414			43,972			247,029			130,811
Fair value adjustments of compensation-related derivative instruments		2,234			0			1,248			0
Clearing and execution costs		25,810			7,181			50,760			20,081
Communications		20,604			8,307			46,522			27,203
Occupancy and equipment costs		21,261			12,424			54,456			33,018
Depreciation and amortization		6,171			2,492			14,835			7,324
Amortization of acquired intangible assets		13,673			3,405			28,463			10,219
Professional services		25,357			7,947			65,441			26,722
Interest on borrowings		33,915			497			60,358			1,503
Other		12,480			4,067			27,881			12,926
Advertising		55,344			21,672			129,385			72,307
Fair value adjustments of investment-related derivative instruments		0			(14,495	)		11,703			(11,826	)

Total expenses		307,263			97,469			738,081			330,288

Income before other income and income taxes		233,079			136,885			576,748			398,552

Other income:
Gain on disposal of investment		0			0			78,840			0

Pre-tax income		233,079			136,885			655,588			398,552
Provision for income taxes		93,262			53,299			256,939			153,186

Net income	$	139,817		$	83,586		$	398,649		$	245,366


Basic earnings per share	$	0.23		$	0.21		$	0.76		$	0.61
Diluted earnings per share	$	0.23		$	0.20		$	0.75		$	0.60

Weighted average shares outstanding — basic		608,476			403,017			522,410			403,911
Weighted average shares outstanding — diluted		619,707			411,074			533,997			412,250

TD AMERITRADE HOLDING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(Unaudited)


	June 30, 2006		Sept. 30, 2005
Assets:
Cash and cash equivalents	$	395,306	$	171,064
Short-term investments		24,775		229,819
Segregated cash and investments		7,083,572		7,595,359
Broker/dealer receivables		3,994,844		3,420,226
Client receivables		7,799,378		3,784,688
Goodwill and intangible assets		2,758,205		1,028,974
Other		262,130		186,980

Total assets	$	22,318,210	$	16,417,110


Liabilities and stockholders’ equity:

Liabilities:
Broker/dealer payables	$	6,873,341	$	4,449,686
Client payables		11,153,427		10,095,837
Prepaid variable forward derivative instrument		—		20,423
Prepaid variable forward contract obligation		—		39,518
Broker/dealer notes payable		110,000		—
Long-term debt		1,889,625		—
Other		642,500		292,779

Total liabilities		20,668,893		14,898,243
Stockholders’ equity		1,649,317		1,518,867

Total liabilities and stockholders’ equity	$	22,318,210	$	16,417,110

TD AMERITRADE HOLDING CORPORATION
SELECTED OPERATING DATA


	Quarter Ended						Nine Months Ended
	June 30, 2006			June 24, 2005			June 30, 2006			June 24, 2005
Trading Activity Metrics:
Total trades (in millions)		15.9			8.9			41.5			30.0
Average commissions and transaction fees per trade	$	13.39		$	12.72		$	13.61		$	13.16
Average client trades per day		252,784			138,930			221,133			159,102
Average client trades per account (annualized)		10.4			9.7			10.8			11.2
Activity rate		4.1	%		3.8	%		4.3	%		4.4	%
Trading days		63.0			64.0			187.5			188.5

Interest Revenue Metrics:
Segregated cash:
Average balance (in billions)	$	7.2		$	7.6		$	7.4		$	7.8
Average annualized yield		4.71	%		2.80	%		4.22	%		2.33	%

Interest revenue (in millions)	$	86.0		$	53.8		$	236.3		$	138.4


Client margin balances:
Average balance (in billions)	$	7.9		$	3.4		$	6.1		$	3.5
Average annualized yield		7.81	%		5.79	%		7.56	%		5.42	%

Interest revenue (in millions)	$	155.7		$	50.4		$	351.9		$	143.8


Securities borrowing:
Average balance (in billions)	$	3.5		$	3.8		$	3.3		$	4.0
Average annualized yield		5.54	%		3.19	%		4.94	%		2.63	%

Interest revenue (in millions)	$	49.1		$	30.7		$	123.0		$	79.7

Interest revenue — other (in millions)	$	7.1		$	2.5		$	18.2		$	4.9

Interest revenue — total (in millions)	$	297.9		$	137.4		$	729.4		$	366.8


Brokerage Interest Expense Metrics:
Client credit balances:
Average balance (in billions)	$	10.3		$	9.3		$	9.9		$	9.5
Average annualized cost		1.07	%		0.53	%		0.96	%		0.39	%

Interest expense (in millions)	$	27.9		$	12.4		$	71.9		$	28.2


Securities lending:
Average balance (in billions)	$	6.5		$	4.6		$	5.4		$	4.8
Average annualized cost		4.22	%		2.25	%		3.79	%		1.81	%

Interest expense (in millions)	$	69.8		$	26.1		$	155.4		$	65.7

Brokerage interest expense — other (in millions)	$	0.9		$	0.2		$	1.7			($0.4	)

Brokerage interest expense — total (in millions)	$	98.6		$	38.7		$	229.0		$	93.5


Other Revenue Metrics:
Money market deposit account fees:
Average balance (in billions)	$	8.4			N/A		$	4.9			N/A
Average annualized yield		3.27	%		N/A			3.05	%		N/A
Fee revenue (in millions)	$	69.0			N/A		$	114.4			N/A

Money market mutual fund fees:
Average balance (in billions)	$	16.5		$	2.9		$	10.8		$	2.7
Average annualized yield		0.76	%		0.73	%		0.75	%		0.72	%
Fee revenue (in millions)	$	31.7		$	5.3		$	61.3		$	14.9

Other mutual fund fees:
Average balance (in billions)	$	34.7		$	3.3		$	22.2		$	3.1
Average annualized yield		0.20	%		0.13	%		0.17	%		0.13	%
Fee revenue (in millions)	$	17.8		$	1.0		$	28.4		$	2.9

Client Account and Client Asset Metrics:
Qualified accounts (beginning of period)		3,293,000			1,730,000			1,735,000			1,677,000
Qualified accounts (end of period)		3,260,000			1,730,000			3,260,000			1,730,000
Percentage increase (decrease) during period		(1	%)		0	%		88	%		3	%

Total accounts (beginning of period)		6,070,000			3,665,000			3,717,000			3,520,000
Total accounts (end of period)		6,139,000			3,689,000			6,139,000			3,689,000
Percentage increase (decrease) during period		1	%		1	%		65	%		5	%

Client assets (beginning of period, in billions)	$	262.9		$	75.6		$	83.3		$	68.8
Client assets (end of period, in billions)	$	255.3		$	78.8		$	255.3		$	78.8
Percentage increase (decrease) during period		(3	%)		4	%		206	%		15	%

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

TD AMERITRADE HOLDING CORPORATION
RECONCILIATION OF FINANCIAL MEASURES
In thousands, except percentages, per share amounts and Outlook ranges
(Unaudited)


													Outlook Range*
	Quarter Ended						Nine Months Ended						(in millions)
	June 30, 2006			June 24, 2005			June 30, 2006			June 24, 2005			Full Year 2006
Net Income Excluding Investment Gains/Losses (1)
Net income, as reported	$	139,817		$	83,586		$	398,649		$	245,366		$	524.8 - $560.2
Adjustments:
Gain on disposal of investment		—			—			(78,840	)		—			(78.8	)
Fair value adjustments of investment-related derivative instruments		—			(14,495	)		11,703			(11,826	)		11.7
Income tax effect of above adjustments		—			5,581			25,848			4,553			25.8

Net income excluding investment gains/losses	$	139,817		$	74,672		$	357,360		$	238,093		$	483.5 - $518.9


EPS Excluding Investment Gains/Losses (1)
Diluted earnings per share, as reported	$	0.23		$	0.20		$	0.75		$	0.60		$	0.94-$1.00
Adjustments on a per share basis, net of income tax effect:
Gain on disposal of investment		—			—			(0.09	)		—			(0.08	)
Fair value adjustments of investment-related derivative instruments		—			(0.02	)		0.01			(0.02	)		0.01

EPS excluding investment gains/losses	$	0.23		$	0.18		$	0.67		$	0.58		$	0.87 - $0.93


Non-GAAP Net Income (2)
Net income, as reported	$	139,817		$	83,586		$	398,649		$	245,366		$	524.8 - $560.2
Adjustments:
Amortization of acquired intangible assets		13,673			3,405			28,463			10,219			41.8
Interest on borrowings		33,915			497			60,358			1,503			93.6
Gain on disposal of investment		—			—			(78,840	)		—			(78.8	)
Fair value adjustments of investment-related derivative instruments		—			(14,495	)		11,703			(11,826	)		11.7
Income tax effect of above adjustments		(18,494	)		4,078			(8,758	)		40			(26.9	)

Non-GAAP net income	$	168,911		$	77,071		$	411,575		$	245,302		$	566.2 - $601.6


Non-GAAP EPS (2)
Diluted earnings per share, as reported	$	0.23		$	0.20		$	0.75		$	0.60		$	0.94-$1.00
Adjustments on a per share basis, net of income tax effect:
Amortization of acquired intangible assets		0.01			0.01			0.03			0.02			0.04
Interest on borrowings		0.03			—			0.07			—			0.10
Gain on disposal of investment		—			—			(0.09	)		—			(0.08	)
Fair value adjustments of investment-related derivative instruments		—			(0.02	)		0.01			(0.02	)		0.01

Non-GAAP earnings per share	$	0.27		$	0.19		$	0.77		$	0.60		$	1.01 - $1.07


	Quarter Ended												Nine Months Ended
	June 30, 2006						June 24, 2005						June 30, 2006						June 24, 2005
	$			% of Rev.			$			% of Rev.			$			% of Rev.			$			% of Rev.
Operating Margin (3)
Operating margin	$	288,423			53.3	%	$	144,062			61.5	%	$	717,836			54.6	%	$	459,033			63.0	%
Less:
Advertising		(55,344	)		(10.2	%)		(21,672	)		(9.2	%)		(129,385	)		(9.8	%)		(72,307	)		(9.9	%)
Fair value adjustments of investment-related derivative instruments		0			0.0	%		14,495			6.1	%		(11,703	)		(0.9	%)		11,826			1.6	%

Income before other income and income taxes		233,079			43.1	%		136,885			58.4	%		576,748			43.9	%		398,552			54.7	%
Gain on disposal of investment		0			0.0	%		0			0.0	%		78,840			6.0	%		0			0.0	%

Pre-tax income	$	233,079			43.1	%	$	136,885			58.4	%	$	655,588			49.9	%	$	398,552			54.7	%


EBITDA and EBITDA Excluding Investment Gains (4)
EBITDA excluding investment gains	$	286,838			53.1	%	$	143,279			61.1	%	$	680,404			51.7	%	$	417,598			57.3	%
Plus: Gain on disposal of investment		0			0.0	%		0			0.0	%		78,840			6.0	%		0			0.0	%

EBITDA		286,838			53.1	%		143,279			61.1	%		759,244			57.7	%		417,598			57.3	%
Less:
Depreciation and amortization		(6,171	)		(1.2	%)		(2,492	)		(1.0	%)		(14,835	)		(1.1	%)		(7,324	)		(1.0	%)
Amortization of acquired intangible assets		(13,673	)		(2.5	%)		(3,405	)		(1.5	%)		(28,463	)		(2.1	%)		(10,219	)		(1.4	%)
Interest on borrowings		(33,915	)		(6.3	%)		(497	)		(0.2	%)		(60,358	)		(4.6	%)		(1,503	)		(0.2	%)

Pre-tax income	$	233,079			43.1	%	$	136,885			58.4	%	$	655,588			49.9	%	$	398,552			54.7	%


	As of
	June 30,			Mar. 31,			Dec. 31,			Sept. 30,			June 24,
	2006			2006			2005			2005			2005
Liquid Assets (5)
Liquid assets	$	421,055		$	374,423		$	489,938		$	396,708		$	271,117
Plus: Broker-dealer cash and cash equivalents		322,960			411,208			122,444			107,236			205,408
Less:
Non broker-dealer short-term investments		(24,775	)		(40,000	)		(302,921	)		(229,819	)		(20,000	)
Excess broker-dealer regulatory net capital		(323,934	)		(262,221	)		(121,342	)		(103,061	)		(189,209	)

Cash and cash equivalents	$	395,306		$	483,410		$	188,119		$	171,064		$	267,316

Note: The term “GAAP” in the following explanations refers to generally accepted accounting principles in the United States.


*		Outlook Range is from the July 18, 2006 Outlook Statement.

(1)		Net income excluding investment gains/losses and earnings per share (EPS) excluding investment gains/losses are Non-GAAP financial measures as defined by SEC Regulation G. We define net income excluding investment gains/losses as net income, adjusted to remove the after-tax effect of investment-related gains and losses. We consider net income excluding investment gains/losses and EPS excluding investment gains/losses important measures of our financial performance. Gains/losses on investments and investment-related derivatives are excluded because we believe they are not likely to be indicative of the ongoing operations of our business. Net income excluding investment gains/losses and EPS excluding investment gains/losses should be considered in addition to, rather than as a substitute for, GAAP net income and EPS.

(2)		Non-GAAP net income and Non-GAAP earnings per share (EPS) are Non-GAAP financial measures as defined by SEC Regulation G. We define Non-GAAP net income as net income, adjusted to remove the after-tax effect of amortization of acquired intangible assets, interest on borrowings, fair value adjustments of investment-related derivative instruments and any unusual gains or charges. We consider Non-GAAP net income and Non-GAAP EPS important measures 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. Amortization of acquired intangible assets and fair value adjustments of investment-related derivative instruments are excluded because they are non-cash expenses that do not require further cash investment. Interest on borrowings is excluded because we use these measures as an indicator of the earnings available to service debt. Unusual gains and charges are excluded because we believe they are not likely to be indicative of the ongoing operations of our business. Non-GAAP net income and EPS should be considered in addition to, rather than as a substitute for, GAAP net income and EPS.

(3)		Operating margin is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define operating margin as pre-tax income, adjusted to remove advertising expense, fair value adjustments of investment-related derivative instruments and any unusual gains or charges. We consider operating margin an important measure of the financial performance of our ongoing business. Advertising spending is excluded because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Fair value adjustments of investment-related derivative instruments and unusual gains and charges are excluded because we believe they are not likely to be indicative of the ongoing operations of our business. Operating margin should be considered in addition to, rather than as a substitute for, pre-tax income, net income and earnings per share.

(4)		EBITDA (earnings before interest, taxes, depreciation and amortization) and EBITDA excluding investment gains are considered Non-GAAP financial measures as defined by SEC Regulation G. We consider EBITDA and EBITDA excluding investment gains important measures 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 eliminates the non-cash effect of tangible asset depreciation and intangible asset amortization. EBITDA excluding investment gains also eliminates the effect of unusual gains that are not likely to be indicative of the ongoing operations of our business. EBITDA and EBITDA excluding investment gains should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities.

(5)		Liquid assets is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define liquid assets as the sum of a) non broker-dealer cash and cash equivalents, b) non broker-dealer short-term investments and c) regulatory net capital of our broker-dealer subsidiaries in excess of 5% of aggregate debit items. 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 8-KTD Ameritrade Achieves Record Quarter