This summary is based on the fourth quarter fiscal 2007 earnings call conducted by TD Ameritrade Holding Corporation (AMTD: chart) on October 23, 2007.

Chief Executive Officer: Joe Moglia
Chief Financial Officer: Bill Gerber
Investor Relations: Bill Murray

Key Investors Issues

- The earnings per share rose from 21 cents in last year to 33 cents.
- Quarterly revenue rose by $86 million over the previous year to $575 million.
- For fiscal 2007, the earnings per share were $1.06, on revenue of $2.1 billion.

Fourth Quarter Fiscal 2007 Financial Highlights

The firm has shattered all of its old earnings records this quarter, coming in at 33 cents per share, which is a 65% increase over same quarter last year and 27% higher than the second-best quarter in the firm’s history.

The firm continues to deliver outstanding pre-tax margins, finishing this quarter at 54%. The return on equity for the quarter was 39%, which is another record. EBITDA was a record $359 million or 62% of revenues, evidencing the company’s cash generation abilities.

The net revenue was a record $575 million, up $86 million or 18% from last year.

Transaction revenue of $226 million increased $61 million, almost entirely due to a boost in trading activity of 74,000 trades per day, a whopping 36% increase. Trading activity was 278,000 trades per day or a 4.4% activity rate, versus last year''s activity rate of 3.3%, or 204,000 trades per day. The average commission per trade for the quarter came in at $13 even, up 11 cents from 2006, mostly due to increases in option mix and payment for order flow.

Asset-based revenue of $342 million increased $25 million, primarily due to an increase in average balances of nearly $17 billion. Investable asset revenue was up $12 million on an increase in balances of over $3 billion, offset by a 31 basis point reduction in the net interest margin. This was primarily due to an increase in stock loan conduit business, which earns approximately 15 to 20 basis points. The firm also saw a $13 million increase in investment product fees. This is a new line item that includes money market funds, other mutual funds, and other fees that the firm earns on assets through programs like Advisor Direct and Amerivest. These assets grew by $13 billion year over year.

Expenses excluding advertising year over year are down $21 million to $234 million.

This was the result of the elimination of duplicate costs from the clearing conversion. This is slightly higher than the outlook midpoint for the quarter, as a result of the higher incentive compensation due to record results.

The firm also spent approximately $30 million in advertising this quarter, a reduction of $5 million from last year, and this was in line with the previous outlook.

The tax rate came in at 35.6% this quarter.

This was primarily because of reversal of approximately $7.5 million of reserves for uncertain tax positions, as the statute of limitations expired during the quarter.

The company continues to exhibit strength as a cash generator, which allows it to be flexible in making financial decisions that best impacts the firm.

The firm continues to hold liquid assets at a level that''s a little higher than normal in preparation for its $225 million Fiserv acquisition, which it expects to close by the end of the calendar year.

- The firm started the quarter at $431 million in liquid assets and earned $200 million in net income, and had $21 million in depreciation and amortization.
- The firm is using working capital, regulatory capital and CapEx of approximately $23 million.
- The company made $6 million in mandatory debt payments and used $30 million to buy back 2 million shares of its stock, leaving it with $593 million in liquid assets.

Fiscal 2007 Financial Highlights

- In 2007, the earnings hit $1.06. Excluding the one-time gain in 2006, the earnings are up 22% year over year.
- The net revenues come in at a record, over $2.1 billion.
- The pre-tax income also a record, over $1 billion with a pre-tax margin for the year of 48%.
- Net income came in at a record $646 million; EBITDA, a record $1.2 billion and ROE for the year is 34%.

The average trades per day came in at a record 253,000. Now so far in October, the firm has seen incredible activity. The firm is averaging, as of last Friday, 326,000 trades a day for the month of October so far.