updated 1/27/2011 8:15:57 AM ET 2011-01-27T13:15:57

CHICAGO, Jan. 27, 2011 (GLOBE NEWSWIRE) -- optionsXpress Holdings, Inc. (Nasdaq:OXPS) today reported results for the three months and full year ended December 31, 2010.





Highlights from the fourth quarter 2010 included:

  • Revenues of $55.5 million, an 8% decrease year-over-year
  • Commission revenues of $39.9 million, a 2% increase year-over-year
  • Net income of $11.6 million, or $0.20 per diluted share
  • Retail daily average revenue trades (DARTs) of 30,500, flat year-over-year
  • Net new account growth of 8,300 during the quarter

Highlights from the full year 2010 included:

  • Revenues of $231.4 million, a 1% decrease year-over-year
  • Net income of $51.9 million, or $0.90 per diluted share
  • Ending accounts of 379,400, an 8% increase year-over-year
  • $7.8 billion in customer assets on December 31, 2010, an 11% increase year-over-year

"We saw improvement in virtually all of our business metrics in the fourth quarter compared to the third quarter as broader customer engagement increased. Retail trading activity improved, client assets ended the year at all-time highs and margin balances were at their highest level since August 2008.  In addition, fourth quarter net new accounts were at their highest level in the past six quarters, including robust growth in December, which is typically one of our slowest months due to the holiday season. These key performance indicators demonstrate the leverage of our business model in an improving retail environment," commented David Fisher, Chief Executive Officer of optionsXpress.

Fourth Quarter Results

For the fourth quarter, Retail DARTs were 30,500, essentially flat when compared to the fourth quarter of 2009, and up 16% from 26,300 for the third quarter of 2010. Total net revenues decreased 8% from the fourth quarter of 2009 and were up 4% when compared to the third quarter of 2010. Resulting net income was $11.6 million, or $0.20 per diluted share, a 22% decrease from the $14.9 million reported in the fourth quarter of 2009.

Full Year 2010 Performance

At the end of 2010, total customer accounts were 379,400, up 8% from 2009. Total customer assets at year-end 2010 were $7.8 billion, up 11% from year-end 2009 customer assets of $7.0 billion. Commission revenues for 2010 were $159.4 million, essentially flat with 2009. Net interest revenues and fees were $18.2 million, up 4% from 2009. 2010 full year total net revenues were $231.4 million, which was down 1% from net revenues of $233.4 million in 2009, and 2010 full year earnings per share were $0.90, a 14% decrease versus earnings per share of $1.05 in 2009.

"As opposed to the third quarter when we reduced marketing expense due to a weak market environment, in the fourth quarter we were able to respond to more favorable conditions by spending more, increasing our total net new account growth and lowering our average cost per net new account," commented Adam DeWitt, Chief Financial Officer of optionsXpress. "Additionally, we demonstrated our commitment to return value to shareholders while maintaining our ability to grow. During the fourth quarter, we paid a special dividend of $4.50 per share. Despite the size of this dividend, we retain sufficient financial flexibility to fund current operations and growth opportunities in 2011 and beyond. In total, through dividends and stock repurchases, we have returned over $390 million to shareholders over the last three years."

Outlook

Mr. Fisher concluded, "This month, we are celebrating optionsXpress' 10th anniversary and the start of a revolution determined to bring the power of derivatives trading to retail investors. We have delivered on this mission throughout our history by introducing innovative products and tools, utilizing cutting-edge technologies to make derivatives trading easier and leveling the playing field for the retail investor.  The results speak for themselves - account growth rates that regularly outpace peers, almost 380,000 customers, and $7.8 billion of customer assets, a record high and key long-term driver of activity."

"As we look forward, we are encouraged by the improved market landscape and remain excited about the prospects for continued secular growth in derivatives trading. We believe that our commitment to innovation and an efficient operating model will help us translate these trends into long-term earnings growth."

Conference Call

A conference call will be broadcast live on Thursday, January 27, 2011, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) at www.optionsxpress.com/investor . An online replay will be available approximately two hours after the call and can be accessed in the Investor Relations' Calendar of Events portion of the website.

About optionsXpress Holdings, Inc.

optionsXpress Holdings, Inc., a pioneer in equity options and futures trading, offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. optionsXpress Holdings subsidiaries include optionsXpress, Inc., a retail online brokerage specializing in options and futures, brokersXpress, LLC, an online trading and reporting platform for independent investment professionals, Open E Cry, LLC, an innovative futures broker offering direct access futures trading for high volume commodities and futures traders through its proprietary software platform, and Optionetics, Inc, a leading provider of investment education services, including live seminars, proprietary software analytics, online and offline educational products and individual coaching.

More information can be found in the Investor Relations section of optionsXpress' website at http://www.optionsxpress.com/investor .

The optionsXpress Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7487

Safe Harbor

This press release may contain forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks. We urge you to carefully consider these risks in evaluating the information in this press release, including risks related to general economic conditions, regulatory developments, the competitive landscape, the volume of securities trading generally or by our customers specifically and other risks described in our filings with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "feel," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. The forward-looking statements made in this press release relate only to events as of the date of this release. We undertake no ongoing obligation to update these statements. 

 
optionsXpress Holdings, Inc.
Consolidated Statements of Operations
In thousands, except per share data
(Unaudited)
 
  Three Months Ended  
  December 31, December 31, Change
  2010 2009 $ %
Revenues:        
Commissions $39,908 $38,938 $970 2%
Other brokerage related revenue 4,662 6,003 (1,341)  (22%)
Interest revenue and fees 4,277 4,677 (400)  (9%)
Interest expense (54) (67) 13  (19%)
Net interest revenue and fees 4,223 4,610 (387)  (8%)
Education revenues 5,954 8,008 (2,054)  (26%)
Other income 791 2,563 (1,772)  (69%)
Net revenues $55,538 $60,122 ($4,584)  (8%)
         
Expenses:        
Compensation and benefits $11,346 $11,759 ($413)  (4%)
Brokerage, clearing and other related expenses 9,536 8,899 637 7%
Brokerage advertising 4,447 3,607 840 23%
Education marketing and fulfillment 3,112 4,965 (1,853)  (37%)
Depreciation and amortization 2,174 2,239 (65)  (3%)
Other general and administrative 6,630 6,155 475 8%
Total expenses $37,245 $37,624 ($379)  (1%)
         
Income before income taxes 18,293 22,498 (4,205)  (19%)
Income taxes 6,719 7,628 (909)  (12%)
Net income $11,574 $14,870 ($3,296)  (22%)
         
Basic earnings per share $0.20 $0.26 ($0.06)  (23%)
Diluted earnings per share $0.20 $0.26 ($0.06)  (23%)
         
Weighted average shares 57,450 57,669 (219)  (0%)
outstanding - basic        
Weighted average shares        
 outstanding - diluted 57,844 57,857 (13)  (0%)
         
         
  Twelve Months Ended  
  December 31, December 31, Change  
  2010 2009 $ %
Revenues:        
Commissions $159,448 $159,536 ($88)  (0%)
Other brokerage related revenue 17,936 26,765 (8,829)  (33%)
Interest revenue and fees 18,409 17,787 622 3%
Interest expense (200) (245) 45  (18%)
Net interest revenue and fees 18,209 17,542 667 4%
Education revenues 27,302 24,398 2,904 12%
Other income 8,549 5,177 3,372 65%
Net revenues $231,444 $233,418 ($1,974)  (1%)
         
Expenses:        
Compensation and benefits $46,299 $42,452 $3,847 9%
Brokerage, clearing and other related expenses 37,203 31,931 5,272 17%
Brokerage advertising 17,863 17,608 255 1%
Education marketing and fulfillment 17,208 15,763 1,445 9%
Depreciation and amortization 8,890 8,879 11 0%
Other general and administrative 23,923 22,579 1,344 6%
Total expenses $151,386 $139,212 $12,174 9%
         
Income before income taxes 80,058 94,206 (14,148)  (15%)
Income taxes 28,154 33,439 (5,285)  (16%)
Net income $51,904 $60,767 ($8,863)  (15%)
         
Basic earnings per share $0.90 $1.05 ($0.15)  (14%)
Diluted earnings per share $0.90 $1.05 ($0.15)  (14%)
         
Weighted average shares        
outstanding - basic 57,443 57,925 (482)  (1%)
Weighted average shares        
outstanding - diluted 57,785 58,081 (296)  (1%)
 
 
optionsXpress Holdings, Inc.
Consolidated Balance Sheets
In thousands
(Unaudited)
     
  Period Ended  
  December 31, December 31, Change
  2010 2009 $ %
Assets:        
Cash and cash equivalents $100,875 $178,989 ($78,114)  (44%)
Cash and investments segregated in compliance with federal regulations 945,870 881,210 64,660 7%
Receivables from brokerage customers, net 235,589 149,871 85,718 57%
Receivables from brokers, dealers and clearing organizations 25,686 110,779 (85,093)  (77%)
Investments in securities 11,442 70,850 (59,408)  (84%)
Deposits with clearing organizations 20,480 30,245 (9,765)  (32%)
Fixed assets, net 11,345 13,263 (1,918)  (14%)
Goodwill 85,360 81,590 3,770 5%
Other intangible assets, net 4,837 6,525 (1,688)  (26%)
Other assets 31,434 22,999 8,435 37%
 Total assets $1,472,918 $1,546,321 ($73,403)  (5%)
         
Liabilities and stockholders' equity:        
         
Liabilities        
Payables to brokerage customers $1,193,479 $1,179,204 $14,275 1%
Payables to brokers, dealers and clearing organizations 1,711 144 1,567 1088%
Accrued liabilities and accounts payable 19,471 19,027 444 2%
Current and deferred income taxes 651 193 458 237%
Other liabilities 32,521 36,878 (4,357)  (12%)
Long-term debt 120,000 -- 120,000 NM
 Total liabilities 1,367,833 1,235,446 132,387 11%
         
Stockholders' equity 105,085 310,875 (205,790)  (66%)
         
Total liabilities and stockholders' equity $1,472,918 $1,546,321 ($73,403)  (5%)
 
 
optionsXpress Holdings, Inc.
Statistical Operating Data
     
  Three Months Ended  
  December 31, December 31, Change
  2010 2009 $ or # %
Number of customer accounts         
(at period end)(1) 379,400 351,200 28,200 8%
Daily average revenue trades (''DARTs'') (2)        
Retail DARTs 30,500 30,400 100 0%
Institutional DARTs 12,100 12,200 (100)  (1%)
Total DARTs 42,600 42,600 0 0%
Customer trades per account (3) 29 31 (2)  (6%)
Average commission per trade $14.75 $14.49 $0.26 2%
Option trades as a % of total trades 43% 43% 0%  
Brokerage advertising expense per net new customer account (4) $536 $494 $42 9%
Total client assets (000s) $7,830,545 $7,024,623 $805,922 11%
Client margin balances (000s) $220,975 $149,062 $71,913 48%
         
         
  Twelve Months Ended  
  December 31, December 31, Change
  2010 2009 $ or #  %
Number of customer accounts         
(at period end)(1) 379,400 351,200 28,200 8%
Daily average revenue trades (''DARTs'') (2)        
Retail DARTs 29,900 31,500 (1,600)  (5%)
Institutional DARTs 14,000 12,600 1,400 11%
Total DARTs 43,900 44,100 (200)  (0%)
Customer trades per account (3) 30 33 (3)  (9%)
Average commission per trade $14.42 $14.41 $0.01 0%
Option trades as a % of total trades 42% 42% 0%  
Brokerage advertising expense per net new customer account (4) $633 $540 $93 17%
Total client assets (000s) $7,830,545 $7,024,623 $805,922 11%
Client margin balances (000s) $220,975 $149,062 $71,913 48%
         
(1) Customer accounts are open, numbered accounts.
(2) DARTs are total revenue-generating trades for a period divided by the number of trading days in that period.
(3) Customer trades per account are total trades divided by the average number of total customer accounts during the period. Customer trades are annualized.
(4) Calculated based on total net new customer accounts opened during the period.
 
 
optionsXpress Holdings, Inc.
Segment Information
In thousands
(Unaudited)
   
  Three Months Ended Twelve Months Ended
  December 31, December 31, December 31, December 31,
  2010 2009 2010 2009
Revenue        
Brokerage Services $49,752 $52,132 $204,588 $209,041
Education 6,435 8,515 29,226 25,459
Eliminations (649) (525) (2,370) (1,082)
Revenue $55,538 $60,122 $231,444 $233,418
         
Income/(loss) before income taxes        
Brokerage Services $18,777 $23,286 $84,246 $96,287
Education (484) (788) (4,188) (2,081)
Income before income taxes $18,293 $22,498 $80,058 $94,206
CONTACT: Investor Inquiries:
         Jim Polson
         FD
         (312) 553-6730
         or
         Media Inquiries:
         Patrick Van De Wille
         FD
         (312) 553-6704

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 1.97%
$30K home equity loan FICO 5.80%
$75K home equity loan FICO 4.54%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.70%
13.70%
Cash Back Cards 17.91%
17.91%
Rewards Cards 17.17%
17.17%
Source: Bankrate.com