optionsXpress Announces Second Quarter 2009 Results
CHICAGO, IL, July 24, 2009 – optionsXpress Holdings, Inc. (NasdaqGS: OXPS) today reported results
for the three months ended June 30, 2009. Highlights from the second quarter 2009 included:
Revenues of $61.7 million, in line with the second quarter of 2008
Net income of $16.1 million, or $0.28 per diluted share
Daily average revenue trades (DARTs) of 45,100, an increase of 21% year-over-year
Net new account growth of 9,000 during the quarter, resulting in 337,300 customer accounts,
a 16% increase year-over-year
Results reflect the completion of the acquisition of Optionetics on May 4, 2009, including
one-time transaction-related expenses of approximately $0.4 million.
“The ability of our customers to invest in a broad range of products in one account led to
resiliency in customer assets and allowed us to benefit from record trading demand for equities.
The result was an increase in earnings over the first quarter of this year despite continued low
short-term interest rates and a weak macroeconomic environment,” remarked David Fisher, Chief
Executive Officer of optionsXpress. “In addition, during the quarter, we closed our acquisition of
Optionetics and have made good initial progress in the early stages of integrating our brokerage
marketing into their educational offerings.”
For the second quarter, total DARTs were 45,100, up 21% from 37,200 during the second quarter of
2008, and down 4% from 46,800 for the first quarter of 2009. Institutional DARTs were 11,900 during
the second quarter of 2009. Trades per account on an annualized basis were 34, flat with the second
quarter of 2008 and down slightly from 35 in the first quarter of 2009. Also during the second
quarter, approximately 10,000 people attended Optionetics’ live events.
Total net revenues increased slightly over the second quarter of 2008 and were up 25% when compared
to the first quarter of 2009. Resulting net income was $16.1 million, or $0.28 per diluted share, a
31% decrease from the $23.3 million reported in the second quarter of 2008.
“Average commissions per trade increased 11%, or $1.45, over the first quarter due to an increased
percentage of retail trades and a higher retail average commission per trade. In addition,
customer assets, a key long-term driver, are up 17% in 2009, giving us confidence that we will be
well positioned when interest rates rise and retail options trading activity improves,” commented
Adam DeWitt, Chief Financial Officer of optionsXpress. “Finally, our recent acquisition,
Optionetics, performed as expected following the transaction, close to breakeven.”
Mr. Fisher concluded, “In this challenging macroeconomic environment, we continue to invest
aggressively in our business by developing innovative product offerings, such as our new mobile
application and Xtend2, our new active trader platform, while keeping an eye towards minimizing
operational costs. Our clean balance sheet provides further flexibility in pursuing additional
product development initiatives as well as acquisition opportunities. We believe this strategy
combining prudent investment with operational efficiency will enable us to deliver good results in
the near-term and sustained shareholder value creation in the long-term.”
A conference call will be broadcast live on Friday, July 24, 2009, at 8:00 a.m. Central Time (9:00
a.m. Eastern Time) at http://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.
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, and 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 to over 40,000 potential investors annually in 12 countries.
More information can be found in the Investor Relations section of optionsXpress’ website at
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,” “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.
FOR FURTHER INFORMATION:
Patrick Van De Wille