optionsXpress Announces First Quarter 2009 Results
optionsXpress Announces First Quarter 2009 Results
CHICAGO, IL, April 28, 2009 – optionsXpress Holdings, Inc. (NasdaqGS: OXPS) today reported results
for the three months ended March 31, 2009. Highlights from the first quarter 2009 included:
Revenues of $49.3 million, a 19% decrease year-over-year
Net income of $13.6 million, or $0.23 per diluted share
Daily average revenue trades (DARTs) of 46,800, an increase of 23% year-over-year
Net new account growth of 9,700 during the quarter, resulting in 328,300 customer accounts,
an 18% increase year-over-year
“Our 330,000 retail customers, who comprise the core of our business, exhibited continued
resiliency as trading activity stabilized. In addition, we added almost 10,000 net new accounts,
and customer assets increased during the quarter while each of the major indices declined,”
remarked David Fisher, Chief Executive Officer of optionsXpress. “We are excited by our
announcement today regarding our acquisition of Optionetics, a leading investment education firm.
Optionetics gives us a tremendous platform to provide education to our existing customers and tens
of thousands of potential optionsXpress customers. The result will be a truly integrated education
experience that benefits our customers through every phase of their investing lifecycle.”
For the first quarter, total DARTs were 46,800, up 23% from 38,000 during the first quarter of
2008, and down 9% from 51,400 for the fourth quarter of 2008. Institutional DARTs were 15,100
during the first quarter of 2009. Trades per account on an annualized basis were 35, up slightly
from 34 in the first quarter of 2008 and down from 42 in the fourth quarter of 2008. Net revenues
declined 19% over the first quarter of 2008 and 14% when compared to the fourth quarter of 2008.
Resulting net income was $13.6 million, or $0.23 per diluted share, a 43% decrease from the $23.8
million reported in the first quarter of 2008. First quarter results include approximately $500,000
in severance expense related to the previously announced departure of an executive officer in
“While the economic backdrop weighed on new account growth in the first quarter, we were encouraged
that our investor education efforts were successful in attracting new investors to the platform and
that the quality of our new customers remains consistent with historic customers,” commented Adam
DeWitt, Chief Financial Officer of optionsXpress. “Using more sophisticated and more conservative
strategies like complex spreads and puts more often than they did a year ago, our customers have
been able to reengage in the markets while limiting risk, as evidenced by the stable asset levels.”
During the quarter, optionsXpress announced a dividend of $0.08 per share. The total amount of the
dividend was approximately $4.6 million and was paid to shareholders on March 30, 2009. As
previously announced, in the first quarter optionsXpress’ Board of Directors authorized a new share
repurchase program in the amount of $20 million, which approximates the annual dividend payout.
This additional repurchase program will be in lieu of cash dividends for the remainder of 2009.
Mr. Fisher concluded, “In spite of the near-term market challenges, we are confident in our ability
to drive long-term growth as customers search out optionsXpress for our expertise in options and
futures products. In addition, as market conditions improve, we are likely to see improved activity
levels, higher spreads on our customer assets and increasing operating margins — all of which
magnify the benefit of our continued customer growth.”
A conference call will be broadcast live on Tuesday, April 28, 2009, at 10:00 a.m. Central Time
(11:00 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, and 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. Barron’s named optionsXpress the number one online broker for four
years in a row (2003 to 2006) and Kiplinger’s Personal Finance named it the top discount broker in
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.