optionsXpress Announces Third Quarter 2010 Results
CHICAGO, IL, October 26, 2010 — optionsXpress Holdings, Inc. (NasdaqGS: OXPS) today reported
results for the three months ended September 30, 2010. Highlights from the third quarter 2010
Revenues of $53.4 million, a 14% decrease year-over-year
Net income of $12.9 million, $0.22 per diluted share
Daily average revenue trades (DARTs) of 39,000, a 7% decrease year-over-year
Net new account growth of 5,600 during the quarter, resulting in 371,100 customer accounts,
an 8% increase year-over-year
Ending customer assets of $7.6 billion, a 19% increase year-over-year
“After a challenging summer for our industry, September metrics were better than July and August in
terms of both customer engagement and new customer acquisitions,” said David Fisher, Chief
Executive Officer of optionsXpress. “We have continued to invest and improve even during these
difficult economic times, which have strengthened our core franchise and will help us capture new
customers and generate higher trading activity as investor confidence improves.”
For the third quarter, total DARTs were 39,000, down 7% from 42,000 during the third quarter of
2009, and down 22% from 49,800 for the second quarter of 2010. Retail DARTs were 26,300 during the
third quarter, down 14% from the third quarter of 2009, and down 20% from the second quarter.
Institutional DARTs were 12,700 during the third quarter, up 11% from the third quarter of 2009,
and down 26% from the second quarter.
Total net revenues decreased 14% compared to the third quarter of 2009 and decreased 19% when
compared to the second quarter of 2010. Resulting net income was $12.9 million, or $0.22 per
diluted share, a 21% decrease from the $16.3 million reported in the third quarter of 2009 and an
18% decrease when compared to the second quarter of 2010. Third quarter results include
approximately $3 million in non-cash, non-taxable gains related to a prior acquisition.
“Customer assets, a key long-term driver of activity, continues to show strength as assets grew 19%
year-over-year compared to the market indices average of 11% over the same period and ended the
third quarter just under their all-time high,” commented Adam DeWitt, Chief Financial Officer of
optionsXpress. “We were also able to reduce advertising spend dynamically during the quarter in
response to the weak new account environment, lowering our overall cost per net new account from
$737 in the second quarter to $589 in the third quarter.”
Mr. Fisher concluded, “September was the best month of the third quarter from a trading activity
perspective and that momentum has carried into October. With over 370,000 customers and $7.6
billion in customer assets there is substantial and growing earnings power in our customer base.
While we have been able to generate meaningful profits and cash flow despite low interest rates and
slower trading environments due to our efficiency, the operating leverage in the business will
likely drive considerable increases in margins and earnings when either improves.”
A conference call will be broadcast live on Tuesday, October 26, 2010, 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.
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
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.
FOR FURTHER INFORMATION:
or Media Inquiries:
Patrick Van De Wille