BEN FY 2008 Earnings Report — Franklin Resources, Inc. Revenue & Financial Results | Market Cap Arena

Franklin Resources, Inc.BEN

FY 2008 Earnings

Reported November 25, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$6.0B	—	$6.2B	—	-2.8%
Op. Income	$2.1B	—	$2.1B	—	1.5%
Gross Margin	67.9%	—	65.2%	—	2.7pp
Net Margin	26.3%	—	28.6%	—	-2.2pp
EPS (Diluted)	$2.22	—	$2.34	—	-5.1%
Free Cash Flow	$1.3B	—	$1.6B	—	-15.2%

Revenue Flow

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$1.9B
GROSS PROFIT	$4.1B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$1.4B
SG&A Expenses	$1.6B
Other Expenses	$370M
Operating Expenses	$2.0B
Cost & Expenses	$3.9B
OPERATING INCOME	$2.1B
Interest Income	$100M
Interest Expense	$16M
Other Income/Expenses	$138M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$648M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$215M
EBIT	$2.3B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$6.0B
Cost of Revenue	$1.9B
GROSS PROFIT	$4.1B
R&D Expenses	$0
Selling & Marketing	$184M
General & Administrative	$1.4B
SG&A Expenses	$1.6B
Other Expenses	$370M
Operating Expenses	$2.0B
Cost & Expenses	$3.9B
OPERATING INCOME	$2.1B
Interest Income	$100M
Interest Expense	$16M
Other Income/Expenses	$138M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$648M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$215M
EBIT	$2.3B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.6B
Depreciation & Amortization	$215M
Stock-Based Compensation	$81M
Deferred Income Tax	$11M
Other Non-Cash Items	-$65M
Change in Working Capital	-$420M
OPERATING CASH FLOW	$1.4B
Capital Expenditure	-$70M
Acquisitions (Net)	$7M
Purchases of Investments	-$2.3B
Sales/Maturities of Investments	$1.2B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$1.1B
Net Debt Issuance	-$513M
Common Stock Repurchased	-$1.5B
Common Dividends Paid	-$179M
Other Financing Activities	$793M
NET CASH FROM FINANCING	-$1.3B
FREE CASH FLOW	$1.3B
Net Change in Cash	-$1.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$2.3B
Short-Term Investments	$1.8B
Net Receivables	$690M
Inventory	$0
Other Current Assets	$17M
TOTAL CURRENT ASSETS	$4.8B
PP&E (Net)	$555M
Goodwill	$1.4B
Intangible Assets	$580M
Long-Term Investments	$916M
Tax Assets	$0
Other Non-Current Assets	$838M
TOTAL NON-CURRENT ASSETS	$4.3B
TOTAL ASSETS	$9.2B
Account Payables	$520M
Short-Term Debt	$13M
Deferred Revenue	$0
Other Current Liabilities	$29M
TOTAL CURRENT LIABILITIES	$936M
Long-Term Debt	$118M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$146M
Other Non-Current Liabilities	$824M
TOTAL NON-CURRENT LIABILITIES	$1.1B
TOTAL LIABILITIES	$2.0B
Common Stock	$23M
Additional Paid-In Capital	$0
Retained Earnings	$7.0B
Treasury Stock	$0
Accum. Other Comp. Income	$6M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.1B
Minority Interest	$77M
TOTAL EQUITY	$7.2B
TOTAL LIABILITIES & EQUITY	$9.2B
Total Debt	$132M
Net Debt	-$2.2B