MS FY 2008 Earnings Report — Morgan Stanley Revenue & Financial Results | Market Cap Arena

Morgan StanleyMS

FY 2008 Earnings

Reported January 28, 2009

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	$53.9B	—	$82.3B	—	-34.5%
Op. Income	$1.3B	—	$2.8B	—	-54.8%
Gross Margin	32.8%	—	30.4%	—	2.4pp
Net Margin	3.2%	—	3.9%	—	-0.7pp
EPS (Diluted)	$1.39	—	$2.98	—	-53.4%
Free Cash Flow	$72.0B	—	-$23.6B	—	405.6%

Revenue Flow

Item	Amount
REVENUE	$53.9B
Cost of Revenue	$36.3B
GROSS PROFIT	$17.7B
R&D Expenses	$0
Selling & Marketing	$714M
General & Administrative	$11.9B
SG&A Expenses	$12.6B
Other Expenses	$3.8B
Operating Expenses	$16.4B
Cost & Expenses	$52.7B
OPERATING INCOME	$1.3B
Interest Income	$38.9B
Interest Expense	$36.3B
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$16M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$540M
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$794M
EBIT	$1.3B
EBITDA	$2.0B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$53.9B
Cost of Revenue	$36.3B
GROSS PROFIT	$17.7B
R&D Expenses	$0
Selling & Marketing	$714M
General & Administrative	$11.9B
SG&A Expenses	$12.6B
Other Expenses	$3.8B
Operating Expenses	$16.4B
Cost & Expenses	$52.7B
OPERATING INCOME	$1.3B
Interest Income	$38.9B
Interest Expense	$36.3B
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$16M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$540M
Other Adjustments	$0
NET INCOME	$1.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$794M
EBIT	$1.3B
EBITDA	$2.0B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.7B
Depreciation & Amortization	$794M
Stock-Based Compensation	$1.9B
Deferred Income Tax	-$1.2B
Other Non-Cash Items	-$3.2B
Change in Working Capital	$73.5B
OPERATING CASH FLOW	$73.4B
Capital Expenditure	-$1.4B
Acquisitions (Net)	$2.1B
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$0
NET CASH FROM INVESTING	$729M
Net Debt Issuance	-$32.2B
Common Stock Repurchased	-$1.8B
Common Dividends Paid	-$1.2B
Other Financing Activities	-$2.7B
NET CASH FROM FINANCING	-$18.5B
FREE CASH FLOW	$72.0B
Net Change in Cash	$53.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$102.7B
Short-Term Investments	$124.8B
Net Receivables	$42.8B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$270.3B
PP&E (Net)	$5.1B
Goodwill	$2.3B
Intangible Assets	$906M
Long-Term Investments	$288.8B
Tax Assets	$0
Other Non-Current Assets	$109.4B
TOTAL NON-CURRENT ASSETS	$406.4B
TOTAL ASSETS	$676.8B
Account Payables	$128.5B
Short-Term Debt	$150.5B
Deferred Revenue	$0
Other Current Liabilities	$51.4B
TOTAL CURRENT LIABILITIES	$330.4B
Long-Term Debt	$179.8B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$117.1B
TOTAL NON-CURRENT LIABILITIES	$296.9B
TOTAL LIABILITIES	$627.3B
Common Stock	$12M
Additional Paid-In Capital	$459M
Retained Earnings	$36.2B
Treasury Stock	-$6.6B
Accum. Other Comp. Income	-$420M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$48.8B
Minority Interest	$703M
TOTAL EQUITY	$49.5B
TOTAL LIABILITIES & EQUITY	$676.8B
Total Debt	$330.4B
Net Debt	$227.7B