SCHW FY 2007 Earnings Report — The Charles Schwab Corporation Revenue & Financial Results | Market Cap Arena

The Charles Schwab CorporationSCHW

FY 2007 Earnings

Reported February 26, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$5.6B	—	$5.0B	—	12.6%
Op. Income	$1.9B	—	$1.5B	—	25.5%
Gross Margin	88.9%	—	86.4%	—	2.5pp
Net Margin	42.9%	—	24.6%	—	18.3pp
EPS (Diluted)	$1.97	—	$0.95	—	107.4%
Free Cash Flow	$1.6B	—	$1.7B	—	-7.2%

Revenue Flow

Item	Amount
REVENUE	$5.6B
Cost of Revenue	$623M
GROSS PROFIT	$5.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$2.0B
Other Expenses	$1.1B
Operating Expenses	$3.1B
Cost & Expenses	$3.8B
OPERATING INCOME	$1.9B
Interest Income	$2.3B
Interest Expense	$623M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$733M
Net Income from Continuing Ops	$1.1B
Net Income from Discontinued Ops	$1.3B
Other Adjustments	$0
NET INCOME	$2.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.4B
D&A	$156M
EBIT	$1.9B
EBITDA	$2.0B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.6B
Cost of Revenue	$623M
GROSS PROFIT	$5.0B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$2.0B
Other Expenses	$1.1B
Operating Expenses	$3.1B
Cost & Expenses	$3.8B
OPERATING INCOME	$1.9B
Interest Income	$2.3B
Interest Expense	$623M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$733M
Net Income from Continuing Ops	$1.1B
Net Income from Discontinued Ops	$1.3B
Other Adjustments	$0
NET INCOME	$2.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.4B
D&A	$156M
EBIT	$1.9B
EBITDA	$2.0B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$2.4B
Depreciation & Amortization	$156M
Stock-Based Compensation	$0
Deferred Income Tax	$175M
Other Non-Cash Items	-$932M
Change in Working Capital	-$60M
OPERATING CASH FLOW	$1.7B
Capital Expenditure	-$168M
Acquisitions (Net)	-$119M
Purchases of Investments	-$3.6B
Sales/Maturities of Investments	$2.0B
Other Investing Activities	$2.2B
NET CASH FROM INVESTING	$367M
Net Debt Issuance	$506M
Common Stock Repurchased	$0
Common Dividends Paid	-$1.5B
Other Financing Activities	$3.5B
NET CASH FROM FINANCING	$144M
FREE CASH FLOW	$1.6B
Net Change in Cash	$2.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$6.8B
Short-Term Investments	$0
Net Receivables	$13.0B
Inventory	$0
Other Current Assets	$21.9B
TOTAL CURRENT ASSETS	$41.7B
PP&E (Net)	$617M
Goodwill	$525M
Intangible Assets	$0
Long-Term Investments	$11.7B
Tax Assets	$0
Other Non-Current Assets	$9.6B
TOTAL NON-CURRENT ASSETS	$22.5B
TOTAL ASSETS	$42.4B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$13.8B
TOTAL CURRENT LIABILITIES	$13.8B
Long-Term Debt	$899M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$23.8B
TOTAL NON-CURRENT LIABILITIES	$24.7B
TOTAL LIABILITIES	$38.6B
Common Stock	$14M
Additional Paid-In Capital	$2.1B
Retained Earnings	$5.8B
Treasury Stock	-$4.1B
Accum. Other Comp. Income	-$17M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.7B
Minority Interest	$0
TOTAL EQUITY	$3.7B
TOTAL LIABILITIES & EQUITY	$42.3B
Total Debt	$899M
Net Debt	-$5.9B