SCHW Q2 2018 Earnings Report — The Charles Schwab Corporation Revenue & Financial Results | Market Cap Arena

The Charles Schwab CorporationSCHW

Q2 2018 Earnings

Reported August 8, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$2.7B	$2.6B	$2.2B	4.4%	21.1%
Op. Income	$1.1B	$1.0B	$909M	12.9%	24.4%
Gross Margin	93.1%	93.8%	96.6%	-0.7pp	-3.5pp
Net Margin	32.4%	30.6%	26.1%	1.8pp	6.4pp
EPS (Diluted)	$0.60	$0.55	$0.39	9.1%	53.8%
Free Cash Flow	$3.0B	$126M	$635M	2281.7%	372.6%

Revenue Flow

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$183M
GROSS PROFIT	$2.5B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$930M
Other Expenses	$425M
Operating Expenses	$1.4B
Cost & Expenses	$1.5B
OPERATING INCOME	$1.1B
Interest Income	$1.6B
Interest Expense	$183M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$265M
Net Income from Continuing Ops	$866M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$866M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$813M
D&A	$75M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$2.7B
Cost of Revenue	$183M
GROSS PROFIT	$2.5B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$930M
Other Expenses	$425M
Operating Expenses	$1.4B
Cost & Expenses	$1.5B
OPERATING INCOME	$1.1B
Interest Income	$1.6B
Interest Expense	$183M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$265M
Net Income from Continuing Ops	$866M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$866M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$813M
D&A	$75M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$866M
Depreciation & Amortization	$75M
Stock-Based Compensation	$33M
Deferred Income Tax	$0
Other Non-Cash Items	$132M
Change in Working Capital	$2.0B
OPERATING CASH FLOW	$3.1B
Capital Expenditure	-$131M
Acquisitions (Net)	-$184M
Purchases of Investments	-$21.3B
Sales/Maturities of Investments	$8.3B
Other Investing Activities	$20M
NET CASH FROM INVESTING	-$13.1B
Net Debt Issuance	$1.7B
Common Stock Repurchased	$0
Common Dividends Paid	-$170M
Other Financing Activities	$9.8B
NET CASH FROM FINANCING	$11.3B
FREE CASH FLOW	$3.0B
Net Change in Cash	$1.3B

Balance Sheet

Item	Amount
Cash & Equivalents	$13.3B
Short-Term Investments	$55.5B
Net Receivables	$23.4B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$92.1B
PP&E (Net)	$1.6B
Goodwill	$1.2B
Intangible Assets	$93M
Long-Term Investments	$153.9B
Tax Assets	$0
Other Non-Current Assets	$12.9B
TOTAL NON-CURRENT ASSETS	$169.7B
TOTAL ASSETS	$261.9B
Account Payables	$33.7B
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$199.9B
TOTAL CURRENT LIABILITIES	$236.0B
Long-Term Debt	$5.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$236.0B
TOTAL NON-CURRENT LIABILITIES	$241.8B
TOTAL LIABILITIES	$241.8B
Common Stock	$15M
Additional Paid-In Capital	$4.4B
Retained Earnings	$15.9B
Treasury Stock	-$2.8B
Accum. Other Comp. Income	-$278M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$20.1B
Minority Interest	$0
TOTAL EQUITY	$20.1B
TOTAL LIABILITIES & EQUITY	$261.9B
Total Debt	$5.8B
Net Debt	-$7.5B