TROW FY 2007 Earnings Report — T. Rowe Price Group, Inc. Revenue & Financial Results | Market Cap Arena

T. Rowe Price Group, Inc.TROW

FY 2007 Earnings

Reported February 7, 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	$2.2B	—	$1.8B	—	22.8%
Op. Income	$996M	—	$787M	—	26.6%
Gross Margin	95.9%	—	89.5%	—	6.3pp
Net Margin	30.1%	—	29.2%	—	0.9pp
EPS (Diluted)	$2.40	—	$1.90	—	26.3%
Free Cash Flow	$612M	—	$499M	—	22.8%

Revenue Flow

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$92M
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$108M
General & Administrative	$797M
SG&A Expenses	$905M
Other Expenses	$235M
Operating Expenses	$1.1B
Cost & Expenses	$1.2B
OPERATING INCOME	$996M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$80M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$406M
Net Income from Continuing Ops	$671M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$671M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$671M
D&A	$54M
EBIT	$996M
EBITDA	$1.1B
EPS	$3
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$92M
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$108M
General & Administrative	$797M
SG&A Expenses	$905M
Other Expenses	$235M
Operating Expenses	$1.1B
Cost & Expenses	$1.2B
OPERATING INCOME	$996M
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$80M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$406M
Net Income from Continuing Ops	$671M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$671M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$671M
D&A	$54M
EBIT	$996M
EBITDA	$1.1B
EPS	$3
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$671M
Depreciation & Amortization	$54M
Stock-Based Compensation	$80M
Deferred Income Tax	$0
Other Non-Cash Items	$300.0K
Change in Working Capital	-$47M
OPERATING CASH FLOW	$758M
Capital Expenditure	-$146M
Acquisitions (Net)	$0
Purchases of Investments	-$218M
Sales/Maturities of Investments	$42M
Other Investing Activities	-$23M
NET CASH FROM INVESTING	-$345M
Net Debt Issuance	$0
Common Stock Repurchased	-$312M
Common Dividends Paid	-$180M
Other Financing Activities	-$400.0K
NET CASH FROM FINANCING	-$401M
FREE CASH FLOW	$612M
Net Change in Cash	$12M

Balance Sheet

Item	Amount
Cash & Equivalents	$785M
Short-Term Investments	$0
Net Receivables	$265M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.1B
PP&E (Net)	$358M
Goodwill	$666M
Intangible Assets	$0
Long-Term Investments	$1.0B
Tax Assets	-$3M
Other Non-Current Assets	$98M
TOTAL NON-CURRENT ASSETS	$2.1B
TOTAL ASSETS	$3.2B
Account Payables	$100M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$286M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$114M
TOTAL NON-CURRENT LIABILITIES	$114M
TOTAL LIABILITIES	$400M
Common Stock	$53M
Additional Paid-In Capital	$296M
Retained Earnings	$2.3B
Treasury Stock	$0
Accum. Other Comp. Income	$95M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.8B
Minority Interest	$0
TOTAL EQUITY	$2.8B
TOTAL LIABILITIES & EQUITY	$3.2B
Total Debt	$0
Net Debt	-$785M