Charles Schwab 2008 Annual Report Download - page 28

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THE CHARLES SCHWAB CORPORATION
Item 6. Selected Financial Data
Selected Financial and Operating Data
(In Millions, Except Per Share Amounts, Ratios, or as Noted)
2008 2007 2006 2005 2004
Results of Operations
Net revenues 11% 3% 5,150$ 4,994$ 4,309$ 3,619$ 3,416$
Expenses excluding interest 2% (1%) 3,122$ 3,141$ 2,833$ 2,592$ 2,869$
Income from continuing operations 37% 10% 1,230$ 1,120$ 891$ 634$ 350$
Net income (1) 43% N/M 1,212$ 2,407$ 1,227$ 725$ 286$
Income from continuing operations per share — basic 42% 15% 1.07$ .93$ .70$ .49$ .26$
Income from continuing operations per share — diluted 42% 15% 1.06$ .92$ .69$ .48$ .26$
Basic earnings per share (1,2) 50% N/M 1.06$ 1.99$ .97$ .56$ .21$
Diluted earnings per share (1,2) 50% N/M 1.05$ 1.97$ .95$ .55$ .21$
Dividends declared per common share 31% 10% .220$ .200$ .135$ .089$ .074$
Special dividend declared per common share N/M N/M -$ 1.00$ -$ -$ -$
Weighted-average common shares outstanding — diluted (4%) (5%) 1,157 1,222 1,286 1,308 1,365
Asset management and administration fees as a percentage of net revenues 46% 47% 45% 46% 45%
Net interest revenue as a percentage of net revenues 32% 33% 33% 28% 21%
Trading revenue as a percentage of net revenues (3) 21% 17% 18% 21% 30%
Effective income tax rate on income from continuing operations 39.3% 39.6% 39.6% 38.3% 36.0%
Capital expenditures — purchases of equipment, office facilities,
and property, net (4) 2% 15% 194$ 168$ 59$ 78$ 177$
Capital expenditures, net, as a percentage of net revenues 4% 3% 1% 2% 5%
Performance Measures
Net revenue growth 3% 16% 19% 6% 5%
Pre-tax profit margin from continuing operations 39.4% 37.1% 34.3% 28.4% 16.0%
Return on stockholders' equity 31% 55% 26% 16% 6%
Financial Condition (at year end)
Total assets 2% 22% 51,675$ 42,286$ 48,992$ 47,351$ 47,133$
Long-term debt 13% (2%) 883$ 899$ 388$ 462$ 533$
Stockholders' equity (2%) 9% 4,061$ 3,732$ 5,008$ 4,450$ 4,386$
Assets to stockholders' equity ratio 13 11 10 11 11
Long-term debt to total financial capital
(long-term debt plus stockholders' equity) 18% 19% 7% 9% 11%
Employee Information
Full-time equivalent employees
(5) (at year end, in thousands) 3% 1% 13.4 13.3 12.4 11.6 11.8
Net revenues per average full-time equivalent employee (in thousands) 10% (1%) 383$ 387$ 362$ 319$ 260$
Note: All information contained in this Annual Report on Form 10-K is presented on a continuing basis unless otherwise noted.
(1) Net income in 2007 includes a gain of $1.2 billion, after tax, on the sale of U.S. Trust.
(2) Both basic and diluted earnings per share include discontinued operations.
(3) Trading revenue includes commission and principal transaction revenues.
(4) Capital expenditures in 2006 are presented net of proceeds of $63 million primarily from the sale of a data center and in 2005 are presented net of proceeds of $20 million
from the sale of equipment.
(5) Full-time equivalent employees in 2007 includes 365 employees related to the acquisition of The 401(k) Company on March 31, 2007.
N/M Not meaningful
.
2004-2008 2007-2008
Growth Rates
Compounde
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Annua
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1-Yea
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