BAX Q2 2016 Earnings Report — Baxter International Inc. Revenue & Financial Results | Market Cap Arena

Baxter International Inc.BAX

Q2 2016 Earnings

Reported August 4, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$2.6B	$2.4B	—	8.8%	—
Op. Income	$68M	$188M	—	-63.8%	—
Gross Margin	37.6%	40.6%	—	-3.0pp	—
Net Margin	46.9%	142.3%	—	-95.4pp	—
EPS (Diluted)	$2.19	$6.12	—	-64.2%	—
Free Cash Flow	$574M	-$517M	—	211.0%	—

Revenue Flow

Item	Amount
REVENUE	$2.6B
Cost of Revenue	$1.6B
GROSS PROFIT	$972M
R&D Expenses	$195M
Selling & Marketing	$709M
General & Administrative	$0
SG&A Expenses	$709M
Other Expenses	$0
Operating Expenses	$904M
Cost & Expenses	$2.5B
OPERATING INCOME	$68M
Interest Income	$5M
Interest Expense	$16M
Other Income/Expenses	$1.1B
INCOME BEFORE TAX	$1.2B
Income Tax Expense	$6M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$206M
EBIT	$1.2B
EBITDA	$1.4B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$2.6B
Cost of Revenue	$1.6B
GROSS PROFIT	$972M
R&D Expenses	$195M
Selling & Marketing	$709M
General & Administrative	$0
SG&A Expenses	$709M
Other Expenses	$0
Operating Expenses	$904M
Cost & Expenses	$2.5B
OPERATING INCOME	$68M
Interest Income	$5M
Interest Expense	$16M
Other Income/Expenses	$1.1B
INCOME BEFORE TAX	$1.2B
Income Tax Expense	$6M
Net Income from Continuing Ops	$1.2B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.2B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.2B
D&A	$206M
EBIT	$1.2B
EBITDA	$1.4B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.2B
Depreciation & Amortization	$206M
Stock-Based Compensation	$31M
Deferred Income Tax	-$76M
Other Non-Cash Items	-$810M
Change in Working Capital	$179M
OPERATING CASH FLOW	$742M
Capital Expenditure	-$168M
Acquisitions (Net)	-$1M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$0
NET CASH FROM INVESTING	-$169M
Net Debt Issuance	-$182M
Common Stock Repurchased	$0
Common Dividends Paid	-$63M
Other Financing Activities	$96M
NET CASH FROM FINANCING	-$149M
FREE CASH FLOW	$574M
Net Change in Cash	$419M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.6B
Short-Term Investments	$0
Net Receivables	$1.8B
Inventory	$1.6B
Other Current Assets	$78M
TOTAL CURRENT ASSETS	$6.8B
PP&E (Net)	$4.3B
Goodwill	$2.7B
Intangible Assets	$1.3B
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$918M
TOTAL NON-CURRENT ASSETS	$9.2B
TOTAL ASSETS	$16.0B
Account Payables	$2.5B
Short-Term Debt	$1.1B
Deferred Revenue	$0
Other Current Liabilities	$4M
TOTAL CURRENT LIABILITIES	$3.7B
Long-Term Debt	$2.1B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$1.7B
TOTAL NON-CURRENT LIABILITIES	$3.7B
TOTAL LIABILITIES	$7.5B
Common Stock	$683M
Additional Paid-In Capital	$5.9B
Retained Earnings	$14.0B
Treasury Stock	-$7.9B
Accum. Other Comp. Income	-$4.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$8.5B
Minority Interest	$1M
TOTAL EQUITY	$8.5B
TOTAL LIABILITIES & EQUITY	$16.0B
Total Debt	$3.2B
Net Debt	$538M