MA FY 2007 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

FY 2007 Earnings

Reported February 20, 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	$4.1B	—	$3.3B	—	22.3%
Op. Income	$1.1B	—	$229M	—	382.8%
Gross Margin	100.0%	—	100.0%	—	0.0pp
Net Margin	26.7%	—	1.5%	—	25.2pp
EPS (Diluted)	$0.80	—	$0.04	—	2062.2%
Free Cash Flow	$613M	—	$556M	—	10.4%

Revenue Flow

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$0
GROSS PROFIT	$4.1B
R&D Expenses	$0
Selling & Marketing	$1.1B
General & Administrative	$1.8B
SG&A Expenses	$2.8B
Other Expenses	$121M
Operating Expenses	$3.0B
Cost & Expenses	$3.0B
OPERATING INCOME	$1.1B
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$563M
INCOME BEFORE TAX	$1.7B
Income Tax Expense	$586M
Net Income from Continuing Ops	$1.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.1B
D&A	$98M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$0
GROSS PROFIT	$4.1B
R&D Expenses	$0
Selling & Marketing	$1.1B
General & Administrative	$1.8B
SG&A Expenses	$2.8B
Other Expenses	$121M
Operating Expenses	$3.0B
Cost & Expenses	$3.0B
OPERATING INCOME	$1.1B
Interest Income	$0
Interest Expense	$0
Other Income/Expenses	$563M
INCOME BEFORE TAX	$1.7B
Income Tax Expense	$586M
Net Income from Continuing Ops	$1.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.1B
D&A	$98M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.1B
Depreciation & Amortization	$98M
Stock-Based Compensation	-$15M
Deferred Income Tax	-$5M
Other Non-Cash Items	-$282M
Change in Working Capital	-$111M
OPERATING CASH FLOW	$770M
Capital Expenditure	-$156M
Acquisitions (Net)	$0
Purchases of Investments	-$3.6B
Sales/Maturities of Investments	$4.0B
Other Investing Activities	$8M
NET CASH FROM INVESTING	$315M
Net Debt Issuance	$0
Common Stock Repurchased	-$601M
Common Dividends Paid	-$74M
Other Financing Activities	$15M
NET CASH FROM FINANCING	-$658M
FREE CASH FLOW	$613M
Net Change in Cash	$474M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.7B
Short-Term Investments	$1.3B
Net Receivables	$1.2B
Inventory	$0
Other Current Assets	$220M
TOTAL CURRENT ASSETS	$4.6B
PP&E (Net)	$290M
Goodwill	$240M
Intangible Assets	$321M
Long-Term Investments	$0
Tax Assets	$263M
Other Non-Current Assets	$555M
TOTAL NON-CURRENT ASSETS	$1.7B
TOTAL ASSETS	$6.3B
Account Payables	$252M
Short-Term Debt	$80M
Deferred Revenue	$0
Other Current Liabilities	$959M
TOTAL CURRENT LIABILITIES	$2.4B
Long-Term Debt	$150M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$71M
Other Non-Current Liabilities	$644M
TOTAL NON-CURRENT LIABILITIES	$865M
TOTAL LIABILITIES	$3.2B
Common Stock	$14.0K
Additional Paid-In Capital	$3.3B
Retained Earnings	$38M
Treasury Stock	-$601M
Accum. Other Comp. Income	$278M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.0B
Minority Interest	$5M
TOTAL EQUITY	$3.0B
TOTAL LIABILITIES & EQUITY	$6.3B
Total Debt	$230M
Net Debt	-$1.4B