MA FY 2011 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

FY 2011 Earnings

Reported February 16, 2012

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$6.7B	—	$5.5B	—	21.2%
Op. Income	$2.7B	—	$2.8B	—	-1.4%
Gross Margin	78.4%	—	78.0%	—	0.4pp
Net Margin	28.4%	—	33.3%	—	-4.9pp
EPS (Diluted)	$1.48	—	$1.41	—	5.0%
Free Cash Flow	$2.5B	—	$1.5B	—	62.2%

Revenue Flow

Item	Amount
REVENUE	$6.7B
Cost of Revenue	$1.5B
GROSS PROFIT	$5.3B
R&D Expenses	$0
Selling & Marketing	$841M
General & Administrative	$756M
SG&A Expenses	$1.6B
Other Expenses	$951M
Operating Expenses	$2.5B
Cost & Expenses	$4.0B
OPERATING INCOME	$2.7B
Interest Income	$44M
Interest Expense	$25M
Other Income/Expenses	$35M
INCOME BEFORE TAX	$2.7B
Income Tax Expense	$842M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	-$2M
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$194M
EBIT	$2.8B
EBITDA	$3.0B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$6.7B
Cost of Revenue	$1.5B
GROSS PROFIT	$5.3B
R&D Expenses	$0
Selling & Marketing	$841M
General & Administrative	$756M
SG&A Expenses	$1.6B
Other Expenses	$951M
Operating Expenses	$2.5B
Cost & Expenses	$4.0B
OPERATING INCOME	$2.7B
Interest Income	$44M
Interest Expense	$25M
Other Income/Expenses	$35M
INCOME BEFORE TAX	$2.7B
Income Tax Expense	$842M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	-$2M
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$194M
EBIT	$2.8B
EBITDA	$3.0B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$1.9B
Depreciation & Amortization	$194M
Stock-Based Compensation	$35M
Deferred Income Tax	-$175M
Other Non-Cash Items	-$26M
Change in Working Capital	$707M
OPERATING CASH FLOW	$2.7B
Capital Expenditure	-$177M
Acquisitions (Net)	-$534M
Purchases of Investments	-$899M
Sales/Maturities of Investments	$848M
Other Investing Activities	$14M
NET CASH FROM INVESTING	-$748M
Net Debt Issuance	$0
Common Stock Repurchased	-$1.1B
Common Dividends Paid	-$77M
Other Financing Activities	$10M
NET CASH FROM FINANCING	-$1.2B
FREE CASH FLOW	$2.5B
Net Change in Cash	$667M

Balance Sheet

Item	Amount
Cash & Equivalents	$3.7B
Short-Term Investments	$1.2B
Net Receivables	$1.4B
Inventory	$0
Other Current Assets	$1.3B
TOTAL CURRENT ASSETS	$7.7B
PP&E (Net)	$449M
Goodwill	$1.0B
Intangible Assets	$665M
Long-Term Investments	$266M
Tax Assets	$88M
Other Non-Current Assets	$470M
TOTAL NON-CURRENT ASSETS	$3.0B
TOTAL ASSETS	$10.7B
Account Payables	$360M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.4B
TOTAL CURRENT LIABILITIES	$4.2B
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$113M
Other Non-Current Liabilities	$486M
TOTAL NON-CURRENT LIABILITIES	$599M
TOTAL LIABILITIES	$4.8B
Common Stock	$0
Additional Paid-In Capital	$3.5B
Retained Earnings	$4.7B
Treasury Stock	-$2.4B
Accum. Other Comp. Income	-$2M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.9B
Minority Interest	$9M
TOTAL EQUITY	$5.9B
TOTAL LIABILITIES & EQUITY	$10.7B
Total Debt	$0
Net Debt	-$3.7B