MA FY 2014 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

FY 2014 Earnings

Reported February 13, 2015

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2014	Prior Q	FY 2013	QoQ Change	YoY Change
Revenue	$9.4B	—	$8.3B	—	13.6%
Op. Income	$5.1B	—	$4.5B	—	13.4%
Gross Margin	78.1%	—	79.1%	—	-0.9pp
Net Margin	38.3%	—	37.5%	—	0.8pp
EPS (Diluted)	$3.10	—	$2.56	—	21.1%
Free Cash Flow	$3.1B	—	$3.8B	—	-19.9%

Revenue Flow

Item	Amount
REVENUE	$9.4B
Cost of Revenue	$2.1B
GROSS PROFIT	$7.4B
R&D Expenses	$0
Selling & Marketing	$862M
General & Administrative	$1.1B
SG&A Expenses	$2.0B
Other Expenses	$291M
Operating Expenses	$2.3B
Cost & Expenses	$4.3B
OPERATING INCOME	$5.1B
Interest Income	$26M
Interest Expense	$48M
Other Income/Expenses	-$27M
INCOME BEFORE TAX	$5.1B
Income Tax Expense	$1.5B
Net Income from Continuing Ops	$3.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.6B
D&A	$321M
EBIT	$5.1B
EBITDA	$5.4B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$9.4B
Cost of Revenue	$2.1B
GROSS PROFIT	$7.4B
R&D Expenses	$0
Selling & Marketing	$862M
General & Administrative	$1.1B
SG&A Expenses	$2.0B
Other Expenses	$291M
Operating Expenses	$2.3B
Cost & Expenses	$4.3B
OPERATING INCOME	$5.1B
Interest Income	$26M
Interest Expense	$48M
Other Income/Expenses	-$27M
INCOME BEFORE TAX	$5.1B
Income Tax Expense	$1.5B
Net Income from Continuing Ops	$3.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.6B
D&A	$321M
EBIT	$5.1B
EBITDA	$5.4B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$3.6B
Depreciation & Amortization	$321M
Stock-Based Compensation	-$15M
Deferred Income Tax	-$91M
Other Non-Cash Items	$743M
Change in Working Capital	-$1.2B
OPERATING CASH FLOW	$3.4B
Capital Expenditure	-$334M
Acquisitions (Net)	-$525M
Purchases of Investments	-$2.4B
Sales/Maturities of Investments	$3.8B
Other Investing Activities	$99M
NET CASH FROM INVESTING	$690M
Net Debt Issuance	$1.5B
Common Stock Repurchased	-$3.4B
Common Dividends Paid	-$515M
Other Financing Activities	$32M
NET CASH FROM FINANCING	-$2.3B
FREE CASH FLOW	$3.1B
Net Change in Cash	$1.5B

Balance Sheet

Item	Amount
Cash & Equivalents	$5.1B
Short-Term Investments	$1.2B
Net Receivables	$2.2B
Inventory	$0
Other Current Assets	$2.2B
TOTAL CURRENT ASSETS	$11.0B
PP&E (Net)	$615M
Goodwill	$1.5B
Intangible Assets	$714M
Long-Term Investments	$245M
Tax Assets	$96M
Other Non-Current Assets	$1.1B
TOTAL NON-CURRENT ASSETS	$4.3B
TOTAL ASSETS	$15.3B
Account Payables	$419M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$1.5B
TOTAL CURRENT LIABILITIES	$6.2B
Long-Term Debt	$1.5B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$115M
Other Non-Current Liabilities	$674M
TOTAL NON-CURRENT LIABILITIES	$2.3B
TOTAL LIABILITIES	$8.5B
Common Stock	$0
Additional Paid-In Capital	$3.9B
Retained Earnings	$13.2B
Treasury Stock	-$10.0B
Accum. Other Comp. Income	-$260M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.8B
Minority Interest	$34M
TOTAL EQUITY	$6.8B
TOTAL LIABILITIES & EQUITY	$15.3B
Total Debt	$1.5B
Net Debt	-$3.6B