MA FY 2016 Earnings Report — Mastercard Incorporated Revenue & Financial Results | Market Cap Arena

Mastercard IncorporatedMA

FY 2016 Earnings

Reported February 15, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2016	Prior Q	FY 2015	QoQ Change	YoY Change
Revenue	$10.8B	—	$9.7B	—	11.5%
Op. Income	$5.8B	—	$5.1B	—	13.5%
Gross Margin	79.4%	—	78.2%	—	1.1pp
Net Margin	37.7%	—	39.4%	—	-1.7pp
EPS (Diluted)	$3.69	—	$3.35	—	10.1%
Free Cash Flow	$4.1B	—	$3.7B	—	10.8%

Revenue Flow

Item	Amount
REVENUE	$10.8B
Cost of Revenue	$2.2B
GROSS PROFIT	$8.6B
R&D Expenses	$0
Selling & Marketing	$698M
General & Administrative	$1.6B
SG&A Expenses	$2.3B
Other Expenses	$524M
Operating Expenses	$2.8B
Cost & Expenses	$5.0B
OPERATING INCOME	$5.8B
Interest Income	$0
Interest Expense	$95M
Other Income/Expenses	-$115M
INCOME BEFORE TAX	$5.6B
Income Tax Expense	$1.6B
Net Income from Continuing Ops	$4.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$4.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$4.1B
D&A	$373M
EBIT	$5.7B
EBITDA	$6.1B
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$10.8B
Cost of Revenue	$2.2B
GROSS PROFIT	$8.6B
R&D Expenses	$0
Selling & Marketing	$698M
General & Administrative	$1.6B
SG&A Expenses	$2.3B
Other Expenses	$524M
Operating Expenses	$2.8B
Cost & Expenses	$5.0B
OPERATING INCOME	$5.8B
Interest Income	$0
Interest Expense	$95M
Other Income/Expenses	-$115M
INCOME BEFORE TAX	$5.6B
Income Tax Expense	$1.6B
Net Income from Continuing Ops	$4.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$4.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$4.1B
D&A	$373M
EBIT	$5.7B
EBITDA	$6.1B
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$4.1B
Depreciation & Amortization	$373M
Stock-Based Compensation	$101M
Deferred Income Tax	-$20M
Other Non-Cash Items	$889M
Change in Working Capital	-$867M
OPERATING CASH FLOW	$4.5B
Capital Expenditure	-$382M
Acquisitions (Net)	-$167M
Purchases of Investments	-$1.8B
Sales/Maturities of Investments	$1.1B
Other Investing Activities	$134M
NET CASH FROM INVESTING	-$1.2B
Net Debt Issuance	$2.0B
Common Stock Repurchased	-$3.5B
Common Dividends Paid	-$837M
Other Financing Activities	$134M
NET CASH FROM FINANCING	-$2.3B
FREE CASH FLOW	$4.1B
Net Change in Cash	$974M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.7B
Short-Term Investments	$1.6B
Net Receivables	$2.5B
Inventory	$0
Other Current Assets	$2.3B
TOTAL CURRENT ASSETS	$13.2B
PP&E (Net)	$733M
Goodwill	$1.8B
Intangible Assets	$722M
Long-Term Investments	$132M
Tax Assets	$307M
Other Non-Current Assets	$1.8B
TOTAL NON-CURRENT ASSETS	$5.4B
TOTAL ASSETS	$18.7B
Account Payables	$609M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$3.4B
TOTAL CURRENT LIABILITIES	$7.2B
Long-Term Debt	$5.2B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$81M
Other Non-Current Liabilities	$524M
TOTAL NON-CURRENT LIABILITIES	$5.8B
TOTAL LIABILITIES	$13.0B
Common Stock	$0
Additional Paid-In Capital	$4.2B
Retained Earnings	$19.4B
Treasury Stock	-$17.0B
Accum. Other Comp. Income	-$924M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.7B
Minority Interest	$28M
TOTAL EQUITY	$5.7B
TOTAL LIABILITIES & EQUITY	$18.7B
Total Debt	$5.2B
Net Debt	-$1.5B