MTG FY 2018 Earnings Report — MGIC Investment Corporation Revenue & Financial Results | Market Cap Arena

MGIC Investment CorporationMTG

FY 2018 Earnings

Reported February 22, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$1.1B	—	$1.1B	—	5.4%
Op. Income	$844M	—	$784M	—	7.6%
Gross Margin	95.7%	—	93.9%	—	1.8pp
Net Margin	59.6%	—	33.4%	—	26.3pp
EPS (Diluted)	$1.74	—	$0.95	—	83.2%
Free Cash Flow	$530M	—	$391M	—	35.8%

Revenue Flow

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$48M
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$231M
Operating Expenses	$231M
Cost & Expenses	$280M
OPERATING INCOME	$844M
Interest Income	$0
Interest Expense	$53M
Other Income/Expenses	$0
INCOME BEFORE TAX	$844M
Income Tax Expense	$174M
Net Income from Continuing Ops	$670M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$670M
Net Income Deductions	-$18M
BOTTOM LINE NET INCOME	$688M
D&A	$58M
EBIT	$897M
EBITDA	$955M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$48M
GROSS PROFIT	$1.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$231M
Operating Expenses	$231M
Cost & Expenses	$280M
OPERATING INCOME	$844M
Interest Income	$0
Interest Expense	$53M
Other Income/Expenses	$0
INCOME BEFORE TAX	$844M
Income Tax Expense	$174M
Net Income from Continuing Ops	$670M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$670M
Net Income Deductions	-$18M
BOTTOM LINE NET INCOME	$688M
D&A	$58M
EBIT	$897M
EBITDA	$955M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$670M
Depreciation & Amortization	$58M
Stock-Based Compensation	$21M
Deferred Income Tax	$187M
Other Non-Cash Items	$9M
Change in Working Capital	-$372M
OPERATING CASH FLOW	$545M
Capital Expenditure	-$14M
Acquisitions (Net)	-$785M
Purchases of Investments	-$1.5B
Sales/Maturities of Investments	$1.2B
Other Investing Activities	$785M
NET CASH FROM INVESTING	-$318M
Net Debt Issuance	$0
Common Stock Repurchased	-$163M
Common Dividends Paid	$0
Other Financing Activities	-$8M
NET CASH FROM FINANCING	-$172M
FREE CASH FLOW	$530M
Net Change in Cash	$55M

Balance Sheet

Item	Amount
Cash & Equivalents	$152M
Short-Term Investments	$0
Net Receivables	$91M
Inventory	$5.2B
Other Current Assets	$741M
TOTAL CURRENT ASSETS	$5.4B
PP&E (Net)	$52M
Goodwill	-$204M
Intangible Assets	$18M
Long-Term Investments	$5.2B
Tax Assets	$187M
Other Non-Current Assets	-$4.9B
TOTAL NON-CURRENT ASSETS	$312M
TOTAL ASSETS	$5.7B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$1.3B
Long-Term Debt	$832M
Deferred Revenue NC	-$194M
Deferred Tax Liabilities	$14M
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$832M
TOTAL LIABILITIES	$2.1B
Common Stock	$371M
Additional Paid-In Capital	$1.9B
Retained Earnings	$1.6B
Treasury Stock	-$175M
Accum. Other Comp. Income	-$124M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$3.6B
Minority Interest	$0
TOTAL EQUITY	$3.6B
TOTAL LIABILITIES & EQUITY	$5.7B
Total Debt	$832M
Net Debt	$680M