SYF Q2 2017 Earnings Report — Synchrony Financial Revenue & Financial Results | Market Cap Arena

Synchrony FinancialSYF

Q2 2017 Earnings

Reported July 28, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2017	Q1 2017	Q2 2016	QoQ Change	YoY Change
Revenue	$3.4B	$3.3B	$2.9B	1.1%	14.5%
Op. Income	$788M	$782M	$771M	0.8%	2.2%
Gross Margin	50.6%	50.9%	54.9%	-0.3pp	-4.3pp
Net Margin	14.8%	15.0%	16.7%	-0.3pp	-1.9pp
EPS (Diluted)	$0.61	$0.61	$0.58	0.0%	5.2%
Free Cash Flow	$1.8B	$1.8B	$1.5B	1.0%	20.1%

Revenue Flow

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$1.7B
GROSS PROFIT	$1.7B
R&D Expenses	$0
Selling & Marketing	$124M
General & Administrative	$318M
SG&A Expenses	$442M
Other Expenses	$469M
Operating Expenses	$911M
Cost & Expenses	$2.6B
OPERATING INCOME	$788M
Interest Income	$4.0B
Interest Expense	$333M
Other Income/Expenses	$0
INCOME BEFORE TAX	$788M
Income Tax Expense	$292M
Net Income from Continuing Ops	$496M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$496M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$496M
D&A	$59M
EBIT	$788M
EBITDA	$847M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.4B
Cost of Revenue	$1.7B
GROSS PROFIT	$1.7B
R&D Expenses	$0
Selling & Marketing	$124M
General & Administrative	$318M
SG&A Expenses	$442M
Other Expenses	$469M
Operating Expenses	$911M
Cost & Expenses	$2.6B
OPERATING INCOME	$788M
Interest Income	$4.0B
Interest Expense	$333M
Other Income/Expenses	$0
INCOME BEFORE TAX	$788M
Income Tax Expense	$292M
Net Income from Continuing Ops	$496M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$496M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$496M
D&A	$59M
EBIT	$788M
EBITDA	$847M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$496M
Depreciation & Amortization	$59M
Stock-Based Compensation	$1.3B
Deferred Income Tax	-$200M
Other Non-Cash Items	$151M
Change in Working Capital	-$64M
OPERATING CASH FLOW	$1.8B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$344M
Sales/Maturities of Investments	$1.7B
Other Investing Activities	-$3.7B
NET CASH FROM INVESTING	-$2.4B
Net Debt Issuance	$511M
Common Stock Repurchased	-$438M
Common Dividends Paid	-$105M
Other Financing Activities	$1.3B
NET CASH FROM FINANCING	$1.2B
FREE CASH FLOW	$1.8B
Net Change in Cash	$628M

Balance Sheet

Item	Amount
Cash & Equivalents	$12.0B
Short-Term Investments	$4.0B
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$16.0B
PP&E (Net)	$0
Goodwill	$991M
Intangible Assets	$787M
Long-Term Investments	$75.5B
Tax Assets	$0
Other Non-Current Assets	-$2.1B
TOTAL NON-CURRENT ASSETS	$75.1B
TOTAL ASSETS	$91.1B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$52.9B
TOTAL CURRENT LIABILITIES	$56.1B
Long-Term Debt	$20.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$20.7B
TOTAL LIABILITIES	$76.8B
Common Stock	$1M
Additional Paid-In Capital	$9.4B
Retained Earnings	$6.1B
Treasury Stock	-$1.1B
Accum. Other Comp. Income	-$49M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$14.3B
Minority Interest	$0
TOTAL EQUITY	$14.3B
TOTAL LIABILITIES & EQUITY	$91.1B
Total Debt	$20.7B
Net Debt	$8.7B