SYF Q2 2018 Earnings Report — Synchrony Financial Revenue & Financial Results | Market Cap Arena

Synchrony FinancialSYF

Q2 2018 Earnings

Reported July 27, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$3.6B	$3.6B	$3.4B	-0.4%	6.7%
Op. Income	$892M	$847M	$788M	5.3%	13.2%
Gross Margin	52.1%	51.0%	50.6%	1.1pp	1.5pp
Net Margin	19.4%	17.8%	14.8%	1.6pp	4.6pp
EPS (Diluted)	$0.92	$0.83	$0.61	10.8%	50.8%
Free Cash Flow	$2.2B	$1.9B	$1.8B	13.1%	22.5%

Revenue Flow

Item	Amount
REVENUE	$3.6B
Cost of Revenue	$1.7B
GROSS PROFIT	$1.9B
R&D Expenses	$0
Selling & Marketing	$110M
General & Administrative	$351M
SG&A Expenses	$461M
Other Expenses	$514M
Operating Expenses	$975M
Cost & Expenses	$2.7B
OPERATING INCOME	$892M
Interest Income	$4.2B
Interest Expense	$437M
Other Income/Expenses	$0
INCOME BEFORE TAX	$892M
Income Tax Expense	$196M
Net Income from Continuing Ops	$696M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$696M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$696M
D&A	$73M
EBIT	$892M
EBITDA	$965M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.6B
Cost of Revenue	$1.7B
GROSS PROFIT	$1.9B
R&D Expenses	$0
Selling & Marketing	$110M
General & Administrative	$351M
SG&A Expenses	$461M
Other Expenses	$514M
Operating Expenses	$975M
Cost & Expenses	$2.7B
OPERATING INCOME	$892M
Interest Income	$4.2B
Interest Expense	$437M
Other Income/Expenses	$0
INCOME BEFORE TAX	$892M
Income Tax Expense	$196M
Net Income from Continuing Ops	$696M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$696M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$696M
D&A	$73M
EBIT	$892M
EBITDA	$965M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$696M
Depreciation & Amortization	$73M
Stock-Based Compensation	$1.3B
Deferred Income Tax	-$30M
Other Non-Cash Items	$152M
Change in Working Capital	-$5M
OPERATING CASH FLOW	$2.2B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$2.5B
Sales/Maturities of Investments	$1.9B
Other Investing Activities	-$2.5B
NET CASH FROM INVESTING	-$3.0B
Net Debt Issuance	$701M
Common Stock Repurchased	-$491M
Common Dividends Paid	-$113M
Other Financing Activities	$2.5B
NET CASH FROM FINANCING	$2.6B
FREE CASH FLOW	$2.2B
Net Change in Cash	$1.7B

Balance Sheet

Item	Amount
Cash & Equivalents	$15.7B
Short-Term Investments	$6.8B
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$22.5B
PP&E (Net)	$0
Goodwill	$1.0B
Intangible Assets	$863M
Long-Term Investments	$78.9B
Tax Assets	$0
Other Non-Current Assets	-$4.1B
TOTAL NON-CURRENT ASSETS	$76.7B
TOTAL ASSETS	$99.1B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$59.0B
TOTAL CURRENT LIABILITIES	$62.9B
Long-Term Debt	$21.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$21.7B
TOTAL LIABILITIES	$84.7B
Common Stock	$1M
Additional Paid-In Capital	$9.5B
Retained Earnings	$7.9B
Treasury Stock	-$2.8B
Accum. Other Comp. Income	-$93M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$14.5B
Minority Interest	$0
TOTAL EQUITY	$14.5B
TOTAL LIABILITIES & EQUITY	$99.1B
Total Debt	$21.7B
Net Debt	$6.0B