SYF Q2 2019 Earnings Report — Synchrony Financial Revenue & Financial Results | Market Cap Arena

Synchrony FinancialSYF

Q2 2019 Earnings

Reported July 25, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$4.0B	$3.9B	$3.6B	1.1%	10.7%
Op. Income	$1.1B	$1.5B	$892M	-22.8%	26.6%
Gross Margin	55.1%	63.8%	52.1%	-8.7pp	3.0pp
Net Margin	21.5%	28.2%	19.4%	-6.7pp	2.1pp
EPS (Diluted)	$1.24	$1.56	$0.92	-20.5%	34.8%
Free Cash Flow	$2.0B	$2.3B	$2.2B	-14.1%	-9.2%

Revenue Flow

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$1.8B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$135M
General & Administrative	$358M
SG&A Expenses	$493M
Other Expenses	$566M
Operating Expenses	$1.1B
Cost & Expenses	$2.8B
OPERATING INCOME	$1.1B
Interest Income	$4.7B
Interest Expense	$583M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$276M
Net Income from Continuing Ops	$853M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$853M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$853M
D&A	$92M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$4.0B
Cost of Revenue	$1.8B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$135M
General & Administrative	$358M
SG&A Expenses	$493M
Other Expenses	$566M
Operating Expenses	$1.1B
Cost & Expenses	$2.8B
OPERATING INCOME	$1.1B
Interest Income	$4.7B
Interest Expense	$583M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$276M
Net Income from Continuing Ops	$853M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$853M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$853M
D&A	$92M
EBIT	$1.1B
EBITDA	$1.2B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$853M
Depreciation & Amortization	$92M
Stock-Based Compensation	$1.2B
Deferred Income Tax	-$10M
Other Non-Cash Items	$140M
Change in Working Capital	-$307M
OPERATING CASH FLOW	$2.0B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$2.3B
Sales/Maturities of Investments	$1.9B
Other Investing Activities	-$2.8B
NET CASH FROM INVESTING	-$3.2B
Net Debt Issuance	-$653M
Common Stock Repurchased	-$725M
Common Dividends Paid	-$145M
Other Financing Activities	$1.6B
NET CASH FROM FINANCING	$68M
FREE CASH FLOW	$2.0B
Net Change in Cash	-$1.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$11.8B
Short-Term Investments	$6.1B
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$17.9B
PP&E (Net)	$0
Goodwill	$1.1B
Intangible Assets	$1.2B
Long-Term Investments	$89.9B
Tax Assets	$0
Other Non-Current Assets	-$3.7B
TOTAL NON-CURRENT ASSETS	$88.5B
TOTAL ASSETS	$106.4B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$65.6B
TOTAL CURRENT LIABILITIES	$70.4B
Long-Term Debt	$21.2B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$21.2B
TOTAL LIABILITIES	$91.7B
Common Stock	$1M
Additional Paid-In Capital	$9.5B
Retained Earnings	$10.6B
Treasury Stock	-$5.4B
Accum. Other Comp. Income	-$43M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$14.7B
Minority Interest	$0
TOTAL EQUITY	$14.7B
TOTAL LIABILITIES & EQUITY	$106.4B
Total Debt	$21.2B
Net Debt	$9.5B