SYF Q4 2018 Earnings Report — Synchrony Financial Revenue & Financial Results | Market Cap Arena

Synchrony FinancialSYF

Q4 2018 Earnings

Reported February 15, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2018	Q3 2018	Q4 2017	QoQ Change	YoY Change
Revenue	$4.1B	$3.9B	$3.6B	5.1%	14.3%
Op. Income	$1.0B	$893M	$875M	13.3%	15.7%
Gross Margin	51.2%	50.1%	51.6%	1.1pp	-0.5pp
Net Margin	19.2%	17.3%	10.8%	1.9pp	8.4pp
EPS (Diluted)	$1.09	$0.91	$0.49	19.8%	122.4%
Free Cash Flow	$2.6B	$2.7B	$2.5B	-4.1%	4.3%

Revenue Flow

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$2.0B
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$166M
General & Administrative	$353M
SG&A Expenses	$519M
Other Expenses	$559M
Operating Expenses	$1.1B
Cost & Expenses	$3.1B
OPERATING INCOME	$1.0B
Interest Income	$4.9B
Interest Expense	$543M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$229M
Net Income from Continuing Ops	$783M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$783M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$783M
D&A	$80M
EBIT	$1.0B
EBITDA	$1.1B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$4.1B
Cost of Revenue	$2.0B
GROSS PROFIT	$2.1B
R&D Expenses	$0
Selling & Marketing	$166M
General & Administrative	$353M
SG&A Expenses	$519M
Other Expenses	$559M
Operating Expenses	$1.1B
Cost & Expenses	$3.1B
OPERATING INCOME	$1.0B
Interest Income	$4.9B
Interest Expense	$543M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$229M
Net Income from Continuing Ops	$783M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$783M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$783M
D&A	$80M
EBIT	$1.0B
EBITDA	$1.1B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$783M
Depreciation & Amortization	$80M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$1.6B
Change in Working Capital	$112M
OPERATING CASH FLOW	$2.6B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$466M
Sales/Maturities of Investments	$1.7B
Other Investing Activities	-$7.5B
NET CASH FROM INVESTING	-$6.3B
Net Debt Issuance	$250M
Common Stock Repurchased	$0
Common Dividends Paid	-$151M
Other Financing Activities	$1.7B
NET CASH FROM FINANCING	$1.8B
FREE CASH FLOW	$2.6B
Net Change in Cash	-$1.9B

Balance Sheet

Item	Amount
Cash & Equivalents	$9.4B
Short-Term Investments	$6.1B
Net Receivables	$0
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$15.5B
PP&E (Net)	$0
Goodwill	$1.0B
Intangible Assets	$1.1B
Long-Term Investments	$93.1B
Tax Assets	$0
Other Non-Current Assets	-$4.0B
TOTAL NON-CURRENT ASSETS	$91.3B
TOTAL ASSETS	$106.8B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$64.0B
TOTAL CURRENT LIABILITIES	$68.1B
Long-Term Debt	$24.0B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$24.0B
TOTAL LIABILITIES	$92.1B
Common Stock	$1M
Additional Paid-In Capital	$9.5B
Retained Earnings	$9.0B
Treasury Stock	-$3.7B
Accum. Other Comp. Income	-$62M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$14.7B
Minority Interest	$0
TOTAL EQUITY	$14.7B
TOTAL LIABILITIES & EQUITY	$106.8B
Total Debt	$24.0B
Net Debt	$14.6B