8-KEarnings & ResultsRegulation FDExhibits & Filings

Mastercard Inc 8-K Report, Financial Results (Jul 29, 2015)

Filed July 29, 2015For Securities:MA

Summary

Mastercard Incorporated filed an 8-K on July 29, 2015, primarily to announce its second-quarter 2015 financial results via a press release (Exhibit 99.1) and an accompanying investor presentation (Exhibit 99.2) for a conference call. The filing highlights the company's financial performance for the quarter and provides insights into how management views these results, including the use of non-GAAP financial measures. Investors should note the company's focus on presenting results both on a GAAP basis and adjusted for significant one-time items. The key takeaway from this filing is the company's proactive communication of its financial performance, emphasizing adjusted figures to provide a clearer picture of ongoing operational trends. The exclusion of a UK merchant litigation settlement charge from reported figures is a significant adjustment investors should understand. Additionally, the company highlights currency-adjusted growth rates, which is crucial for a global business like Mastercard to demonstrate underlying business momentum irrespective of foreign exchange fluctuations.

Key Highlights

  • 1Mastercard announced its second-quarter 2015 financial results on July 29, 2015, via an 8-K filing.
  • 2The company is providing its Q2 2015 results through an attached press release (Exhibit 99.1).
  • 3A conference call and investor presentation (Exhibit 99.2) were scheduled for July 29, 2015, to discuss the Q2 results.
  • 4Mastercard is presenting non-GAAP financial measures, excluding a UK merchant litigation settlement charge, to illustrate ongoing operational performance.
  • 5Adjusted metrics include total operating expenses, operating income, net income, earnings per diluted share, and operating margin.
  • 6Effective tax rate is also presented on a pro forma basis, excluding tax benefits related to the litigation settlement.
  • 7Growth rates are provided on a currency-adjusted basis to mitigate the impact of foreign exchange fluctuations on reported results.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly announce Mastercard's financial results for the second quarter of 2015. It includes the press release detailing these results and references an investor presentation for a conference call discussing the performance.

Mastercard is excluding a charge related to a UK merchant litigation settlement from its reported results. This charge impacted total operating expenses, operating income, net income, earnings per diluted share, and operating margin for the second quarter of 2015.

Mastercard uses non-GAAP financial measures, such as excluding the litigation settlement charge and presenting currency-adjusted growth rates, because its management believes these measures provide a clearer understanding of the company's ongoing operating performance and allow for more meaningful comparisons between periods. Management uses these metrics for internal planning, forecasting, and performance-based compensation.

For a global company like Mastercard, foreign currency fluctuations can significantly impact reported financial results. Presenting growth rates adjusted for currency allows investors to better assess the underlying operational performance and business momentum without the noise of exchange rate changes.