ALK FY 2007 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2007 Earnings

Reported February 20, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$3.5B	—	$3.3B	—	5.1%
Op. Income	$212M	—	-$87M	—	342.8%
Gross Margin	74.7%	—	66.6%	—	8.1pp
Net Margin	3.6%	—	-1.6%	—	5.1pp
EPS (Diluted)	$0.77	—	$-0.35	—	320.0%
Free Cash Flow	-$352M	—	-$232M	—	-51.7%

Revenue Flow

Item	Amount
REVENUE	$3.5B
Cost of Revenue	$888M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$161M
General & Administrative	$979M
SG&A Expenses	$1.1B
Other Expenses	$458M
Operating Expenses	$1.6B
Cost & Expenses	$2.5B
OPERATING INCOME	$212M
Interest Income	$54M
Interest Expense	$116M
Other Income/Expenses	-$10M
INCOME BEFORE TAX	$202M
Income Tax Expense	$77M
Net Income from Continuing Ops	$125M
Net Income from Discontinued Ops	$0
Other Adjustments	-$700.0K
NET INCOME	$125M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$124M
D&A	$177M
EBIT	$261M
EBITDA	$439M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$3.5B
Cost of Revenue	$888M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$161M
General & Administrative	$979M
SG&A Expenses	$1.1B
Other Expenses	$458M
Operating Expenses	$1.6B
Cost & Expenses	$2.5B
OPERATING INCOME	$212M
Interest Income	$54M
Interest Expense	$116M
Other Income/Expenses	-$10M
INCOME BEFORE TAX	$202M
Income Tax Expense	$77M
Net Income from Continuing Ops	$125M
Net Income from Discontinued Ops	$0
Other Adjustments	-$700.0K
NET INCOME	$125M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$124M
D&A	$177M
EBIT	$261M
EBITDA	$439M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$125M
Depreciation & Amortization	$177M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$168M
Change in Working Capital	$11M
OPERATING CASH FLOW	$482M
Capital Expenditure	-$834M
Acquisitions (Net)	$63M
Purchases of Investments	-$1.1B
Sales/Maturities of Investments	$1.3B
Other Investing Activities	-$3M
NET CASH FROM INVESTING	-$602M
Net Debt Issuance	$150M
Common Stock Repurchased	-$63M
Common Dividends Paid	$0
Other Financing Activities	$0
NET CASH FROM FINANCING	$93M
FREE CASH FLOW	-$352M
Net Change in Cash	-$26M

Balance Sheet

Item	Amount
Cash & Equivalents	$204M
Short-Term Investments	$619M
Net Receivables	$239M
Inventory	$47M
Other Current Assets	$106M
TOTAL CURRENT ASSETS	$1.4B
PP&E (Net)	$3.0B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$133M
Other Non-Current Assets	$6M
TOTAL NON-CURRENT ASSETS	$3.1B
TOTAL ASSETS	$4.5B
Account Payables	$102M
Short-Term Debt	$540M
Deferred Revenue	$414M
Other Current Liabilities	-$275M
TOTAL CURRENT LIABILITIES	$1.4B
Long-Term Debt	$1.1B
Deferred Revenue NC	$414M
Deferred Tax Liabilities	$133M
Other Non-Current Liabilities	$408M
TOTAL NON-CURRENT LIABILITIES	$2.1B
TOTAL LIABILITIES	$3.5B
Common Stock	$43M
Additional Paid-In Capital	$895M
Retained Earnings	$332M
Treasury Stock	-$113M
Accum. Other Comp. Income	-$133M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.0B
Minority Interest	$0
TOTAL EQUITY	$1.0B
TOTAL LIABILITIES & EQUITY	$4.5B
Total Debt	$1.7B
Net Debt	$1.5B