ALK FY 2010 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2010 Earnings

Reported February 23, 2011

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2010	Prior Q	FY 2009	QoQ Change	YoY Change
Revenue	$3.8B	—	$3.4B	—	12.7%
Op. Income	$472M	—	$267M	—	76.4%
Gross Margin	74.8%	—	79.0%	—	-4.2pp
Net Margin	6.6%	—	3.6%	—	3.0pp
EPS (Diluted)	$1.71	—	$0.84	—	103.6%
Free Cash Flow	$371M	—	-$133M	—	378.5%

Revenue Flow

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$966M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$154M
General & Administrative	$1.1B
SG&A Expenses	$1.2B
Other Expenses	$431M
Operating Expenses	$1.7B
Cost & Expenses	$2.6B
OPERATING INCOME	$472M
Interest Income	$36M
Interest Expense	$108M
Other Income/Expenses	-$65M
INCOME BEFORE TAX	$406M
Income Tax Expense	$155M
Net Income from Continuing Ops	$251M
Net Income from Discontinued Ops	$0
Other Adjustments	-$100.0K
NET INCOME	$251M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$251M
D&A	$231M
EBIT	$508M
EBITDA	$739M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$3.8B
Cost of Revenue	$966M
GROSS PROFIT	$2.9B
R&D Expenses	$0
Selling & Marketing	$154M
General & Administrative	$1.1B
SG&A Expenses	$1.2B
Other Expenses	$431M
Operating Expenses	$1.7B
Cost & Expenses	$2.6B
OPERATING INCOME	$472M
Interest Income	$36M
Interest Expense	$108M
Other Income/Expenses	-$65M
INCOME BEFORE TAX	$406M
Income Tax Expense	$155M
Net Income from Continuing Ops	$251M
Net Income from Discontinued Ops	$0
Other Adjustments	-$100.0K
NET INCOME	$251M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$251M
D&A	$231M
EBIT	$508M
EBITDA	$739M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$251M
Depreciation & Amortization	$231M
Stock-Based Compensation	$14M
Deferred Income Tax	$145M
Other Non-Cash Items	-$1M
Change in Working Capital	-$86M
OPERATING CASH FLOW	$554M
Capital Expenditure	-$183M
Acquisitions (Net)	$7M
Purchases of Investments	-$1.0B
Sales/Maturities of Investments	$931M
Other Investing Activities	-$28M
NET CASH FROM INVESTING	-$295M
Net Debt Issuance	-$321M
Common Stock Repurchased	-$45M
Common Dividends Paid	$0
Other Financing Activities	-$4M
NET CASH FROM FINANCING	-$333M
FREE CASH FLOW	$371M
Net Change in Cash	-$75M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.2B
Short-Term Investments	$0
Net Receivables	$120M
Inventory	$45M
Other Current Assets	$143M
TOTAL CURRENT ASSETS	$1.7B
PP&E (Net)	$3.1B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$280M
Other Non-Current Assets	-$42M
TOTAL NON-CURRENT ASSETS	$3.4B
TOTAL ASSETS	$5.0B
Account Payables	$60M
Short-Term Debt	$221M
Deferred Revenue	$404M
Other Current Liabilities	$266M
TOTAL CURRENT LIABILITIES	$1.4B
Long-Term Debt	$1.3B
Deferred Revenue NC	$404M
Deferred Tax Liabilities	$280M
Other Non-Current Liabilities	$490M
TOTAL NON-CURRENT LIABILITIES	$2.5B
TOTAL LIABILITIES	$3.9B
Common Stock	$37M
Additional Paid-In Capital	$816M
Retained Earnings	$566M
Treasury Stock	-$46M
Accum. Other Comp. Income	-$267M
Other Equity	-$400.0K
TOTAL STOCKHOLDERS' EQUITY	$1.1B
Minority Interest	$0
TOTAL EQUITY	$1.1B
TOTAL LIABILITIES & EQUITY	$5.0B
Total Debt	$1.3B
Net Debt	$105M