ALK FY 2011 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2011 Earnings

Reported February 21, 2012

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$4.3B	—	$3.8B	—	12.7%
Op. Income	$449M	—	$472M	—	-4.8%
Gross Margin	50.2%	—	74.8%	—	-24.6pp
Net Margin	5.7%	—	6.6%	—	-0.9pp
EPS (Diluted)	$1.67	—	$1.71	—	-2.3%
Free Cash Flow	$309M	—	$371M	—	-16.8%

Revenue Flow

Item	Amount
REVENUE	$4.3B
Cost of Revenue	$2.1B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$175M
General & Administrative	$1.1B
SG&A Expenses	$1.2B
Other Expenses	$482M
Operating Expenses	$1.7B
Cost & Expenses	$3.9B
OPERATING INCOME	$449M
Interest Income	$34M
Interest Expense	$87M
Other Income/Expenses	-$55M
INCOME BEFORE TAX	$394M
Income Tax Expense	$149M
Net Income from Continuing Ops	$245M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$245M
Net Income Deductions	-$500.0K
BOTTOM LINE NET INCOME	$245M
D&A	$247M
EBIT	$469M
EBITDA	$730M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$4.3B
Cost of Revenue	$2.1B
GROSS PROFIT	$2.2B
R&D Expenses	$0
Selling & Marketing	$175M
General & Administrative	$1.1B
SG&A Expenses	$1.2B
Other Expenses	$482M
Operating Expenses	$1.7B
Cost & Expenses	$3.9B
OPERATING INCOME	$449M
Interest Income	$34M
Interest Expense	$87M
Other Income/Expenses	-$55M
INCOME BEFORE TAX	$394M
Income Tax Expense	$149M
Net Income from Continuing Ops	$245M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$245M
Net Income Deductions	-$500.0K
BOTTOM LINE NET INCOME	$245M
D&A	$247M
EBIT	$469M
EBITDA	$730M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$245M
Depreciation & Amortization	$247M
Stock-Based Compensation	$17M
Deferred Income Tax	$0
Other Non-Cash Items	$39M
Change in Working Capital	$149M
OPERATING CASH FLOW	$696M
Capital Expenditure	-$387M
Acquisitions (Net)	$0
Purchases of Investments	-$884M
Sales/Maturities of Investments	$956M
Other Investing Activities	-$88M
NET CASH FROM INVESTING	-$403M
Net Debt Issuance	-$227M
Common Stock Repurchased	-$80M
Common Dividends Paid	$0
Other Financing Activities	$8M
NET CASH FROM FINANCING	-$280M
FREE CASH FLOW	$309M
Net Change in Cash	$13M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.1B
Short-Term Investments	$0
Net Receivables	$136M
Inventory	$44M
Other Current Assets	$153M
TOTAL CURRENT ASSETS	$1.6B
PP&E (Net)	$3.4B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$363M
Other Non-Current Assets	-$165M
TOTAL NON-CURRENT ASSETS	$3.6B
TOTAL ASSETS	$5.2B
Account Payables	$104M
Short-Term Debt	$208M
Deferred Revenue	$489M
Other Current Liabilities	$539M
TOTAL CURRENT LIABILITIES	$1.5B
Long-Term Debt	$1.1B
Deferred Revenue NC	$410M
Deferred Tax Liabilities	$363M
Other Non-Current Liabilities	$645M
TOTAL NON-CURRENT LIABILITIES	$2.5B
TOTAL LIABILITIES	$4.0B
Common Stock	$38M
Additional Paid-In Capital	$802M
Retained Earnings	$811M
Treasury Stock	-$125M
Accum. Other Comp. Income	-$390M
Other Equity	$38M
TOTAL STOCKHOLDERS' EQUITY	$1.2B
Minority Interest	$0
TOTAL EQUITY	$1.2B
TOTAL LIABILITIES & EQUITY	$5.2B
Total Debt	$1.1B
Net Debt	-$42M