ALK FY 2012 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2012 Earnings

Reported February 14, 2013

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2012	Prior Q	FY 2011	QoQ Change	YoY Change
Revenue	$4.7B	—	$4.3B	—	7.9%
Op. Income	$570M	—	$449M	—	27.0%
Gross Margin	28.1%	—	50.2%	—	-22.1pp
Net Margin	6.8%	—	5.7%	—	1.1pp
EPS (Diluted)	$2.20	—	$1.67	—	31.7%
Free Cash Flow	$179M	—	$309M	—	-42.0%

Revenue Flow

Item	Amount
REVENUE	$4.7B
Cost of Revenue	$3.3B
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$168M
General & Administrative	$0
SG&A Expenses	$168M
Other Expenses	$0
Operating Expenses	$767M
Cost & Expenses	$4.1B
OPERATING INCOME	$570M
Interest Income	$19M
Interest Expense	$46M
Other Income/Expenses	-$18M
INCOME BEFORE TAX	$514M
Income Tax Expense	$198M
Net Income from Continuing Ops	$316M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$316M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$316M
D&A	$264M
EBIT	$570M
EBITDA	$834M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$4.7B
Cost of Revenue	$3.3B
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$168M
General & Administrative	$0
SG&A Expenses	$168M
Other Expenses	$0
Operating Expenses	$767M
Cost & Expenses	$4.1B
OPERATING INCOME	$570M
Interest Income	$19M
Interest Expense	$46M
Other Income/Expenses	-$18M
INCOME BEFORE TAX	$514M
Income Tax Expense	$198M
Net Income from Continuing Ops	$316M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$316M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$316M
D&A	$264M
EBIT	$570M
EBITDA	$834M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$316M
Depreciation & Amortization	$264M
Stock-Based Compensation	$10M
Deferred Income Tax	$0
Other Non-Cash Items	$154M
Change in Working Capital	$163M
OPERATING CASH FLOW	$753M
Capital Expenditure	-$574M
Acquisitions (Net)	$0
Purchases of Investments	-$1.1B
Sales/Maturities of Investments	$1.0B
Other Investing Activities	$11M
NET CASH FROM INVESTING	-$645M
Net Debt Issuance	-$275M
Common Stock Repurchased	-$60M
Common Dividends Paid	$0
Other Financing Activities	$216M
NET CASH FROM FINANCING	-$88M
FREE CASH FLOW	$179M
Net Change in Cash	$20M

Balance Sheet

Item	Amount
Cash & Equivalents	$122M
Short-Term Investments	$1.1B
Net Receivables	$130M
Inventory	$58M
Other Current Assets	$174M
TOTAL CURRENT ASSETS	$1.7B
PP&E (Net)	$3.6B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$446M
Other Non-Current Assets	-$287M
TOTAL NON-CURRENT ASSETS	$3.8B
TOTAL ASSETS	$5.5B
Account Payables	$65M
Short-Term Debt	$161M
Deferred Revenue	$534M
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$1.5B
Long-Term Debt	$871M
Deferred Revenue NC	$443M
Deferred Tax Liabilities	$446M
Other Non-Current Liabilities	$823M
TOTAL NON-CURRENT LIABILITIES	$2.6B
TOTAL LIABILITIES	$4.1B
Common Stock	$70M
Additional Paid-In Capital	$660M
Retained Earnings	$1.1B
Treasury Stock	$0
Accum. Other Comp. Income	-$436M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.4B
Minority Interest	$0
TOTAL EQUITY	$1.4B
TOTAL LIABILITIES & EQUITY	$5.5B
Total Debt	$1.0B
Net Debt	$910M