ALK FY 2013 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2013 Earnings

Reported February 13, 2014

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2013	Prior Q	FY 2012	QoQ Change	YoY Change
Revenue	$5.2B	—	$4.7B	—	10.7%
Op. Income	$838M	—	$570M	—	47.0%
Gross Margin	27.6%	—	28.1%	—	-0.5pp
Net Margin	9.9%	—	6.8%	—	3.1pp
EPS (Diluted)	$3.58	—	$2.20	—	62.7%
Free Cash Flow	$415M	—	$179M	—	131.8%

Revenue Flow

Item	Amount
REVENUE	$5.2B
Cost of Revenue	$3.5B
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$179M
General & Administrative	$0
SG&A Expenses	$179M
Other Expenses	$407M
Operating Expenses	$586M
Cost & Expenses	$4.1B
OPERATING INCOME	$838M
Interest Income	$18M
Interest Expense	$35M
Other Income/Expenses	-$22M
INCOME BEFORE TAX	$816M
Income Tax Expense	$308M
Net Income from Continuing Ops	$508M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$508M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$508M
D&A	$270M
EBIT	$638M
EBITDA	$908M
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$5.2B
Cost of Revenue	$3.5B
GROSS PROFIT	$1.4B
R&D Expenses	$0
Selling & Marketing	$179M
General & Administrative	$0
SG&A Expenses	$179M
Other Expenses	$407M
Operating Expenses	$586M
Cost & Expenses	$4.1B
OPERATING INCOME	$838M
Interest Income	$18M
Interest Expense	$35M
Other Income/Expenses	-$22M
INCOME BEFORE TAX	$816M
Income Tax Expense	$308M
Net Income from Continuing Ops	$508M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$508M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$508M
D&A	$270M
EBIT	$638M
EBITDA	$908M
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$508M
Depreciation & Amortization	$270M
Stock-Based Compensation	$32M
Deferred Income Tax	$0
Other Non-Cash Items	$67M
Change in Working Capital	$363M
OPERATING CASH FLOW	$981M
Capital Expenditure	-$566M
Acquisitions (Net)	$0
Purchases of Investments	-$1.2B
Sales/Maturities of Investments	$1.1B
Other Investing Activities	-$3M
NET CASH FROM INVESTING	-$698M
Net Debt Issuance	-$161M
Common Stock Repurchased	-$159M
Common Dividends Paid	-$28M
Other Financing Activities	$23M
NET CASH FROM FINANCING	-$325M
FREE CASH FLOW	$415M
Net Change in Cash	-$42M

Balance Sheet

Item	Amount
Cash & Equivalents	$80M
Short-Term Investments	$1.3B
Net Receivables	$152M
Inventory	$60M
Other Current Assets	$132M
TOTAL CURRENT ASSETS	$1.8B
PP&E (Net)	$3.9B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$709M
Other Non-Current Assets	-$526M
TOTAL NON-CURRENT ASSETS	$4.1B
TOTAL ASSETS	$5.8B
Account Payables	$64M
Short-Term Debt	$117M
Deferred Revenue	$564M
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$1.6B
Long-Term Debt	$754M
Deferred Revenue NC	$335M
Deferred Tax Liabilities	$709M
Other Non-Current Liabilities	$431M
TOTAL NON-CURRENT LIABILITIES	$2.2B
TOTAL LIABILITIES	$3.8B
Common Stock	$69M
Additional Paid-In Capital	$538M
Retained Earnings	$1.6B
Treasury Stock	-$2M
Accum. Other Comp. Income	-$183M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.0B
Minority Interest	$0
TOTAL EQUITY	$2.0B
TOTAL LIABILITIES & EQUITY	$5.8B
Total Debt	$871M
Net Debt	$791M