ALK FY 2015 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2015 Earnings

Reported February 11, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2015	Prior Q	FY 2014	QoQ Change	YoY Change
Revenue	$5.6B	—	$5.4B	—	4.3%
Op. Income	$1.3B	—	$962M	—	34.9%
Gross Margin	40.8%	—	33.0%	—	7.8pp
Net Margin	15.1%	—	11.3%	—	3.9pp
EPS (Diluted)	$6.56	—	$4.42	—	48.4%
Free Cash Flow	$753M	—	$336M	—	124.1%

Revenue Flow

Item	Amount
REVENUE	$5.6B
Cost of Revenue	$3.3B
GROSS PROFIT	$2.3B
R&D Expenses	$0
Selling & Marketing	$211M
General & Administrative	$0
SG&A Expenses	$211M
Other Expenses	$776M
Operating Expenses	$987M
Cost & Expenses	$4.3B
OPERATING INCOME	$1.3B
Interest Income	$21M
Interest Expense	$8M
Other Income/Expenses	$14M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$464M
Net Income from Continuing Ops	$848M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$848M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$848M
D&A	$320M
EBIT	$1.3B
EBITDA	$1.6B
EPS	$7
EPS Diluted	$7

Income Statement

Item	Amount
REVENUE	$5.6B
Cost of Revenue	$3.3B
GROSS PROFIT	$2.3B
R&D Expenses	$0
Selling & Marketing	$211M
General & Administrative	$0
SG&A Expenses	$211M
Other Expenses	$776M
Operating Expenses	$987M
Cost & Expenses	$4.3B
OPERATING INCOME	$1.3B
Interest Income	$21M
Interest Expense	$8M
Other Income/Expenses	$14M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$464M
Net Income from Continuing Ops	$848M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$848M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$848M
D&A	$320M
EBIT	$1.3B
EBITDA	$1.6B
EPS	$7
EPS Diluted	$7

Cash Flow Statement

Item	Amount
Net Income	$848M
Depreciation & Amortization	$320M
Stock-Based Compensation	$25M
Deferred Income Tax	$0
Other Non-Cash Items	$0
Change in Working Capital	$391M
OPERATING CASH FLOW	$1.6B
Capital Expenditure	-$831M
Acquisitions (Net)	$0
Purchases of Investments	-$1.3B
Sales/Maturities of Investments	$1.2B
Other Investing Activities	$53M
NET CASH FROM INVESTING	-$930M
Net Debt Issuance	-$116M
Common Stock Repurchased	-$505M
Common Dividends Paid	-$102M
Other Financing Activities	$35M
NET CASH FROM FINANCING	-$688M
FREE CASH FLOW	$753M
Net Change in Cash	-$34M

Balance Sheet

Item	Amount
Cash & Equivalents	$73M
Short-Term Investments	$1.3B
Net Receivables	$212M
Inventory	$51M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$1.7B
PP&E (Net)	$4.8B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$682M
Other Non-Current Assets	-$614M
TOTAL NON-CURRENT ASSETS	$4.9B
TOTAL ASSETS	$6.5B
Account Payables	$63M
Short-Term Debt	$114M
Deferred Revenue	$669M
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$1.8B
Long-Term Debt	$571M
Deferred Revenue NC	$431M
Deferred Tax Liabilities	$682M
Other Non-Current Liabilities	$630M
TOTAL NON-CURRENT LIABILITIES	$2.3B
TOTAL LIABILITIES	$4.1B
Common Stock	$1M
Additional Paid-In Capital	$73M
Retained Earnings	$2.9B
Treasury Stock	-$250M
Accum. Other Comp. Income	-$303M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$2.4B
Minority Interest	$0
TOTAL EQUITY	$2.4B
TOTAL LIABILITIES & EQUITY	$6.5B
Total Debt	$686M
Net Debt	$613M