ALK FY 2019 Earnings Report — Alaska Air Group, Inc. Revenue & Financial Results | Market Cap Arena

Alaska Air Group, Inc.ALK

FY 2019 Earnings

Reported February 12, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2019	Prior Q	FY 2018	QoQ Change	YoY Change
Revenue	$8.8B	—	$8.3B	—	6.3%
Op. Income	$1.1B	—	$643M	—	65.3%
Gross Margin	26.9%	—	25.3%	—	1.7pp
Net Margin	8.8%	—	5.3%	—	3.5pp
EPS (Diluted)	$6.19	—	$3.52	—	75.9%
Free Cash Flow	$1.0B	—	$235M	—	336.6%

Revenue Flow

Item	Amount
REVENUE	$8.8B
Cost of Revenue	$6.4B
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$313M
General & Administrative	$0
SG&A Expenses	$313M
Other Expenses	$990M
Operating Expenses	$1.3B
Cost & Expenses	$7.7B
OPERATING INCOME	$1.1B
Interest Income	$42M
Interest Expense	$63M
Other Income/Expenses	-$47M
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$247M
Net Income from Continuing Ops	$769M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$769M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$769M
D&A	$423M
EBIT	$1.1B
EBITDA	$1.5B
EPS	$6
EPS Diluted	$6

Income Statement

Item	Amount
REVENUE	$8.8B
Cost of Revenue	$6.4B
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$313M
General & Administrative	$0
SG&A Expenses	$313M
Other Expenses	$990M
Operating Expenses	$1.3B
Cost & Expenses	$7.7B
OPERATING INCOME	$1.1B
Interest Income	$42M
Interest Expense	$63M
Other Income/Expenses	-$47M
INCOME BEFORE TAX	$1.0B
Income Tax Expense	$247M
Net Income from Continuing Ops	$769M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$769M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$769M
D&A	$423M
EBIT	$1.1B
EBITDA	$1.5B
EPS	$6
EPS Diluted	$6

Cash Flow Statement

Item	Amount
Net Income	$769M
Depreciation & Amortization	$423M
Stock-Based Compensation	$29M
Deferred Income Tax	$209M
Other Non-Cash Items	-$209M
Change in Working Capital	$501M
OPERATING CASH FLOW	$1.7B
Capital Expenditure	-$696M
Acquisitions (Net)	$0
Purchases of Investments	-$1.8B
Sales/Maturities of Investments	$1.7B
Other Investing Activities	$41M
NET CASH FROM INVESTING	-$791M
Net Debt Issuance	-$608M
Common Stock Repurchased	-$75M
Common Dividends Paid	-$173M
Other Financing Activities	$43M
NET CASH FROM FINANCING	-$813M
FREE CASH FLOW	$1.0B
Net Change in Cash	$118M

Balance Sheet

Item	Amount
Cash & Equivalents	$221M
Short-Term Investments	$1.3B
Net Receivables	$323M
Inventory	$72M
Other Current Assets	$121M
TOTAL CURRENT ASSETS	$2.0B
PP&E (Net)	$8.6B
Goodwill	$1.9B
Intangible Assets	$122M
Long-Term Investments	$16M
Tax Assets	$1.0B
Other Non-Current Assets	$262M
TOTAL NON-CURRENT ASSETS	$12.0B
TOTAL ASSETS	$14.0B
Account Payables	$146M
Short-Term Debt	$504M
Deferred Revenue	$1.6B
Other Current Liabilities	$431M
TOTAL CURRENT LIABILITIES	$3.2B
Long-Term Debt	$1.3B
Deferred Revenue NC	$1.2B
Deferred Tax Liabilities	$1.7B
Other Non-Current Liabilities	$803M
TOTAL NON-CURRENT LIABILITIES	$6.5B
TOTAL LIABILITIES	$9.7B
Common Stock	$1M
Additional Paid-In Capital	$305M
Retained Earnings	$5.1B
Treasury Stock	-$643M
Accum. Other Comp. Income	-$465M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$4.3B
Minority Interest	$0
TOTAL EQUITY	$4.3B
TOTAL LIABILITIES & EQUITY	$14.0B
Total Debt	$3.2B
Net Debt	$3.0B