LUV FY 2007 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2007 Earnings

Reported February 4, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$9.9B	—	$9.1B	—	8.5%
Op. Income	$791M	—	$934M	—	-15.3%
Gross Margin	73.7%	—	42.4%	—	31.4pp
Net Margin	6.5%	—	5.5%	—	1.0pp
EPS (Diluted)	$0.84	—	$0.61	—	37.7%
Free Cash Flow	$1.5B	—	$7M	—	21528.6%

Revenue Flow

Item	Amount
REVENUE	$9.9B
Cost of Revenue	$2.6B
GROSS PROFIT	$7.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3.2B
SG&A Expenses	$3.2B
Other Expenses	$3.3B
Operating Expenses	$6.5B
Cost & Expenses	$9.1B
OPERATING INCOME	$791M
Interest Income	$94M
Interest Expense	$119M
Other Income/Expenses	$267M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$413M
Net Income from Continuing Ops	$645M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$645M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$645M
D&A	$555M
EBIT	$1.2B
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$9.9B
Cost of Revenue	$2.6B
GROSS PROFIT	$7.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3.2B
SG&A Expenses	$3.2B
Other Expenses	$3.3B
Operating Expenses	$6.5B
Cost & Expenses	$9.1B
OPERATING INCOME	$791M
Interest Income	$94M
Interest Expense	$119M
Other Income/Expenses	$267M
INCOME BEFORE TAX	$1.1B
Income Tax Expense	$413M
Net Income from Continuing Ops	$645M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$645M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$645M
D&A	$555M
EBIT	$1.2B
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$645M
Depreciation & Amortization	$555M
Stock-Based Compensation	$80M
Deferred Income Tax	$328M
Other Non-Cash Items	-$236M
Change in Working Capital	$1.5B
OPERATING CASH FLOW	$2.8B
Capital Expenditure	-$1.3B
Acquisitions (Net)	-$21M
Purchases of Investments	-$5.1B
Sales/Maturities of Investments	$4.9B
Other Investing Activities	$21M
NET CASH FROM INVESTING	-$1.5B
Net Debt Issuance	$378M
Common Stock Repurchased	-$1.0B
Common Dividends Paid	-$14M
Other Financing Activities	$5M
NET CASH FROM FINANCING	-$493M
FREE CASH FLOW	$1.5B
Net Change in Cash	$823M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.2B
Short-Term Investments	$566M
Net Receivables	$279M
Inventory	$259M
Other Current Assets	$1.1B
TOTAL CURRENT ASSETS	$4.4B
PP&E (Net)	$10.9B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$1.5B
TOTAL NON-CURRENT ASSETS	$12.3B
TOTAL ASSETS	$16.8B
Account Payables	$759M
Short-Term Debt	$41M
Deferred Revenue	$0
Other Current Liabilities	$931M
TOTAL CURRENT LIABILITIES	$4.8B
Long-Term Debt	$2.0B
Deferred Revenue NC	$106M
Deferred Tax Liabilities	$2.5B
Other Non-Current Liabilities	$302M
TOTAL NON-CURRENT LIABILITIES	$5.0B
TOTAL LIABILITIES	$9.8B
Common Stock	$808M
Additional Paid-In Capital	$1.2B
Retained Earnings	$4.8B
Treasury Stock	-$1.1B
Accum. Other Comp. Income	$1.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.9B
Minority Interest	$0
TOTAL EQUITY	$6.9B
TOTAL LIABILITIES & EQUITY	$16.8B
Total Debt	$2.1B
Net Debt	-$122M