LUV FY 2010 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2010 Earnings

Reported February 7, 2011

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2010	Prior Q	FY 2009	QoQ Change	YoY Change
Revenue	$12.1B	—	$10.3B	—	16.9%
Op. Income	$988M	—	$262M	—	277.1%
Gross Margin	19.9%	—	54.9%	—	-35.0pp
Net Margin	3.8%	—	1.0%	—	2.8pp
EPS (Diluted)	$0.61	—	$0.13	—	369.2%
Free Cash Flow	$1.1B	—	$400M	—	167.0%

Revenue Flow

Item	Amount
REVENUE	$12.1B
Cost of Revenue	$9.7B
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3.7B
SG&A Expenses	$3.7B
Other Expenses	-$2.3B
Operating Expenses	$1.4B
Cost & Expenses	$11.1B
OPERATING INCOME	$988M
Interest Income	$30M
Interest Expense	$149M
Other Income/Expenses	-$243M
INCOME BEFORE TAX	$745M
Income Tax Expense	$286M
Net Income from Continuing Ops	$459M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$459M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$459M
D&A	$628M
EBIT	$894M
EBITDA	$1.5B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$12.1B
Cost of Revenue	$9.7B
GROSS PROFIT	$2.4B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3.7B
SG&A Expenses	$3.7B
Other Expenses	-$2.3B
Operating Expenses	$1.4B
Cost & Expenses	$11.1B
OPERATING INCOME	$988M
Interest Income	$30M
Interest Expense	$149M
Other Income/Expenses	-$243M
INCOME BEFORE TAX	$745M
Income Tax Expense	$286M
Net Income from Continuing Ops	$459M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$459M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$459M
D&A	$628M
EBIT	$894M
EBITDA	$1.5B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$459M
Depreciation & Amortization	$628M
Stock-Based Compensation	$0
Deferred Income Tax	$133M
Other Non-Cash Items	$139M
Change in Working Capital	$216M
OPERATING CASH FLOW	$1.6B
Capital Expenditure	-$493M
Acquisitions (Net)	-$2M
Purchases of Investments	-$5.6B
Sales/Maturities of Investments	$4.9B
Other Investing Activities	$2M
NET CASH FROM INVESTING	-$1.3B
Net Debt Issuance	-$199M
Common Stock Repurchased	$0
Common Dividends Paid	-$13M
Other Financing Activities	$8M
NET CASH FROM FINANCING	-$149M
FREE CASH FLOW	$1.1B
Net Change in Cash	$147M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.3B
Short-Term Investments	$2.3B
Net Receivables	$195M
Inventory	$243M
Other Current Assets	$303M
TOTAL CURRENT ASSETS	$4.3B
PP&E (Net)	$10.6B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$606M
TOTAL NON-CURRENT ASSETS	$11.2B
TOTAL ASSETS	$15.5B
Account Payables	$739M
Short-Term Debt	$505M
Deferred Revenue	$0
Other Current Liabilities	$1.2B
TOTAL CURRENT LIABILITIES	$3.3B
Long-Term Debt	$2.9B
Deferred Revenue NC	$88M
Deferred Tax Liabilities	$2.5B
Other Non-Current Liabilities	$465M
TOTAL NON-CURRENT LIABILITIES	$5.9B
TOTAL LIABILITIES	$9.2B
Common Stock	$808M
Additional Paid-In Capital	$1.2B
Retained Earnings	$5.4B
Treasury Stock	-$891M
Accum. Other Comp. Income	-$262M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.2B
Minority Interest	$0
TOTAL EQUITY	$6.2B
TOTAL LIABILITIES & EQUITY	$15.5B
Total Debt	$3.4B
Net Debt	$2.1B