LUV FY 2011 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2011 Earnings

Reported February 9, 2012

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$15.7B	—	$12.1B	—	29.4%
Op. Income	$693M	—	$988M	—	-29.9%
Gross Margin	17.3%	—	19.9%	—	-2.7pp
Net Margin	1.1%	—	3.8%	—	-2.7pp
EPS (Diluted)	$0.23	—	$0.61	—	-62.3%
Free Cash Flow	$417M	—	$1.1B	—	-61.0%

Revenue Flow

Item	Amount
REVENUE	$15.7B
Cost of Revenue	$13.0B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$4.4B
SG&A Expenses	$4.4B
Other Expenses	-$2.4B
Operating Expenses	$2.0B
Cost & Expenses	$15.0B
OPERATING INCOME	$693M
Interest Income	$10M
Interest Expense	$182M
Other Income/Expenses	-$370M
INCOME BEFORE TAX	$323M
Income Tax Expense	$145M
Net Income from Continuing Ops	$178M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$178M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$178M
D&A	$715M
EBIT	$505M
EBITDA	$1.2B
EPS	$0
EPS Diluted	$0

Income Statement

Item	Amount
REVENUE	$15.7B
Cost of Revenue	$13.0B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$4.4B
SG&A Expenses	$4.4B
Other Expenses	-$2.4B
Operating Expenses	$2.0B
Cost & Expenses	$15.0B
OPERATING INCOME	$693M
Interest Income	$10M
Interest Expense	$182M
Other Income/Expenses	-$370M
INCOME BEFORE TAX	$323M
Income Tax Expense	$145M
Net Income from Continuing Ops	$178M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$178M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$178M
D&A	$715M
EBIT	$505M
EBITDA	$1.2B
EPS	$0
EPS Diluted	$0

Cash Flow Statement

Item	Amount
Net Income	$178M
Depreciation & Amortization	$715M
Stock-Based Compensation	$0
Deferred Income Tax	$123M
Other Non-Cash Items	$267M
Change in Working Capital	$293M
OPERATING CASH FLOW	$1.4B
Capital Expenditure	-$968M
Acquisitions (Net)	-$35M
Purchases of Investments	-$5.4B
Sales/Maturities of Investments	$5.3B
Other Investing Activities	-$35M
NET CASH FROM INVESTING	-$1.1B
Net Debt Issuance	-$621M
Common Stock Repurchased	-$225M
Common Dividends Paid	-$14M
Other Financing Activities	$74M
NET CASH FROM FINANCING	-$766M
FREE CASH FLOW	$417M
Net Change in Cash	-$432M

Balance Sheet

Item	Amount
Cash & Equivalents	$829M
Short-Term Investments	$2.3B
Net Receivables	$299M
Inventory	$401M
Other Current Assets	$501M
TOTAL CURRENT ASSETS	$4.3B
PP&E (Net)	$12.1B
Goodwill	$970M
Intangible Assets	$155M
Long-Term Investments	$97M
Tax Assets	$0
Other Non-Current Assets	$374M
TOTAL NON-CURRENT ASSETS	$13.7B
TOTAL ASSETS	$18.1B
Account Payables	$1.1B
Short-Term Debt	$644M
Deferred Revenue	$1.8B
Other Current Liabilities	$605M
TOTAL CURRENT LIABILITIES	$4.5B
Long-Term Debt	$3.1B
Deferred Revenue NC	$75M
Deferred Tax Liabilities	$2.6B
Other Non-Current Liabilities	$910M
TOTAL NON-CURRENT LIABILITIES	$6.7B
TOTAL LIABILITIES	$11.2B
Common Stock	$808M
Additional Paid-In Capital	$1.2B
Retained Earnings	$5.4B
Treasury Stock	-$324M
Accum. Other Comp. Income	-$224M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$6.9B
Minority Interest	$0
TOTAL EQUITY	$6.9B
TOTAL LIABILITIES & EQUITY	$18.1B
Total Debt	$3.8B
Net Debt	$2.9B