LUV FY 2012 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2012 Earnings

Reported February 6, 2013

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2012	Prior Q	FY 2011	QoQ Change	YoY Change
Revenue	$17.1B	—	$15.7B	—	9.1%
Op. Income	$623M	—	$693M	—	-10.1%
Gross Margin	16.6%	—	17.3%	—	-0.6pp
Net Margin	2.5%	—	1.1%	—	1.3pp
EPS (Diluted)	$0.56	—	$0.23	—	143.5%
Free Cash Flow	$716M	—	$417M	—	71.7%

Revenue Flow

Item	Amount
REVENUE	$17.1B
Cost of Revenue	$14.2B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.2B
Operating Expenses	$2.2B
Cost & Expenses	$16.5B
OPERATING INCOME	$623M
Interest Income	$7M
Interest Expense	$126M
Other Income/Expenses	$62M
INCOME BEFORE TAX	$685M
Income Tax Expense	$264M
Net Income from Continuing Ops	$421M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$421M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$421M
D&A	$844M
EBIT	$811M
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$17.1B
Cost of Revenue	$14.2B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.2B
Operating Expenses	$2.2B
Cost & Expenses	$16.5B
OPERATING INCOME	$623M
Interest Income	$7M
Interest Expense	$126M
Other Income/Expenses	$62M
INCOME BEFORE TAX	$685M
Income Tax Expense	$264M
Net Income from Continuing Ops	$421M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$421M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$421M
D&A	$844M
EBIT	$811M
EBITDA	$1.7B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$421M
Depreciation & Amortization	$844M
Stock-Based Compensation	$16M
Deferred Income Tax	$251M
Other Non-Cash Items	$354M
Change in Working Capital	$383M
OPERATING CASH FLOW	$2.1B
Capital Expenditure	-$1.3B
Acquisitions (Net)	$0
Purchases of Investments	-$2.5B
Sales/Maturities of Investments	$3.0B
Other Investing Activities	$32M
NET CASH FROM INVESTING	-$833M
Net Debt Issuance	-$578M
Common Stock Repurchased	-$400M
Common Dividends Paid	-$22M
Other Financing Activities	$26M
NET CASH FROM FINANCING	-$947M
FREE CASH FLOW	$716M
Net Change in Cash	$284M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.1B
Short-Term Investments	$1.9B
Net Receivables	$332M
Inventory	$469M
Other Current Assets	$456M
TOTAL CURRENT ASSETS	$4.2B
PP&E (Net)	$12.8B
Goodwill	$970M
Intangible Assets	$138M
Long-Term Investments	$41M
Tax Assets	$0
Other Non-Current Assets	$454M
TOTAL NON-CURRENT ASSETS	$14.4B
TOTAL ASSETS	$18.6B
Account Payables	$174M
Short-Term Debt	$271M
Deferred Revenue	$2.2B
Other Current Liabilities	$684M
TOTAL CURRENT LIABILITIES	$4.7B
Long-Term Debt	$2.9B
Deferred Revenue NC	$63M
Deferred Tax Liabilities	$2.9B
Other Non-Current Liabilities	$1.1B
TOTAL NON-CURRENT LIABILITIES	$7.0B
TOTAL LIABILITIES	$11.6B
Common Stock	$808M
Additional Paid-In Capital	$1.2B
Retained Earnings	$5.8B
Treasury Stock	-$675M
Accum. Other Comp. Income	-$119M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.0B
Minority Interest	$0
TOTAL EQUITY	$7.0B
TOTAL LIABILITIES & EQUITY	$18.6B
Total Debt	$3.2B
Net Debt	$2.0B