LUV FY 2017 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2017 Earnings

Reported February 7, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$21.2B	—	$20.4B	—	3.7%
Op. Income	$3.4B	—	$3.5B	—	-3.3%
Gross Margin	29.5%	—	30.5%	—	-0.9pp
Net Margin	16.5%	—	11.0%	—	5.5pp
EPS (Diluted)	$5.78	—	$3.55	—	62.8%
Free Cash Flow	$1.7B	—	$2.1B	—	-21.7%

Revenue Flow

Item	Amount
REVENUE	$21.2B
Cost of Revenue	$14.9B
GROSS PROFIT	$6.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.8B
Operating Expenses	$2.8B
Cost & Expenses	$17.7B
OPERATING INCOME	$3.4B
Interest Income	$35M
Interest Expense	$65M
Other Income/Expenses	-$142M
INCOME BEFORE TAX	$3.3B
Income Tax Expense	-$92M
Net Income from Continuing Ops	$3.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.4B
D&A	$1.2B
EBIT	$3.3B
EBITDA	$4.5B
EPS	$6
EPS Diluted	$6

Income Statement

Item	Amount
REVENUE	$21.2B
Cost of Revenue	$14.9B
GROSS PROFIT	$6.3B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.8B
Operating Expenses	$2.8B
Cost & Expenses	$17.7B
OPERATING INCOME	$3.4B
Interest Income	$35M
Interest Expense	$65M
Other Income/Expenses	-$142M
INCOME BEFORE TAX	$3.3B
Income Tax Expense	-$92M
Net Income from Continuing Ops	$3.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$3.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$3.4B
D&A	$1.2B
EBIT	$3.3B
EBITDA	$4.5B
EPS	$6
EPS Diluted	$6

Cash Flow Statement

Item	Amount
Net Income	$3.5B
Depreciation & Amortization	$1.2B
Stock-Based Compensation	$37M
Deferred Income Tax	-$1.2B
Other Non-Cash Items	$258M
Change in Working Capital	$227M
OPERATING CASH FLOW	$3.9B
Capital Expenditure	-$2.2B
Acquisitions (Net)	$2.1B
Purchases of Investments	-$2.4B
Sales/Maturities of Investments	$2.2B
Other Investing Activities	-$2.1B
NET CASH FROM INVESTING	-$2.4B
Net Debt Issuance	$8M
Common Stock Repurchased	-$1.6B
Common Dividends Paid	-$274M
Other Financing Activities	$131M
NET CASH FROM FINANCING	-$1.7B
FREE CASH FLOW	$1.7B
Net Change in Cash	-$185M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.5B
Short-Term Investments	$1.8B
Net Receivables	$662M
Inventory	$420M
Other Current Assets	$460M
TOTAL CURRENT ASSETS	$4.8B
PP&E (Net)	$18.5B
Goodwill	$970M
Intangible Assets	$413M
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$373M
TOTAL NON-CURRENT ASSETS	$20.3B
TOTAL ASSETS	$25.1B
Account Payables	$186M
Short-Term Debt	$348M
Deferred Revenue	$3.5B
Other Current Liabilities	$1.2B
TOTAL CURRENT LIABILITIES	$6.9B
Long-Term Debt	$3.3B
Deferred Revenue NC	$1.1B
Deferred Tax Liabilities	$2.4B
Other Non-Current Liabilities	$2.1B
TOTAL NON-CURRENT LIABILITIES	$8.6B
TOTAL LIABILITIES	$14.7B
Common Stock	$808M
Additional Paid-In Capital	$1.5B
Retained Earnings	$14.6B
Treasury Stock	-$6.5B
Accum. Other Comp. Income	$12M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$10.4B
Minority Interest	$0
TOTAL EQUITY	$10.4B
TOTAL LIABILITIES & EQUITY	$25.1B
Total Debt	$3.7B
Net Debt	$2.2B