LUV FY 2018 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

FY 2018 Earnings

Reported February 5, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$22.0B	—	$21.2B	—	3.8%
Op. Income	$3.2B	—	$3.4B	—	-5.9%
Gross Margin	27.6%	—	29.5%	—	-2.0pp
Net Margin	11.2%	—	16.5%	—	-5.3pp
EPS (Diluted)	$4.29	—	$5.78	—	-25.8%
Free Cash Flow	$2.9B	—	$1.7B	—	73.6%

Revenue Flow

Item	Amount
REVENUE	$22.0B
Cost of Revenue	$15.9B
GROSS PROFIT	$6.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.9B
Operating Expenses	$2.9B
Cost & Expenses	$18.8B
OPERATING INCOME	$3.2B
Interest Income	$69M
Interest Expense	$93M
Other Income/Expenses	-$42M
INCOME BEFORE TAX	$3.2B
Income Tax Expense	$699M
Net Income from Continuing Ops	$2.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.5B
D&A	$1.2B
EBIT	$3.3B
EBITDA	$4.5B
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$22.0B
Cost of Revenue	$15.9B
GROSS PROFIT	$6.1B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$2.9B
Operating Expenses	$2.9B
Cost & Expenses	$18.8B
OPERATING INCOME	$3.2B
Interest Income	$69M
Interest Expense	$93M
Other Income/Expenses	-$42M
INCOME BEFORE TAX	$3.2B
Income Tax Expense	$699M
Net Income from Continuing Ops	$2.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$2.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$2.5B
D&A	$1.2B
EBIT	$3.3B
EBITDA	$4.5B
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$2.5B
Depreciation & Amortization	$1.2B
Stock-Based Compensation	$46M
Deferred Income Tax	$301M
Other Non-Cash Items	-$15M
Change in Working Capital	$941M
OPERATING CASH FLOW	$4.9B
Capital Expenditure	-$2.0B
Acquisitions (Net)	$1.9B
Purchases of Investments	-$2.4B
Sales/Maturities of Investments	$2.3B
Other Investing Activities	-$1.9B
NET CASH FROM INVESTING	-$2.0B
Net Debt Issuance	-$342M
Common Stock Repurchased	-$2.0B
Common Dividends Paid	-$332M
Other Financing Activities	$143M
NET CASH FROM FINANCING	-$2.5B
FREE CASH FLOW	$2.9B
Net Change in Cash	$359M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.9B
Short-Term Investments	$1.8B
Net Receivables	$568M
Inventory	$461M
Other Current Assets	$310M
TOTAL CURRENT ASSETS	$5.0B
PP&E (Net)	$19.5B
Goodwill	$970M
Intangible Assets	$399M
Long-Term Investments	$0
Tax Assets	$0
Other Non-Current Assets	$320M
TOTAL NON-CURRENT ASSETS	$21.2B
TOTAL ASSETS	$26.2B
Account Payables	$263M
Short-Term Debt	$606M
Deferred Revenue	$4.1B
Other Current Liabilities	$1.3B
TOTAL CURRENT LIABILITIES	$7.9B
Long-Term Debt	$2.8B
Deferred Revenue NC	$936M
Deferred Tax Liabilities	$2.4B
Other Non-Current Liabilities	$2.4B
TOTAL NON-CURRENT LIABILITIES	$8.5B
TOTAL LIABILITIES	$16.4B
Common Stock	$808M
Additional Paid-In Capital	$1.5B
Retained Earnings	$16.0B
Treasury Stock	-$8.5B
Accum. Other Comp. Income	$20M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$9.9B
Minority Interest	$0
TOTAL EQUITY	$9.9B
TOTAL LIABILITIES & EQUITY	$26.2B
Total Debt	$3.4B
Net Debt	$1.5B