LUV Q2 2016 Earnings Report — Southwest Airlines Co. Revenue & Financial Results | Market Cap Arena

Southwest Airlines Co.LUV

Q2 2016 Earnings

Reported July 27, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$5.4B	$4.8B	—	11.6%	—
Op. Income	$1.3B	$944M	—	35.2%	—
Gross Margin	35.2%	31.5%	—	3.7pp	—
Net Margin	15.2%	10.6%	—	4.6pp	—
EPS (Diluted)	$1.28	$0.79	—	62.0%	—
Free Cash Flow	$624M	$1.2B	—	-46.5%	—

Revenue Flow

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$3.5B
GROSS PROFIT	$1.9B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$619M
Operating Expenses	$619M
Cost & Expenses	$4.1B
OPERATING INCOME	$1.3B
Interest Income	$6M
Interest Expense	$21M
Other Income/Expenses	$28M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$484M
Net Income from Continuing Ops	$820M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$820M
Net Income Deductions	$1M
BOTTOM LINE NET INCOME	$821M
D&A	$299M
EBIT	$1.3B
EBITDA	$1.6B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$3.5B
GROSS PROFIT	$1.9B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$0
Other Expenses	$619M
Operating Expenses	$619M
Cost & Expenses	$4.1B
OPERATING INCOME	$1.3B
Interest Income	$6M
Interest Expense	$21M
Other Income/Expenses	$28M
INCOME BEFORE TAX	$1.3B
Income Tax Expense	$484M
Net Income from Continuing Ops	$820M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$820M
Net Income Deductions	$1M
BOTTOM LINE NET INCOME	$821M
D&A	$299M
EBIT	$1.3B
EBITDA	$1.6B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$820M
Depreciation & Amortization	$299M
Stock-Based Compensation	$0
Deferred Income Tax	$54M
Other Non-Cash Items	$312M
Change in Working Capital	-$272M
OPERATING CASH FLOW	$1.1B
Capital Expenditure	-$488M
Acquisitions (Net)	-$462M
Purchases of Investments	-$773M
Sales/Maturities of Investments	$591M
Other Investing Activities	$458M
NET CASH FROM INVESTING	-$674M
Net Debt Issuance	-$48M
Common Stock Repurchased	-$700M
Common Dividends Paid	-$63M
Other Financing Activities	$25M
NET CASH FROM FINANCING	-$786M
FREE CASH FLOW	$624M
Net Change in Cash	-$348M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.0B
Short-Term Investments	$1.4B
Net Receivables	$524M
Inventory	$328M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.5B
PP&E (Net)	$16.3B
Goodwill	$970M
Intangible Assets	$434M
Long-Term Investments	$45M
Tax Assets	$0
Other Non-Current Assets	$235M
TOTAL NON-CURRENT ASSETS	$18.0B
TOTAL ASSETS	$22.4B
Account Payables	$227M
Short-Term Debt	$963M
Deferred Revenue	$3.8B
Other Current Liabilities	$1.2B
TOTAL CURRENT LIABILITIES	$7.8B
Long-Term Debt	$2.4B
Deferred Revenue NC	$38M
Deferred Tax Liabilities	$2.8B
Other Non-Current Liabilities	$1.5B
TOTAL NON-CURRENT LIABILITIES	$6.8B
TOTAL LIABILITIES	$14.6B
Common Stock	$808M
Additional Paid-In Capital	$1.4B
Retained Earnings	$10.6B
Treasury Stock	-$4.4B
Accum. Other Comp. Income	-$628M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.8B
Minority Interest	$0
TOTAL EQUITY	$7.8B
TOTAL LIABILITIES & EQUITY	$22.4B
Total Debt	$3.4B
Net Debt	$1.3B