2022 Q1 Form 10-Q Financial Statement

#000009238022000020 Filed on May 02, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q1
Revenue $4.694B $2.052B
YoY Change 128.75% -51.54%
Cost Of Revenue $1.350B $782.0M
YoY Change 72.63% -35.32%
Gross Profit $3.344B $1.270B
YoY Change 163.31% -58.02%
Gross Profit Margin 71.24% 61.89%
Selling, General & Admin $2.440B $1.744B
YoY Change 39.91% -17.97%
% of Gross Profit 72.97% 137.32%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $324.0M $312.0M
YoY Change 3.85% 0.32%
% of Gross Profit 9.69% 24.57%
Operating Expenses $3.479B $2.519B
YoY Change 38.11% -19.65%
Operating Profit -$151.0M $199.0M
YoY Change -175.88% -280.91%
Interest Expense -$86.00M -$101.0M
YoY Change -14.85% 1583.33%
% of Operating Profit -50.75%
Other Income/Expense, Net -$225.0M -$53.00M
YoY Change 324.53% 55.88%
Pretax Income -$376.0M $146.0M
YoY Change -357.53% -201.39%
Income Tax -$98.00M $30.00M
% Of Pretax Income 20.55%
Net Earnings -$278.0M $116.0M
YoY Change -339.66% -223.4%
Net Earnings / Revenue -5.92% 5.65%
Basic Earnings Per Share -$0.47 $0.20
Diluted Earnings Per Share -$0.47 $0.19
COMMON SHARES
Basic Shares Outstanding 592.0M shares 591.0M shares
Diluted Shares Outstanding 592.0M shares 609.0M shares

Balance Sheet

Concept 2022 Q1 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $15.74B $14.35B
YoY Change 9.7% 158.76%
Cash & Equivalents $13.10B $11.97B
Short-Term Investments $2.642B $2.377B
Other Short-Term Assets $767.0M $367.0M
YoY Change 108.99% 43.36%
Inventory $623.0M $448.0M
Prepaid Expenses
Receivables $70.00M $132.0M
Other Receivables $99.00M $8.000M
Total Short-Term Assets $18.82B $16.10B
YoY Change 16.91% 129.08%
LONG-TERM ASSETS
Property, Plant & Equipment $14.94B $15.65B
YoY Change -4.54% -7.89%
Goodwill $970.0M $970.0M
YoY Change 0.0% 0.0%
Intangibles $295.0M $295.0M
YoY Change 0.0% -0.34%
Long-Term Investments
YoY Change
Other Assets $978.0M $743.0M
YoY Change 31.63% 19.84%
Total Long-Term Assets $18.44B $19.39B
YoY Change -4.91% -2.34%
TOTAL ASSETS
Total Short-Term Assets $18.82B $16.10B
Total Long-Term Assets $18.44B $19.39B
Total Assets $37.26B $35.49B
YoY Change 4.98% 32.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.648B $1.094B
YoY Change 50.64% 4.89%
Accrued Expenses $1.360B $1.665B
YoY Change -18.32% 60.56%
Deferred Revenue $6.406B $4.906B
YoY Change 30.57% -2.58%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $415.0M $225.0M
YoY Change 84.44% -91.95%
Total Short-Term Liabilities $10.07B $8.182B
YoY Change 23.06% -20.11%
LONG-TERM LIABILITIES
Long-Term Debt $10.31B $10.55B
YoY Change -2.25% 360.93%
Other Long-Term Liabilities $1.160B $1.123B
YoY Change 3.29% 61.82%
Total Long-Term Liabilities $1.160B $1.123B
YoY Change 3.29% 61.82%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.07B $8.182B
Total Long-Term Liabilities $1.160B $1.123B
Total Liabilities $11.23B $9.305B
YoY Change 20.68% -14.91%
SHAREHOLDERS EQUITY
Retained Earnings $15.55B $14.91B
YoY Change 4.29% -16.02%
Common Stock $4.828B $5.108B
YoY Change -5.48% 113.72%
Preferred Stock
YoY Change
Treasury Stock (at cost) $10.85B $10.87B
YoY Change -0.13% -0.17%
Treasury Stock Shares
Shareholders Equity $10.42B $9.093B
YoY Change
Total Liabilities & Shareholders Equity $37.26B $35.49B
YoY Change 4.98% 32.02%

Cashflow Statement

Concept 2022 Q1 2021 Q1
OPERATING ACTIVITIES
Net Income -$278.0M $116.0M
YoY Change -339.66% -223.4%
Depreciation, Depletion And Amortization $324.0M $312.0M
YoY Change 3.85% 0.32%
Cash From Operating Activities $1.071B $645.0M
YoY Change 66.05% -271.09%
INVESTING ACTIVITIES
Capital Expenditures -$514.0M -$95.00M
YoY Change 441.05% -57.59%
Acquisitions
YoY Change
Other Investing Activities $375.0M -$106.0M
YoY Change -453.77% -148.4%
Cash From Investing Activities -$139.0M -$201.0M
YoY Change -30.85% 3920.0%
FINANCING ACTIVITIES
Cash Dividend Paid $0.00 $0.00
YoY Change -100.0%
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$314.0M $464.0M
YoY Change -167.67% -73.84%
NET CHANGE
Cash From Operating Activities $1.071B $645.0M
Cash From Investing Activities -$139.0M -$201.0M
Cash From Financing Activities -$314.0M $464.0M
Net Change In Cash $618.0M $908.0M
YoY Change -31.94% -34.77%
FREE CASH FLOW
Cash From Operating Activities $1.071B $645.0M
Capital Expenditures -$514.0M -$95.00M
Free Cash Flow $1.585B $740.0M
YoY Change 114.19% -583.66%

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BASIS OF PRESENTATION<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">Southwest Airlines Co. (the "Company" or "Southwest") operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. The unaudited Condensed Consolidated Financial Statements include accounts of the Company and its wholly owned subsidiaries.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:11pt;font-weight:400;line-height:120%">The accompanying unaudited Condensed Consolidated Financial Statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States ("GAAP") for complete financial statements. The unaudited Condensed Consolidated Financial Statements for the interim periods ended March 31, 2022 and 2021 include all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. This includes all normal and recurring adjustments and elimination of significant intercompany transactions. Financial results for the Company and airlines in general can be seasonal in nature. In many years, the Company's revenues, as well as its Operating income and Net income, have been better in its second and third fiscal quarters than in its first and fourth fiscal quarters. However, beginning in early 2020, as a result of the COVID-19 pandemic, the Company's results have not always been in line with such historical trends. See Note 2 for further information. Air travel is also significantly impacted by general economic conditions, the amount of disposable income available to consumers and changes in consumer behavior, unemployment levels, corporate travel budgets, global pandemics such as COVID-19, extreme or severe weather and natural disasters, fears of terrorism or war, governmental actions, and other factors beyond the Company's control. These and other factors, such as the price of jet fuel in some periods, the nature of the Company's fuel hedging program, and the periodic volatility of commodities used by the Company for hedging jet fuel, have created, and may continue to create, significant volatility in the Company's financial results. See Note 4 for further information on fuel and the Company's hedging program. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for future quarters or for the year ended December 31, 2022. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.</span></div>
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