SkyWest Airlines 2004 Annual Report Download - page 37

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35
SKYWEST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2004 2003 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 81,952 $ 66,787 $ 86,866
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 76,817 74,419 57,535
Maintenance expense related to disposition of rotable spares — 834 1,379
Gain on sale of property and equipment — 406 —
Increase (decrease) in allowance for doubtful accounts (34) (664) 661
Net increase in deferred income taxes 29,598 91,085 22,206
Tax benefit from exercise of common stock options 442 129 1,525
Deferred aircraft credits, net of accretion 4,444 22,751 10,903
Changes in operating assets and liabilities:
Increase in restricted cash — (9,160) —
Decrease (increase) in receivables (15,738) 14,813 (6,890)
Decrease (increase) in income tax receivable 53,909 (62,908) —
Decrease (increase) in inventories (7,842) 953 (3,750)
Decrease (increase) in other current assets and prepaid aircraft rents 1,750 (53,917) (1,988)
Increase in accounts payable and accrued aircraft rents 13,921 5,641 3,313
(Decrease) increase in engine overhaul accrual — — (14,081)
Increase in other current liabilities 7,647 6,574 16,024
NET CASH PROVIDED BY OPERATING ACTIVITIES 246,866 157,743 173,703
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities (499,265) (417,675) (306,840)
Sales of marketable securities 429,665 354,585 280,567
Acquisition of property and equipment:
Aircraft and rotable spare parts (134,627) (694,906) (82,759)
Deposits on aircraft (58,730) (38,069) —
Buildings and ground equipment (18,917) (7,531) (11,760)
Return of deposits on aircraft and rotable spare parts 47,796 — 4,541
Increase in other assets (3 ,447) (8,0 94) (4,341)
NET CASH USED IN INVESTING ACTIVITIES (237,525) (811,690) (120,592)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 34,450 625,114 24,806
Proceeds from sales leaseback transactions — 33,731 18,785
Principal payments on long-term debt (32,282) (25,650) (12,734)
Net proceeds from issuance of common stock 7,771 6,814 8,869
Purchase of treasury stock (12,266) — —
Payment of cash dividends (6,40 1) (4,61 5) (4,569)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (8,728) 635,394 35,157
Increase(decrease) in cash and cash equivalents 613 (18,553) 88,268
Cash and cash equivalents at beginning of year 112,407 130,960 42,692
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 113,020 $ 112,407 $ 130,960
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest, net of capitalized amounts $ 21,108 $ 13,761 $ 2,205
Income taxes $ 5,103 $ 11,188 $ 24,390
NON-CASH INVESTING AND FINANCING ACTIVITIES
Deposits applied to delivered aircraft $ 3,088 $ 90,920 $ —
Debt transferred to operating lease $ — $ 243,725 $ —
See accompanying notes to consolidated financial statements.