SkyWest Airlines 2005 Annual Report Download - page 41

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At December 31, 2005, our total capital mix was 39.1% equity and 60.9% debt, compared to 62.7% equity and 37.3% debt at
December 31, 2004. The change in the total capital mix during 2005 was primarily due to our acquisition of ASA on September
7, 2005.
During 2005, SkyWest increased an existing $10.0 million line-of-credit facility, with a bank, to $40.0 million. As of December
31, 2005, SkyWest Airlines had borrowed $30.0 million under the facility. The facility, expires on January 31, 2007 and bears
interest at a rate equal to prime less 0.25%, which was a net rate of 7% on December 31, 2005.
Additionally, SkyWest Airlines entered into another borrowing facility with a financing company and borrowed $60.0 million.
The facility expires on March 21, 2006, with interest payable on a floating basis which was 6.87% at December 31, 2005. The
borrowings under this facility are secured by four CRJ200s. The amounts borrowed under both arrangements were utilized for
general corporate purposes and we intend to pay this back from cash generated through operations.
As of December 31, 2005, we had $34.6 million in letters of credit and surety bonds outstanding with various banks and surety
institutions.
On December 31, 2005, we classified $24.8 million as restricted cash, related to our workers compensation policies and the
purchase of ASA. On December 31, 2004, we classified $9.2 million as restricted cash as required by our workers compensation
policy.
Significant Commitments and Obligations
General
The following table summarizes our commitments and obligations stated in calendar years except as noted for each of the next
five years and thereafter (in thousands):
Total
2006 2007 2008 2009 2010 Thereafter
Firm aircraft
Commitments $ 838,000 $ 618,000 $ 220,000 $ - $ - $ - $ -
Operating lease
payments for
aircraft and
facility
obligations 3,234,082 302,110 277,398 253,556 268,844 262,396 1,869,778
Principal
maturities on
long-term debt 1,753,901 331,145 98,752 102,696 106,925 111,332 1,003,051
Lines of Credit 90,000 60,000 30,000 - - - -
Total commitments
and obligations $5,915,983 $1,311,255 $ 626,150 $ 356,252 $ 375,769 $ 373,728 $ 2,872,829
Purchase Commitments and Options
On February 4, 2005, we announced that SkyWest Airlines had been selected by United to operate 20 new CRJ700s in its
United Express operations, and that SkyWest Airlines had placed a firm order for these CRJ700s with Bombardier. Deliveries of
these aircraft began in the third quarter of 2005 and we expect these deliveries to be completed by the first quarter of 2006. Our
total firm aircraft orders and commitments as of December 31, 2005, consisted of orders for 15 CRJ700s, 17 CRJ900s and
commitments to lease six CRJ200's from Delta. Total expenditures for these aircraft and related flight equipment, including
amounts for contractual price escalations is estimated to be approximately $838 million. Additionally, our agreement with
Bombardier includes options for another 70 aircraft that can be delivered in either 70 or 90-seat configurations. We presently
anticipate that delivery dates for these aircraft could start in May 2007 and continue through April 2010; however, actual delivery
dates remain subject to final determination as agreed upon by us and our code-share partners.