SkyWest Airlines 2005 Annual Report Download - page 50

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46
SKYWEST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2005 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 112,267 $ 81,952 $ 66,787
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 115,275 76,817 74,419
Maintenance expense related to disposition of rotable spares — — 834
(Gain) loss on sale of property and equipment (175) — 406
Loss on sale of marketable securities 570 — —
Decrease in allowance for doubtful accounts (5) (34) (664)
Net increase in deferred income taxes 17,958 29,598 91,085
Tax benefit from exercise of common stock options 7,509 442 129
Deferred aircraft credits, net of accretion 24,923 4,444 22,751
Changes in operating assets and liabilities:
Increase in restricted cash (14,524) — (9,160)
Decrease (increase) in receivables 7,895 (15,738) 14,813
Decrease (increase) in income tax receivable (9,522) 53,909 (62,908)
Decrease (increase) in inventories (8,355) (7,842) 953
Decrease (increase) in other current assets and prepaid aircraft rents (49,356) 1,750 (53,917)
Increase (decrease) in accounts payable and accrued aircraft rents (6,638) 13,921 5,641
Increase in other current liabilities 9,712 7,647 6,574
NET CASH PROVIDED BY OPERATING ACTIVITIES 207,534 246,866 157,743
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities (332,269) (499,265) (417,675)
Sales of marketable securities 599,815 429,665 354,585
Purchase of ASA, net of cash acquired (371,912) — —
Proceeds from the sale of aircraft 4,013 — —
Acquisition of property and equipment:
Aircraft and rotable spare parts (214,164) (134,627) (694,906)
Deposits on aircraft (101,345) (58,730) (38,069)
Buildings and ground equipment (12,745) (18,917) (7,531)
Decrease (increase) in other assets 6,154 (3,447) (8,094)
NET CASH USED IN INVESTING ACTIVITIES (422,453) (285,321) (811,690)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 140,980 34,450 625,114
Proceeds from sale-lease-back of aircraft 11,734 — 33,731
Principal payments on long-term debt (51,331) (32,282) (25,650)
Return of deposits on aircraft and rotable spare parts 36,384 47,796 —
Proceeds from issuance of line of credit 90,000 — —
Net proceeds from issuance of common stock 21,785 7,771 6,814
Purchase of treasury stock - (12,266) —
Payment of cash dividends (7,039) (6,401) (4,615)
NET CASH USED IN FINANCING ACTIVITIES 242,513 39,068 635,394
Increase(decrease) in cash and cash equivalents 27,594 613 (18,553)
Cash and cash equivalents at beginning of year 113,020 112,407 130,960
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 140,614 $ 113,020 $ 112,407
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest, net of capitalized amounts $ 53,720
$ 21,108 $ 13,761
Income taxes $ 54,247 $ 5,103 $ 11,188
NON-CASH INVESTING AND FINANCING ACTIVITIES
Deposits applied to delivered aircraft
Debt transferred to operating lease
$ 22,043
$ 55,375
$ 3,088
$ —
$ 90,920
$ 243,725
Deposits applied as lease payments $ 36,982 $ — $ —
See accompanying notes to consolidated financial statements.