SkyWest Airlines 2006 Annual Report Download - page 56

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See accompanying notes to consolidatedfinancial statements.
50
SKYWEST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Inthousands)
Year Ended December 31,
2006 2005 2004
CASH FLOWS FROM OPERATINGACTIVITIES:
Netincome .............................................................. $145,806 $112,267 $ 81,952
Adjustments to reconcile net income to net cash provided by operatingactivities:
Depreciation andamortization ............................................. 189,885 115,275 76,817
Stock basedcompensation expense. ......................................... 10,771 — —
Maintenance expenserelated to dispositionofrotablespares ..................... 797— —
Loss (gain) on sale of property andequipment................................. 949(175)—
Losson sale of marketable securities ........................................ 135570 —
Decrease in allowance for doubtful accounts .................................. (11)(5)(34 )
Netincrease in deferredincometaxes. ....................................... 90,071 17,958 29,598
Tax benefit from exercise of common stockoptions............................. —7,509 442
Amortization of deferred aircraft credits..................................... 26,525 24,923 4,444
Changes in operating assets and liabilities:
Decrease (increase) in restricted cash ...................................... 8,414(14,524)—
Decrease (increase) in receivables. ........................................ (1,153)7,895 (15,738)
Decrease (increase) in incometax receivable ................................ 10,715 (9,522)53,909
Decrease (increase) in inventories. ........................................ (16,549)(8,355)(7,842)
Decrease (increase) in othercurrent assets and prepaid aircraft rents............. (50,254)(49,356)1,750
Increase (decrease) in accountspayable andaccrued aircraft rents ............... 59,342 (6,638)13,921
Increase in othercurrent liabilities........................................ 16,192 9,712 7,647
NET CASH PROVIDED BY OPERATINGACTIVITIES........................ 491,635 207,534 246,866
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketablesecurities .......................................... (317,014)(332,269)(499,265)
Salesofmarketable securities .............................................. 255,918 599,815 429,665
Purchase of ASA, netofcash acquired ....................................... —(371,912)—
Proceedsfrom thesale of aircraft ........................................... 7,3224,013 —
Acquisition of property and equipment:
Aircraft and rotablespare parts........................................... (206,426)(214,164)(134,627)
Deposits on aircraft .................................................... (416)(101,345)(58,730)
Buildingsandground equipment. ......................................... (38,670)(12,745)(18,917)
Decrease (increase) in otherassets........................................ (6,124)6,154 (3,447)
NET CASH USED IN INVESTINGACTIVITIES............................... (305,410)(422,453)(285,321)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceedsfrom issuance of long-termdebt .................................... 123,103 140,980 34,450
Proceedsfrom sale-lease-back of aircraft ..................................... —11,734 —
Principal payments on long-termdebt........................................ (92,875)(51,331)(32,282)
Return of deposits on aircraft and rotablespare parts ........................... 40,924 36,384 47,796
Proceedsfrom issuance of linesof credit. ..................................... —90,000 —
Paymenton linesofcredit ................................................. (90,000)— —
Netproceedsfrom issuance of common stock................................. 114,948 21,785 7,771
Purchase of treasurystock................................................. — — (12,266)
Paymentof cash dividends ................................................ (7,485)(7,039)(6,401)
NET CASH PROVIDED BY FINANCINGACTIVITIES........................ 88,615 242,513 39,068
Increase in cash andcash equivalents.......................................... 274,840 27,594 613
Cash andcash equivalentsatbeginningof year .................................. 140,614 113,020 112,407
CASH ANDCASH EQUIVALENTS AT ENDOFYEAR ........................ $415,454 $140,614 $ 113,020
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest,net of capitalized amounts. ..................................... $114,119 $53,720 $ 21,108
Income taxes....................................................... $2,077$54,247 $ 5,103
NON-CASH INVESTING ANDFINANCING ACTIVITIES
Deposits applied to deliveredaircraft.................................... $—$22,043 $ 3,088
Debt transferredto operatinglease. ..................................... $—$55,375 $ —
Deposits applied as leasepayments ...................................... $—$36,982 $ —