SkyWest Airlines 2008 Annual Report Download - page 62

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SKYWEST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2008 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................... $ 112,929 $ 159,192 $ 145,806
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ............................. 220,195 208,944 189,885
Stock based compensation expense .......................... 11,489 13,121 10,771
Maintenance expense related to disposition of rotable spares ........ — — 797
Loss (gain) on sale of property and equipment .................. 68 (467) 949
Loss on sale of marketable securities ........................ — — 135
Decrease in allowance for doubtful accounts ................... — — (11)
Net increase in deferred income taxes ........................ 55,541 106,112 90,071
Changes in operating assets and liabilities:
Decrease in restricted cash .............................. 3,977 1,704 8,414
Decrease (increase) in receivables ......................... 25,758 (51,785) (1,153)
Decrease (increase) in income tax receivable ................. 8,246 (21,295) 10,715
Decrease (increase) in inventories ......................... 1,355 (20,578) (16,549)
Decrease (increase) in other current assets and prepaid aircraft rents . 4,437 (145) (50,254)
Increase (decrease) in deferred aircraft credits ................ (5,140) 21,163 26,525
Increase (decrease) in accounts payable and accrued aircraft rents . . . (23,666) (20,660) 59,342
Increase in other current liabilities ........................ 354 710 16,192
NET CASH PROVIDED BY OPERATING ACTIVITIES ........... 415,543 396,016 491,635
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities .......................... (1,305,015) (1,370,189) (317,014)
Sales of marketable securities ............................. 1,254,574 1,067,815 255,918
Proceeds from the sale of property and equipment ............... 4,580 11,290 7,322
Acquisition of property and equipment:
Aircraft and rotable spare parts .......................... (194,189) (298,519) (206,426)
Deposits on aircraft .................................. — (32,326) (416)
Buildings and ground equipment .......................... (37,627) (37,547) (38,670)
Increase in other assets ................................ (6,559) (2,783) (6,124)
NET CASH USED IN INVESTING ACTIVITIES ................ (284,236) (662,259) (305,410)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt ..................... 80,361 177,792 123,103
Principal payments on long-term debt ........................ (119,823) (110,973) (92,875)
Return of deposits on aircraft and rotable spare parts ............. 3,458 11,697 40,924
Payment on lines of credit ................................ — — (90,000)
Tax benefit from exercise of common stock options ............... 9 177 —
Net proceeds from issuance of common stock .................. 17,361 28,950 114,948
Purchase of treasury stock ................................ (102,632) (125,991) —
Payment of cash dividends ............................... (6,951) (8,061) (7,485)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES . . (128,217) (26,409) 88,615
Increase (decrease) in cash and cash equivalents .................. 3,090 (292,652) 274,840
Cash and cash equivalents at beginning of year ................... 122,802 415,454 140,614
CASH AND CASH EQUIVALENTS AT END OF YEAR ........... $ 125,892 $ 122,802 $ 415,454
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest, net of capitalized amounts ........................ $ 111,717 $ 112,547 $ 114,119
Income taxes ....................................... $ 23,876 $ 1,420 $ 2,077
See accompanying notes to consolidated financial statements.
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