2007 Annual Report - Ameristar Casinos, Inc.

AMERISTAR CASINOS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in Thousands)Years ended December 31,2007 2006 2005Cash Flows from Operating Activities:Net income............................................................................................... $ 69,433 $ 59,565 $ 66,285Adjustments to reconcile net income to net cash provided by operatingactivities:Depreciation and amortization ............................................................. 94,810 93,889 85,366Amortization of debt issuance costs and debt discounts...................... 1,503 990 3,891Stock-based compensation expense..................................................... 11,993 7,811 —Loss on early retirement of debt........................................................... — 26,264 2,074Net change in deferred compensation liability..................................... (773) 71 633Impairment loss on assets .................................................................... 4,758 931 869Net loss (gain) on disposition of assets................................................ 1,408 (683) 1,576Net change in deferred income taxes ................................................... 13,618 1,702 16,424Excess tax benefit from stock option exercises.................................... (5,587) (4,266) 6,425Changes in operating assets and liabilities:Restricted cash ................................................................................. — 49 (1,988)Accounts receivable, net.................................................................. 3,638 (2,083) 1,212Income tax refunds receivable ......................................................... (11,375) (2,164) —Inventories ....................................................................................... 54 (315) 1Prepaid expenses.............................................................................. 398 (2,505) (420)Assets held for sale .......................................................................... — — 596Accounts payable............................................................................. 5,633 1,816 (277)Income taxes payable....................................................................... — 893 1,806Accrued liabilities............................................................................ 13,235 (12,427) 12,986Net cash provided by operating activities.................................................... 202,746 169,538 197,459Cash Flows from Investing Activities:Net cash paid for Resorts East Chicago acquisition................................. (671,420) — —Capital expenditures ................................................................................ (277,312) (249,123) (177,789)Increase in construction contracts payable............................................... 5,582 16,157 4,437Proceeds from sale of assets .................................................................... 338 1,368 896Increase in deposits and other non-current assets .................................... (11,475) (6,083) (3,393)Net cash used in investing activities............................................................ (954,287) (237,681) (175,849)Cash Flows from Financing Activities:Debt borrowings ...................................................................................... 782,000 485,000 410,000Principal payments of debt ...................................................................... (19,384) (384,346) (396,554)Premium on early redemption of senior subordinated notes.................... — (20,425) —Cash dividends paid................................................................................. (23,389) (21,068) (17,425)Proceeds from stock option exercises ...................................................... 17,448 7,878 7,125Purchases of treasury stock...................................................................... (9,660) (8,014) —Excess tax benefit from stock option exercises........................................ 5,587 4,266 —Debt issuance costs .................................................................................. (3,703) (153) (5,134)Net cash provided by (used in) financing activities..................................... 748,899 63,138 (1,988)Net (Decrease) Increase in Cash and Cash Equivalents......................... (2,642) (5,005) 19,622Cash and Cash Equivalents - Beginning of Year ................................ 101,140 106,145 86,523Cash and Cash Equivalents - End of Year .......................................... $ 98,498 $ 101,140 $ 106,145Supplemental Cash Flow Disclosures:Cash paid for interest, net of amounts capitalized ................................... $ 52,313 $ 65,675 $ 54,015Cash paid for federal and state income taxes (net of refunds received)... $ 45,572 $ 38,294 $ 14,993Non-cash Investing and Financing Activities:Acquisition of Resorts East ChicagoFair value of non-cash assets acquired............................................. $ 681,820 $ — $ —Less net cash paid ............................................................................ (671,420) — —Liabilities assumed........................................................................... $ 10,400 $ — $ —The accompanying notes are an integral part of these consolidated financial statements.F-7