CONSOLIDATED STATEMENTS OF CASH FLOWS The accompanying notes to consolidated financial statements are an integral part of these statements. (In thousands)  For the years ended December 31, 2001 2000 1999 Cash flows from operating activities: Net income $ 50,012 $ 40,089 $ 27,821 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 12,694 11,483 10,675 Amortization of goodwill 5,506 4,618 3,418 Provision for doubtful accounts 2,856 6,419 5,967 Deferred income taxes 3,725 — — Non-cash expense for amortization of debt issuance costs 890 1,236 1,236 Non-cash expense for Restricted Stock Units 1,132 — — Non-cash interest expense for converted subordinated notes 1,239 — — Provision in lieu of income taxes 21,425 24,422 15,645 99,479 88,267 64,762 Change in operating assets and liabilities excluding effect of businesses acquired: Decrease (increase) in accounts receivable 48,974 (118,629) (96,875) (Increase) decrease in inventories and contracts in progress, net (59,217) 76,376 17,784 (Decrease) increase in accounts payable (52,337) 22,222 36,830 Increase in accrued payroll and benefits and other accrued expenses and liabilities 47,836 19,533 6,633 Changes in other assets and liabilities, net (3,644) 3,667 5,371 Net cash provided by operating activities 81,091 91,436 34,505 Cash flows from investing activities: Proceeds from sales of assets 1,925 2,765 347 Purchase of property, plant and equipment (17,939) (16,698) (10,737) Payments for acquisitions of businesses and related earn-out agreements (8,750) (4,234) (55,782) Net (disbursements) proceeds from other investments (6,453) 7,047 6,810 Net cash used in investing activities (31,217) (11,120) (59,362) Cash flows from financing activities: Proceeds from working capital credit lines — 722,829 306,400 Repayments of working capital credit lines — (722,829) (306,400) Net repayments for long-term debt and capital lease obligations 143 (1,609) (7,012) Net proceeds from exercise of stock options 2,064 426 221 Net proceeds from exercise of common stock warrants — — 10,015 Purchase of common stock — — (2,868) Net cash provided by (used in) financing activities 2,207 (1,183) 356 Increase (decrease) in cash and cash equivalents 52,081 79,133 (24,501) Cash and cash equivalents at beginning of year 137,685 58,552 83,053 Cash and cash equivalents at end of year $ 189,766 $ 137,685 $ 58,552