CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME Accumulated Total other Stock- compre- Compre- holders’ Common Capital hensive Retained Treasury hensive equity stock Warrants surplus loss (1) earnings stock income Balance, December 31, 1998 $ 119,816 $ 109 $ 2,154 $ 114,867 $ (1,822) $ 18,476 $ (13,968) Net income 27,821 — — — — 27,821 — $ 27,821 Foreign currency translation adjustments (401) — — — (401) — — (401) Comprehensive income — — — — — — — $ 27,420 Provision in lieu of income taxes 15,645 — — 15,645 — — — Common stock issued pursuant to warrants exercised 10,015 7 (1,190) 11,198 — — — Value of expired warrants — — (964) 964 — — — Common stock issued under stock option plans 221 1 — 220 — — — Treasury stock, at cost (2,868) — — — — — (2,868) Balance, December 31, 1999 170,249 117 — 142,894 (2,223) 46,297 (16,836) Net income 40,089 — — — — 40,089 — $ 40,089 Foreign currency translation adjustments (1,683) — — — (1,683) — — (1,683) Comprehensive income — — — — — — — $ 38,406 Provision in lieu of income taxes 24,422 — — 24,422 — — — Common stock issued under stock option plans 426 — — 426 — — — Balance, December 31, 2000 233,503 117 — 167,742 (3,906) 86,386 (16,836) Net income 50,012 — — — — 50,012 — $ 50,012 Foreign currency translation adjustments (1,518) — — — (1,518) — — (1,518) Comprehensive income — — — — — — — $ 48,494 Provision in lieu of income taxes 21,425 — — 21,425 — — — Common stock issued under stock option plans 2,063 — — 2,063 — — — Conversion of 5.75% Convertible Subordinated Notes (2) 113,874 42 — 113,832 — — — Value of Restricted Stock Units (3) 2,574 — — 2,574 — — — Balance, December 31, 2001 $ 421,933 $ 159 $ — $ 307,636 $ (5,424) $ 136,398 $ (16,836) (In thousands) The accompanying notes to the consolidated financial statements are an integral part of these statements. EMCOR ANNUAL REPORT 2001  29 (3) Shares of common stock will be issued in respect of restricted stock units. This amount represents the value of restricted stock units at the date of grant plus the related compensation expense in the current year due to an increase in market value of the underlying common stock. (2) Represents conversion of $115.0 million 5.75% Convertible Subordinated Notes into common stock, net of related interest and deferred financing costs. (1) Represents cumulative foreign currency translation adjustments.