(In thousands) POWELL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended September 30,  2013 2012 2011 Operating Activities: Net income (loss) $ 42,076  $ 29,657  $ (2,715) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 8,519 10,465 10,598 Amortization 1,671 2,612 4,848 Impairments — — 7,15 8 Stock-based compensation 4,464 1,723 99 Bad debt expense (recovery) (544) 842 (114) Deferred income tax benefit (6,720) (1,422) (425) Gain on sale of investment — — (1,229) Changes in operating assets and liabilities: Accounts receivable, net 5,838 (16,209) (17,616) Costs and estimated earnings in excess of billings on uncompleted contracts (165) (34,755) (13,519) Inventories 3,881 3,948 1,542 Prepaid expenses and other current assets (3,530) 4,821 4,514 Other assets (847) (13) (2,627) Accounts payable and income taxes payable 12,565 (6,036) 14,487 Accrued liabilities (633) 6,411 (4,255) Billings in excess of costs and estimated earnings on uncompleted contracts 23,219 ( 7,492) 13,553 Other, net 1,968 (517) 1,188 Net cash provided (used in) by operating activities 91,762 (5,965) 15,487 Investing Activities: Proceeds from sale of property, plant and equipment 885 195 354 Purchases of property, plant and equipment (74,369) (29,063) (7,347) Proceeds from sale of investment — — 1,229 Decrease in cash held in escrow — 1,000 — Increase in cash held in escrow — — (1,000) Net cash used in investing activities (73,484) (27,868) (6,764) Financing Activities: Borrowings on Canadian revolving line of credit 5,234 7,9 92 7,810 Payments on Canadian revolving line of credit (5,234) ( 7,9 92) (7,818) Payments on industrial development revenue bonds (400) (400) (400) Payments on short-term and other financing (329) (717) (1,068) Proceeds from exercise of stock options — 1,799 495 Excess tax benefit from stock-based compensation 277 589 180 Net cash provided by (used in) financing activities (452) 1,271 (801) Net increase (decrease) in cash and cash equivalents 17,826 (32,562) 7,922 Effect of exchange rate changes on cash and cash equivalents (118) (864) 191 Cash and cash equivalents at beginning of year 90,040 123,466 115,353 Cash and cash equivalents at end of year $ 107,74 8  $ 90,040  $ 123,466 The accompanying notes are an integral part of these consolidated financial statements. 27