Management’s Discussion and Analysis of Results of Operations and Financial Condition General corporate expenses for 2000 increased by $1.1 million from 1999 levels and increased by $2.6 million between 1999 and 1998. The increases are attributable to increased variable overhead costs associated with the Company’s increased revenues, as well as incremental fixed costs to support growth in operations. Interest expense decreased by $0.8 million for 2000 compared to 1999 and by $0.5 million in 1999 compared to 1998, principally due to lower average outstanding borrowings. Interest income increased by $0.3 million for 2000 compared with 1999. Interest income decreased by $1.5 million for 1999 compared to 1998. This decrease for 1999 compared to 1998 was due to reduced cash available to invest after approximately $55.8 million was utilized for acquisitions in 1999. On March 18, 1998, EMCOR sold, pursuant to underwritten  public offerings, $115.0 million principal amount of 5.75%  convertible subordinated notes and 1,100,000 shares of its  common stock. Interest on the 5.75% convertible subordinated notes is payable semi-annually. The 5.75% convertible  subordinated notes are unsecured indebtedness of EMCOR  and are convertible at any time into common stock of EMCOR  at a conversion price of $27.34 per share. During the third quarter of 1998, EMCOR’s Board of Directors authorized a stock repurchase program under which EMCOR may repurchase up to $20.0 million of its common  stock. EMCOR did not repurchase shares during 2000 and, as of December 31, 2000, EMCOR had repurchased 1,132,000 shares  of its Common Stock at an aggregate cost of approximately  $16.8 million. Proceeds received from the sale of the 5.75% convertible  subordinated notes along with proceeds from the sale of common stock were used to (a) redeem EMCOR’s Series C Notes in the aggregate principal amount of $61.9 million; (b) repay then  outstanding borrowings under its working capital credit facility; (c) prepay EMCOR’s note in the aggregate principal amount of $5.5 million and accrued interest thereon payable to its subsidiary Sellco and (d) fund its acquisition of certain businesses through December 31, 1999. The following table presents EMCOR’s net cash provided by operating activities, net cash used in investing activities and net cash (used in) provided by financing activities for the years ended December 31, 2000 and 1999: The Company’s consolidated cash balance increased by  $79.1 million from $58.6 million at December 31, 1999 to  $137.7 million at December 31, 2000. Net cash provided by  operating activities for 2000 was $91.4 million, an increase of $56.9 million from $34.5 million for 1999. The cash provided by operating activities was primarily due to increased net income, decreased net inventories and contracts in progress, increased accounts payable and accrued expenses, offset partially by increased accounts receivable. Net cash used in investing activities for 2000 of $11.1 million consisted primarily of $4.2 million for acquisitions of businesses and related earn-out payments, net  proceeds received from other investments of $7.0 million and $16.7 million for the purchase of property, plant and equipment, versus $55.8 million, $6.8 million and $10.7 million used for the same activities for 1999, respectively. Net cash used in financing activities for 2000 of $1.2 million was primarily due to the  repayments of long-term debt and capital lease obligations. On December 22, 1998, EMCOR and certain of its  subsidiaries amended and restated a June 19, 1996 credit facility; the amended credit facility provides EMCOR with a credit facility for borrowings of up to $150.0 million. The amended credit  facility, which has an expiration date of June 30, 2002, is  guaranteed by certain direct and indirect subsidiaries of EMCOR. It is secured by substantially all of the assets of EMCOR and those subsidiaries, and it provides for borrowing capacity available in the form of revolving loans and/or letters of credit. The amended credit facility contains various covenants, including among other things, maintenance of certain financial ratios, and significant restrictions with respect to cumulative aggregate payments for  dividends, common stock repurchases, investments, acquisitions, indebtedness, capital expenditures, and prepayments of subordinated debt, all as defined therein. The revolving loans bear interest at (1) a rate which is the prime commercial lending rate announced by Harris Trust and Savings Bank from time to time EMCOR, 2000 Annual Report 21 Liquidity and Capital Resources (In millions) 2000 1999 Net cash provided by operating activities $ 91.4 $ 34.5 Net cash used in investing activities $ (11.1) $ (59.4) Net cash (used in) provided by financing activities $ (1.2) $ 0.4