Consolidated Statements of Cash Flows (Dollar amounts in thousands) The accompanying notes are an integral part of these consolidated financial statements. Northwest Pipe Company | 16 December 31, 2000 1999 1998 Cash Flows From Operating Activities: Net income $ 10,691 $ 13,285 $ 12,581 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 7,280 5,090 3,685 Deferred income taxes 4,543 1,228 2,199 Gain on sale of property and equipment (559) (632) (342) Changes in current assets and liabilities: Trade receivables, net (5,139) (3,776) (12,302) Costs and estimated earnings in excess of billings on uncompleted contracts (24,861) 882 (3,357) Inventories (15,666) 6,192 (18,182) Refundable income taxes 115 849 507 Prepaid expenses and other 39 (449) (222) Accounts payable 10,497 (6,865) 10,978 Accrued and other liabilities 1,568 (604) 1,315 Net cash provided by (used in) operating activities (11,492) 15,200 (3,140) Cash Flows From Investing Activities: Additions to property and equipment (10,976) (14,153) (16,185) Proceeds from sale of property and equipment 691 687 1,670 Acquisitions, net of cash acquired – (4,413) (47,856) Other assets (885) (15) 259 Net cash used in investing activities (11,170) (17,894) (62,112) Cash Flows From Financing Activities: Proceeds from sale of common stock 206 113 41 Proceeds from long-term debt – – 40,000 Payments from long-term debt (2,124) (788) (740) Net proceeds under notes payable  8,200 3,591 27,200 Proceeds of sale-leaseback 14,446 – – Borrowings from capital lease obligations 2,015 2,413 – Payments on capital lease obligations (697) (2,190) (1,629) Net cash provided by financing activities 22,046 3,139 64,872 Net increase (decrease) in cash and cash equivalents (616) 445 (380) Cash and cash equivalents, beginning of period 969 524 904 Cash and cash equivalents, end of period $ 353 $ 969 $ 524 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest, net of amounts capitalized $ 9,930 $ 6,968 $ 3,836 Cash paid during the period for income taxes 3,074 7,164 5,836 Supplemental Disclosure of Noncash Information: Tax benefit of nonqualified stock options exercised $ 6 $ 5 $ 83 Acquisitions: Cost in excess of fair value of assets acquired $ – $ – $ 23,717 Fair value of assets acquired – 8,692 32,941 Fair value of liabilities assumed – 4,279 8,802