Annual report pursuant to section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Operating activities      
Net income attributable to Arabian American Development Co. $ 8,430,314 $ 2,685,654 $ 6,627,451
Adjustments to reconcile net income to Arabian American Development Co. to Net cash provided by operating activities:      
Depreciation 3,219,782 2,613,164 2,689,847
Accretion of notes receivable discounts (684) (16,109) (53,628)
Unrealized gain on derivative instruments (215,418) (177,448) (6,976,232)
Share-based compensation 872,077 807,917 280,161
Provision for doubtful accounts 55,000 28,500 111,154
Amortization of contractual based intangible asset 250,421 0 0
Deferred income taxes 859,644 684,582 8,977,317
Postretirement obligation 11,451 0 23,378
Equity in loss from AMAK 0 262,500 0
Changes in operating assets and liabilities:      
(Increase) decrease in trade receivables (12,040,842) 1,062,165 (510,083)
Decrease in notes receivable 35,111 389,070 582,177
(Increase) decrease in income tax receivable 216,461 4,510,247 (4,297,082)
Increase in inventories (3,539,082) (852,114) (2,618,969)
Decrease in prepaid expenses and other assets 108,222 70,622 59,353
Decrease in derivative instruments deposits 0 0 3,950,000
Increase in other liabilities 1,628,002 0 773,000
Increase (decrease) in accounts payable and accrued liabilities 4,246,165 (504,088) (2,146,279)
Increase (decrease) in accrued interest (4,668) (28,005) 1,077
Decrease in accrued liabilities in Saudi Arabia (76,363) (206,764) (957,876)
Net cash provided by operating activities 4,055,593 11,329,893 6,514,766
Investing activities      
Additions to plant, pipeline and equipment (6,518,052) (2,898,752) (3,184,140)
Net advances to AMAK (120,023) 0 0
Purchase of STTC transportation company 0 (250,000) 0
Net cash used in investing activities (6,638,075) (3,148,752) (3,184,140)
Financing Activities      
Issuance of common stock 107,906 0 0
Additions to long-term debt 6,000,000 1,396,751 2,530,761
Repayment of long-term debt (4,461,380) (4,419,563) (6,169,009)
Net cash provided (used) in financing activities 1,646,526 (3,022,812) (3,638,248)
Net increase (decrease) in cash (935,956) 5,158,329 (307,622)
Cash and cash equivalents at beginning of year 7,609,943 2,451,614 2,759,236
Cash and cash equivalents at end of year 6,673,987 7,609,943 2,451,614
Supplemental disclosure of cash flow information:      
Cash payments for interest 1,070,985 1,160,972 1,334,453
Cash payments (net of refunds) for taxes 3,044,810 (3,547,394) (278,622)
Supplemental disclosure of non-cash items:      
Other liabilities for capital expansion amortized to depreciation expense 210,167 551,340 621,864
Unrealized loss/(gain) on interest rate swap, net of tax benefit/expense 11,724 (104,591) (278,775)
Net assets acquired in purchase of STTC Transportation Company $ 0 $ 1,025,448 $ 0