<PAGE>
 
                               ENERGY INDUSTRIES
 
                        COMBINED STATEMENT OF CASH FLOWS
                           (UNAUDITED, IN THOUSANDS)
 

<TABLE>
<CAPTION>
                                   NINE MONTHS  EIGHT MONTHS    TWELVE MONTHS
                                      ENDED         ENDED           ENDED
                                  JUNE 30, 1995 JUNE 30, 1994 SEPTEMBER 30, 1994
                                  ------------- ------------- ------------------
<S>                               <C>           <C>           <C>
Cash flow provided (used) by
 operating activities:
  Net income....................    $  1,713      $  1,352         $  2,797
                                    --------      --------         --------
  Adjustments to reconcile net
   income to net cash provided
   by operating activities:
    Depreciation and
     amortization...............       4,322         3,600            4,867
    Deferred taxes..............         229           941            1,363
    Changes in other assets and
     liabilities:
      Receivables...............       1,191          (964)          (2,064)
      Inventories...............      (6,544)       (2,341)             175
      Accounts payable and
       accrued liabilities......       1,509          (883)           1,026
      Other assets and
       liabilities..............        (358)         (874)            (313)
                                    --------      --------         --------
        Total adjustments.......         349          (521)           5,054
                                    --------      --------         --------
      Net cash provided
       operating activities.....       2,062           831            7,851
                                    --------      --------         --------
Cash flow used by investing
 activities:
  Business acquisitions, net of
   cash acquired................                   (73,222)         (73,222)
  Capital expenditures..........     (11,495)       (4,995)          (8,638)
                                    --------      --------         --------
      Net cash used by investing
       activities...............     (11,495)      (78,217)         (81,860)
                                    --------      --------         --------
Cash flow provided by financing
 activities:
  Borrowings....................      12,864                         15,000
  Principal payments of long-
   term obligations.............         (72)          (98)            (120)
  Proceeds from issuance of
   common stock to Parent.......                    20,790           20,790
  Repayments to Parent..........      (2,835)                       (20,795)
  Advances from Parent..........                    60,812           60,812
                                    --------      --------         --------
      Net cash provided by
       financing activities.....       9,957        81,504           75,687
                                    --------      --------         --------
Net increase in cash and cash
 equivalents....................         524         4,118            1,678
Cash and cash equivalents at
 beginning of period............       1,678
                                    --------      --------         --------
Cash and cash equivalents at end
 of period......................    $  2,202      $  4,118         $  1,678
                                    ========      ========         ========
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    The accompanying notes are an integral part of the financial statements.
 
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