Condensed consolidated statements of cash flows (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (18,149)	$ (87,233)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	15,891	15,057
Amortization of deferred financing costs	1,817	2,726
Impairment of goodwill		62,805
Equity in earnings of unconsolidated affiliate	(2,645)	(460)
Distributions received from unconsolidated affiliate	835
Amortization of discount on long-term debt	547	483
Unit-based compensation expense	641	593
Allowance for doubtful accounts	27	141
Provision for inventory allowances and writedowns	876	1,370
Deferred income tax benefit	(1,086)	(4,031)
Loss on foreign currency transactions	657	1,732
Unrealized (gain) loss on derivative instruments	639	(364)
Gain on sale of property, plant, and equipment	(994)	(287)
Changes in operating assets and liabilities:
Accounts receivable	(52,102)	8,761
Inventory	(52,471)	(13,799)
Income tax receivable	18,235	4,043
Prepaid expenses and other current assets	(932)	1,853
Accounts payable	43,557	14,252
Accrued expenses, other current liabilities, and deferred revenue	(13,365)	(5,609)
Income tax payable	2,713	(1,388)
Other	251	1,050
Net cash (used in) provided by operating activities	(55,058)	1,695
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of PetroSteel business-net of cash acquired		(4,000)
Purchases of property, plant, and equipment	(2,410)	(9,575)
Investment in unconsolidated affiliate		(10,000)
Proceeds from the sale of property, plant, and equipment	6,276	325
Net cash provided by (used in) investing activities	3,866	(23,250)
CASH FLOWS FROM FINANCING ACTIVITIES:
Deferred financing costs	(1,309)	(1,097)
Principal payments on long-term debt and capital lease	(297)	(4,221)
Proceeds from Asset Based Loan Facility ("ABL Facility")	56,412	12,538
Payments to ABL Facility	(56,412)	(12,538)
Managed cash overdraft	2,848	(27)
Net cash provided by (used in) financing activities	1,242	(5,345)
Effect of exchange rate changes on cash and cash equivalents	(622)	(183)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(50,572)	(27,083)
CASH AND CASH EQUIVALENTS - beginning of period	62,478	65,733
CASH AND CASH EQUIVALENTS - end of period	$ 11,906	$ 38,650

Edgen Murray II, L.P. 10-Q