CIMATRON LIMITED

STATEMENTS OF CASH FLOWS

(US Dollars in thousands)

Nine months ended

September 30,

2013

2012

Cash flows from operating activities:

Net income 

$        2,567

$        2,376

Adjustments to reconcile net income 

   to net cash provided by operating activities:

Depreciation and amortization

796

1,007

Increase in accrued severance pay

415

63

Stock based compensation

33

-

Deferred taxes, net

(115)

(272)

Changes in assets and liabilities:

Decrease in accounts receivable and prepaid expenses

332

1,051

Increase (decrease) in inventory

12

(2)

Increase in deposits with insurance companies and severance pay fund

(328)

(63)

Decrease in trade payables, accrued expenses and other liabilities

(425)

(1,587)

Net cash provided by operating activities

3,287

2,573

Cash flows from investing activities:

Proceeds from sale of property and equipment

-

1

Purchase of property and equipment

(346)

(243)

Net cash used in investing activities

(346)

(242)

Cash flows from financing activities:

Short-term bank credit

20

(40)

Long-term bank credit

(3)

(7)

Cash distribution to shareholders

(7,916)

(1,863)

Proceeds from issuance of shares upon exercise of options 

47

40

Proceeds from issuance of restricted shares

9

-

Proceeds from issuance of shares 

5,786

-

Net cash used in financing activities

(2,057)

(1,870)

Net increase in cash and cash equivalents

884

461

Effect of exchange rate changes on cash

127

28

Cash and cash equivalents at beginning of period

11,903

11,787

Cash and cash equivalents at end of period

$      12,914

$      12,276

Appendix A - Non-cash transactions

Purchase of property on credit

$              7

$              5