EX-99 4 ex99-1.txt ANNUAL FINANCIAL STATEMENTS Financial Statements and Supplemental Schedules Amcast Industrial Corporation 401(k) Salary Deferral Plan December 31, 2002 and 2001, and for the years then ended with Independent Auditors' Report Amcast Industrial Corporation 401(k) Salary Deferral Plan Financial Statements and Supplemental Schedules December 31, 2002 and 2001, and for the years then ended Table of Contents Independent Auditors' Report...................................................1 Audited Financial Statements Statement of Net Assets Available for Benefits.................................2 Statement of Changes in Net Assets Available for Benefits....................3-4 Notes to Financial Statements...............................................5-10 Supplemental Schedules Schedule G, Part III - Schedule of Nonexempt Transactions..................11-12 Schedule H, Part IV, 4i - Schedule of Assets Held for Investment Purposes..13-14 Schedule H, Part IV, 4j - Schedule of Reportable Transactions..............15-16 Independent Auditors' Report Amcast Industrial Corporation 401(k) Salary Deferral Plan We have audited the accompanying statement of net assets available for benefits of the Amcast Industrial Corporation 401(k) Salary Deferral Plan as of December 31, 2002 and 2001, and the related statement of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2002 and 2001, and the changes in its net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of nonexempt transactions, assets held for investment purposes, and reportable transactions as of and for the years ended December 31, 2002 and 2001 are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. /s/ Battelle & Battelle May 23 , 2003 Dayton, Ohio 1 Amcast Industrial Corporation 401(k) Salary Deferral Plan Statement of Net Assets Available for Benefits December 31 ---------------------------- 2002 2001 -------------- ------------ Assets Cash $ - $ 1,950 Participant-directed investments, at fair value Shares of registered investment companies 19,461,785 23,117,026 Common/collective trust fund 10,099,018 9,590,459 Amcast Industrial Corporation common stock 1,152,780 2,662,044 Loans to participants 1,722,305 1,609,626 -------------- ------------ 32,435,888 36,979,155 -------------- ------------ Receivables Interest income 2,826 3,198 Participant contributions 70,069 89,305 Employer contributions 12,502 14,978 -------------- ------------ 85,397 107,481 -------------- ------------ Net assets available for benefits $ 32,521,285 $ 37,088,586 ============== ============ The accompanying notes are an integral part of the financial statements. 2 Amcast Industrial Corporation 401(k) Salary Deferral Plan Statement of Changes in Net Assets Available for Benefits For the year ended December 31, 2002
Fund Information ------------------------------------------------------------------------------ Amcast T. Rowe T. Rowe T. Rowe T. Rowe T. Rowe Industrial Price Price Price Price Price Corporation Stable International New New Equity Common Value Stock Horizons Income Index 500 Stock Fund Fund Fund Fund Fund ------------ ------------ ------------ ----------- ------------ ------------ Additions Investment income Interest and dividends $ 10,772 $ 539,855 $ 6,322 $ 3,266 $ 92,285 $ 89,585 Net (depreciation) appreciation in fair value of investments (2,133,793) - (96,064) (358,694) 45,688 (1,421,876) Contributions Participant 204,754 710,666 115,310 206,773 282,112 711,183 Employer 574,828 - - - - - ------------ ------------ ------------ ----------- ------------ ------------ (1,343,439) 1,250,521 25,568 (148,655) 420,085 (621,108) Deductions Benefit payments (216,586) (1,107,227) (75,063) (126,526) (216,252) (617,525) Interfund transfers 46,880 364,405 (29,451) (60,831) 145,321 (292,706) ------------ ------------ ------------ ----------- ------------ ------------ Net (decrease) increase (1,513,145) 507,699 (78,946) (336,012) 349,154 (1,531,339) Net assets available for benefits, December 31, 2001 2,682,887 9,607,137 491,828 1,317,782 1,721,222 6,077,552 ------------ ------------ ------------ ----------- ------------ ------------ Net assets available for benefits, December 31, 2002 $1,169,742 $ 10,114,836 $ 412,882 $ 981,770 $2,070,376 $4,546,213 ============ ============ ============ =========== ============ ============ ---------------------------------------- T. Rowe T. Rowe Price Price Equity Capital Income Appreciation Loans to Unallocated Fund Fund Participants Funds Total ------------ ------------ ----------------------- ------------ Additions Investment income Interest and dividends $ 326,912 $ 161,445 $ - $ - $ 1,230,442 Net (depreciation) appreciation in fair value of investments (1,409,797) (126,142) - - (5,500,678) Contributions Participant 727,308 385,264 - - 3,343,370 Employer - - - - 574,828 ------------ ------------ ----------- ----------- ------------ (355,577) 420,567 - - (352,038) Deductions Benefit payments (883,158) (867,426) (105,500) - (4,215,263) Interfund transfers (415,688) 25,841 218,179 (1,950) - ------------ ------------ ----------- ----------- ------------ Net (decrease) increase (1,654,423) (421,018) 112,679 (1,950) (4,567,301) Net assets available for benefits, December 31, 2001 8,870,397 4,708,205 1,609,626 1,950 37,088,586 ------------ ------------ ----------- ----------- ------------ Net assets available for benefits, December 31, 2002 $ 7,215,974 $ 4,287,187 $1,722,305 $ - $32,521,285 ============ ============ =========== =========== ============
The accompanying notes are an integral part of the financial statements. 3 Amcast Industrial Corporation 401(k) Salary Deferral Plan Statement of Changes in Net Assets Available for Benefits For the year ended December 31, 2001
Fund Information ----------------------------------------------------------------------- Amcast T. Rowe T. Rowe T. Rowe T. Rowe T. Rowe Industrial Price Price Price Price Price Corporation Stable International New New Equity Common Value Stock Horizons Income Index 500 Stock Fund Fund Fund Fund Fund ------------------------------------------------------------------------ Additions Investment income Interest and dividends $ 58,357 $ 557,662 $ 14,220 $ 31,575 $ 87,148 $ 63,207 Net (depreciation) appreciation in fair value of investments (2,008,534) - (161,215) (61,816) 27,949 (890,455) Contributions Participant 208,004 560,326 116,925 224,273 186,310 769,981 Employer 555,168 - - - - - Transfer from Casting Technology Company 401(k) Salary Deferral Plan - 88,113 7,738 113,691 70,351 104,582 ------------------------------------------------------------------------ (1,187,005) 1,206,101 (22,332) 307,723 371,758 47,315 Deductions Benefit payments (428,637) (1,517,735) (130,284) (67,256) (175,034) (670,283) Interfund transfers 74,168 80,272 (127,388) (315,581) 260,831 (519,784) ------------------------------------------------------------------------- Net (decrease) increase (1,541,474) (231,362) (280,004) (75,114) 457,555 (1,142,752) Net assets available for benefits, December 31, 2000 4,224,361 9,838,499 771,832 1,392,896 1,263,667 7,220,304 ------------------------------------------------------------------------ Net assets available for benefits, December 31, 2001 $ 2,682,887 $ 9,607,137 $ 491,828 $ 1,317,782 $1,721,222 $6,077,552 ======================================================================== T. Rowe T. Rowe Price Price Equity Capital Income Appreciation Loans to Unallocated Fund Fund Participants Funds Total ------------------------------------------------------------ Additions Investment income Interest and dividends $ 499,748 $ 224,305 $ 132,300 $ - $ 1,668,522 Net (depreciation) appreciation in fair value of investments (361,967) 196,585 - - (3,259,453) Contributions Participant 713,873 336,147 - - 3,115,839 Employer - - - - 555,168 Transfer from Casting Technology Company 401(k) Salary Deferral Plan 106,406 152,028 28,629 - 671,538 ------------------------------------------------------------ 958,060 909,065 160,929 - 2,751,614 Deductions Benefit payments (1,022,624) (521,879) (166,314) - (4,700,046) Interfund transfers (27,071) 453,365 123,552 (2,364) - ------------------------------------------------------------ Net (decrease) increase (91,635) 840,551 118,167 (2,364) (1,948,432) Net assets available for benefits, December 31, 2000 8,962,032 3,867,654 1,491,459 4,314 39,037,018 ------------------------------------------------------------ Net assets available for benefits, December 31, 2001 $ 8,870,397 $ 4,708,205 $1,609,626 $ 1,950 $37,088,586 ============================================================
The accompanying notes are an integral part of the financial statements. 4 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 1. Description of the Plan The following description of the Amcast Industrial Corporation 401(k) Salary Deferral Plan (the Plan) is provided for general information purposes only. Participants should refer to the Summary Plan Description for a more complete description of the Plan's provisions. General The Plan is a contributory defined contribution plan covering substantially all employees of Amcast Industrial Corporation (the Company and Plan Sponsor) who are compensated on a salary or hourly basis and are not covered by a collective bargaining agreement. Eligible employees may participate on the first day of the month coincident with, or first following six months of employment. The Plan is subject to the Employee Retirement Income Security Act of 1974 (ERISA). Contributions Each year, participants may contribute, in whole percentages, an amount up to 20 percent of annual compensation, as defined by the Plan Document. Additionally, participants may make up to two lump sum contributions to the Plan per year. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. The Company makes matching contributions equal to 25 percent of the first 6 percent of compensation that is deferred by participants to the Plan. These matching contributions are made in common stock of the Company. The Company also makes supplemental matching contributions to the Plan provided that the Company's annual minimum return on net worth is at least 9 percent. The amount of these supplemental matching contributions increases based upon the level of return; however, the amount shall not exceed 35 percent of the participants' salary deferral contributions. Vesting Participants are immediately vested in their deferral contributions plus actual earnings thereon. Vesting in the Company contribution portion of their accounts plus actual earnings thereon is based on years of continuous service. Participants are 50 percent vested in Company contributions made after one year of service with the Company, 75 percent vested after two years of service, and fully vested after three years of service. 5 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 1. Description of the Plan (continued) Participant Loans Participants may borrow from their fund accounts a minimum of $500 up to a maximum of the lesser of $50,000 (less the highest outstanding balance of any loan made to the participant under the Plan during the 12-month period preceding the date of the loan) or 50 percent of their vested account balance. The loan term is not to exceed 5 years unless the loan is for the purchase of a principal residence, in which case the term may be as long as 30 years. Interest rates on these loans are one percent above the prime rate of interest on the first business day of the calendar quarter in which a loan application is made to the Company. Participant Accounts Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Payment of Benefits On termination of service for any reason, a participant may receive a lump-sum amount equal to the vested value of his or her account, in either (a) cash or (b) cash for all investments other than Company stock and the participant's related shares of the Company's stock. Administrative Expenses Substantially all expenses of the Plan are paid by the Company. Forfeited Accounts At December 31, 2002 forfeited nonvested accounts totaled $27,217 (none in 2001). This amount will be allocated to the accounts of active participants as of December 31, 2002. 6 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 2. Summary of Significant Accounting Policies Basis of Accounting The Plan's financial statements are prepared on the accrual basis of accounting. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan administrator to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Investment Valuation The Plan's investments are stated at fair value. The shares of registered investment companies are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. Participant loans are valued at their outstanding balances, which approximate fair value. Company common stock and the participation units owned by the Plan in the common/collective trust fund are based on quoted redemption value on the last business day of the Plan year. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits. 7 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 3. Investments The fair value of individual investments that represent 5 percent or more of the Plan's net assets available for benefits at December 31 are as follows: 2002 2001 --------------- --------------- Shares of registered investment companies: T. Rowe Price New Income Fund $ 2,064,303 $ 1,715,155 T. Rowe Price Capital Appreciation Fund 4,278,891 4,697,089 T. Rowe Price Equity Index 500 Fund 4,530,775 6,055,610 T. Rowe Price Equity Income Fund 7,200,033 8,849,038 Common/collective trust fund: T. Rowe Price Stable Value Fund 10,099,018 9,590,459 Amcast Industrial Corporation common stock 1,152,780 2,662,044 Loans to participants 1,722,305 1,609,626 For the years ended December 31, 2002 and 2001, the Plan's investments (including investments bought, sold, and held during the year) depreciated in value by $5,500,678 and $3,259,453, respectively: 2002 2001 -------------- -------------- Shares of registered investment companies $ 3,366,885 $ 1,250,919 Amcast Industrial Corporation common stock 2,133,793 2,008,534 -------------- -------------- $ 5,500,678 $ 3,259,453 ============== ============== 8 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 4. Income Tax Status The Internal Revenue Service (IRS) ruled on July 21, 1992, that the Plan qualifies under Section 401(a) of the Internal Revenue Code (the IRC) and, therefore, the underlying trust is not subject to income tax under present tax law. The Plan was subsequently amended. The Company is currently waiting for an IRS determination for the Plan, as amended. The Company's Pension Administration Committee and the Company's tax counsel believe that the Plan, as amended, is operating in conformity with the IRC. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Company's Pension Administration Committee and the Company's tax counsel are not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 5. Transactions With Parties-In-Interest The Trust is not charged for administrative services performed on its behalf by the Company. The Plan also invests in common stock of the Company (the Plan Sponsor). 6. Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. 7. Prohibited Transactions During 2001, the Plan sponsor discovered that it had failed to remit certain participants' deferral contributions and the related employer matching contributions to the Plan for a pay period that had occurred in December, 1999. Consequently, in October of 2001, the Plan sponsor made additional contributions to the Plan consisting of $4,451, the original amount of the participant deferrals, $745, the amount of the employer matching contribution, and $1,085, the amount calculated by the sponsor for lost Plan income on these contributions. 9 Amcast Industrial Corporation 401(k) Salary Deferral Plan Notes to Financial Statements December 31, 2002 8. Transfer from Other Company Sponsored Plan Effective August 31, 2001, the participants and net assets of the Casting Technology Company 401(k) Salary Deferral Plan were merged into the Plan. The following is a summary of the net assets transferred: Shares of registered investment companies $ 554,796 Common/collective trust fund 88,113 Loans to participants 28,629 ------------- $ 671,538 ============= 10 Supplemental Schedules Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule G, Part III Schedule of Nonexempt Transactions December 31, 2002
(c) (i) (b) Decription of Current (j) (a) Relationship of Transaction Including Value of Net Identity Plan, Employer Maturity Date, Rate of (d) (e) (h) Asset at Gain or (Loss) of Party or Other Interest, Collateral, Purchase Selling Cost of Date of on Each Involved Party-In-Interest Par or Maturity Value Price Price Asset Transaction Transaction ------------ ------------------- ------------------------- --------- -------- -------- ------------ ----------------- No Nonexempt Transactions
There were no lease rental activities or expenses incurred with the above transactions. Therefore, columns (f) and (g) were eliminated for presentation purposes. 11 Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule G, Part III Schedule of Nonexempt Transactions December 31, 2001
(c) (i) (b) Decription of Current (j) (a) Relationship of Transaction Including Value of Net Identity Plan, Employer Maturity Date, Rate of (d) (e) (h) Asset at Gain or (Loss) of Party or Other Interest, Collateral, Purchase Selling Cost of Date of on Each Involved Party-In-Interest Par or Maturity Value Price Price Asset Transaction Transaction ------------ ------------------- ------------------------- --------- -------- -------- ------------ ----------------- Amcast Plan Sponsor Overdue employee $4,451 N/A N/A $4,451 N/A Industrial contributions not timely Corporation remitted to the plan Amcast Plan Sponsor Overdue employer 745 N/A N/A 745 N/A Industrial contributions not timely Corporation remitted to the plan
There were no lease rental activities or expenses incurred with the above transactions. Therefore, columns (f) and (g) were eliminated for presentation purposes. 12 Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes December 31, 2002
(a),(b) (c) (e) Identity of Party Involved and Description of (d) Fair Description of Asset Investment Cost Value ----------------------------------------------- ------------------ ------------ ------------ Shares of registered investment companies * T. Rowe Price International Stock Fund 46,221 shares $ 493,944 $ 410,438 * T. Rowe Price New Horizons Fund 58,841 shares 1,269,486 977,345 * T. Rowe Price New Income Fund 232,205 shares 2,019,703 2,064,303 * T. Rowe Price Capital Appreciation Fund 301,118 shares 4,412,633 4,278,891 * T. Rowe Price Equity Index 500 Fund 191,414 shares 5,749,491 4,530,775 * T. Rowe Price Equity Income Fund 363,822 shares 8,485,528 7,200,033 ----------- ----------- 22,430,785 19,461,785 Common/collective trust fund * T. Rowe Price Stable Value Fund 10,099,018 units 10,099,018 10,099,018 Common stock * Amcast Industrial Corporation common stock 678,066 shares 3,180,150 1,152,780 Loans to participants Rates ranging from Participant loans 6.5% to 10.5% 1,722,305 1,722,305 ----------- ----------- $37,432,258 $32,435,888 =========== ===========
* Indicates party-in-interest to the Plan. 13 Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes December 31, 2001
(a),(b) (c) (e) Identity of Party Involved and Description of (d) Fair Description of Asset Investment Cost Value ----------------------------------------------- ------------------ ------------ ------------ Shares of registered investment companies * T. Rowe Price International Stock Fund 44,429 shares $ 686,179 $ 488,270 * T. Rowe Price New Horizons Fund 57,970 shares 1,456,373 1,311,864 * T. Rowe Price New Income Fund 197,599 shares 1,715,750 1,715,155 * T. Rowe Price Capital Appreciation Fund 320,839 shares 4,487,221 4,697,089 * T. Rowe Price Equity Index 500 Fund 196,356 shares 5,691,409 6,055,610 * T. Rowe Price Equity Income Fund 374,167 shares 8,803,675 8,849,038 ----------- ----------- 22,840,607 23,117,026 Common/collective trust fund * T. Rowe Price Stable Value Fund 9,590,459 units 9,590,459 9,590,459 Common stock * Amcast Industrial Corporation common stock 494,791 shares 6,273,469 2,662,044 Loans to participants Rates ranging from Participant loans 6.5% to 10.5% 1,609,626 1,609,626 ----------- ----------- $40,314,161 $36,979,155 =========== ===========
* Indicates party-in-interest to the Plan. 14 Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions For the year ended December 31, 2002
(h) Fair (b) (g) Value of (i) Description (c) (d) Cost Asset at Net (a) of Purchase Selling of Date of Gain or Identity of Party Involved Investment Price Price Asset Transaction (Loss) ------------------------------ ----------------- ------------- -------------- --------- -------------- ---------- - - No Reportable Transactions - -
There were no category (i), (ii), (iii) or (iv) transactions during the year. There were no lease rental activities or expenses incurred with the plan. Therefore, columns (e) and (f) were eliminated for presentation purposes. 15 Amcast Industrial Corporation 401(k) Salary Deferral Plan EIN 31-0258080 / Plan 002 Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions For the year ended December 31, 2001
(h) Fair (b) (g) Value of (i) Description (c) (d) Cost Asset at Net (a) of Purchase Selling of Date of Gain or Identity of Party Involved Investment Price Price Asset Transaction (Loss) ----------------------------- ----------------- ---------------- ----------- ---------- -------------- ---------- - - No Reportable Transactions - -
There were no category (i), (ii), (iii) or (iv) transactions during the year. There were no lease rental activities or expenses incurred with the plan. Therefore, columns (e) and (f) were eliminated for presentation purposes. 16