-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ku4ggqRkdV1RfuSqmFOvU5L2hrFbM+/qqqTeQClPoJt/UXIuOycXUfUC6vVIrSWa 7MsZd7P8lzTnO9+CL4KckA== 0000055604-04-000022.txt : 20040519 0000055604-04-000022.hdr.sgml : 20040519 20040519110951 ACCESSION NUMBER: 0000055604-04-000022 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040517 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040519 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEYSTONE CONSOLIDATED INDUSTRIES INC CENTRAL INDEX KEY: 0000055604 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 370364250 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03919 FILM NUMBER: 04817670 BUSINESS ADDRESS: STREET 1: 5430 LBJ FWY STE 1740 STREET 2: THREE LINCOLN CENTRE CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2144580028 MAIL ADDRESS: STREET 1: 5430 LBJ FWY STE 1740 STREET 2: THREE LINCOLN CENTRE CITY: DALLAS STATE: TX ZIP: 75240 FORMER COMPANY: FORMER CONFORMED NAME: KEYSTONE STEEL & WIRE CO DATE OF NAME CHANGE: 19710506 8-K 1 key8k051804.txt FORM 8-K, KEYSTONE, 05/19/04 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 17, 2004 KEYSTONE CONSOLIDATED INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 1-3919 37-0364250 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) No.) 5430 LBJ Freeway, Suite 1740, Dallas, TX 75240-2697 (Address of principal executive offices) (Zip Code) (972) 458-0028 (Registrant's telephone number, including area code) (Former name or address, if changed since last report) Item 9: Regulation FD Disclosure On February 26, 2004, Keystone Consolidated Industries, Inc. (the "Company" or "Keystone"), together with five of its direct and indirect subsidiaries (FV Steel and Wire Company, DeSoto Environmental Management, Inc., J.L. Prescott Company, Sherman Wire Company F/K/A DeSoto, Inc. and Sherman Wire of Caldwell, Inc.), filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee (the "Bankruptcy Court"). On May 17, 2004, Keystone filed its Monthly Operating Report for the month of April 2004 (the "Monthly Operating Report") with the Bankruptcy Court. A copy of certain summary financial information and related supporting schedules contained in the Monthly Operating Report (the "Bankruptcy Financial Information") is attached hereto as Exhibit 99.1 and incorporated by reference herein. The Bankruptcy Financial Information is limited in scope, covers a limited time period and has been prepared solely for purposes of complying with the monthly reporting requirements of the Bankruptcy Court. Keystone's wholly owned subsidiary, Engineered Wire Products, Inc. ("EWP"), has not filed for protection under the Bankruptcy Code, and financial information for EWP has been omitted from the Bankruptcy Financial Information. The Bankruptcy Financial Information is unaudited and does not purport to show the financial statements of Keystone or any of its subsidiaries in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Keystone cautions readers not to place undue reliance upon the Bankruptcy Financial Information. There can be no assurance that such information is complete. A copy of certain financial information of EWP (the "EWP Financial Information") is attached hereto as Exhibit 99.2 and incorporated by reference herein. The EWP Financial Information is limited in scope, covers a limited time period and has been prepared solely for purposes of internal reporting within Keystone. The EWP Financial Information is unaudited and does not purport to show the financial statements of EWP in accordance with GAAP , and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Keystone cautions readers not to place undue reliance upon the EWP Financial Information. There can be no assurance that such information is complete. The Bankruptcy Financial Information and the EWP Financial Information are for information purposes only and are not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Registration statements or other documents filed with the Securities and Exchange Commission shall not incorporate the Bankruptcy Financial Information or EWP Financial Information by reference, except as otherwise expressly stated in such filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KEYSTONE CONSOLIDATED INDUSTRIES, INC. (Registrant) By: /s/ Bert E. Downing, Jr. ------------------------- Bert E. Downing, Jr., Vice President, Chief Financial Officer, Corporate Controller and Treasurer Date: May 19, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of April 2004 99.2 EWP Financial Information for the month of April 2004 EX-99.1 2 exhibit991.txt BANKRUPTCY FINANCIAL INFORMATION This Monthly Financial Report (the "Financial Report") is limited in scope, covers a limited time period and has been prepared soley for purposes of complying with the monthly reporting requirements of the United States Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee. Keystone Consolidated Industries, Inc's ("Keystone") wholly-owned subsidiary, Engineered Wire Products, Inc. ("EWP") has not filed for protection under Chapter 11 of Title 11 of the United States Bankruptcy Code, and financial information for EWP has been omitted from the Financial Report. The Financial Report is unaudited and does not purport to show the financial statements of Keystone or any of its subsidiaries in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed upon the Financial Report. There can be no assurance that such information is complete. MONTHLY FINANCIAL REPORT OFFICE OF THE U.S. TRUSTEE EASTERN DISTRICT OF WISCONSIN Case Name: FV Steel & Wire Company ("FVSW") Case No: 04-22421-SVK Keystone Consolidated Industries, Inc. ("KCI") 04-22422-SVK DeSoto Environmental Management, Inc. ("DEMI") 04-22423-SVK J.L. Prescott Company ("JLP") 04-22424-SVK Sherman Wire Company ("SWC") 04-22425-SVK Sherman Wire of Caldwell, Inc.("SWCI") 04-22426-SVK FOR MONTH OF APRIL, 2004. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $3,997,335 $0 $0 ($450) $0 $3,996,885 --------------------------------------------------------------------- B. RECEIPTS 0 93,747,435 0 0 6,696 2,100 93,756,231 --------------------------------------------------------------------- C. DISBURSEMENTS 0 93,303,951 0 0 9,459 4,364 93,317,774 --------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 443,484 0 0 (2,763) (2,264) 438,457 --------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $4,440,819 $0 $0 ($3,213) ($2,264) $4,435,342 =====================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,435,049 of cash held in escrow for PSC Metals, Inc. pending resolution of disputed ferrous scrap ownership. Note 2 - KCI Receipts include $36,358,000 of advances on its Revolving Line of Credit (RLC). Note 3 - KCI Disbursements include $29,630,170 of payments on its RLC. Note 4 - KCI Receipts and Disbursements include transfers from and to, respectively KCI accounts of $27,794,600. Note 5 - SWC Receipts and KCI Disbursements include transfers from KCI to SWC of $8,796. CASH DISBURSEMENT RECONCILIATION --------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ----- --- ---- --- --- ---- ----- Per Schedule of Receipts and Disbursements 0 93,303,951 0 0 9,459 4,364 93,317,774 Less: Payments on Revolving Credit Facility (29,630,170) (29,630,170) Transfers to other cash accounts (27,803,396) (27,803,396) ------------------------------------------------------------------------- Net Cash Disbursements $0 $35,870,385 $0 $0 $9,459 $4,364 $35,884,208 =========================================================================
Page 1 of 9 PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $42,918,441 $0 $0 $1,414,317 $17,766 $44,350,524 ($1,727,180) $42,623,344 B. COST OF SALES 0 31,829,183 0 0 1,376,194 10,171 33,215,548 (1,727,180) 31,488,368 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 11,089,258 0 0 38,123 7,595 11,134,976 0 11,134,976 D. TOTAL OPERATING EXPENSES 4,660 6,585,135 530 60,500 125,072 1,605 6,777,502 (236,636) 6,540,866 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (4,660) 4,504,123 (530) (60,500) (86,949) 5,990 4,357,474 236,636 4,594,110 F. NON-OPERATING, NON-RECURRING REVENUE(EXPENSES) 7,829 (934,412) 60,000 0 163,051 25,000 (678,532) (236,636) (915,168) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $3,169 $3,569,711 $59,470 ($60,500) $76,102 $30,990 $3,678,942 $0 $3,678,942 =============================================================================================
Page 2 of 9 II. PROFIT AND LOSS STATEMENT (ACCRUAL BASIS)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A. Related to Business Operations: ------------------------------- Total Revenue (Sales) $42,918,441 $1,414,317 $17,766 $44,350,524 ($1,727,180) $42,623,344 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 26,783,092 1,520,566 28,303,658 28,303,658 Add: Purchases 44,617,712 1,598,280 10,171 46,226,163 (1,727,180) 44,498,983 Less: Ending Inventory at Cost 39,571,621 1,742,652 41,314,273 41,314,273 --------------------------------------------------------------------------------------------- Cost of Goods Sold 0 31,829,183 0 0 1,376,194 10,171 33,215,548 (1,727,180) 31,488,368 --------------------------------------------------------------------------------------------- Gross Profit 0 11,089,258 0 0 38,123 7,595 11,134,976 0 11,134,976 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 52,115 52,115 52,115 Salaries and Wages- Other Employees 1,356,424 39,969 1,396,393 1,396,393 Employee Benefits and Pensions 105 1,673,243 23,148 1,696,496 1,696,496 Payroll Taxes 118,253 4,969 123,222 123,222 Real Estate Taxes 15,288 0 15,288 15,288 Federal and State Income Taxes 0 0 0 0 Rent and Lease Expense 5,083 1,400 6,483 6,483 Interest Expense 583,653 60,000 0 643,653 (223,051) 420,602 Insurance 145,057 0 145,057 145,057 Automobile Expense 0 214 214 214 Utilities 348,740 6,313 115 355,168 355,168 Depreciation and Amortization 4,305 1,131,397 0 1,135,702 1,135,702 Repairs and Maintenance 190,034 1,166 191,200 191,200 Advertising 32,174 0 32,174 32,174 Supplies, Office Expense and Photocopies 116,758 2,033 118,791 118,791 Bad Debts 0 0 0 0 Miscellaneous 250 816,916 530 500 45,860 1,490 865,546 (13,585) 851,961 --------------------------------------------------------------------------------------------- Total Operating Expenses 4,660 6,585,135 530 60,500 125,072 1,605 6,777,502 (236,636) 6,540,866 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,660) 4,504,123 (530) (60,500) (86,949) 5,990 4,357,474 236,636 4,594,110 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ----------------------------------- Revenue: Interest Income 829 10,161 60,000 163,051 234,041 (223,051) 10,990 Net Gain (Loss) on Sale of Assets 25,000 25,000 25,000 Other 7,000 55,427 0 0 0 0 62,427 (13,585) 48,842 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,829 65,588 60,000 0 163,051 25,000 321,468 (236,636) 84,832 --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,000,000 0 0 0 0 1,000,000 0 1,000,000 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,000,000 0 0 0 0 1,000,000 0 1,000,000 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $3,169 $3,569,711 $59,470 ($60,500) $76,102 $30,990 $3,678,942 $0 $3,678,942 =============================================================================================
Note 1 - Beginning and ending inventory balances shown above do not include reserves related to LIFO and obsolescence that are reflected in the inventory balances shown on the Balance Sheet. Note 2 - Interest income at DEMI and SWC is based on the balance of intercompany receivables. Page 3 of 9 IV. BALANCE SHEET
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- ASSETS ------ Current - ------- Cash $4,440,819 ($3,213) ($2,264) $4,435,342 $4,435,342 Inventory 53,582 22,551,040 1,937,841 24,542,463 24,542,463 Accounts Receivable 28,331,094 583,040 28,914,134 (43,373) 28,870,761 Prepaid Expenses 823,434 88,976 1,264 913,674 913,674 Other - Exhibit E 75,994 3,856,214 14,729,793 0 299,430 0 18,961,431 (15,070,041) 3,891,390 --------------------------------------------------------------------------------------------------------------- Total Current Assets 129,576 60,002,601 14,729,793 0 2,906,074 (1,000) 77,767,044 (15,113,414) 62,653,630 --------------------------------------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 323,170,127 21,589,653 2,829,738 348,764,848 348,764,848 Accumulated Depreciation (707,488)(235,933,619) (16,356,181)(2,316,890) (255,314,178) (255,314,178) --------------------------------------------------------------------------------------------------------------- Total Fixed Assets 467,842 87,236,508 0 0 5,233,472 512,848 93,450,670 0 93,450,670 --------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,556,917 401,599 5,958,516 5,958,516 Prepaid Pension Asset 130,010,914 0 130,010,914 130,010,914 Deferred Financing Costs 1,537,159 0 1,537,159 1,537,159 Goodwill 751,508 0 751,508 751,508 Other - Exhibit F 115,000 39,636,719 0 0 2,246,871 0 41,998,590 (41,173,674) 824,916 --------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 177,493,217 0 0 2,648,470 0 180,256,687 (41,173,674) 139,083,013 --------------------------------------------------------------------------------------------------------------- Total Assets $712,418 $324,732,326 $14,729,793 $0 $10,788,016 $511,848 $351,474,401 ($56,287,088)$295,187,313 ===============================================================================================================
Page 4 of 9
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,289,216 883,007 53,018 20,225,241 20,225,241 Post-Petition Accounts Payable 6,541,896 33,662 69 6,575,627 6,575,627 Pre-Petition Accounts Payable - Affiliates (2,649,073) 90,549,820 5,774,107 15,552,291 (89,758,156)(1,459,080) 18,009,909 (14,904,350) 3,105,559 Post-Petition Accounts Payable - Affilliates (91,523) 317,699 530 120,500 147,881 (182,173) 312,914 (209,064) 103,850 Pre-Petition Accrued Expenses - Exhibit G 3,183 19,210,670 35,632 (36,000) 6,668,380 62,661 25,944,526 0 25,944,526 Post-Petition Accrued Expenses - Exhibit H 0 12,517,326 0 0 173,486 2,115 12,692,927 0 12,692,927 Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,157,157 20,290 0 28,177,447 28,177,447 Post-Petition Notes Payable and Current Maturities of Long Term Debt 38,331,859 (4,817) 38,327,042 38,327,042 Accrued OPEB Cost 11,441,001 155,000 297,662 0 11,893,663 11,893,663 Income Taxes Payable 0 0 0 0 0 5,436 5,436 5,436 Pre-petition accrued pref. Stock dividends 11,651,342 11,651,342 11,651,342 Post petition accrued pref. Stock dividends 1,028,060 0 1,028,060 1,028,060 --------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,737,413) 239,036,046 5,810,269 15,791,791 (81,538,605)(1,517,954) 174,844,134 (15,113,414) 159,730,720 --------------------------------------------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 32,180,761 Post-Petition Long Term Debt 0 0 0 Accrued OPEB Cost 33,000 103,880,439 1,620,194 9,276,774 114,810,407 114,810,407 Accrued Pension Cost 1,134,572 1,134,572 1,134,572 Pre-Petition Accrued Expenses - Exhibit I 0 11,096,137 3,573,908 0 0 0 14,670,045 0 14,670,045 Post-Petition Accrued Expenses - Exhibit J 0 140,542 0 0 0 0 140,542 0 140,542 --------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 148,432,451 3,573,908 1,620,194 9,276,774 0 162,936,327 0 162,936,327 ---------------------------------------------------------------------------------------------------------------
Page 5 of 9
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Preferred Stock 2,112,000 2,112,000 2,112,000 - --------------- --------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 10,000 10,798,251 6 2,246,866 5,619,274 1,000 18,675,397 (7,877,145) 10,798,252 Additional Paid-In Capital 40,391,899 27,579,007 67,970,906 (27,579,007) 40,391,899 Accumulated Deficit 3,406,831 (116,026,196) 5,345,610 (19,658,851) 83,409,019 2,028,802 (41,494,785) (39,274,975) (80,769,760) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,416,831 (64,848,171) 5,345,616 (17,411,985) 83,049,847 2,029,802 11,581,940 (41,173,674) (29,591,734) --------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $712,418 $324,732,326 $14,729,793 $0 $10,788,016 $511,848 $351,474,401 ($56,287,088)$295,187,313 ===============================================================================================================
Note 1 - Inventory balances above reflect reserves related to LIFO and obslescence that are not reflected in the inventory balances shown on the Profit & Loss Statement. Note 2 - Substantially all Current and Long Term Accrued OPEB (Future Retiree Medical) Costs were incurred pre-petition. Page 6 of 9 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Interest Receivable $994 $994 $994 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 3,824,574 14,729,793 294,557 18,848,924 (15,070,041) 3,778,883 Receivable from R. Missar 4,873 4,873 4,873 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 2,282 2,282 2,282 Stop Loss Receivable 8,930 8,930 8,930 0 0 --------------------------------------------------------------------------------------------------- $75,994 $3,856,214 $14,729,793 $0 $299,430 $0 $18,961,431 ($15,070,041) $3,891,390 ===================================================================================================
EXHIBIT F OTHER LONG TERM ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Note Receivable $115,000 $115,000 $115,000 Rail Cars 381,866 381,866 381,866 Investment in Sherman Wire Corp. 38,915,803 38,915,803 (38,915,803) 0 Investment in Fox Valley Steel & Wire 10,000 10,000 (10,000) 0 Investment in Sherman Wire of Caldwell Inc. 1,000 1,000 (1,000) 0 Investment in J.L. Prescott/DEMI 2,246,871 2,246,871 (2,246,871) 0 Long Term Insurance Receivable 323,250 323,250 323,250 Deposits 4,800 4,800 4,800 --------------------------------------------------------------------------------------------------- $115,000 $39,636,719 $0 $0 $2,246,871 $0 $41,998,590 ($41,173,674) $824,916 ===================================================================================================
Page 7 of 9 EXHIBIT G PRE-PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Income Taxes $3,183 $35,632 ($36,000) ($70,091) ($1,838) ($69,114) ($69,114) Worker Comp Exp 1,236,861 (168) 1,236,693 1,236,693 Missar Pension 0 19,935 19,935 19,935 Unclaimed Property 6,487 17,540 24,027 24,027 Abandoned Real Estate Exp 0 658,744 658,744 658,744 Legal and Professional Fees 311,879 487,932 799,811 799,811 Self-Insurance Liability 2,537,192 5,050,166 7,587,358 7,587,358 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 1,985,751 127,854 2,113,605 2,113,605 FICA - Employer 0 3,257 3,257 3,257 Federal Unemployment Taxes 0 3,397 3,397 3,397 State Unemployment Taxes 0 20,577 20,577 20,577 Defined Contribution Plan 1,521,426 28,615 1,550,041 1,550,041 Medical Insurance 86,671 88,737 16,419 191,827 191,827 Utilities 0 5,049 307 5,356 5,356 Volume Incentive Plan 0 72,000 72,000 72,000 Property Tax 204,119 32,865 5,973 242,957 242,957 Sales/Use Tax 0 8,124 1,800 9,924 9,924 Customer Overpayments 0 50,843 50,843 50,843 Other - Plant Shut-Down 0 40,000 40,000 40,000 Goods received not invoiced 0 0 0 Unearned Revenue 10,768 10,768 10,768 Sales Rebates/Discounts 1,602,269 1,602,269 1,602,269 Manufacturing Misc 0 0 0 EPA 7,951,976 7,951,976 7,951,976 Medical Insurance 951,800 951,800 951,800 Accrued State Franchise Tax 206,742 206,742 206,742 Accrued Bank Service Charge (9,925) (9,925) (9,925) Accrued Interest 454,639 454,639 454,639 Accrued travel 40,223 40,223 40,223 Accrued taxes - other 34,176 34,176 34,176 --------------------------------------------------------------------------------------------------- $3,183 $19,210,670 $35,632 ($36,000) $6,668,380 $62,661 $25,944,526 $0 $25,944,526 ===================================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 8,400 8,400 8,400 Pensions 17,274 17,274 17,274 Salaries/Wages 886,662 7,922 894,584 894,584 Holiday Pay/Vacations 1,971,491 7,525 1,979,016 1,979,016 FICA - Employer 307,688 2,761 310,449 310,449 Federal Unemployment Taxes (34,297) (2,933) (37,230) (37,230) State Unemployment Taxes (525,613) (13,959) (539,572) (539,572) Defined Contribution Plan 269,953 14,059 284,012 284,012 Medical Insurance 388,038 21,625 (1,214) 408,449 408,449 Utilities 224,846 72,481 (134) 297,193 297,193 Property Tax 27,519 37,149 3,463 68,131 68,131 Sales/Use Tax 73,560 413 73,973 73,973 Legal 314,462 769 315,231 315,231 Professional Fees 100,959 100,959 100,959 Goods Received Not Invoiced 1,627,698 1,627,698 1,627,698 Worker's Compensation 2,786,864 2,786,864 2,786,864 Unearned Revenue 0 0 0 Sales Rebates/Discounts 549,400 549,400 549,400 Abanondon Property 154 154 154 Miscellaneous 1,474,230 1,474,230 1,474,230 Accrued State Franchise Tax 31,963 31,963 31,963 Accrued Bank Service Charge 3,964 3,964 3,964 Accrued Self-Insurance Losses 172,982 172,982 172,982 Accrued Interest 162,728 162,728 162,728 Accrued Travel 1,520,344 1,520,344 1,520,344 Accrued Management Fees 181,731 181,731 181,731 ----------------------------------------------------------------------------------------------- $0 $12,517,326 $0 $0 $173,486 $2,115 $12,692,927 $0 $12,692,927 ===============================================================================================
Page 8 of 9 EXHIBIT I PRE-PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Environmental 3,127,000 3,573,908 6,700,908 6,700,908 Workmans Compensation 1,846,775 1,846,775 1,846,775 Accrued Deferred Interest Exp. 781,715 781,715 781,715 L/T Deferred Compensation 15,660 15,660 15,660 Long Term Disability 32,987 32,987 32,987 L/T Deferred Tax Liability 5,292,000 5,292,000 5,292,000 0 0 ----------------------------------------------------------------------------------------------- $0 $11,096,137 $3,573,908 $0 $0 $0 $14,670,045 $0 $14,670,045 ===============================================================================================
EXHIBIT J POST PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Workmans Compensation $140,699 $140,699 $140,699 Accrued Deferred Interest Exp. 0 0 Long Term Disability (157) (157) (157) ----------------------------------------------------------------------------------------------- $0 $140,542 $0 $0 $0 $0 $140,542 $0 $140,542 ===============================================================================================
Page 9 of 9 EX-99.2 3 exhibit992.txt EWP FINANCIAL INFORMATION A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited in scope, covers a limited time period and has been prepared solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2004 ($'s IN THOUSANDS)
Year to date April 2004 April 2004 - ---------- ----------- $6,787 SALES - OUTSIDE CUSTOMERS $17,877 0 SALES - INTERCOMPANY 0 - ---------- ----------- 6,787 NET SALES 17,877 4,581 VARIABLE PRODUCTION COSTS 12,791 - ---------- ----------- 2,206 VARIABLE CONTRIBUTION 5,086 - ---------- ----------- 147 MANUFACTURING FIXED COSTS 561 87 DEPRECIATION 348 - ---------- ----------- 234 TOTAL FIXED COSTS 909 - ---------- ----------- 1,972 GROSS PROFIT 4,177 - ---------- ----------- 185 SELLING EXPENSE 657 183 ADMINISTRATIVE EXPENSE 648 - ---------- ----------- 368 TOTAL SELLING & ADMIN.EXPENSE 1,305 - ---------- ----------- 1,604 OPERATING PROFIT 2,872 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 23 INTEREST EXPENSE 138 3 OTHER INCOME (EXPENSE) 3 0 GAIN ON SALE OF FIXED ASSETS 0 - ---------- ----------- 1,584 INCOME BEFORE TAXES 2,737 626 INCOME TAXES 1,081 - ---------- ----------- 958 INCOME FROM OPERATIONS 1,656 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ---------- ----------- - ---------- ----------- $958 NET INCOME $1,656 ========== ===========
Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET APRIL 30, 2004
CURRENT ASSETS: CASH $276 NOTES & ACCOUNT RECEIVABLE NET 7,045 INVENTORIES AT COST 8,390 LESS LIFO RESERVE 0 --------------- INVENTORIES AT LIFO 8,390 --------------- PREPAID EXPENSES 1 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------------- TOTAL CURRENT ASSETS 15,712 --------------- PROPERTY PLANT & EQUIPMENT AT COST 18,663 LESS ACCUMULATED DEPRECIATION 11,818 --------------- NET PLANT, PROPERTY & EQUIPMENT 6,845 --------------- OTHER LONG TERM ASSETS 0 --------------- TOTAL ASSETS $22,557 =============== LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $276 NOTES PAYABLE & CURRENT L.T. DEBT 1,382 KCI LOAN ACCOUNT 57 INTERCOMPANY ACCOUNTS PAYABLE 4,017 ACCOUNTS PAYABLE 163 ACCRUED LIABILITIES 1,068 ACCRUED PENSIONS 75 INCOME TAXES PAYABLE 1,081 --------------- TOTAL CURRENT LIABILITIES 8,119 --------------- LONG TERM DEBT 5,002 LONG TERM OTHER 0 --------------- --------------- TOTAL LONG TERM LIABILITIES 5,002 --------------- TOTAL EQUITY 9,436 --------------- TOTAL LIABILITIES & EQUITY $22,557 ===============
Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOUR MONTHS ENDED APRIL 30, 2004 (IN THOUSANDS)
YTD ACTUAL ------ CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $1,656 PROVISION FOR DEPRECIATION 348 PROVISION FOR BAD DEBT ALLOWANCE 13 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (3,818) (INCREASE) DECREASE INVENTORY (1,738) (INCREASE) DECREASE PREPAID EXPENSES 3,380 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (271) INCREASE (DECREASE) ACCRUED PENSIONS 75 INCREASE (DECREASE) OTHER LIABILITIES 967 INCREASE (DECREASE) INTERCO ACCTS PAY. 4,017 --------------- NET ADJUSTMENTS 2,973 --------------- NET CASH PROVIDED (USED) BY OPERATIONS 4,629 --------------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (102) OTHER, NET 0 --------------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (102) --------------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (3,721) REPAYMENTS OF OTHER DEBT (462) PROCEEDS OF OTHER DEBT 6,776 INCREASE (DECREASE) KCI LOAN (7,115) OTHER, NET 0 --------------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (4,522) --------------- NET INCREASE (DECREASE) IN CASH 5 CASH AT BEGINNING OF PERIOD 271 --------------- CASH AT END OF PERIOD 276
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