-----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, OVOBXHT2zTDuEDbX7gZwr755po5sEqhaUDinauTiTLzjHywQpejA8sXoIo5QN0Pm Hba5NGn+2oSYNRaf7eZHmA== 0000055604-04-000024.txt : 20040618 0000055604-04-000024.hdr.sgml : 20040618 20040618105537 ACCESSION NUMBER: 0000055604-04-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040616 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040618 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: 04870039 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 key8k061604.txt FORM 8-K, KEYSTONE, 06/16/04 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): June 16, 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 June 16, 2004, Keystone filed its Monthly Operating Report for the month of May 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: June 18, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of May 2004 99.2 EWP Financial Information for the month of May 2004 EX-99.1 2 exhibit991may.txt EXHIBIT 99.1, KEYSTONE 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 MAY, 2004 I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $4,440,819 $0 $0 ($3,213) ($2,264) $4,435,342 ------------------------------------------------------------------- B. RECEIPTS 0 104,500,661 0 0 10,700 2,264 104,513,625 ------------------------------------------------------------------- C. DISBURSEMENTS 0 103,011,360 0 0 9,879 0 103,021,239 ------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 1,489,301 0 0 821 2,264 1,492,386 ------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $5,930,120 $0 $0 ($2,392) $0 $5,927,728 ===================================================================
Note 1 - KCI Cash On Hand At End of Month includes $6,770,537 of cash held in escrow for PSC Metals, Inc. pending resolution of disputed ferrous scrap ownership. (See U.S. Bank - Portland, Oregon accounts # 15365681004 and # 436000100). Note 2 - KCI Receipts include $27,125,000 of advances on its Revolving Line of Credit (RLC). Note 3 - KCI Disbursements include $28,839,695 of payments on its RLC. Note 4 - KCI Receipts and Disbursements include transfers from and to, respectively KCI accounts of $48,616,436. Note 5 - SWC Receipts and KCI Disbursements include transfers from KCI to SWC of $6,733. CASH DISBURSEMENT RECONCILIATION --------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- Per Schedule of Receipts and Disbursements 0 103,011,360 0 0 9,879 0 103,021,239 Less: Payments on Revolving Credit Facility (28,839,695) (28,839,695) Transfers to other cash accounts (48,623,169) (48,623,169) ---------------------------------------------------------------------------- Net Cash Disbursements $0 $25,548,496 $0 $0 $9,879 $0 $25,558,375 ============================================================================
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 $29,659,741 $0 $0 $1,428,028 $0 $31,087,769 ($1,985,697) $29,102,072 B. COST OF SALES 0 21,153,985 0 0 1,092,760 0 22,246,745 (1,985,697) 20,261,048 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 8,505,756 0 0 335,268 0 8,841,024 0 8,841,024 D. TOTAL OPERATING EXPENSES 3,549 5,162,225 0 60,250 296,937 16,946 5,539,907 (199,867) 5,340,040 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (3,549) 3,343,531 0 (60,250) 38,331 (16,946) 3,301,117 199,867 3,500,984 F. NON-OPERATING, NON-RECURRING REVENUE(EXPENSES) 7,994 (1,172,667) 60,000 0 128,998 0 (975,675) (199,867) (1,175,542) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,445 $2,170,864 $60,000 ($60,250) $167,329 ($16,946) $2,325,442 $0 $2,325,442 =============================================================================================
Page 2 of 9 II. PROFIT & LOSS STATEMENT (ACCRUAL BASIS)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A. Related to Business Operations: ------------------------------- Total Revenue (Sales) $29,659,741 $1,428,028 $31,087,769 ($1,985,697) $29,102,072 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 39,571,621 1,742,652 41,314,273 41,314,273 Add: Purchases 25,297,153 1,625,715 26,922,868 (1,985,697) 24,937,171 Less: Ending Inventory at Cost 43,714,789 2,275,607 45,990,396 45,990,396 --------------------------------------------------------------------------------------------- Cost of Goods Sold 0 21,153,985 0 0 1,092,760 0 22,246,745 (1,985,697) 20,261,048 --------------------------------------------------------------------------------------------- Gross Profit 0 8,505,756 0 0 335,268 0 8,841,024 0 8,841,024 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,577 0 40,577 40,577 Salaries and Wages -- Other Employees 1,100,401 87,250 1,187,651 1,187,651 Employee Benefits and Pensions 105 1,123,600 32,349 5,666 1,161,720 1,161,720 Payroll Taxes 94,272 14,299 108,571 108,571 Real Estate Taxes 12,231 14,618 726 27,575 27,575 Federal and State Income Taxes 0 0 0 0 0 Rent and Lease Expense 1,972 2,361 1,099 5,432 5,432 Interest Expense 448,070 60,000 0 508,070 (188,998) 319,072 Insurance 48,464 12,730 61,194 61,194 Automobile Expense 0 492 492 492 Utilities 240,578 10,109 780 251,467 251,467 Depreciation and Amortization 3,444 1,130,471 90,386 5,915 1,230,216 1,230,216 Repairs and Maintenance 118,615 6,327 124,942 124,942 Advertising 25,681 0 25,681 25,681 Supplies, Office Expense and Photocopies 121,341 3,824 125,165 125,165 Bad Debts 0 0 0 0 Miscellaneous 0 655,952 0 250 22,192 2,760 681,154 (10,869) 670,285 --------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,162,225 0 60,250 296,937 16,946 5,539,907 (199,867) 5,340,040 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) 3,343,531 0 (60,250) 38,331 (16,946) 3,301,117 199,867 3,500,984 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ----------------------------------- Revenue: Interest Income 994 3,557 60,000 128,998 193,549 (188,998) 4,551 Net Gain (Loss) on Sale of Assets 0 0 Other 7,000 45,226 0 0 0 0 52,226 (10,869) 41,357 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,994 48,783 60,000 0 128,998 0 245,775 (199,867) 45,908 --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,221,450 0 0 0 0 1,221,450 0 1,221,450 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,221,450 0 0 0 0 1,221,450 0 1,221,450 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,445 $2,170,864 $60,000 ($60,250) $167,329 ($16,946) $2,325,442 $0 $2,325,442 =============================================================================================
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 $5,930,120 ($2,392) $5,927,728 $5,927,728 Inventory 53,582 26,694,209 2,470,797 29,218,588 29,218,588 Accounts Receivable 30,556,462 615,734 31,172,196 31,172,196 Prepaid Expenses 871,085 92,368 1,264 964,717 964,717 Other - Exhibit E 76,988 2,147,798 14,789,793 0 312,483 0 17,327,062 (15,102,276) 2,224,786 --------------------------------------------------------------------------------------------------------------- Total Current Assets 130,570 66,199,674 14,789,793 0 3,488,990 1,264 84,610,291 (15,102,276) 69,508,015 --------------------------------------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 323,147,343 21,589,653 2,829,738 348,742,064 348,742,064 Accumulated Depreciation (710,932)(236,914,770) (16,446,567)(2,322,805) (256,395,074) (256,395,074) --------------------------------------------------------------------------------------------------------------- Total Fixed Assets 464,398 86,232,573 0 0 5,143,086 506,933 92,346,990 0 92,346,990 --------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,556,917 401,599 5,958,516 5,958,516 Prepaid Pension Asset 130,748,674 130,748,674 130,748,674 Deferred Financing Costs 1,467,767 1,467,767 1,467,767 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,632,719 0 0 2,246,873 0 41,994,590 (41,173,674) 820,916 --------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 178,157,585 0 0 2,648,472 0 180,921,055 (41,173,674) 139,747,381 --------------------------------------------------------------------------------------------------------------- Total Assets $709,968 $330,589,832 $14,789,793 $0 $11,280,548 $508,197 $357,878,336 ($56,275,950)$301,602,386 ===============================================================================================================
Page 4 of 9
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,269,155 883,776 54,503 20,207,434 20,207,434 Post-Petition Accounts Payable 8,720,883 115,681 1,500 8,838,064 8,838,064 Pre-Petition Accounts Payable- Affiliates (2,649,073) 90,315,476 5,774,107 15,552,291 (89,758,156)(1,459,080) 17,775,565 (14,904,350) 2,871,215 Post-Petition Accounts Payable- Affilliates (98,419) 312,712 6,760 180,750 334,282 (172,483) 563,602 (197,926) 365,676 Pre-Petition Accrued Expenses- Exhibit G 3,183 20,954,686 35,632 (36,000) 6,668,380 64,082 27,689,963 0 27,689,963 Post-Petition Accrued Expenses- Exhibit H 0 11,781,823 0 0 200,843 3,223 11,985,889 0 11,985,889 Pre-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,154,477 20,290 28,174,767 28,174,767 Post-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 36,791,578 (9,364) 36,782,214 36,782,214 Accrued OPEB Cost 11,441,001 155,000 297,662 11,893,663 11,893,663 Income Taxes Payable 0 0 Pre-petition accrued pref. Stock dividends 11,651,342 11,651,342 11,651,342 Post petition accrued pref. Stock dividends 1,484,975 1,484,975 1,484,975 --------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,744,309) 240,878,108 5,816,499 15,852,041 (81,246,606)(1,508,255) 177,047,478 (15,102,276) 161,945,202 --------------------------------------------------------------------------------------------------------------- Long-Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 32,180,761 Post-Petition Long Term Debt 0 0 Accrued OPEB Cost 33,000 105,553,101 1,620,194 9,309,976 116,516,271 116,516,271 Accrued Pension Cost 1,386,700 1,386,700 1,386,700 Pre-Petition Accrued Expenses- Exhibit I 0 11,096,137 3,473,908 0 0 0 14,570,045 0 14,570,045 Post-Petition Accrued Expenses- Exhibit J 0 517,246 (6,230) 0 0 0 511,016 0 511,016 --------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 150,733,945 3,467,678 1,620,194 9,309,976 0 165,164,793 0 165,164,793 ---------------------------------------------------------------------------------------------------------------
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 39,934,984 27,579,007 67,513,991 (27,579,007) 39,934,984 Accumulated Deficit 3,411,277 (113,855,331) 5,405,610 (19,719,101) 83,576,348 2,015,452 (39,165,745) (39,274,975) (78,440,720) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,421,277 (63,134,221) 5,405,616 (17,472,235) 83,217,176 2,016,452 13,454,065 (41,173,674) (27,719,609) --------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $709,968 $330,589,832 $14,689,793 $0 $11,280,546 $508,197 $357,778,336 ($56,275,950)$301,502,386 ===============================================================================================================
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 $1,988 $1,988 $1,988 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 2,115,645 14,789,793 312,483 17,217,921 (15,102,276) 2,115,645 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 2,295 2,295 2,295 Stop Loss Receivable 8,930 8,930 8,930 Security Deposit 500 500 500 --------------------------------------------------------------------------------------------------- $76,988 $2,147,798 $14,789,793 $0 $312,483 $0 17,327,062 ($15,102,276)$2,224,786 ===================================================================================================
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 377,866 377,866 377,866 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 0 0 ------------------------------------------------------------------------------------------------------- $115,000 $39,632,719 $0 $0 $2,246,871 $0 $41,994,590 ($41,173,674) $820,916 =======================================================================================================
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) ($67,276) ($67,276) Worker Comp Exp 3,636,595 (168) 3,636,427 3,636,427 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 2,535,714 5,050,166 7,585,880 7,585,880 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 1,719,548 127,854 1,847,402 1,847,402 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 1,321,074 28,615 1,349,689 1,349,689 Medical Insurance 86,560 88,737 16,419 191,716 191,716 Utilities 0 5,049 (110) 4,939 4,939 Volume Incentive Plan 0 72,000 72,000 72,000 Property Tax 76,173 32,865 5,973 115,011 115,011 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 0 0 0 Sales Rebates/Discounts 1,556,885 1,556,885 1,556,885 Manufacturing Misc 0 0 0 EPA 7,948,500 7,948,500 7,948,500 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 $20,954,686 $35,632 ($36,000) $6,668,380 $64,082 $27,689,963 $0 $27,689,963 =======================================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 153 12,600 12,753 12,753 Pensions 0 24,602 24,602 24,602 Salaries/Wages 864,750 (875) 863,875 863,875 Holiday Pay/Vacations 2,411,794 19,489 2,431,283 2,431,283 FICA - Employer (158,121) 2,728 (155,393) (155,393) Federal Unemployment Taxes 0 (2,743) (2,743) (2,743) State Unemployment Taxes 0 (11,684) (11,684) (11,684) Defined Contribution Plan 588,284 18,915 607,199 607,199 Medical Insurance 308,930 25,258 (1,804) 332,384 332,384 Utilities 231,536 76,177 646 308,359 308,359 Property Tax 94,345 52,507 4,381 151,233 151,233 Sales/Use Tax 963 1,224 2,187 2,187 Legal 30,000 (17,355) 12,645 12,645 Professional Fees 135,487 135,487 135,487 Goods Received Not Invoiced 1,645,622 1,645,622 1,645,622 Worker's Compensation (46,551) (46,551) (46,551) Unearned Revenue 5,384 5,384 5,384 Accrued Self-Insurance Losses 211,483 211,483 211,483 Accrued Interest 237,907 237,907 237,907 Accrued Travel 0 0 0 Accrued Restructuring Costs 2,875,048 2,875,048 2,875,048 Accrued Management Fees 11,250 11,250 11,250 ----------------------------------------------------------------------------------------------- $0 $11,781,823 $0 $0 $200,843 $3,223 $11,985,889 $0 $11,985,889 ===============================================================================================
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 $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 $517,019 $517,019 $517,019 Long Term Disability 227 227 227 Environmental (6,230) (6,230) (6,230) ----------------------------------------------------------------------------------------------- $0 $517,246 ($6,230) $0 $0 $0 $511,016 $0 $511,016 ===============================================================================================
Page 9 of 9 EX-99.2 3 exhibit992may.txt EXHIBIT 99.2, EWP A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited in scope, covers a limited time period and has been prepared solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED MAY 31, 2004 ($'s IN THOUSANDS)
Year to Date May 2004 May 2004 ------------ ------------ $4,471 SALES - OUTSIDE CUSTOMERS $22,348 0 SALES - INTERCOMPANY 0 ------------ ------------ 4,471 NET SALES 22,348 2,974 VARIABLE PRODUCTION COSTS 15,765 ------------ ------------ 1,497 VARIABLE CONTRIBUTION 6,583 ------------ ------------ 139 MANUFACTURING FIXED COSTS 700 87 DEPRECIATION 435 ------------ ------------ 226 TOTAL FIXED COSTS 1,135 ------------ ------------ 1,271 GROSS PROFIT 5,448 ------------ ------------ 207 SELLING EXPENSE 864 209 ADMINISTRATIVE EXPENSE 857 ------------ ------------ 416 TOTAL SELLING & ADMIN.EXPENSE 1,721 ------------ ------------ 855 OPERATING PROFIT 3,727 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 24 INTEREST EXPENSE 162 5 OTHER INCOME (EXPENSE) 8 0 GAIN ON SALE OF FIXED ASSETS 0 ------------ ------------ 836 INCOME BEFORE TAXES 3,573 330 INCOME TAXES 1,411 ------------ ------------ 506 INCOME FROM OPERATIONS 2,162 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 ------------ ------------ ------------ ------------ $506 NET INCOME $2,162 ============ ============
Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET MAY 31, 2004 ($ IN THOUSANDS) CURRENT ASSETS: CASH $450 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 7,426 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 9,345 LESS LIFO RESERVE 0 ------- INVENTORIES AT LIFO 9,345 ------- PREPAID EXPENSES 249 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 ------- TOTAL CURRENT ASSETS 17,470 ------- PROPERTY PLANT & EQUIPMENT AT COST 18,676 LESS ACCUMULATED DEPRECIATION 11,905 ------- NET PLANT, PROPERTY & EQUIPMENT 6,771 ------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 ------- TOTAL ASSETS $24,241 ======= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $2,642 NOTES PAYABLE & CURRENT L.T. DEBT 1,381 KCI LOAN ACCOUNT 48 INTERCOMPANY ACCOUNTS PAYABLE 2,126 ACCOUNTS PAYABLE 346 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,254 ACCRUED PENSIONS 92 INCOME TAXES PAYABLE 1,411 ------- TOTAL CURRENT LIABILITIES 9,300 ------- LONG TERM DEBT 4,999 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 ------- ------- TOTAL LONG TERM LIABILITIES 4,999 ------- MINORITY INTEREST 0 ------- ------- PREFERRED STOCK 0 ------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 9,942 LESS TREASURY STOCK 0 ------- TOTAL EQUITY 9,942 ------- TOTAL LIABILITIES & EQUITY $24,241 =======
Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED MAY 31, 2004 (IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $2,162 PROVISION FOR DEPRECIATION 435 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 16 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (4,202) (INCREASE) DECREASE INVENTORY (2,693) (INCREASE) DECREASE PREPAID EXPENSES 3,132 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (88) INCREASE (DECREASE) ACCRUED PENSIONS 92 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 1,483 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 2,126 ----------- NET ADJUSTMENTS 301 ----------- NET CASH PROVIDED (USED) BY OPERATIONS 2,463 ----------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (115) INTERCO PP&E TRANSFERS NET 0 ----------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (115) ----------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (1,355) REPAYMENTS OF OTHER DEBT (466) PROCEEDS OF OTHER DEBT 6,776 INCREASE (DECREASE) KCI LOAN (7,124) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 ----------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (2,169) ----------- NET INCREASE (DECREASE) IN CASH 179 CASH AT BEGINNING OF PERIOD 271 ----------- CASH AT END OF PERIOD $450 ===========
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