-----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, QQV+tbcahEbB/un5CItD9r89SlnPMrusTOcGINXTh0dcsSLeZobB2U1INdb0RA3r o5sWVnTS1OHFbAvSYfCEZw== 0000055604-04-000034.txt : 20040915 0000055604-04-000034.hdr.sgml : 20040915 20040915160934 ACCESSION NUMBER: 0000055604-04-000034 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040913 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040915 DATE AS OF CHANGE: 20040915 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: 041031780 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 key8k091304.txt KEYSTONE CONSOLIDATED INDUSTRIES, INC. Microsoft Word 11.0.6113; 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): September 13, 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 September 13, 2004, Keystone filed its Monthly Operating Report for the month of August 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: September 15, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of August 2004 99.2 EWP Financial Information for the month of August 2004 EX-99.1 2 exhibit991aug.txt EXHIBIT 99.1 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 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 AUGUST, 2004. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $7,757,287 $0 $0 ($23,144) ($3,000) $7,731,143 ----------------------------------------------------------------- B. RECEIPTS 0 65,497,157 0 0 28,942 3,000 65,529,099 C. DISBURSEMENTS 0 64,024,479 0 0 5,189 0 64,029,668 ----------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 1,472,678 0 0 23,753 3,000 1,499,431 ----------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $9,229,965 $0 $0 $609 $0 $9,230,574 =================================================================
Note 1 - KCI Cash On Hand At End of Month includes $7,892,490 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 and Disbursement exclude transfers between KCI cash accounts of $67,501,574. PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $32,193,565 $0 $0 $1,528,791 $0 $33,722,356 ($1,516,639) $32,205,717 B. COST OF SALES 0 24,356,447 0 0 1,099,897 0 25,456,344 (1,516,639) 23,939,705 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 7,837,118 0 0 428,894 0 8,266,012 0 8,266,012 D. TOTAL OPERATING EXPENSES 3,549 5,336,065 0 60,000 354,991 7,450 5,762,055 (199,268) 5,562,787 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION (3,549) 2,501,053 0 (60,000) 73,903 (7,450) 2,503,957 199,268 2,703,225 F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES)) 7,581 (983,062) 60,000 0 91,793 0 (823,688) (199,268) (1,022,956) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,032 $1,517,991 $60,000 ($60,000) $165,696 ($7,450) $1,680,269 $0 $1,680,269 =============================================================================================
Page 1 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) $32,193,565 $1,528,791 $33,722,356 ($1,516,639) $32,205,717 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 42,400,855 2,344,034 44,744,889 44,744,889 Add: Purchases 27,194,167 1,239,626 28,433,793 (1,516,639) 26,917,154 Less: Ending Inventory at Cost 45,238,575 2,483,763 47,722,338 47,722,338 --------------------------------------------------------------------------------------------- Cost of Good Sold 0 24,356,447 0 0 1,099,897 0 25,456,344 (1,516,639) 23,939,705 --------------------------------------------------------------------------------------------- Gross Profit 0 7,837,118 0 0 428,894 0 8,266,012 0 8,266,012 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,577 40,577 40,577 Salaries and Wages -- Other Employees 1,104,643 82,479 1,187,122 1,187,122 Employee Benefits and Pensions 105 1,427,804 27,163 53 1,455,125 1,455,125 Payroll Taxes 94,021 13,227 107,248 107,248 Real Estate Taxes 12,231 10,472 (193) 22,510 22,510 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 43,729 1,602 45,331 45,331 Interest Expense 361,297 60,000 421,297 (188,399) 232,898 Insurance 83,929 12,730 96,659 96,659 Automobile Expense 0 0 0 0 Utilities 162,189 8,476 482 171,147 171,147 Depreciation and Amortization 3,444 1,097,687 89,877 5,915 1,196,923 1,196,923 Repairs and Maintenance 179,967 37,103 0 217,070 217,070 Advertising 29,709 29,709 29,709 Supplies, Office Expense and Photocopies 99,287 6,020 105,307 105,307 Bad Debts 0 0 0 Miscellaneous 0 598,995 0 0 65,842 1,193 666,030 (10,869) 655,161 --------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,336,065 0 60,000 354,991 7,450 5,762,055 (199,268) 5,562,787 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) 2,501,053 0 (60,000) 73,903 (7,450) 2,503,957 199,268 2,703,225 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ---------------------------------- Revenue: Interest Income 581 10,228 60,000 128,399 199,208 (188,399) 10,809 Net Gain (Loss) on Sale of Assets 0 0 Other 7,000 44,706 0 0 0 0 51,706 (10,869) 40,837 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,581 54,934 60,000 0 128,399 0 250,914 (199,268) 51,646 --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,037,996 0 0 36,606 0 1,074,602 0 1,074,602 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,037,996 0 0 36,606 0 1,074,602 0 1,074,602 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,032 $1,517,991 $60,000 ($60,000) $165,696 ($7,450) $1,680,269 $0 $1,680,269 =============================================================================================
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 2 IV. BALANCE SHEET
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- ASSETS ------ Current - ------- Cash $9,229,965 $609 $9,230,574 $9,230,574 Inventory 53,582 28,217,994 2,678,953 30,950,529 30,950,529 Accounts Receivable 37,199,567 822,832 38,022,399 38,022,399 Prepaid Expenses 1,645,104 32,688 1,264 1,679,056 1,679,056 Other - Exhibit E 76,425 2,933,464 14,969,793 0 325,617 0 18,305,299 (15,295,410) 3,009,889 -------------------------------------------------------------------------------------------------------------- Total Current Assets 130,007 79,226,094 14,969,793 0 3,860,699 1,264 98,187,857 (15,295,410) 82,892,447 -------------------------------------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 323,682,561 21,617,420 2,829,738 349,305,049 349,305,049 Accumulated Depreciation (722,125)(240,224,597) (16,738,012) (2,342,030) (260,026,764) (260,026,764) -------------------------------------------------------------------------------------------------------------- Total Fixed Assets 453,205 83,457,964 0 0 4,879,408 487,708 89,278,285 0 89,278,285 -------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,709,134 248,296 5,957,430 5,957,430 Prepaid Pension Asset 133,146,393 133,146,393 133,146,393 Deferred Financing Costs 1,412,817 1,412,817 1,412,817 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,619,719 0 0 2,246,871 0 41,981,590 (41,173,674) 807,916 --------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 180,639,571 0 0 2,495,167 0 183,249,738 (41,173,674) 142,076,064 --------------------------------------------------------------------------------------------------------------- Total Assets $698,212 $343,323,629 $14,969,793 $0 $11,235,274 $488,972 $370,715,880 ($56,469,084) $314,246,796 ===============================================================================================================
Page 3 IV. BALANCE SHEET (con't)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,509,121 1,010,672 54,503 20,574,296 20,574,296 Post-Petition Accounts Payable 11,310,223 120,630 2,600 11,433,453 11,433,453 Pre-Petition Accounts Payable- Affiliates (2,649,073) 87,913,118 5,774,107 15,552,291 (89,758,156) (1,459,080) 15,373,207 (14,904,350) 468,857 Post-Petition Accounts Payable- Affiliates (114,701) 3,242,734 256,882 291,481 (128,689) (144,560) 3,403,147 (391,060) 3,012,087 Pre-Petition Accrued Expenses- Exhibit G 3,183 18,042,936 35,632 (36,000) 6,668,380 64,082 24,778,213 0 24,778,213 Post-Petition Accrued Expenses- Exhibit H 0 13,471,511 0 0 253,791 (1,564) 13,723,738 0 13,723,738 Post-Petition Accrued Professional Fees 2,793,512 2,939 2,796,451 2,796,451 Post-Petition Accrued Other Taxes- Exhibit M 0 (5,298) 0 0 54,782 1,881 51,365 0 51,365 Pre-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,149,055 20,290 28,169,345 28,169,345 Post-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 25,945,589 (15,743) 25,929,846 25,929,846 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 11,845,805 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 3,673,528 3,673,528 3,673,528 --------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,760,591) 237,332,835 6,066,621 15,962,772 (81,473,442) (1,482,138) 173,646,057 (15,295,410) 158,350,647 ---------------------------------------------------------------------------------------------------------------
Page 4 IV. BALANCE SHEET (con't)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- 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 33,000 110,576,486 1,617,588 9,430,087 121,657,161 121,657,161 Accrued Pension Cost 2,206,114 2,206,114 2,206,114 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 0 805,794 (184,511) 0 0 0 621,283 0 621,283 --------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 156,865,292 3,389,397 1,617,588 9,430,087 0 171,335,364 0 171,335,364 --------------------------------------------------------------------------------------------------------------- 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 37,551,968 27,579,007 65,130,975 (27,579,007) 37,551,968 Accumulated Deficit 3,415,803 (101,324,592) 5,513,769 (19,827,226) 83,637,801 1,970,110 (26,614,335) (39,274,975) (65,889,310) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,425,803 (52,986,498) 5,513,775 (17,580,360) 83,278,629 1,971,110 23,622,459 (41,173,674) (17,551,215) --------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $698,212 $343,323,629 $14,969,793 $0 $11,235,274 $488,972 $370,715,880 ($56,469,084) $314,246,796 ===============================================================================================================
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 5 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Interest Receivable $1,425 $1,425 $1,425 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 2,898,671 14,969,793 325,617 18,194,081 (15,295,410) 2,898,671 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 4,935 4,935 4,935 Stop Loss Receivable 8,930 8,930 8,930 Security Deposit 500 500 500 ---------------------------------------------------------------------------------------------------- $76,425 $2,933,464 $14,969,793 $0 $325,617 $0 $18,305,299 ($15,295,410) $3,009,889 ====================================================================================================
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 364,866 364,866 364,866 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 $39,619,719 $0 $0 $2,246,871 $0 $41,981,590 ($41,173,674) $807,916 ====================================================================================================
Page 6 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 3,545,958 (168) 3,545,790 3,545,790 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 295,464 487,932 783,396 783,396 Self-Insurance Liability 2,727,354 5,050,166 7,777,520 7,777,520 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 552,492 127,854 680,346 680,346 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 0 28,615 28,615 28,615 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 0 32,865 5,973 38,838 38,838 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 1,155,976 1,155,976 1,155,976 Manufacturing Misc 0 0 0 EPA 7,917,448 7,917,448 7,917,448 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 34,102 34,102 34,102 ---------------------------------------------------------------------------------------------------- $3,183 $18,042,936 $35,632 ($36,000) $6,668,380 $64,082 $24,778,213 $0 $24,778,213 ====================================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 154 26,700 26,854 26,854 Pensions 0 48,419 48,419 48,419 Salaries/Wages 1,402,552 13,551 1,416,103 1,416,103 Holiday Pay/Vacations 3,439,386 24,582 3,463,968 3,463,968 Defined Contribution Plan 937,941 34,971 972,912 972,912 Medical Insurance 135,848 14,089 (2,635) 147,302 147,302 Utilities 334,570 66,461 1,071 402,102 402,102 Legal 111,565 111,565 111,565 Professional Fees 197,574 197,574 197,574 Goods Received Not Invoiced 1,970,737 1,970,737 1,970,737 Worker's Compensation 430,007 430,007 430,007 Unearned Revenue 8,269 8,269 8,269 Sales Rebates/Discounts 1,089,614 1,089,614 1,089,614 Abanondon Property 0 0 0 Miscellaneous 2,077,684 25,018 2,102,702 2,102,702 Accrued Bank Service Charge 14,775 14,775 14,775 Accrued Self-Insurance Losses 238,575 238,575 238,575 Accrued Interest 326,706 326,706 326,706 Accrued Travel 0 0 0 Accrued Profit Sharing 733,054 733,054 733,054 Accrued Management Fees 22,500 22,500 22,500 ---------------------------------------------------------------------------------------------------- $0 $13,471,511 $0 $0 $253,791 ($1,564) $13,723,738 $0 $13,723,738 ====================================================================================================
Page 7 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 $804,317 $804,317 $804,317 Long Term Disability 1,477 1,477 1,477 Environmental (184,511) (184,511) (184,511) ---------------------------------------------------------------------------------------------------- $0 $805,794 ($184,511) $0 $0 $0 $621,283 $0 $621,283 ====================================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- FICA - Employer ($88,300) 843 ($87,457) ($87,457) Federal Unemployment Taxes 0 (3,078) (3,078) (3,078) State Unemployment Taxes 0 (18,407) (18,407) (18,407) Property Tax 210,267 72,756 1,881 284,904 284,904 Sales/Use Tax 513 2,668 3,181 3,181 Accrued State Franchise Tax (88,515) (88,515) (88,515) Miscellaneous (39,263) (39,263) (39,263) ---------------------------------------------------------------------------------------------------- $0 ($5,298) $0 $0 $54,782 $1,881 $51,365 $0 $51,365 ====================================================================================================
EX-99.2 3 exhibit992aug.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2004 ($'s IN THOUSANDS)
Year to Date August 2004 August 2004 - ---------- ----------- $5,807 SALES - OUTSIDE CUSTOMERS $39,226 0 SALES - INTERCOMPANY 0 - -------- --------- 5,807 NET SALES 39,226 4,072 VARIABLE PRODUCTION COSTS 27,462 - -------- --------- 1,735 VARIABLE CONTRIBUTION 11,764 - -------- --------- 124 MANUFACTURING FIXED COSTS 1,085 87 DEPRECIATION 696 - -------- --------- 211 TOTAL FIXED COSTS 1,781 - -------- --------- 1,524 GROSS PROFIT 9,983 - -------- --------- 210 SELLING EXPENSE 1,560 203 ADMINISTRATIVE EXPENSE 1,559 - -------- --------- 413 TOTAL SELLING & ADMIN.EXPENSE 3,119 - -------- --------- 1,111 OPERATING PROFIT 6,864 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 36 INTEREST EXPENSE 259 0 OTHER INCOME (EXPENSE) 5 0 GAIN ON SALE OF FIXED ASSETS 0 - -------- --------- 1,075 INCOME BEFORE TAXES 6,610 425 INCOME TAXES 2,611 - -------- --------- 650 INCOME FROM OPERATIONS 3,999 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - -------- --------- $650 NET INCOME $3,999 ======== =========
Page 1 ENGINEERED WIRE PRODUCTS BALANCE SHEET August 31, 2004
CURRENT ASSETS: CASH $412 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 9,327 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 13,880 LESS LIFO RESERVE 0 --------- INVENTORIES AT LIFO 13,880 --------- PREPAID EXPENSES 7 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------- TOTAL CURRENT ASSETS 23,626 --------- PROPERTY PLANT & EQUIPMENT AT COST 18,716 LESS ACCUMULATED DEPRECIATION 12,166 --------- NET PLANT, PROPERTY & EQUIPMENT 6,550 --------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 --------- TOTAL ASSETS $30,176 ========= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $5,963 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 46 INTERCOMPANY ACCOUNTS PAYABLE 2,899 ACCOUNTS PAYABLE 430 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,988 ACCRUED PENSIONS 147 INCOME TAXES PAYABLE 865 --------- TOTAL CURRENT LIABILITIES 13,727 --------- LONG TERM DEBT 4,670 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 --------- TOTAL LONG TERM LIABILITIES 4,670 --------- MINORITY INTEREST 0 --------- PREFERRED STOCK 0 --------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 11,779 LESS TREASURY STOCK 0 --------- TOTAL EQUITY 11,779 --------- TOTAL LIABILITIES & EQUITY $30,176 =========
Page 2 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED AUGUST 31, 2004 (IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $3,999 PROVISION FOR DEPRECIATION 696 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 39 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (6,126) (INCREASE) DECREASE INVENTORY (7,228) (INCREASE) DECREASE PREPAID EXPENSES 3,374 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (4) INCREASE (DECREASE) ACCRUED PENSIONS 147 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 1,671 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 2,899 --------- NET ADJUSTMENTS (4,532) --------- NET CASH PROVIDED (USED) BY OPERATIONS (533) --------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (155) INTERCO PP&E TRANSFERS NET 0 --------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (155) --------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET 1,966 REPAYMENTS OF OTHER DEBT (809) PROCEEDS OF OTHER DEBT 6,798 INCREASE (DECREASE) KCI LOAN (7,126) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 --------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 829 --------- NET INCREASE (DECREASE) IN CASH 141 CASH AT BEGINNING OF PERIOD 271 --------- CASH AT END OF PERIOD $412 =========
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