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 =========