-----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, ICyycWoxp5IyoVi+StSO13to3RogkyjbaJelH6nPPeT5P89HLQ8c/e01rQX26HK0 4znFUgYOkBj4bm3Vyy4a9g== 0000055604-04-000037.txt : 20041013 0000055604-04-000037.hdr.sgml : 20041013 20041013172919 ACCESSION NUMBER: 0000055604-04-000037 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041011 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20041013 DATE AS OF CHANGE: 20041013 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: 041077671 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 key8k101304.txt FORM 8-K, KEY, 101104 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): October 11, 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 former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 7.01 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 October 11, 2004, Keystone filed its Monthly Operating Report for the month of September 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. Item 9.01 Financial Statements and Exhibits. (c) Exhibits. Item No. Exhibit Index -------- -------------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of September 2004 99.2 EWP Financial Information for the month of September 2004 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: October 13, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of September 2004 99.2 EWP Financial Information for the month of September 2004 EX-99.1 2 exhibit991sep.txt EXHIBIT 99.1, KEY, 101104 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 SEPTEMBER, 2004. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $9,229,965 $0 $0 $609 $0 $9,230,574 ----------------------------------------------------------------------- B. RECEIPTS 0 57,886,325 0 0 7,320 2,100 57,895,745 C. DISBURSEMENTS 0 57,316,496 0 0 8,885 2,100 57,327,481 ----------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 569,829 0 0 (1,565) 0 568,264 ----------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $9,799,794 $0 $0 ($956) $0 $9,798,838 =======================================================================
Note 1 - KCI Cash On Hand At End of Month includes $10,604,086 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 $44,312,600. PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $27,442,011 $0 $0 $1,432,222 $0 $28,874,233 ($1,323,073) $27,551,160 B. COST OF SALES 0 21,753,403 0 0 1,066,117 0 22,819,520 (1,323,073) 21,496,447 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 5,688,608 0 0 366,105 0 6,054,713 0 6,054,713 D. TOTAL OPERATING EXPENSES 3,549 5,258,387 0 60,000 347,061 13,610 5,682,607 (200,057) 5,482,550 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION (3,549) 430,221 0 (60,000) 19,044 (13,610) 372,106 200,057 572,163 F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES) 7,713 (1,117,569) 60,000 0 80,481 6,000 (963,375) (200,057) (1,163,432) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,164 ($687,348)$60,000 ($60,000) $99,525 ($7,610) ($591,269) $0 ($591,269) =============================================================================================
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) $27,442,011 $1,432,222 $28,874,233 ($1,323,073) $27,551,160 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 45,238,575 2,483,763 47,722,338 47,722,338 Add: Purchases 23,321,264 912,062 24,233,326 (1,323,073) 22,910,253 Less: Ending Inventory at Cost 46,806,436 2,329,708 49,136,144 49,136,144 --------------------------------------------------------------------------------------------- Cost of Good Sold 0 21,753,403 0 0 1,066,117 0 22,819,520 (1,323,073) 21,496,447 --------------------------------------------------------------------------------------------- Gross Profit 0 5,688,608 0 0 366,105 0 6,054,713 0 6,054,713 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,577 40,577 40,577 Salaries and Wages -- Other Employees 1,083,165 81,445 1,164,610 1,164,610 Employee Benefits and Pensions 105 1,348,604 37,944 6,932 1,393,585 1,393,585 Payroll Taxes 93,448 13,604 107,052 107,052 Real Estate Taxes 12,231 10,472 (193) 22,510 22,510 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 53,044 1,671 54,715 54,715 Interest Expense 396,961 60,000 456,961 (189,188) 267,773 Insurance 57,963 12,730 70,693 70,693 Automobile Expense 0 0 0 0 Utilities 141,187 9,391 (366) 150,212 150,212 Depreciation and Amortization 3,444 1,105,565 90,821 5,819 1,205,649 1,205,649 Repairs and Maintenance 136,916 5,263 0 142,179 142,179 Advertising 47,703 47,703 47,703 Supplies, Office Expense and Photocopies 104,196 5,791 109,987 109,987 Bad Debts 0 0 0 Miscellaneous 0 636,827 0 0 77,929 1,418 716,174 (10,869) 705,305 --------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,258,387 0 60,000 347,061 13,610 5,682,607 (200,057) 5,482,550 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operation (3,549) 430,221 0 (60,000) 19,044 (13,610) 372,106 200,057 572,163 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ---------------------------------- Revenue: Interest Income 713 11,063 60,000 129,188 200,964 (189,188) 11,776 Net Gain (Loss) on Sale of Assets 6,000 6,000 6,000 Other 7,000 44,970 0 0 0 0 51,970 (10,869) 41,101 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 56,033 60,000 0 129,188 6,000 258,934 (200,057) 58,877 --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,173,602 0 0 48,707 0 1,222,309 0 1,222,309 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,173,602 0 0 48,707 0 1,222,309 0 1,222,309 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,164 ($687,348) $60,000 ($60,000) $99,525 ($7,610) ($591,269) $0 ($591,269) =============================================================================================
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 $9,799,794 ($956) $9,798,838 $9,798,838 Inventory 53,582 29,785,856 2,524,898 32,364,336 32,364,336 Accounts Receivable 36,346,387 837,660 6,000 37,190,047 37,190,047 Prepaid Expenses 1,587,486 127,612 1,264 1,716,362 1,716,362 Other - Exhibit E 77,137 2,020,355 15,029,793 0 330,967 0 17,458,252 (15,366,780) 2,091,472 --------------------------------------------------------------------------------------------------------------- Total Current Assets 130,719 79,539,878 15,029,793 0 3,820,181 7,264 98,527,835 (15,366,780) 83,161,055 --------------------------------------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 324,459,003 21,617,420 2,353,070 349,604,823 349,604,823 Accumulated Depreciation (725,569)(241,319,163) (16,828,833) (1,871,181) (260,744,746) (260,744,746) --------------------------------------------------------------------------------------------------------------- Total Fixed Assets 449,761 83,139,840 0 0 4,788,587 481,889 88,860,077 0 88,860,077 --------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,709,134 248,296 5,957,430 5,957,430 Prepaid Pension Asset 133,884,153 133,884,153 133,884,153 Deferred Financing Costs 1,530,925 1,530,925 1,530,925 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,615,719 0 0 2,246,871 0 41,977,590 (41,173,674) 803,916 --------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 181,491,439 0 0 2,495,167 0 184,101,606 (41,173,674) 142,927,932 --------------------------------------------------------------------------------------------------------------- Total Assets $695,480 $344,171,157 $15,029,793 $0 $11,103,935 $489,153 $371,489,518 ($56,540,454) $314,949,064 ===============================================================================================================
Page 3 IV. BALANCE SHEET (con't)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,620,309 1,012,833 54,503 20,687,645 20,687,645 Post-Petition Accounts Payable 11,022,230 154,960 1,500 11,178,690 11,178,690 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 (121,597) 3,466,913 256,882 351,481 (388,380) (135,380) 3,429,919 (462,430) 2,967,489 Pre-Petition Accrued Expenses- Exhibit G 3,183 17,546,485 35,632 (36,000) 6,668,380 64,082 24,281,762 0 24,281,762 Post-Petition Accrued Expenses- Exhibit H 0 14,068,920 0 0 205,540 (1,852) 14,272,608 0 14,272,608 Post-Petition Accrued Professional Fees 3,687,064 2,939 3,690,003 3,690,003 Post-Petition Accrued Other Taxes-Exhibit M 0 106,238 0 0 67,457 1,881 175,576 0 175,576 Pre-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,116,000 20,290 28,136,290 28,136,290 Post-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 24,882,945 (15,743) 24,867,202 24,867,202 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 4,262,864 4,262,864 4,262,864 --------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,767,487) 237,979,892 6,066,621 16,022,772 (81,732,218) (1,474,346) 174,095,234 (15,366,780) 158,728,454 ---------------------------------------------------------------------------------------------------------------
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 33,000 111,886,987 1,617,588 9,457,999 122,995,574 122,995,574 Accrued Pension Cost 2,458,242 2,458,242 2,458,242 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 0 720,456 (184,511) 0 0 0 535,945 0 535,945 --------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 158,342,583 3,389,397 1,617,588 9,457,999 0 172,840,567 0 172,840,567 --------------------------------------------------------------------------------------------------------------- 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 36,962,632 27,579,007 64,541,639 (27,579,007) 36,962,632 Accumulated Deficit 3,419,967 (102,012,076) 5,573,769 (19,887,226) 83,737,326 1,962,499 (27,205,741) (39,274,975) (66,480,716) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,429,967 (54,263,318) 5,573,775 (17,640,360) 83,378,154 1,963,499 22,441,717 (41,173,674) (18,731,957) --------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $695,480 $344,171,157 $15,029,793 $0 $11,103,935 $489,153 $371,489,518 ($56,540,454) $314,949,064 ================================================================================================================
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 $2,137 $2,137 $2,137 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 1,977,188 15,029,793 330,967 17,337,948 (15,366,780) 1,971,168 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 20,312 20,312 20,312 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ---------------------------------------------------------------------------------------------------- $77,137 $2,020,355 $15,029,793 $0 $330,967 $0 $17,458,252 ($15,366,780) $2,091,472 ====================================================================================================
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 360,866 360,866 360,866 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 $39,615,719 $0 $0 $2,246,871 $0 $41,977,590 ($41,173,674) $803,916 ====================================================================================================
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 3,410,216 (168) 3,410,048 3,410,048 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 245,464 487,932 733,396 733,396 Self-Insurance Liability 2,609,069 5,050,166 7,659,235 7,659,235 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 369,546 127,854 497,400 497,400 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 1,151,726 1,151,726 1,151,726 Manufacturing Misc 0 0 0 EPA 7,912,220 7,912,220 7,912,220 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 $17,546,485 $35,632 ($36,000) $6,668,380 $64,082 $24,281,762 $0 $24,281,762 ====================================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 154 31,400 31,554 31,554 Pensions 0 55,747 55,747 55,747 Salaries/Wages 1,362,575 14,144 1,376,719 1,376,719 Holiday Pay/Vacations 3,603,600 18,230 3,621,830 3,621,830 Defined Contribution Plan 1,029,926 40,486 1,070,412 1,070,412 Medical Insurance 101,257 (41,706) (2,877) 56,674 56,674 Utilities 157,531 62,221 1,025 220,777 220,777 Legal 163,997 163,997 163,997 Professional Fees 348,286 348,286 348,286 Goods Received Not Invoiced 2,726,834 2,726,834 2,726,834 Worker's Compensation 496,581 496,581 496,581 Unearned Revenue 7,500 7,500 7,500 Sales Rebates/Discounts 917,224 917,224 917,224 Abanondon Property 0 0 0 Miscellaneous 1,627,685 25,018 1,652,703 1,652,703 Accrued Bank Service Charge 17,446 17,446 17,446 Accrued Self-Insurance Losses 345,822 345,822 345,822 Accrued Interest 373,265 373,265 373,265 Accrued Travel 0 0 0 Accrued Profit Sharing 685,968 685,968 685,968 Accrued Management Fees 103,269 103,269 103,269 ---------------------------------------------------------------------------------------------------- $0 $14,068,920 $0 $0 $205,540 ($1,852) $14,272,608 $0 $14,272,608 ====================================================================================================
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 $718,594 $718,594 $718,594 Long Term Disability 1,862 1,862 1,862 Environmental (184,511) (184,511) (184,511) ---------------------------------------------------------------------------------------------------- $0 $720,456 ($184,511) $0 $0 $0 $535,945 $0 $535,945 ====================================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- FICA - Employer $16,082 78 $16,160 $16,160 Federal Unemployment Taxes 0 (2,994) (2,994) (2,994) State Unemployment Taxes 0 (17,415) (17,415) (17,415) Property Tax 222,498 84,523 1,881 308,902 308,902 Sales/Use Tax 3,213 3,265 6,478 6,478 Accrued State Franchise Tax (96,292) (96,292) (96,292) Miscellaneous (39,263) (39,263) (39,263) ---------------------------------------------------------------------------------------------------- $0 $106,238 $0 $0 $67,457 $1,881 $175,576 $0 $175,576 ====================================================================================================
EX-99.2 3 exhibit992sep.txt EXHIBIT 99.2, KEY, 101104 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED SEPTEMBER 30, 2004 ($'s IN THOUSANDS)
Year to Date September September 2004 2004 - --------- ---------- $6,351 SALES - OUTSIDE CUSTOMERS $45,577 0 SALES - INTERCOMPANY 0 - -------- ------ 6,351 NET SALES 45,577 4,526 VARIABLE PRODUCTION COSTS 31,988 - -------- ------ 1,825 VARIABLE CONTRIBUTION 13,589 - -------- ------ 140 MANUFACTURING FIXED COSTS 1,225 87 DEPRECIATION 783 - -------- ------ 227 TOTAL FIXED COSTS 2,008 - -------- ------ 1,598 GROSS PROFIT 11,581 - -------- ------ 229 SELLING EXPENSE 1,789 209 ADMINISTRATIVE EXPENSE 1,768 - -------- ------ 438 TOTAL SELLING & ADMIN.EXPENSE 3,557 - -------- ------ 1,160 OPERATING PROFIT 8,024 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 37 INTEREST EXPENSE 296 7 OTHER INCOME (EXPENSE) 12 0 GAIN ON SALE OF FIXED ASSETS 0 - -------- ------ 1,130 INCOME BEFORE TAXES 7,740 446 INCOME TAXES 3,057 - -------- ------ 684 INCOME FROM OPERATIONS 4,683 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - -------- ------ $684 NET INCOME $4,683 ======== ======
Page 1 ENGINEERED WIRE PRODUCTS BALANCE SHEET September 30, 2004
CURRENT ASSETS: CASH $201 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 9,926 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 12,988 LESS LIFO RESERVE 0 ------- INVENTORIES AT LIFO 12,988 ------- PREPAID EXPENSES 35 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 ------- TOTAL CURRENT ASSETS 23,150 ------- PROPERTY PLANT & EQUIPMENT AT COST 18,698 LESS ACCUMULATED DEPRECIATION 12,215 ------- NET PLANT, PROPERTY & EQUIPMENT 6,483 ------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 ------- TOTAL ASSETS $29,633 ======= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $5,052 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 90 INTERCOMPANY ACCOUNTS PAYABLE 1,971 ACCOUNTS PAYABLE 496 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 2,141 ACCRUED PENSIONS 164 INCOME TAXES PAYABLE 1,312 ------- TOTAL CURRENT LIABILITIES 12,615 ------- LONG TERM DEBT 4,555 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 ------- TOTAL LONG TERM LIABILITIES 4,555 ------- MINORITY INTEREST 0 ------- PREFERRED STOCK 0 ------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 12,463 LESS TREASURY STOCK 0 ------- TOTAL EQUITY 12,463 ------- TOTAL LIABILITIES & EQUITY $29,633 =======
Page 2 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED SEPTEMBER 30, 2004 (IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $4,683 PROVISION FOR DEPRECIATION 783 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 42 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. REC. (6,728) (INCREASE) DECREASE INVENTORY (6,336) (INCREASE) DECREASE PREPAID EXPENSES 3,346 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. 62 INCREASE (DECREASE) ACCRUED PENSIONS 164 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 2,271 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO PAY. 1,971 ------- NET ADJUSTMENTS (4,425) ------- NET CASH PROVIDED (USED) BY OPERATIONS 258 ------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP&E 0 CAPITAL EXPENDITURES (175) INTERCO PP&E TRANSFERS NET 0 ------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (175) ------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET 1,055 REPAYMENTS OF OTHER DEBT (924) PROCEEDS OF OTHER DEBT 6,798 INCREASE (DECREASE) KCI LOAN (7,082) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 ------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (153) ------- NET INCREASE (DECREASE) IN CASH (70) CASH AT BEGINNING OF PERIOD 271 ------- CASH AT END OF PERIOD $201 =======
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