-----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, BDY9Dl9cPd6HrJ/ElIf3M2qT1KkO2hJJASzqbrkEowDuSihYAGfmytVYxk2FCp1O xgHK4ugbNzZ0/PYPk2rqXA== 0000055604-04-000040.txt : 20041117 0000055604-04-000040.hdr.sgml : 20041117 20041117143101 ACCESSION NUMBER: 0000055604-04-000040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041115 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041117 DATE AS OF CHANGE: 20041117 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: 041151860 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 key8k111504.txt FORM 8-K, KEYSTONE 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): November 15, 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 November 15, 2004, Keystone filed its Monthly Operating Report for the month of October 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 October 2004 99.2 EWP Financial Information for the month of October 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: November 17, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of October 2004 99.2 EWP Financial Information for the month of October 2004 EX-99.1 2 exhibit991oct.txt EXHIBIT 99,1, KEYSTONE 8-K 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 OCTOBER, 2004. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $9,799,794 $0 $0 ($956) $0 $9,798,838 ----------------------------------------------------------------------- B. RECEIPTS 0 77,474,387 0 0 6,157 1,250 77,481,794 C. DISBURSEMENTS 0 78,135,290 0 0 4,722 1,250 78,141,262 ----------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (660,903) 0 0 1,435 0 (659,468) ----------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $9,138,891 $0 $0 $479 $0 $9,139,370 =======================================================================
Note 1 - KCI Cash On Hand At End of Month includes $10,638,136 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 $56,321,366. PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $36,955,317 $0 $0 $1,677,464 $0 $38,632,781 ($1,464,300) $37,168,481 B. COST OF SALES 0 28,842,733 0 0 1,248,285 0 30,091,018 (1,464,300) 28,626,718 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 8,112,584 0 0 429,179 0 8,541,763 0 8,541,763 D. TOTAL OPERATING EXPENSES 4,410 5,583,103 0 60,050 424,990 14,345 6,086,898 (236,435) 5,850,463 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION (4,410) 2,529,481 0 (60,050) 4,189 (14,345) 2,454,865 236,435 2,691,300 F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES)) 7,713 (1,399,735) 60,000 0 102,404 0 (1,229,618) (236,435) (1,466,053) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $3,303 $1,129,746 $60,000 ($60,050) $106,593 ($14,345) $1,225,247 $0 $1,225,247 =============================================================================================
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) $36,955,317 $1,677,464 $38,632,781 ($1,464,300) $37,168,481 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 46,806,436 2,329,708 49,136,144 49,136,144 Add: Purchases 22,230,814 1,058,890 23,289,704 (1,464,300) 21,825,404 Less: Ending Inventory at Cost 40,194,517 2,140,313 42,334,830 42,334,830 --------------------------------------------------------------------------------------------- Cost of Good Sold 0 28,842,733 0 0 1,248,285 0 30,091,018 (1,464,300) 28,626,718 --------------------------------------------------------------------------------------------- Gross Profit 0 8,112,584 0 0 429,179 0 8,541,763 0 8,541,763 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 52,115 52,115 52,115 Salaries and Wages- Other Employees 1,490,909 100,892 1,591,801 1,591,801 Employee Benefits and Pensions 105 558,325 44,413 7,803 610,646 610,646 Payroll Taxes 126,032 16,720 142,752 142,752 Real Estate Taxes 15,289 13,695 (240) 28,744 28,744 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 52,978 1,652 250 54,880 54,880 Interest Expense 467,423 60,000 527,423 (222,850) 304,573 Insurance 88,622 15,912 104,534 104,534 Automobile Expense 0 0 0 0 Utilities 225,744 12,290 238,034 238,034 Depreciation and Amortization 4,305 1,241,418 111,572 4,923 1,362,218 1,362,218 Repairs and Maintenance 217,969 8,238 0 226,207 226,207 Advertising 60,577 60,577 60,577 Supplies, Office Expense and Photocopies 202,812 7,541 210,353 210,353 Bad Debts 0 0 0 Miscellaneous 0 782,890 0 50 92,065 1,609 876,614 (13,585) 863,029 --------------------------------------------------------------------------------------------- Total Operating Expenses 4,410 5,583,103 0 60,050 424,990 14,345 6,086,898 (236,435) 5,850,463 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,410) 2,529,481 0 (60,050) 4,189 (14,345) 2,454,865 236,435 2,691,300 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ---------------------------------- Revenue: Interest Income 713 23,858 60,000 162,850 247,421 (222,850) 24,571 Net Gain (Loss) on Sale of Assets (102,451) (102,451) (102,451) Other 7,000 55,556 0 0 0 0 62,556 (13,585) 48,971 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 (23,037) 60,000 0 162,850 0 207,526 (236,435) (28,909) --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,376,698 0 0 60,446 0 1,437,144 0 1,437,144 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,376,698 0 0 60,446 0 1,437,144 0 1,437,144 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $3,303 $1,129,746 $60,000 ($60,050) $106,593 ($14,345) $1,225,247 $0 $1,225,247 =============================================================================================
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 $9,138,891 $479 $9,139,370 $9,139,370 Inventory 53,582 34,209,343 2,335,503 36,598,428 36,598,428 Accounts Receivable 33,471,616 740,314 6,000 34,217,930 34,217,930 Prepaid Expenses 1,460,005 196,154 1,264 1,657,423 1,657,423 Other - Exhibit E 75,712 1,395,492 15,089,793 0 360,264 0 16,921,261 (15,455,838) 1,465,423 --------------------------------------------------------------------------------------------------------------- Total Current Assets 129,294 79,675,347 15,089,793 0 3,632,714 7,264 98,534,412 (15,455,838) 3,078,574 --------------------------------------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 323,959,453 21,679,004 2,291,278 349,105,065 349,105,065 Accumulated Depreciation (729,874)(241,570,800) (16,967,004) (1,823,024) (261,090,702) (261,090,702) --------------------------------------------------------------------------------------------------------------- Total Fixed Assets 445,456 82,388,653 0 0 4,712,000 468,254 88,014,363 0 88,014,363 --------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,716,907 248,296 5,965,203 5,965,203 Prepaid Pension Asset 134,806,352 134,806,352 134,806,352 Deferred Financing Costs 1,420,313 1,420,313 1,420,313 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,610,719 0 0 2,246,871 0 41,972,590 (41,173,674) 798,916 --------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 182,305,799 0 0 2,495,167 0 184,915,966 (41,173,674) 143,742,292 --------------------------------------------------------------------------------------------------------------- Total Assets $689,750 $344,369,799 $15,089,793 $0 $10,839,881 $475,518 $371,464,741 ($56,629,512) $314,835,229 ===============================================================================================================
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 11,271,157 148,575 1,750 11,421,482 11,421,482 Pre-Petition Accounts Payable- Affiliates (2,649,073) 88,168,050 5,774,107 15,552,291 (89,758,156) (1,459,080) 15,628,139 (14,904,350) 723,789 Post-Petition Accounts Payable- Affiliates (126,110) 2,618,132 310,882 358,530 (767,684) (149,206) 2,244,544 (551,488) 1,693,056 Pre-Petition Accrued Expenses- Exhibit G 3,183 17,237,045 35,632 (36,000) 6,668,380 64,082 23,972,322 0 23,972,322 Post-Petition Accrued Expenses- Exhibit H 0 13,809,146 0 0 246,708 (2,457) 14,053,397 0 14,053,397 Post-Petition Accrued Professional Fees 4,281,075 2,939 4,284,014 4,284,014 Post-Petition Accrued Other Taxes-Exhibit M 0 352,800 0 0 81,914 1,881 436,595 0 436,595 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 20,575,770 (15,743) 20,560,027 20,560,027 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 4,871,845 4,871,845 4,871,845 --------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,772,000) 234,208,135 6,120,621 16,029,821 (82,062,282) (1,488,527) 170,035,768 (15,455,838) 154,579,930 ---------------------------------------------------------------------------------------------------------------
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 Cos 34,849 114,237,875 1,446,589 9,074,914 124,794,227 124,794,227 Accrued Pension Cost 2,773,400 2,773,400 2,773,400 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 0 679,445 (184,511) 0 0 0 494,934 0 494,934 --------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 160,967,618 3,389,397 1,446,589 9,074,914 0 174,913,367 0 174,913,367 --------------------------------------------------------------------------------------------------------------- Preferred Stock 2,112,000 2,112,000 2,112,000 - -------------- ---------------------------------------------------------------------------------------------------------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- 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 36,353,651 27,579,007 63,932,658 (27,579,007) 36,353,651 Accumulated Deficit 3,416,901 (100,057,731) 5,579,769 (19,723,276) 84,186,421 1,963,045 (24,634,871) (39,274,975) (63,909,846) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,426,901 (52,917,954) 5,579,775 (17,476,410) 83,827,249 1,964,045 24,403,606 (41,173,674) (16,770,068) --------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $689,750 $344,369,799 $15,089,793 $0 $10,839,881 $475,518 $371,464,741 ($56,629,512) $314,835,229 ===============================================================================================================
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 $712 $712 $712 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 1,266,119 15,089,793 360,264 16,716,176 (15,455,838) 1,260,338 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 49,894 49,894 49,894 Stop Loss Receivable 58,551 58,551 58,551 Security Deposit 500 500 500 ---------------------------------------------------------------------------------------------------- $75,712 $1,395,492 $15,089,793 $0 $360,264 $0 $16,921,261 ($15,455,838) $1,465,423 ====================================================================================================
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 355,866 355,866 355,866 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 $39,610,719 $0 $0 $2,246,871 $0 $41,972,590 ($41,173,674) $798,916 ================================================================================================
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 3,317,767 (168) 3,317,599 3,317,599 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 2,605,387 5,050,166 7,655,553 7,655,553 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 248,986 127,854 376,840 376,840 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 7,887,572 7,887,572 7,887,572 Medical Insurance 951,800 951,800 951,800 Accrued State Franchise Tax 172,743 172,743 172,743 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 0 0 -------------------------------------------------------------------------------------------- $3,183 $17,237,045 $35,632 ($36,000) $6,668,380 $64,082 $23,972,322 $0 $23,972,322 ============================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 154 36,100 36,254 36,254 Pensions 0 64,908 64,908 64,908 Salaries/Wages 1,156,975 (4,548) 1,152,427 1,152,427 Holiday Pay/Vacations 4,343,184 18,615 4,361,799 4,361,799 Defined Contribution Plan 1,140,700 48,017 1,188,717 1,188,717 Medical Insurance 103,930 (15,399) (3,065) 85,466 85,466 Utilities 159,705 73,997 608 234,310 234,310 Legal 173,997 173,997 173,997 Professional Fees 378,543 378,543 378,543 Goods Received Not Invoiced 1,779,471 1,779,471 1,779,471 Worker's Compensation 711,226 711,226 711,226 Unearned Revenue 6,538 6,538 6,538 Sales Rebates/Discounts 910,966 910,966 910,966 Abanondon Property 0 0 0 Miscellaneous 1,377,684 25,018 1,402,702 1,402,702 Accrued Bank Service Charge 19,003 19,003 19,003 Accrued Self-Insurance Losses 390,461 390,461 390,461 Accrued Interest 430,182 430,182 430,182 Accrued Travel 0 0 0 Accrued Profit Sharing 773,446 773,446 773,446 Accrued Management Fees (47,019) (47,019) (47,019) -------------------------------------------------------------------------------------------- $0 $13,809,146 $0 $0 $246,708 ($2,457) $14,053,397 $0 $14,053,397 ============================================================================================
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 $677,102 $677,102 $677,102 Long Term Disability 2,343 2,343 2,343 Environmental (184,511) (184,511) (184,511) -------------------------------------------------------------------------------------------- $0 $679,445 ($184,511) $0 $0 $0 $494,934 $0 $494,934 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- FICA - Employer $252,722 2392 $255,114 $255,114 Federal Unemployment Taxes 0 (3,337) (3,337) (3,337) State Unemployment Taxes 0 (20,137) (20,137) (20,137) Property Tax 237,786 99,784 1,881 339,451 339,451 Sales/Use Tax 547 3,212 3,759 3,759 Accrued State Franchise Tax (98,992) (98,992) (98,992) Miscellaneous (39,263) (39,263) (39,263) -------------------------------------------------------------------------------------------- $0 $352,800 $0 $0 $81,914 $1,881 $436,595 $0 $436,595 ============================================================================================
EX-99.2 3 exhibit992oct.txt EXHIBIT 99.2. KEYSTONE 8-K A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 2004 ($'s IN THOUSANDS)
Year to Date October October 2004 2004 - --------- ---------- $6,322 SALES - OUTSIDE CUSTOMERS $51,899 0 SALES - INTERCOMPANY 0 - ------- --------- 6,322 NET SALES 51,899 4,467 VARIABLE PRODUCTION COSTS 36,455 - ------- --------- 1,855 VARIABLE CONTRIBUTION 15,444 - ------- --------- 135 MANUFACTURING FIXED COSTS 1,360 87 DEPRECIATION 870 - ------- --------- 222 TOTAL FIXED COSTS 2,230 - ------- --------- 1,633 GROSS PROFIT 13,214 - ------- --------- 216 SELLING EXPENSE 2,005 242 ADMINISTRATIVE EXPENSE 2,010 - ------- --------- 458 TOTAL SELLING & ADMIN.EXPENS 4,015 - ------- --------- 1,175 OPERATING PROFIT 9,199 0 EARNINGS IN UNCONSOL. SUBSIDI 0 0 INTEREST INCOME 0 42 INTEREST EXPENSE 338 0 OTHER INCOME (EXPENSE) 12 0 GAIN ON SALE OF FIXED ASSETS 0 - ------- --------- 1,133 INCOME BEFORE TAXES 8,873 448 INCOME TAXES 3,505 - ------- --------- 685 INCOME FROM OPERATIONS 5,368 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ------- --------- $685 NET INCOME $5,368 ======= =========
Page 1 ENGINEERED WIRE PRODUCTS BALANCE SHEET October 31, 2004
CURRENT ASSETS: CURRENT ASSETS: CASH $346 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 8,086 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 13,930 LESS LIFO RESERVE 0 --------- INVENTORIES AT LIFO 13,930 --------- PREPAID EXPENSES 73 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------- TOTAL CURRENT ASSETS 22,435 --------- PROPERTY PLANT & EQUIPMENT AT COST 18,710 LESS ACCUMULATED DEPRECIATION 12,302 --------- NET PLANT, PROPERTY & EQUIPMENT 6,408 --------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 --------- TOTAL ASSETS $28,843 ========= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $3,905 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 1,365 INTERCOMPANY ACCOUNTS PAYABLE 1,260 ACCOUNTS PAYABLE 335 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 2,371 ACCRUED PENSIONS 184 INCOME TAXES PAYABLE 447 --------- TOTAL CURRENT LIABILITIES 11,256 --------- LONG TERM DEBT 4,439 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 --------- TOTAL LONG TERM LIABILITIES 4,439 --------- MINORITY INTEREST 0 --------- PREFERRED STOCK 0 --------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 13,148 LESS TREASURY STOCK 0 --------- TOTAL EQUITY 13,148 --------- TOTAL LIABILITIES & EQUITY $28,843 =========
Page 2 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED OCTOBER 31, 2004 (IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $5,368 PROVISION FOR DEPRECIATION 870 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 47 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (4,893) (INCREASE) DECREASE INVENTORY (7,278) (INCREASE) DECREASE PREPAID EXPENSES 3,308 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (99) INCREASE (DECREASE) ACCRUED PENSIONS 184 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 1,636 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 1,260 -------- NET ADJUSTMENTS (4,965) -------- NET CASH PROVIDED (USED) BY OPERATIONS 403 -------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (187) INTERCO PP&E TRANSFERS NET 0 -------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (187) -------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (92) REPAYMENTS OF OTHER DEBT (1,040) PROCEEDS OF OTHER DEBT 6,798 INCREASE (DECREASE) KCI LOAN (5,807) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 -------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (141) -------- NET INCREASE (DECREASE) IN CASH 75 CASH AT BEGINNING OF PERIOD 271 -------- CASH AT END OF PERIOD $346 ========
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