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 ========