-----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, QjaKxQdrvKIL0nPTZ2hntZY5q7eRykL2rDniZhwstC4tv0kT7TG+2J7ybvVyBGYZ nUHWIphe3KYxBx1hZaIR3Q== 0000055604-04-000041.txt : 20041217 0000055604-04-000041.hdr.sgml : 20041217 20041217172549 ACCESSION NUMBER: 0000055604-04-000041 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041217 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041217 DATE AS OF CHANGE: 20041217 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: 041212213 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 kci8k.txt 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): December 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) 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 December 13, 2004, Keystone filed its Monthly Operating Report for the month of November 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 November 2004 99.2 EWP Financial Information for the month of November 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: ______________________________ Bert E. Downing, Jr., Vice President, Chief Financial Officer, Corporate Controller and Treasurer Date: December 17, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of November 2004 99.2 EWP Financial Information for the month of November 2004 EX-99.1 2 exh991nov.txt 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 NOVEMBER, 2004. I. FINANCIAL SUMMARY
CASH RECEIPTS AND DISBURSEMENTS FVSW KCI DEMI JLP SWC SWCI Total A. CASH ON HAND START OF MONTH $0 $9,138,891 $0 $0 $479 $0 $9,139,370 ---------------------------------------------------------------------- B. RECEIPTS 0 58,458,552 0 0 13,593 1,250 58,473,395 C. DISBURSEMENTS 0 54,781,232 0 0 14,929 1,250 54,797,411 ---------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 3,677,320 0 0 (1,336) 0 3,675,984 ---------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $12,816,211 $0 $0 ($857) $0 $12,815,354 ======================================================================
Note 1 - KCI Cash On Hand At End of Month includes $10,651,790 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 $56,263,400. PROFIT AND LOSS STATEMENT ACCRUAL BASIS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total A NET SALES $0 $20,485,442 $0 $0 $1,173,854 $0 $21,659,296 ($1,131,362) $20,527,934 B. COST OF SALES 0 18,542,731 0 0 864,515 0 19,407,246 (1,131,362) 18,275,884 ----------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 1,942,711 0 0 309,339 0 2,252,050 0 2,252,050 D. TOTAL OPERATING EXPENSES 3,549 4,397,538 0 60,000 329,701 9,400 4,800,188 (202,612) 4,597,576 ----------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION(3,549)(2,454,827) 0 (60,000) (20,362) (9,400) (2,548,138) 202,612 (2,345,526) F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES)) 7,713 (539,042) 60,000 0 69,357 0 (401,972) (202,612) (604,584) ----------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,164 ($2,993,869)$60,000 ($60,000) $48,995 ($9,400)($2,950,110) $0 ($2,950,110) ===============================================================================================
Page 1 of 5 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. 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) $20,485,442 $1,173,854 $21,659,296 ($1,131,362) $20,527,934 ----------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 40,194,517 2,140,313 42,334,830 42,334,830 Add: Purchases 34,657,460 964,371 35,621,831 (1,131,362) 34,490,469 Less: Ending Inventory at Cost 56,309,246 2,240,169 58,549,415 58,549,415 ----------------------------------------------------------------------------------------------- Cost of Good Sold 0 18,542,731 0 0 864,515 0 19,407,246 (1,131,362) 18,275,884 ----------------------------------------------------------------------------------------------- Gross Profit 0 1,942,711 0 0 309,339 0 2,252,050 0 2,252,050 ----------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,577 40,577 40,577 Salaries and Wages -- Othe Employees 1,082,182 77,423 1,159,605 1,159,605 Employee Benefits and Pensions 105 1,031,376 34,001 3,831 1,069,313 1,069,313 Payroll Taxes 91,310 13,405 104,715 104,715 Real Estate Taxes 12,232 10,852 (192) 22,892 22,892 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 29,822 1,838 31,660 31,660 Interest Expense 421,992 60,000 481,992 (191,743) 290,249 Insurance (677,821) 12,730 (665,091) (665,091) Automobile Expense 0 0 0 0 Utilities 424,768 11,192 271 436,231 436,231 Depreciation and Amortization 3,444 977,646 89,960 4,297 1,075,347 1,075,347 Repairs and Maintenance 143,213 9,439 0 152,652 152,652 Advertising 44,677 44,677 44,677 Supplies, Office Expense and Photocopies130,482 7,480 137,962 137,962 Bad Debts 0 0 0 Miscellaneous 0 645,082 0 0 61,381 1,193 707,656 (10,869) 696,787 ----------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 4,397,538 0 60,000 329,701 9,400 4,800,188 (202,612) 4,597,576 ----------------------------------------------------------------------------------------------- Net Income (Loss) From Operation(3,549)(2,454,827) 0 (60,000) (20,362) (9,400) (2,548,138) 202,612 (2,345,526) ----------------------------------------------------------------------------------------------- B. Not Related to Business Operations: Revenue: Interest Income 713 13,656 60,000 131,743 206,112 (191,743) 14,369 Net Gain (Loss) on Sale of Assets (6,040) (6,040) (6,040) Other 7,000 49,892 0 0 0 0 56,892 (10,869) 46,023 ----------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 57,508 60,000 0 131,743 0 256,964 (202,612) 54,352 ----------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 596,550 0 0 62,386 0 658,936 0 658,936 Other 0 0 0 0 0 0 0 0 0 ----------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 596,550 0 0 62,386 0 658,936 0 658,936 ----------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,164 ($2,993,869)$60,000 ($60,000) $48,995 ($9,400)($2,950,110) $0 ($2,950,110) ===============================================================================================
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 of 5 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. IV. BALANCE SHEET
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- -------- ----- ASSETS Current Cash $12,816,211 ($857) $12,815,354 $12,815,354 Inventory 53,582 39,288,666 2,435,360 41,777,608 41,777,608 Accounts Receivable 28,695,879 691,231 6,000 29,393,110 29,393,110 Prepaid Expenses 1,455,587 143,480 1,264 1,600,331 1,600,331 Other - Exhibit E 76,425 902,642 15,149,793 0 294,558 0 16,423,418 (15,447,854) 975,564 ------------------------------------------------------------------------------------------------------------- Total Current Assets 130,007 83,158,985 15,149,793 0 3,563,772 7,264 102,009,821 (15,447,854) 86,561,967 ------------------------------------------------------------------------------------------------------------- Fixed Property and Equipment 1,175,330 323,820,024 21,679,004 2,285,279 348,959,637 348,959,637 Accumulated Depreciation (733,318) (242,001,188) (17,056,964) (1,823,364)(261,614,834) (261,614,834) -------------------------------------------------------------------------------------------------------------- Total Fixed Assets 442,012 81,818,836 0 0 4,622,040 461,915 87,344,803 0 87,344,803 -------------------------------------------------------------------------------------------------------------- Other Restricted Investments 5,716,907 248,296 5,965,203 5,965,203 Prepaid Pension Asset 135,544,112 135,544,112 135,544,112 Deferred Financing Costs 1,323,145 1,323,145 1,323,145 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,599,978 0 0 2,246,871 0 41,961,849 (41,173,674) 788,175 -------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 182,935,650 0 0 2,495,167 0 185,545,817 (41,173,674) 144,372,143 -------------------------------------------------------------------------------------------------------------- Total Assets $687,019 $347,913,471 $15,149,793 $0 $10,680,979 $469,179 $374,900,441($56,621,528)$318,278,913 ============================================================================================================== LIABILITIES Current Pre-Petition Accounts Payable 19,656,412 1,012,833 54,503 20,723,748 20,723,748 Post-Petition Accounts Payable 10,664,196 134,071 2,500 10,800,767 10,800,767 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 (133,005) 4,103,345 310,882 418,530 (993,929) (146,773) 3,559,050 (543,504) 3,015,546 Pre-Petition Accrued Expenses - Exhibit G 3,183 16,806,618 35,632 (36,000) 6,668,380 64,082 23,541,895 0 23,541,895 Post-Petition Accrued Expenses - Exhibt H 0 11,227,989 0 0 230,016 (2,580) 11,455,425 0 11,455,425 Post-Petition Accrued Professional Fees 4,069,450 2,939 4,072,389 4,072,389 Post-Petition Accrued Other Taxes - Exhibit M 207,196 0 0 91,094 1,881 300,171 0 300,171 Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,116,000 20,290 28,136,290 28,136,290 Post-Petition Notes Payable and Current Maturities of Long Term Debt 27,800,771 (15,743) 27,785,028 27,785,028 Accrued OPEB Cost 11,441,001 155,000 297,662 11,893,663 11,893,663 Income Taxes Payable Pre-petition accrued pref. Stock dividends 11,845,805 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 5,461,178 5,461,178 5,461,178 ------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,778,895) 239,568,011 6,120,621 16,089,821 (82,310,543) (1,485,467) 175,203,548 (15,447,854) 159,755,694 ------------------------------------------------------------------------------------------------------------- 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 34,849 115,580,883 1,446,589 9,116,120 126,178,441 126,178,441 Accrued Pension Cost 3,025,528 3,025,528 3,025,528 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 0 851,306 (184,511) 0 0 0 666,795 0 666,795 ---------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 162,734,615 3,389,397 1,446,589 9,116,120 0 176,721,570 0 176,721,570 ---------------------------------------------------------------------------------------------------------- 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 35,764,318 27,579,007 63,343,325 (27,579,007) 35,764,318 Accumulated Deficit 3,421,065 (103,051,599)5,639,769 (19,783,276) 84,234,574 1,953,646 (27,585,821) (39,274,975)(66,860,796) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) ---------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,431,065 (56,501,155)5,639,775 (17,536,410) 83,875,402 1,954,646 20,863,323 (41,173,674)(20,310,351) ---------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $687,019 $347,913,471$15,149,793 $0 $10,680,979 $469,179 $374,900,441 ($56,621,528)$318,278,913 ============================================================================================================
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 3 of 5 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. 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 825,083 15,149,793 294,558 16,269,434 (15,447,854) 821,580 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 54,704 54,704 54,704 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 -------------------------------------------------------------------------------------------- $76,425 $902,642 $15,149,793 $0 $294,558 $0 $16,423,418 ($15,447,854)$975,564 ============================================================================================
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 345,125 345,125 345,125 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 $39,599,978 $0 $0 $2,246,871 $0 $41,961,849 ($41,173,674) $788,175 =============================================================================================
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 3,095,345 (168) 3,095,177 3,095,177 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 78,910 127,854 206,764 206,764 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 1,114,776 1,114,776 1,114,776 Manufacturing Misc 0 0 0 EPA 7,886,593 7,886,593 7,886,593 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 $16,806,618 $35,632 ($36,000)$6,668,380 $64,082 $23,541,895 $0 $23,541,895 ============================================================================================
Page 4 of 5 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. EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 154 40,800 40,954 40,954 Pensions 0 72,236 72,236 72,236 Salaries/Wages 624,307 (5,665) 618,642 618,642 Holiday Pay/Vacations 4,673,809 8,495 4,682,304 4,682,304 Defined Contribution Plan 1,228,109 52,410 1,280,519 1,280,519 Medical Insurance 21,349 (20,543) (3,184) (2,378) (2,378) Utilities 220,436 57,872 604 278,912 278,912 Legal 172,975 (5,830) 167,145 167,145 Professional Fees 403,655 403,655 403,655 Goods Received Not Invoiced 669,067 669,067 669,067 Worker's Compensation 701,721 701,721 701,721 Unearned Revenue 769 769 769 Sales Rebates/Discounts 592,137 592,137 592,137 Abanondon Property 0 0 0 Miscellaneous 1,250,000 30,241 1,280,241 1,280,241 Accrued Bank Service Charge 22,682 22,682 22,682 Accrued Self-Insurance Losses (342,206) (342,206) (342,206) Accrued Interest 505,978 505,978 505,978 Accrued Travel 0 0 0 Accrued Profit Sharing 449,297 449,297 449,297 Accrued Management Fees 33,750 33,750 33,750 -------------------------------------------------------------------------------------------- $0 $11,227,989 $0 $0 $230,016 ($2,580)$11,455,425 $0 $11,455,425 ============================================================================================
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 $848,579 $848,579 $848,579 Long Term Disability 2,727 2,727 2,727 Environmental (184,511) (184,511) (184,511) 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------- $0 $851,306 ($184,511) $0 $0 $0 $666,795 $0 $666,795 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer $188,510 -682 $187,828 $187,828 Federal Unemployment Taxes 0 (3,235) (3,235) (3,235) State Unemployment Taxes 0 (19,326) (19,326) (19,326) Property Tax 250,017 111,931 1,881 363,829 363,829 Sales/Use Tax 1,590 2,406 3,996 3,996 Accrued State Franchise Tax (193,658) (193,658) (193,658) Miscellaneous (39,263) (39,263) (39,263) -------------------------------------------------------------------------------------------- $0 $207,196 $0 $0 $91,094 $1,881 $300,171 $0 $300,171 ============================================================================================
Page 5 of 5 EX-99.2 3 exhibit992nov.txt A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED NOVEMBER 30, 2004 ($'s IN THOUSANDS)
Year to Date November 2004 November 2004 - -------------- ----------------- $4,363 SALES - OUTSIDE CUSTOMERS ....................... $56,262 0 SALES - INTERCOMPANY ............................ 0 - ------- ------------------------------------------------- ------- 4,363 NET SALES ....................................... 56,262 3,062 VARIABLE PRODUCTION COSTS ....................... 39,517 - ------- ------------------------------------------------- ------- 1,301 VARIABLE CONTRIBUTION ........................... 16,745 - ------- ------------------------------------------------- ------- 129 MANUFACTURING FIXED COSTS ....................... 1,489 87 DEPRECIATION .................................... 957 - ------- ------------------------------------------------- ------- 216 TOTAL FIXED COSTS ............................... 2,446 - ------- ------------------------------------------------- ------- 1,085 GROSS PROFIT .................................... 14,299 - ------- ------------------------------------------------- ------- 168 SELLING EXPENSE ................................. 2,173 165 ADMINISTRATIVE EXPENSE .......................... 2,175 - ------- ------------------------------------------------- ------- 333 TOTAL SELLING & ADMIN.EXPENSE ................... 4,348 - ------- ------------------------------------------------- ------- 752 OPERATING PROFIT ................................ 9,951 0 EARNINGS IN UNCONSOL. SUBSIDIARIES .............. 0 0 INTEREST INCOME ................................. 0 31 INTEREST EXPENSE ................................ 369 26 OTHER INCOME (EXPENSE) .......................... 38 0 GAIN ON SALE OF FIXED ASSETS .................... 0 - ------- ------------------------------------------------- ------- 747 INCOME BEFORE TAXES ............................. 9,620 295 INCOME TAXES .................................... 3,800 - ------- ------------------------------------------------- ------- 452 INCOME FROM OPERATIONS .......................... 5,820 0 ACCOUNTING CHANGE ............................... 0 0 MINORITY INTEREST ............................... 0 - ------- ------------------------------------------------- ------- $ 452 NET INCOME ...................................... $ 5,820 ======= ================================================= =======
ENGINEERED WIRE PRODUCTS BALANCE SHEET November 30, 2004 ($'s IN THOUSANDS)
CURRENT ASSETS: CASH ....................................................... $ 669 MARKETABLE SECURITIES ...................................... 0 NOTES & ACCOUNT RECEIVABLE NET ............................. 6,780 INTERCOMPANY ACCOUNTS RECEIVABLE ........................... 0 INVENTORIES AT COST ......................................... 12,869 LESS LIFO RESERVE ......................................... 0 ------- INVENTORIES AT LIFO ......................................... 12,869 ------- PREPAID EXPENSES ........................................... 3 DEFERRED INCOME TAXES ...................................... 0 OTHER CURRENT ASSETS ....................................... 0 ------- TOTAL CURRENT ASSETS ...................................... 20,321 ------- PROPERTY PLANT & EQUIPMENT AT COST .......................... 18,744 LESS ACCUMULATED DEPRECIATION ............................ 12,389 ------- NET PLANT, PROPERTY & EQUIPMENT ........................ 6,355 ------- DEFERRED FINANCING EXPENSE ................................. 0 DEFERRED INCOME TAXES ....................................... 0 PREPAID PENSION ASSET ....................................... 0 RESTRICTED INVESTMENTS ...................................... 0 GOODWILL .................................................... 0 OTHER LONG TERM ASSETS ..................................... 0 ------- TOTAL ASSETS ............................................ $26,676 ======= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY .................................... $ 2,682 NOTES PAYABLE & CURRENT L.T. DEBT .......................... 1,389 KCI LOAN ACCOUNT ........................................... 42 INTERCOMPANY ACCOUNTS PAYABLE .............................. 822 ACCOUNTS PAYABLE ........................................... 359 ACCRUED OPEB ............................................... 0 ACCRUED PREFERRED STOCK DIVIDENDS .......................... 0 ACCRUED LIABILITIES ........................................ 2,516 ACCRUED PENSIONS ........................................... 201 INCOME TAXES PAYABLE ....................................... 742 ------- TOTAL CURRENT LIABILITIES ............................... 8,753 ------- LONG TERM DEBT ............................................. 4,323 ACCRUED OPEB ............................................... 0 LONG TERM PENSIONS ......................................... 0 LONG TERM OTHER ............................................ 0 DEFERRED FEDERAL INCOME TAX ................................ 0 ------- TOTAL LONG TERM LIABILITIES ............................. 4,323 ------- MINORITY INTEREST .......................................... 0 ------- PREFERRED STOCK ............................................ 0 ------- SFAS #87 ADJUSTMENT ........................................ 0 COMMON STOCK ............................................... 0 OTHER CAPITAL .............................................. 0 INVESTMENT EQUITY .......................................... 0 RETAINED EARNINGS .......................................... 13,600 LESS TREASURY STOCK ....................................... 0 ------- TOTAL EQUITY ............................................ 13,600 ------- TOTAL LIABILITIES & EQUITY ................................... $26,676 =======
ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED NOVEMBER 30, 2004 ($'s IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME ..................................................... $ 5,820 PROVISION FOR DEPRECIATION .................................. 957 (GAIN) LOSS ON SALE OF ASSETS ............................... 0 PROVISION FOR BAD DEBT ALLOWANCE ............................ 51 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) ................. 0 PROVISION FOR LIFO RESERVE .................................. 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (3,591) (INCREASE) DECREASE INVENTORY .............................. (6,217) (INCREASE) DECREASE PREPAID EXPENSES ....................... 3,378 (INCREASE) DECREASE OTHER ASSETS ........................... 0 INCREASE (DECREASE) ACCTS PAY .............................. (75) INCREASE (DECREASE) ACCRUED PENSIONS ....................... 201 INCREASE (DECREASE) DEFERRED TAXES ......................... 0 INCREASE (DECREASE) OPEB LIABILITIES ....................... 0 INCREASE (DECREASE) OTHER LIABILITIES ...................... 2,076 (INCREASE) DECREASE INTERCO ACCT. REC ...................... 0 INCREASE (DECREASE) INTERCO ACCTS PAY ...................... 822 ------- NET ADJUSTMENTS ................................................ (2,398) ------- NET CASH PROVIDED (USED) BY OPERATIONS ......................... 3,422 ------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E ............................... 0 CAPITAL EXPENDITURES ....................................... (221) INTERCO PP&E TRANSFERS NET ................................. 0 ------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITY (221) ------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET .............................. (1,315) REPAYMENTS OF OTHER DEBT .................................... (1,156) PROCEEDS OF OTHER DEBT ...................................... 6,798 INCREASE (DECREASE) KCI LOAN ................................ (7,130) PROCEEDS FROM ISSUANCE OF COMMON STOCK ...................... 0 DIVIDENDS PAID .............................................. 0 ------- NET CASH PROVIDED (USED) BY FINANCING ACTIV (2,803) ------- NET INCREASE (DECREASE) IN CASH ................................ 398 CASH AT BEGINNING OF PERIOD .................................... 271 ------- CASH AT END OF PERIOD .......................................... $ 669 =======
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