-----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, OEMRdiSy88yzK5m/lLNp2aZHEokxBbBWSnpyjZhWlmZJEo4Er4KXcVVnlP29iJ8Y bMDAORCYpKLdoI44DiV2Yg== 0000055604-05-000005.txt : 20050218 0000055604-05-000005.hdr.sgml : 20050218 20050218114332 ACCESSION NUMBER: 0000055604-05-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050114 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050218 DATE AS OF CHANGE: 20050218 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: 05626286 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 key8k021805.txt FORM 8-K, KEYSTONE CONSOLIDATED INDUSTRIES 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): February 14, 2005 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 January 14, 2005, Keystone filed its Monthly Operating Report for the month of January 2005 (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. In addition, in order to comply with the 15-day filing requirements of the Bankruptcy Court, certain year-end adjustments have not been reflected in the Monthly Operating Report and related Bankruptcy Financial Information. Keystone anticipates filing an amended report when information relative to these adjustments becomes available. 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 January 2005 99.2 EWP Financial Information for the month of January 2005 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: February 18, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of January 2005 99.2 EWP Financial Information for the month of January 2005 EX-99.1 2 exhibit991feb.txt EXHIBIT 99.1 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 (the "Trustee"). 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. In addition, in order to comply with the 15-day filing requirements of the Trustee, certain year-end adjustments have been excluded from this report. Keystone anticipates filing an amended report when information relative to these adjustments becomes available. 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 JANUARY, 2005. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $7,791,222 $0 $0 $109 $0 $7,791,331 ----------------------------------------------------------------------- B. RECEIPTS 0 94,524,672 0 0 18,914 1,250 94,544,836 C. DISBURSEMENTS 0 97,547,344 0 0 19,364 1,250 97,567,958 ----------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (3,022,672) 0 0 (450) 0 (3,023,122) ----------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $4,768,550 $0 $0 ($341) $0 $4,768,209 =======================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,374,638 of cash held in escrow for anticipated payment to Unsecured Creditors' Committee upon emergence from Chapter 11. Note 2 - KCI Receipts and Disbursement exclude transfers between KCI cash accounts of $34,983,236. PROFIT AND LOSS STATEMENT ACCRUAL BASIS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- A NET SALES $0 $30,567,396 $0 $0 $1,951,645 $0 $32,519,041 ($2,215,160) $30,303,881 B. COST OF SALES 0 24,978,818 0 0 1,732,438 0 26,711,256 (2,215,160) 24,496,096 ------------------------------------------------------------------------------------------------------ C. GROSS PROFIT 0 5,588,578 0 0 219,207 0 5,807,785 0 5,807,785 D. TOTAL OPERATING EXPENSES 4,410 6,742,669 0 60,000 439,895 9,420 7,256,394 (239,415) 7,016,979 ------------------------------------------------------------------------------------------------------ E. NET INCOME (LOSS) FROM OPERATIONS (4,410) (1,154,091) 0 (60,000) (220,688) (9,420) (1,448,609) 239,415 (1,209,194) F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES)) 7,713 (938,124) 60,000 0 165,830 0 (704,581) (239,415) (943,996) ------------------------------------------------------------------------------------------------------ H. NET INCOME (LOSS) $3,303 ($2,092,215) $60,000 ($60,000) ($54,858) ($9,420) ($2,153,190) $0 ($2,153,190) ======================================================================================================
Page 1 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) $30,567,396 $1,951,645 $32,519,041 ($2,215,160) $30,303,881 ------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 56,195,047 2,872,849 59,067,896 59,067,896 Add: Purchases 40,202,748 1,672,586 41,875,334 (2,215,160) 39,660,174 Less: Ending Inventory at Cost 71,418,977 2,812,997 74,231,974 74,231,974 ------------------------------------------------------------------------------------------------- Cost of Goods Sold 0 24,978,818 0 0 1,732,438 0 26,711,256 (2,215,160) 24,496,096 ------------------------------------------------------------------------------------------------- Gross Profit 0 5,588,578 0 0 219,207 0 5,807,785 0 5,807,785 ------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,839 40,839 40,839 Salaries and Wages -- Other Employees 1,393,302 99,340 1,492,642 1,492,642 Employee Benefits and Pensions 105 1,783,751 38,322 2,045 1,824,223 1,824,223 Payroll Taxes 124,041 22,529 146,570 146,570 Real Estate Taxes 15,768 15,071 667 31,506 31,506 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 21,438 823 22,261 22,261 Interest Expense 438,864 60,000 498,864 (225,830) 273,034 Insurance 67,044 15,912 82,956 82,956 Automobile Expense 0 0 0 0 Utilities 621,107 11,669 0 632,776 632,776 Depreciation and Amortization 4,305 1,118,796 109,115 5,101 1,237,317 1,237,317 Repairs and Maintenance 248,050 (8,910) 0 239,140 239,140 Advertising 72,516 72,516 72,516 Supplies, Office Expense and Photocopies 91,325 9,469 100,794 100,794 Bad Debts 0 0 0 Miscellaneous 0 705,828 0 0 126,555 1,607 833,990 (13,585) 820,405 ------------------------------------------------------------------------------------------------- Total Operating Expenses 4,410 6,742,669 0 60,000 439,895 9,420 7,256,394 (239,415) 7,016,979 ------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,410) (1,154,091) 0 (60,000) (220,688) (9,420) (1,448,609) 239,415 (1,209,194) ------------------------------------------------------------------------------------------------- B.Not Related to Business Operations: ----------------------- Revenue: Interest Income 713 21,351 60,000 165,830 247,894 (225,830) 22,064 Net Gain (Loss) on Sale of Assets 0 0 Other 7,000 111,245 0 0 0 0 118,245 (13,585) 104,660 ------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 132,596 60,000 0 165,830 0 366,139 (239,415) 126,724 ------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,070,720 0 0 0 0 1,070,720 0 1,070,720 Other 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,070,720 0 0 0 0 1,070,720 0 1,070,720 ------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $3,303 ($2,092,215) $60,000 ($60,000) ($54,858) ($9,420) ($2,153,190) $0 ($2,153,190) =================================================================================================
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
FVSW KCI DEMI JLP SWC SWCI ---- --- ---- --- --- ---- ASSETS - ------ Current - ------- Cash $4,768,550 ($341) Inventory 53,582 42,075,439 2,387,333 Accounts Receivable 24,507,393 837,444 6,000 Prepaid Expenses 2,363,365 34,368 1,264 Other-Exhibit E 75,713 2,740,354 15,269,793 0 623,592 0 ---------------------------------------------------------------------------- Total Current Assets 129,295 76,455,101 15,269,793 0 3,882,396 7,264 ---------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 325,584,245 21,668,882 2,285,279 Accumulated Depreciation (741,068) (243,954,066) (17,236,992) (1,832,762) ---------------------------------------------------------------------------- Total Fixed Assets 434,262 81,630,179 0 0 4,431,890 452,517 ---------------------------------------------------------------------------- Other - ----- Restricted Investments 5,878,315 248,296 Prepaid Pension Asset 133,932,071 Deferred Financing Costs 1,140,476 Goodwill 751,508 Other-Exhibit F 40,000 39,521,966 0 0 2,246,871 0 ---------------------------------------------------------------------------- Total Other Assets 40,000 181,224,336 0 0 2,495,167 0 ---------------------------------------------------------------------------- Total Assets $603,557 $339,309,616 $15,269,793 $0 $10,809,453 $459,781 ============================================================================ LIABILITIES - ----------- Current - ------- Pre-Petition Accounts Payable 19,645,542 1,012,833 54,503 Post-Petition Accounts Payable 593,717 68,240 1,250 Pre-Petition Accounts Payable -Affiliates (2,649,073) 88,419,300 5,774,107 15,552,291 (89,758,156) (1,459,080) Post-Petition Accounts Payable -Afffiliates (223,934) 4,644,144 322,026 538,530 (656,922) (131,877) Pre-Petition Accrued Expenses -Exhibit G 3,183 14,398,573 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses -Exhibit H 0 16,125,369 0 0 94,774 (3,106) Post-Petition Accrued Professional Fees 2,902,730 2,939 Post-Petition Accrued Other Taxes-Exhibit M 0 538,576 0 0 (13,181) (5,295) Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,116,000 20,290 Post-Petition Notes Payable and Current Maturities of Long Term Debt 26,895,489 (20,290) Accrued OPEB Cost 13,387,061 155,000 297,662 Income Taxes Payable Pre-petition accrued pref. Stock dividends 11,845,805 Post petition accrued pref. Stock dividends 6,680,810 ---------------------------------------------------------------------------- Total Current Liabilities (2,869,824) 234,193,116 6,131,765 16,209,821 (82,283,431) (1,479,523) ---------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 165,603 Accrued OPEB Cost 34,849 116,317,263 1,446,589 9,205,810 Accrued Pension Cost 315,158 Pre-Petition Accrued Expenses-Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses-Exhibit J 0 818,335 (195,655) 0 0 0 ---------------------------------------------------------------------------- Total Long Term Liabilities 34,849 160,901,809 3,378,253 1,446,589 9,205,810 0 ---------------------------------------------------------------------------- Preferred Stock 2,112,000 - --------------- ---------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 10,000 10,798,251 6 2,246,866 5,619,274 1,000 Additional Paid-In Capital 34,544,685 27,579,007 Accumulated Deficit 3,428,532 (103,228,120) 5,759,769 (19,903,276) 84,246,246 1,938,304 Treasury Stock (12,125) (33,557,453) ---------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,438,532 (57,897,309) 5,759,775 (17,656,410) 83,887,074 1,939,304 ---------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $603,557 $339,309,616 $15,269,793 $0 $10,809,453 $459,781 ============================================================================
Page 3 IV. BALANCE SHEET (Continued)
Sub Elimin- Total ations Total ----- ------- ----- ASSETS - ------ Current - ------- Cash $4,768,209 $4,768,209 Inventory 44,516,354 44,516,354 Accounts Receivable 25,350,837 25,350,837 Prepaid Expenses 2,398,997 2,398,997 Other-Exhibit E 18,709,452 (15,893,385) 2,816,067 ----------------------------------------- Total Current Assets 95,743,849 (15,893,385) 79,850,464 ----------------------------------------- Fixed - ----- Property and Equipment 350,713,736 350,713,736 Accumulated Depreciation (263,764,888) (263,764,888) ----------------------------------------- Total Fixed Assets 86,948,848 0 86,948,848 ----------------------------------------- Other - ----- Restricted Investments 6,126,611 6,126,611 Prepaid Pension Asset 133,932,071 133,932,071 Deferred Financing Costs 1,140,476 1,140,476 Goodwill 751,508 751,508 Other-Exhibit F 41,808,837 (41,173,674) 635,163 ----------------------------------------- Total Other Assets 183,759,503 (41,173,674) 142,585,829 ----------------------------------------- Total Assets $366,452,200 ($57,067,059) $309,385,141 ========================================= LIABILITIES - ----------- Current - ------- Pre-Petition Accounts Payable 20,712,878 20,712,878 Post-Petition Accounts Payable 663,207 663,207 Pre-Petition Accounts Payable -Affiliates 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable -Afffiliates 4,491,967 (989,035) 3,502,932 Pre-Petition Accrued Expenses -Exhibit G 21,133,850 0 21,133,850 Post-Petition Accrued Expenses -Exhibit H 16,217,037 0 16,217,037 Post-Petition Accrued Professional Fees 2,905,669 2,905,669 Post-Petition Accrued Other Taxes-Exhibit M 520,100 0 520,100 Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,136,290 28,136,290 Post-Petition Notes Payable and Current Maturities of Long Term Debt 26,875,199 26,875,199 Accrued OPEB Cost 13,839,723 13,839,723 Income Taxes Payable 0 0 Pre-petition accrued pref. Stock dividends 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 6,680,810 6,680,810 ----------------------------------------- Total Current Liabilities 169,901,924 (15,893,385) 154,008,539 ----------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 165,603 165,603 Accrued OPEB Cost 127,004,511 127,004,511 Accrued Pension Cost 315,158 315,158 Pre-Petition Accrued Expenses-Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses-Exhibit J 622,680 0 622,680 ----------------------------------------- Total Long Term Liabilities 174,967,310 0 174,967,310 ----------------------------------------- Preferred Stock 2,112,000 2,112,000 - --------------- ----------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 18,675,397 (7,877,145) 10,798,252 Additional Paid-In Capital 62,123,692 (27,579,007) 34,544,685 Accumulated Deficit (27,758,545) (39,274,975) (67,033,520) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 19,470,966 (41,173,674) (21,702,708) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $366,452,200 ($57,067,059) $309,385,141 =========================================
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 4 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Interest Receivable $713 $713 $713 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 2,655,068 15,269,793 623,592 18,548,453 (15,893,385) 2,655,068 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 62,431 62,431 62,431 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------- $75,713 $2,740,354 $15,269,793 $0 $623,592 $0 $18,709,45 2 ($15,893,385) $2,816,067 =======================================================================================================
EXHIBIT F OTHER LONG TERM ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Note Receivable $40,000 $40,000 $40,000 Rail Cars 267,113 267,113 267,113 Investment in Sherman Wire Company 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 ------------------------------------------------------------------------------------------------------- $40,000 $39,521,966 $0 $0 $2,246,871 $0 $41,808,837 ($41,173,674) $635,163 =======================================================================================================
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 2,823,178 (168) 2,823,010 2,823,010 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 71,558 47,300 118,858 118,858 Holiday Pay/Vacations 0 127,854 127,854 127,854 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 41,275 41,275 41,275 Manufacturing Misc 0 0 0 EPA 7,861,054 7,861,054 7,861,054 Medical Insurance 0 0 0 Accrued State Franchise Tax 172,743 172,743 172,743 Accrued Bank Service Charge (9,995 (9,995) (9,995) Accrued Interest 454,639 454,639 454,639 Accrued travel 40,223 40,223 40,223 Accrued taxes - other 0 0 ------------------------------------------------------------------------------------------------------- $3,183 $14,398,573 $35,632 ($36,000) $6,668,380 $64,082 $21,133,850 $0 $21,133,850 =======================================================================================================
Page 5 EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Abandoned Real Estate Exp 154 (12,445) (12,291) (12,291) Pensions 0 (6,543) (6,543) (6,543) Salaries/Wages 1,473,675 23,829 1,497,504 1,497,504 Holiday Pay/Vacations 3,718,438 (15,985) 3,702,453 3,702,453 Defined Contribution Plan 1,384,859 4,554 1,389,413 1,389,413 Medical Insurance 294,078 (4,220) (3,640) 286,218 286,218 Utilities 603,587 81,173 534 685,294 685,294 Legal 169,475 (5,830) 163,645 163,645 Professional Fees 322,386 322,386 322,386 Goods Received Not Invoiced 2,089,171 2,089,171 2,089,171 Worker's Compensation 1,667,894 1,667,894 1,667,894 Unearned Revenue 4,038 4,038 4,038 Sales Rebates/Discounts 1,395,928 1,395,928 1,395,928 Abanondon Property 0 0 0 Miscellaneous 155,500 30,241 185,741 185,741 Accrued Bank Service Charge 29,220 29,220 29,220 Accrued Self-Insurance Losses (144,637) (144,637) (144,637) Accrued Interest 647,372 647,372 647,372 Accrued Travel 0 0 0 Accrued Profit Sharing 2,350,000 2,350,000 2,350,000 Accrued Management Fees (35,769) (35,769) (35,769) -------------------------------------------------------------------------------------------- $0 $16,125,369 $0 $0 $94,774 ($3,106) $16,217,037 $0 $16,217,037 ============================================================================================
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 24,212 24,212 24,212 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 $11,104,689 $3,573,908 $0 $0 $0 $14,678,597 $0 $14,678,597 ============================================================================================
EXHIBIT J POST PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Workmans Compensation $815,084 $815,084 $815,084 Long Term Disability 3,251 3,251 3,251 Environmental (195,655) (195,655) (195,655) 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------- $0 $818,335 ($195,655) $0 $0 $0 $622,680 $0 $622,680 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer $548,411 953 $549,364 $549,364 Federal Unemployment Taxes 0 (1,132) (1,132) (1,132) State Unemployment Taxes 0 368 368 368 Property Tax 250,941 (16,141) (5,295) 229,505 229,505 Sales/Use Tax 1,935 2,771 4,706 4,706 Accrued State Franchise Tax (221,505) (221,505) (221,505) Miscellaneous (41,206) (41,206) (41,206) -------------------------------------------------------------------------------------------- $0 $538,576 $0 $0 ($13,181) ($5,295) $520,100 $0 $520,100 ============================================================================================
Page 6 EX-99.2 3 exhibit992feb.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED JANUARY 31, 2005 ($'s IN THOUSANDS)
Year to Date January, January, 2005 2005 - -------- -------- $3,020 SALES - OUTSIDE CUSTOMERS $3,020 0 SALES - INTERCOMPANY 0 - -------- -------- 3,020 NET SALES 3,020 2,166 VARIABLE PRODUCTION COSTS 2,166 - -------- -------- 854 VARIABLE CONTRIBUTION 854 - -------- -------- 153 MANUFACTURING FIXED COSTS 153 87 DEPRECIATION 87 - -------- -------- 240 TOTAL FIXED COSTS 240 - -------- -------- 614 GROSS PROFIT 614 - -------- -------- 200 SELLING EXPENSE 200 176 ADMINISTRATIVE EXPENSE 176 - -------- -------- 376 TOTAL SELLING & ADMIN.EXPENSE 376 - -------- -------- 238 OPERATING PROFIT 238 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 31 INTEREST EXPENSE 31 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - -------- -------- 207 INCOME BEFORE TAXES 207 82 INCOME TAXES 82 - -------- -------- 125 INCOME FROM OPERATIONS 125 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - -------- -------- $125 NET INCOME $125 ======== ========
Page 1 ENGINEERED WIRE PRODUCTS BALANCE SHEET January 31, 2005 ($'s IN THOUSANDS)
CURRENT ASSETS: CASH $315 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 3,946 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 15,708 LESS LIFO RESERVE 0 --------- INVENTORIES AT LIFO 15,708 --------- PREPAID EXPENSES 6 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------- TOTAL CURRENT ASSETS 19,975 --------- PROPERTY PLANT & EQUIPMENT AT COST 18,808 LESS ACCUMULATED DEPRECIATION 12,556 --------- NET PLANT, PROPERTY & EQUIPMENT 6,252 --------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 --------- TOTAL ASSETS $26,227 ========= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $133 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 62 INTERCOMPANY ACCOUNTS PAYABLE 2,147 ACCOUNTS PAYABLE 399 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 2,595 ACCRUED PENSIONS 21 INCOME TAXES PAYABLE 1,070 --------- TOTAL CURRENT LIABILITIES 7,816 --------- LONG TERM DEBT 4,091 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 --------- TOTAL LONG TERM LIABILITIES 4,091 --------- MINORITY INTEREST 0 --------- PREFERRED STOCK 0 --------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 14,320 LESS TREASURY STOCK 0 --------- TOTAL EQUITY 14,320 --------- TOTAL LIABILITIES & EQUITY $26,227 =========
Page 2 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JANUARY 31, 2005 ($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $125 PROVISION FOR DEPRECIATION 87 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 5 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. 1,652 (INCREASE) DECREASE INVENTORY (1,245) (INCREASE) DECREASE PREPAID EXPENSES 31 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (109) INCREASE (DECREASE) ACCRUED PENSIONS 21 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 257 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 1,213 -------- NET ADJUSTMENTS 1,912 -------- NET CASH PROVIDED (USED) BY OPERATIONS 2,037 -------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (11) INTERCO PP&E TRANSFERS NET 0 -------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (11) -------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (1,856) REPAYMENTS OF OTHER DEBT (117) PROCEEDS OF OTHER DEBT 0 INCREASE (DECREASE) KCI LOAN (15) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 -------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (1,988) -------- NET INCREASE (DECREASE) IN CASH 38 CASH AT BEGINNING OF PERIOD 277 -------- CASH AT END OF PERIOD $315 ========
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