-----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, ILAFIKWjON1hT67oZPPVRKs9FWG8O1HHDJkhr0jNAHZzVTPYLduyX7eoYOYmWMh3 RB9kKdTUqTpP9JouzZj4MA== 0000055604-05-000007.txt : 20050317 0000055604-05-000007.hdr.sgml : 20050317 20050317152625 ACCESSION NUMBER: 0000055604-05-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050314 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050317 DATE AS OF CHANGE: 20050317 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: 05688693 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 key8k031415.txt FORM 8-K, KEYSTONE CONSOLIDATED INDUSTRIES, INC. 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): March 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 March 14, 2005, Keystone filed its Monthly Operating Report for the month of February 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. The debtors anticipate 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 February 2005 99.2 EWP Financial Information for the month of February 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: March 17, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- --------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of February 2005 99.2 EWP Financial Information for the month of February 2005 EX-99.1 2 exhibit991mar.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 Trustee's Office 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. The debtors anticipate 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 FEBRUARY, 2005. I. FINANCIAL SUMMARY
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $4,768,550 $0 $0 ($341) $0 $4,768,209 ----------------------------------------------------------------- B. RECEIPTS 0 80,610,297 0 0 6,200 1,000 80,617,497 C. DISBURSEMENTS 0 81,746,002 0 0 5,522 1,000 81,752,524 ----------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (1,135,705) 0 0 678 0 (1,135,027) ----------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $3,632,845 $0 $0 $337 $0 $3,633,182 =================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,385,147 of cash held in escrow for anticipated payment to Unsecured Creditors' Committee upon emergence from Chapter 11. (See U.S. Bank - Portland, Oregon accounts # 15365681004 and # 436000100). Note 2 - KCI Receipts and Disbursement exclude transfers between KCI cash accounts of $23,080,323. PROFIT AND LOSS STATEMENT ACCRUAL BASIS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- A NET SALES $0 $29,710,962 $0 $0 $1,721,436 $0 $31,432,398 ($2,542,164) $28,890,234 B. COST OF SALES 0 22,814,901 0 0 1,460,436 0 24,275,337 (2,542,164) 21,733,173 --------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 6,896,061 0 0 261,000 0 7,157,061 0 7,157,061 D. TOTAL OPERATING EXPENSES 3,549 3,965,649 0 60,000 330,087 6,521 4,365,806 (204,461) 4,161,345 --------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (3,549) 2,930,412 0 (60,000) (69,087) (6,521) 2,791,255 204,461 2,995,716 F. NON-OPERATING, NON-RECURRING REVENUE(EXPENSES) 7,713 (937,528) 60,000 0 (306,764) 0 (1,176,579) (204,461) (1,381,040) --------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,164 $1,992,884 $60,000 ($60,000) ($375,851) ($6,521) $1,614,676 $0 $1,614,676 ===================================================================================================
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) $29,710,962 $1,721,436 $31,432,398 ($2,542,164) $28,890,234 --------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 71,418,977 2,812,997 74,231,974 74,231,974 Add: Purchases 29,918,246 1,740,562 31,658,808 (2,542,164) 29,116,644 Less: Ending Inventory at Cost 78,522,322 3,093,123 81,615,445 81,615,445 --------------------------------------------------------------------------------------------------- Cost of Good Sold 0 22,814,901 0 0 1,460,436 0 24,275,337 (2,542,164) 21,733,173 --------------------------------------------------------------------------------------------------- Gross Profit 0 6,896,061 0 0 261,000 0 7,157,061 0 7,157,061 --------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 41,923 41,923 41,923 Salaries and Wages -- Other Employees 1,147,376 84,296 1,231,672 1,231,672 Employee Benefits and Pensions 105 (797,305) 30,235 595 (766,370) (766,370) Payroll Taxes 98,187 19,550 117,737 117,737 Real Estate Taxes 12,616 12,057 633 25,306 25,306 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 26,363 982 27,345 27,345 Interest Expense 424,116 60,000 484,116 (193,592) 290,524 Insurance 72,242 12,730 84,972 84,972 Automobile Expense 0 0 0 0 Utilities 450,532 10,345 348 461,225 461,225 Depreciation and Amortization 3,444 1,118,640 87,292 4,081 1,213,457 1,213,457 Repairs and Maintenance 266,357 6,971 0 273,328 273,328 Advertising 135,910 135,910 135,910 Supplies, Office Expense and Photocopies 86,330 8,174 94,504 94,504 Bad Debts 0 0 0 Miscellaneous 0 882,362 0 0 57,455 864 940,681 (10,869) 929,812 --------------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 3,965,649 0 60,000 330,087 6,521 4,365,806 (204,461) 4,161,345 --------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) 2,930,412 0 (60,000) (69,087) (6,521) 2,791,255 204,461 2,995,716 --------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: - -------------------------- Revenue: Interest Income 713 11,426 60,000 133,592 205,731 (193,592) 12,139 Net Gain (Loss) on Sale of Assets (13,876) (13,876) (13,876) Other 7,000 46,238 0 0 0 0 53,238 (10,869) 42,369 --------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 43,788 60,000 0 133,592 0 245,093 (204,461) 40,632 --------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 981,316 0 0 440,356 0 1,421,672 0 1,421,672 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 981,316 0 0 440,356 0 1,421,672 0 1,421,672 --------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,164 $1,992,884 $60,000 ($60,000) ($375,851) ($6,521) $1,614,676 $0 $1,614,676 ===================================================================================================
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 $3,632,845 $337 Inventory 53,582 44,778,317 2,667,458 Accounts Receivable 30,063,922 566,307 6,000 Prepaid Expenses 2,330,484 166,638 1,264 Other-Exhibit E 76,425 1,920,295 15,329,793 0 429,984 0 --------------------------------------------------------------------------------- Total Current Assets 130,007 82,725,863 15,329,793 0 3,830,724 7,264 --------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 326,126,386 21,668,882 2,285,279 Accumulated Depreciation (744,512) (245,028,948) (17,324,284) (1,836,843) --------------------------------------------------------------------------------- Total Fixed Assets 430,818 81,097,438 0 0 4,344,598 448,436 --------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,878,315 248,296 Prepaid Pension Asset 136,296,754 Deferred Financing Costs 1,063,397 Goodwill 751,508 Other-Exhibit F 40,000 39,517,966 0 0 2,246,871 0 --------------------------------------------------------------------------------- Total Other Assets 40,000 183,507,940 0 0 2,495,167 0 --------------------------------------------------------------------------------- Total Assets $600,825 $347,331,241 $15,329,793 $0 $10,670,489 $455,700 ================================================================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,645,542 1,012,833 54,503 Post-Petition Accounts Payable 1,811,630 115,394 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-Affiliates (230,829) 3,891,387 327,350 598,530 (561,504) (129,685) Pre-Petition Accrued Expenses-Exhibit G 3,183 14,217,842 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses-Exhibit H 0 14,975,756 0 0 112,500 (3,250) Post-Petition Accrued Professional Fees 3,728,954 2,939 Post-Petition Accrued Other Taxes-Exhibit M 0 606,172 0 0 20,092 (4,903) 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 35,141,801 (20,290) Accrued OPEB Cost 11,441,001 155,000 297,662 Income Taxes Payable Pre-petition accrued pref. Stock dividends 11,845,805 Post petition accrued pref. Stock dividends 7,271,761 --------------------------------------------------------------------------------- Total Current Liabilities (2,876,719) 241,112,951 6,137,089 16,269,821 (82,089,860) (1,477,083) --------------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 161,004 Accrued OPEB Cost 34,849 117,392,383 1,446,589 9,249,126 Accrued Pension Cost 567,286 Pre-Petition Accrued Expenses-Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses-Exhibit J 0 643,228 (200,979) 0 0 0 --------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 162,049,351 3,372,929 1,446,589 9,249,126 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 33,953,734 27,579,007 Accumulated Deficit 3,432,695 (102,682,921) 5,819,769 (19,963,276) 83,870,395 1,931,783 Treasury Stock (12,125) (33,557,453) --------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,442,695 (57,943,061) 5,819,775 (17,716,410) 83,511,223 1,932,783 --------------------------------------------------------------------------------- Total Liabilities & Stockholder' Equity (Deficit) $600,825 $347,331,241 $15,329,793 $0 $10,670,489 $455,700 =================================================================================
Page 3 IV. BALANCE SHEET (Continued) Sub Elimin- Total ations Total ----- ------- -----
ASSETS ------ Current - ------- Cash $3,633,182 $3,633,182 Inventory 47,499,357 47,499,357 Accounts Receivable 30,636,229 30,636,229 Prepaid Expenses 2,498,386 2,498,386 Other-Exhibit E 17,756,497 (15,788,949) 1,967,548 ---------------------------------------------- Total Current Assets 102,023,651 (15,788,949) 86,234,702 ---------------------------------------------- Fixed - ----- Property and Equipment 351,255,877 351,255,877 Accumulated Depreciation (264,934,587) (264,934,587) ---------------------------------------------- Total Fixed Assets 86,321,290 0 86,321,290 ---------------------------------------------- Other - ----- Restricted Investments 6,126,611 6,126,611 Prepaid Pension Asset 136,296,754 136,296,754 Deferred Financing Costs 1,063,397 1,063,397 Goodwill 751,508 751,508 Other-Exhibit F 41,804,837 (41,173,674) 631,163 ---------------------------------------------- Total Other Assets 186,043,107 (41,173,674) 144,869,433 ---------------------------------------------- Total Assets $374,388,048 ($56,962,623) $317,425,425 ============================================== LIABILITIES ----------- Current Pre-Petition Accounts Payable 20,712,878 20,712,878 Post-Petition Accounts Payable 1,928,274 1,928,274 Pre-Petition Accounts Payable-Affiliates 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable-Affiliates 3,895,249 (884,599) 3,010,650 Pre-Petition Accrued Expenses-Exhibit G 20,953,119 0 20,953,119 Post-Petition Accrued Expenses-Exhibit H 15,085,006 0 15,085,006 Post-Petition Accrued Professional Fees 3,731,893 3,731,893 Post-Petition Accrued Other Taxes-Exhibit M 621,361 0 621,361 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 35,121,511 35,121,511 Accrued OPEB Cost 11,893,663 11,893,663 Income Taxes Payable 0 0 Pre-petition accrued pref. Stock dividends 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 7,271,761 7,271,761 ---------------------------------------------- Total Current Liabilities 177,076,199 (15,788,949) 161,287,250 ---------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 161,004 161,004 Accrued OPEB Cost 128,122,947 128,122,947 Accrued Pension Cost 567,286 567,286 Pre-Petition Accrued Expenses-Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses-Exhibit J 442,249 0 442,249 ---------------------------------------------- Total Long Term Liabilities 176,152,844 0 176,152,844 ---------------------------------------------- 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 61,532,741 (27,579,007) 33,953,734 Accumulated Deficit (27,591,555) (39,274,975) (66,866,530) Treasury Stock (33,569,578) 33,557,453 (12,125) ---------------------------------------------- Total Stockholders' Equity (Deficit) 19,047,005 (41,173,674) (22,126,669) ---------------------------------------------- Total Liabilities & Stockholder' Equity (Deficit) $374,388,048 ($56,962,623) $317,425,425 ==============================================
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 $1,425 $1,425 $1,425 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 1,831,190 15,329,793 429,984 17,590,967 (15,788,949) 1,802,018 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 66,250 66,250 66,250 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------- Total Other Current Assets $76,425 $1,920,295 $15,329,793 $0 $429,984 $0 $17,756,497 ($15,788,949) $1,967,548 =======================================================================================================
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 263,113 263,113 263,113 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 ------------------------------------------------------------------------------------------------------- Total Other Long Term Assets $40,000 $39,517,966 $0 $0 $2,246,871 $0 $41,804,837 ($41,173,674) $631,163 =======================================================================================================
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 2,651,704 (168) 2,651,536 2,651,536 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 7,851,797 7,851,797 7,851,797 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 ------------------------------------------------------------------------------------------------------- Total Pre-Petition Accrued Expenses-Current $3,183 $14,217,842 $35,632 ($36,000) $6,668,380 $64,082 $20,953,119 $0 $20,953,119 =======================================================================================================
Page 5 EXHIBT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Abandoned Real Estate Exp. 138 (7,745) (7,607) (7,607) Pensions 0 785 785 785 Salaries/Wages 1,399,062 17,652 1,416,714 1,416,714 Holiday Pay/Vacations 3,988,350 (9,595) 3,978,755 3,978,755 Defined Contribution Plan 1,484,729 8,803 1,493,532 1,493,532 Medical Insurance 294,019 (3,372) (3,773) 286,874 286,874 Utilities 390,691 82,855 523 474,069 474,069 Legal 375,045 (7,124) 367,921 367,921 Professional Fees 338,002 338,002 338,002 Goods Received Not Invoiced 764,530 764,530 764,530 Worker's Compensation 1,830,942 1,830,942 1,830,942 Unearned Revenue 3,269 3,269 3,269 Sales Rebates/Discounts 1,283,816 1,283,816 1,283,816 Abanondon Property 0 0 0 Miscellaneous 347,500 30,241 377,741 377,741 Accrued Bank Service Charge 34,025 34,025 34,025 Accrued Self-Insurance Losses (80,647) (80,647) (80,647) Accrued Interest 627,285 627,285 627,285 Accrued Travel 0 0 0 Accrued Profit Sharing 1,850,000 1,850,000 1,850,000 Accrued Management Fees 45,000 45,000 45,000 ------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses-Current $0 $14,975,756 $0 $0 $112,500 ($3,250) $15,085,006 $0 $15,085,006 =======================================================================================================
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 ------------------------------------------------------------------------------------------------------- Total Pre-Petition Accrued Expenses-Long Term $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 $638,796 $638,796 $638,796 Long Term Disability 4,432 4,432 4,432 Environmental (200,979) (200,979) (200,979) ------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses-Long Term $0 $643,228 ($200,979) $0 $0 $0 $442,249 $0 $442,249 =======================================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer $667,783 237 $668,020 $668,020 Federal Unemployment Taxes 0 816 816 816 State Unemployment Taxes 0 19,883 19,883 19,883 Property Tax 263,557 (3,488) (4,903) 255,166 255,166 Sales/Use Tax 2,240 2,644 4,884 4,884 Accrued State Franchise Tax (286,202) (286,202) (286,202) Miscellaneous (41,206) (41,206) (41,206) ------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Other Taxes $0 $606,172 $0 $0 $20,092 ($4,903) $621,361 $0 $621,361 =======================================================================================================
Page 6 EX-99.2 3 exhibit992mar.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS, INC. STATEMENT OF OPERATIONS FOR THE PERIOD ENDED FEBRUARY 28, 2005 ($s IN THOUSANDS)
Year-to-Date February, 2005 February 2005 -------------- -------------- $3,684 SALES - OUTSIDE CUSTOMERS $6,704 0 SALES - INTERCOMPANY 0 ------- ------ 3,684 NET SALES 6,704 2,633 VARIABLE PRODUCTION COSTS 4,799 ------- ------ 1,051 VARIABLE CONTRIBUTION 1,905 ------- ------ 130 MANUFACTURING FIXED COSTS 283 87 DEPRECIATION 174 ------- ------ 217 TOTAL FIXED COSTS 457 ------- ------ 834 GROSS PROFIT 1,448 ------- ------ 162 SELLING EXPENSE 362 149 ADMINISTRATIVE EXPENSE 325 ------- ------ 311 TOTAL SELLING & ADMIN.EXPENSE 687 ------- ------ 523 OPERATING PROFIT 761 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 26 INTEREST EXPENSE 57 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 ------- ------ 497 INCOME BEFORE TAXES 704 196 INCOME TAXES 278 ------- ------ 301 INCOME FROM OPERATIONS 426 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 ------- ------ $301 NET INCOME $426 ======= ======
ENGINEERED WIRE PRODUCTS, INC. BALANCE SHEET February 28, 2005 ($s IN THOUSANDS) CURRENT ASSETS: CASH $302 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 4,795 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 16,533 LESS LIFO RESERVE 0 ------- INVENTORIES AT LIFO 16,533 ------- PREPAID EXPENSES 1 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 ------- TOTAL CURRENT ASSETS 21,631 ------- PROPERTY PLANT & EQUIPMENT AT COST 18,841 LESS ACCUMULATED DEPRECIATION 12,643 ------- NET PLANT, PROPERTY & EQUIPMENT 6,198 ------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 ------- TOTAL ASSETS $27,829 ======= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $1,596 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 47 INTERCOMPANY ACCOUNTS PAYABLE 1,802 ACCOUNTS PAYABLE 374 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 2,721 ACCRUED PENSIONS 38 INCOME TAXES PAYABLE 1,266 ------- TOTAL CURRENT LIABILITIES 9,233 ------- LONG TERM DEBT 3,975 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 ------- TOTAL LONG TERM LIABILITIES 3,975 ------- MINORITY INTEREST 0 ------- PREFERRED STOCK 0 ------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 14,621 LESS TREASURY STOCK 0 ------- TOTAL EQUITY 14,621 ------- TOTAL LIABILITIES & EQUITY $27,829 =======
ENGINEERED WIRE PRODUCTS, INC. STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED FEBRUARY 28, 2005 ($s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $426 PROVISION FOR DEPRECIATION 174 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 9 PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0 PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. 799 (INCREASE) DECREASE INVENTORY (2,070) (INCREASE) DECREASE PREPAID EXPENSES 36 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (134) INCREASE (DECREASE) ACCRUED PENSIONS 38 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES 579 (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 868 ------- NET ADJUSTMENTS 299 ------- NET CASH PROVIDED (USED) BY OPERATIONS 725 ------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (44) INTERCO PP&E TRANSFERS NET 0 ------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (44) ------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (393) REPAYMENTS OF OTHER DEBT (233) PROCEEDS OF OTHER DEBT 0 INCREASE (DECREASE) KCI LOAN (30) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 ------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (656) ------- NET INCREASE (DECREASE) IN CASH 25 CASH AT BEGINNING OF PERIOD 277 ------- CASH AT END OF PERIOD $302 =======
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