-----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, BAjBc/30iLXBHwS6W3opdxZYLL1wzfrQYX0MHmkljRCeo3CCvRKnrhYyXmV2v7E2 jnsuQhfAP77JNCno05+ewA== 0000055604-05-000014.txt : 20050518 0000055604-05-000014.hdr.sgml : 20050518 20050518110623 ACCESSION NUMBER: 0000055604-05-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050516 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050518 DATE AS OF CHANGE: 20050518 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: 05840522 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 key8k052005.txt FORM 8-K 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): May 16, 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 May 16, 2005, Keystone filed its Monthly Operating Report for the month of April 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 April 2005 99.2 EWP Financial Information for the month of April 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: May 18, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- ------------------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of April 2005 99.2 EWP Financial Information for the month of April 2005 EX-99.1 2 exhibit991apr.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. 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 APRIL, 2005 I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $3,821,780 $0 $0 ($2,540) $0 $3,819,240 ----------------------------------------------------------------------------- B. RECEIPTS 0 98,826,675 0 0 10,774 1,400 98,838,849 C. DISBURSEMENTS 0 99,681,445 0 0 10,101 1,400 99,692,946 ----------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (854,770) 0 0 673 0 (854,097) ----------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $2,967,010 $0 $0 ($1,867) $0 $2,965,143 =============================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,407,584 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 $28,929,653. PROFIT AND LOSS STATEMENT ACCRUAL BASIS ---------------------------------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- -------- ----- A NET SALES $0 $35,031,789 $0 $0 $1,768,389 $0 $36,800,178 ($2,465,114) $34,335,064 B. COST OF SALES 0 29,420,188 0 0 1,537,116 0 30,957,304 (2,465,114) 28,492,190 ------------------------------------------------------------------------------------------------------ C. GROSS PROFIT 0 5,611,601 0 0 231,273 0 5,842,874 0 5,842,874 D. TOTAL OPERATING EXPENSES 4,410 6,097,365 0 60,000 425,973 20,245 6,607,993 (239,211) 6,368,782 ------------------------------------------------------------------------------------------------------ E. NET INCOME (LOSS) FROM OPERATIONS (4,410) (485,764) 0 (60,000) (194,700) (20,245) (765,119) 239,211 (525,908) F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES) 7,082 (676,828) 60,000 0 15,349 0 (594,397) (239,211) (833,608) ------------------------------------------------------------------------------------------------------ H. NET INCOME (LOSS) $2,672 ($1,162,592) $60,000 ($60,000) ($179,351) ($20,245) ($1,359,516) $0 ($1,359,516) ======================================================================================================
Page 1 of 6 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) $35,031,789 $1,768,389 $36,800,178 ($2,465,114) $34,335,064 --------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 77,033,123 3,526,796 80,559,919 80,559,919 Add: Purchases 27,027,520 1,802,599 28,830,119 (2,465,114) 26,365,005 Less: Ending Inventory at Cost 74,640,455 3,792,279 78,432,734 78,432,734 --------------------------------------------------------------------------------------------------- Cost of Goods Sold $0 $29,420,188 $0 $0 1,537,116 $0 $30,957,304 $(2,465,114) $28,492,190 --------------------------------------------------------------------------------------------------- Gross Profit 0 5,611,601 0 0 231,273 0 5,842,874 0 5,842,874 --------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 56,250 56,250 56,250 Salaries and Wages- Other Employees 1,447,532 93,058 1,540,590 1,540,590 Employee Benefits and Pensions 105 1,451,875 21,936 12,293 1,486,209 1,486,209 Payroll Taxes 130,020 16,388 146,408 146,408 Real Estate Taxes 15,768 15,071 791 31,630 31,630 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 14,825 3,340 18,165 18,165 Interest Expense 501,440 60,000 561,440 (225,626) 335,814 Insurance (254,957) 15,912 (239,045) (239,045) Automobile Expense 0 0 0 0 Utilities 386,981 10,882 660 398,523 398,523 Depreciation and Amortization 4,305 1,124,241 109,125 5,101 1,242,772 1,242,772 Repairs and Maintenance 231,795 9,164 400 241,359 241,359 Advertising 157,686 157,686 157,686 Supplies, Office Expense and Photocopies 92,531 9,848 102,379 102,379 Bad Debts 0 0 0 Miscellaneous 0 741,378 0 0 121,249 1,000 863,627 (13,585) 850,042 --------------------------------------------------------------------------------------------------- Total Operating Expenses 4,410 6,097,365 0 60,000 425,973 20,245 6,607,993 (239,211) 6,368,782 --------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,410) (485,764) 0 (60,000) (194,700) (20,245) (765,119) 239,211 (525,908) --------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: - -------------------------- Revenue: Interest Income 82 46,260 60,000 165,626 271,968 (225,626) 46,342 Net Gain (Loss) on Sale of Assets 0 0 0 Other 7,000 62,261 0 0 0 0 69,261 (13,585) 55,676 --------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,082 108,521 60,000 0 165,626 0 341,229 (239,211) 102,018 --------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 785,349 0 0 150,277 0 935,626 0 935,626 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 785,349 0 0 150,277 0 935,626 0 935,626 --------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $2,672 ($1,162,592) $60,000 ($60,000) ($179,351) ($20,245) ($1,359,516) $0 ($1,359,516) ===================================================================================================
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 6 IV. BALANCE SHEET
FVSW KCI DEMI JLP SWC SWCI ---- --- ---- --- --- ---- ASSETS ------ Current - ------- Cash $2,967,010 ($1,867) Inventory $53,582 38,670,151 3,366,614 Accounts Receivable 30,260,635 540,586 $6,000 Prepaid Expenses 1,863,896 91,013 1,264 Other-Exhibit E 75,567 3,323,149 $15,449,793 0 412,297 0 ------------------------------------------------------------------------------- Total Current Assets 129,149 77,084,841 15,449,793 0 4,408,643 7,264 ------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 327,330,654 20,922,199 2,285,279 Accumulated Depreciation (752,261) (246,986,004) (16,759,382) (1,846,024) ------------------------------------------------------------------------------- Total Fixed Assets 423,069 80,344,650 0 0 4,162,817 439,255 ------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,976,474 250,722 Prepaid Pension Asset 139,150,944 Deferred Financing Costs 951,028 Goodwill 751,508 Other-Exhibit F 40,000 39,508,966 0 0 2,246,871 0 ------------------------------------------------------------------------------- Total Other Assets 40,000 186,338,920 0 0 2,497,593 0 ------------------------------------------------------------------------------- Total Assets $592,218 $343,768,411 $15,449,793 $0 $11,069,053 $446,519 =============================================================================== LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable $19,597,061 $1,012,833 $54,503 Post-Petition Accounts Payable 1,574,933 86,623 1,400 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 (237,345) 2,696,515 433,128 610,515 (12,116) (134,080) Pre-Petition Accrued Expenses-Exhibit G 3,183 13,578,654 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses-Exhibit H 0 13,513,700 0 0 115,324 (3,580) Post-Petition Accrued Professional Fees 3,482,945 2,939 Post-Petition Accrued Other Taxes-Exhibit M 0 (372,056) 0 0 11,617 (3,479) 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 37,096,279 (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 8,433,964 ------------------------------------------------------------------------------- Total Current Liabilities (2,883,235) 239,424,101 6,242,867 16,281,806 (81,574,894) (1,480,234) ------------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 153,205 Accrued OPEB Cost 34,849 119,859,724 1,446,589 9,348,584 Accrued Pension Cost 1,134,572 Pre-Petition Accrued Expenses-Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses-Exhibit J 0 406,322 (198,554) 0 0 0 ------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 164,839,273 3,375,354 1,446,589 9,348,584 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 32,791,532 27,579,007 Accumulated Deficit 3,430,604 (106,184,621) 5,831,566 (19,975,261) 83,654,535 1,925,753 Treasury Stock (12,125) (33,557,453) ------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,440,604 (62,606,963) 5,831,572 (17,728,395) 83,295,363 1,926,753 ------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $592,218 $343,768,411 $15,449,793 $0 $11,069,053 $446,519 ===============================================================================
Page 3 of 6 IV. BALANCE SHEET (Continued)
Sub Elimin- Total ations Total ----- -------- ----- ASSETS ------ Current - ------- Cash $2,965,143 $2,965,143 Inventory 42,090,347 42,090,347 Accounts Receivable 30,807,221 30,807,221 Prepaid Expenses 1,956,173 1,956,173 Other-Exhibit E 19,260,806 (15,877,776) 3,383,030 ----------------------------------------- Total Current Assets 97,079,690 (15,877,776) 81,201,914 ----------------------------------------- Fixed - ----- Property and Equipment 351,713,462 351,713,462 Accumulated Depreciation (266,343,671) (266,343,671) ----------------------------------------- Total Fixed Assets 85,369,791 0 85,369,791 ----------------------------------------- Other - ----- Restricted Investments 6,227,196 6,227,196 Prepaid Pension Asset 139,150,944 139,150,944 Deferred Financing Costs 951,028 951,028 Goodwill 751,508 751,508 Other-Exhibit F 41,795,837 (41,173,674) 622,163 ----------------------------------------- Total Other Assets 188,876,513 (41,173,674) 147,702,839 ----------------------------------------- Total Assets $371,325,994 ($57,051,450) $314,274,544 ========================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable $20,664,397 $20,664,397 Post-Petition Accounts Payable 1,662,956 1,662,956 Pre-Petition Accounts Payable-Affiliates 15,879,389 $(14,904,350) 975,039 Post-Petition Accounts Payable-Affiliates 3,356,617 (973,426) 2,383,191 Pre-Petition Accrued Expenses-Exhibit G 20,313,931 0 20,313,931 Post-Petition Accrued Expenses-Exhibit H 13,625,444 0 13,625,444 Post-Petition Accrued Professional Fees 3,485,884 3,485,884 Post-Petition Accrued Other Taxes-Exhibit M (363,918) 0 (363,918) 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 37,075,989 37,075,989 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 8,433,964 8,433,964 ----------------------------------------- Total Current Liabilities 176,010,411 (15,877,776) 160,132,635 ----------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 153,205 153,205 Accrued OPEB Cost 130,689,746 130,689,746 Accrued Pension Cost 1,134,572 1,134,572 Pre-Petition Accrued Expenses-Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses-Exhibit J 207,768 0 207,768 ----------------------------------------- Total Long Term Liabilities 179,044,649 0 179,044,649 ----------------------------------------- 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 60,370,539 (27,579,007) 32,791,532 Accumulated Deficit (31,317,424) (39,274,975) (70,592,399) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 14,158,934 (41,173,674) (27,014,740) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $371,325,994 ($57,051,450) $314,274,544 =========================================
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 of 6 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Interest Receivable $567 $567 $567 Note Receivable 75,000 75,000 75,000 Intercompany Receivable $3,227,457 $15,449,793 $412,297 19,089,547 $(15,877,776) 3,211,771 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 72,837 72,837 72,837 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------ Total Other Current Assets $75,567 $3,323,149 $15,449,793 $0 $412,297 $0 $19,260,806 ($15,877,776) $3,383,030 ======================================================================================================
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 $254,113 254,113 254,113 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 $39,508,966 $0 $0 $2,246,871 $0 $41,795,837 ($41,173,674) $622,163 ======================================================================================================
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 $2,325,119 (168) 2,324,951 2,324,951 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 142,856 487,932 630,788 630,788 Self-Insurance Liability 2,410,006 5,050,166 7,460,172 7,460,172 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 7,837,183 7,837,183 7,837,183 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 $13,578,654 $35,632 ($36,000) $6,668,380 $64,082 $20,313,931 $0 $20,313,931 ======================================================================================================
Page 5 of 6 EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Abandoned Real Estate Exp $318 $5,855 $6,173 $6,173 Pensions 0 17,274 17,274 17,274 Salaries/Wages 666,112 (2,971) 663,141 663,141 Holiday Pay/Vacations 4,257,585 (739) 4,256,846 4,256,846 Defined Contribution Plan 606,367 17,122 623,489 623,489 Medical Insurance 293,932 (13,482) $(4,039) 276,411 276,411 Utilities 270,363 75,145 459 345,967 345,967 Legal 301,804 (13,121) 288,683 288,683 Professional Fees 283,691 283,691 283,691 Goods Received Not Invoiced 795,808 795,808 795,808 Worker's Compensation 2,837,804 2,837,804 2,837,804 Unearned Revenue 1,539 1,539 1,539 Sales Rebates/Discounts 1,516,290 1,516,290 1,516,290 Abanondon Property 0 0 0 Miscellaneous 581,500 30,241 611,741 611,741 Accrued Bank Service Charge 42,595 42,595 42,595 Accrued Self-Insurance Losses (149,856) (149,856) (149,856) Accrued Interest 731,117 731,117 731,117 Accrued Travel 0 0 0 Accrued Profit Sharing 250,000 250,000 250,000 Accrued Management Fees 226,731 226,731 226,731 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Current $0 $13,513,700 $0 $0 $115,324 ($3,580) $13,625,444 $0 $13,625,444 ============================================================================================
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 $401,025 $401,025 $401,025 Long Term Disability 5,297 5,297 5,297 Environmental $(198,554) (198,554) (198,554) 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Long Term $0 $406,322 ($198,554) $0 $0 $0 $207,768 $0 $207,768 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer ($263,134) $2,181 ($260,953) ($260,953) Federal Unemployment Taxes 0 1,684 1,684 1,684 State Unemployment Taxes 0 (11,946) (11,946) (11,946) Property Tax 291,556 16,828 $(3,479) 304,905 304,905 Sales/Use Tax 2,830 2,870 5,700 5,700 Accrued State Franchise Tax (362,102) (362,102) (362,102) Miscellaneous (41,206) (41,206) (41,206) ------------------------------------------------------------------------------------------------ Total Post Petition Accrued Other Taxes $0 ($372,056) $0 $0 $11,617 ($3,479) ($363,918) $0 ($363,918) ================================================================================================
Page 6 of 6 EX-99.2 3 exhibit992apr.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2005 ($'s IN THOUSANDS)
Year to Date April 2005 April 2005 - ----------- ------------ $7,279 SALES - OUTSIDE CUSTOMERS $19,330 0 SALES - INTERCOMPANY 0 - ---------- --------- 7,279 NET SALES 19,330 5,313 VARIABLE PRODUCTION COSTS 14,005 - ---------- --------- 1,966 VARIABLE CONTRIBUTION 5,325 - ---------- --------- 144 MANUFACTURING FIXED COSTS 586 87 DEPRECIATION 348 - ---------- --------- 231 TOTAL FIXED COSTS 934 - ---------- --------- 1,735 GROSS PROFIT 4,391 - ---------- --------- 206 SELLING EXPENSE 737 182 ADMINISTRATIVE EXPENSE 668 - ---------- --------- 388 TOTAL SELLING & ADMIN.EXPENSE 1,405 - ---------- --------- 1,347 OPERATING PROFIT 2,986 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 52 INTEREST EXPENSE 142 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - ---------- --------- 1,295 INCOME BEFORE TAXES 2,844 511 INCOME TAXES 1,123 - ---------- --------- 784 INCOME FROM OPERATIONS 1,721 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ---------- --------- $784 NET INCOME $1,721 ========== =========
Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET April 30, 2005 ($'s IN THOUSANDS)
CURRENT ASSETS: CASH $310 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 9,153 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 17,997 LESS LIFO RESERVE 0 ------- INVENTORIES AT LIFO 17,997 ------- PREPAID EXPENSES 0 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 ------- TOTAL CURRENT ASSETS 27,460 ------- PROPERTY PLANT & EQUIPMENT AT COST 18,852 LESS ACCUMULATED DEPRECIATION 12,817 ------- NET PLANT, PROPERTY & EQUIPMENT 6,035 ------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 ------- TOTAL ASSETS $33,495 ======= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $6,401 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 674 INTERCOMPANY ACCOUNTS PAYABLE 3,203 ACCOUNTS PAYABLE 448 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,133 ACCRUED PENSIONS 75 INCOME TAXES PAYABLE 512 ------- TOTAL CURRENT LIABILITIES 13,835 ------- LONG TERM DEBT 3,744 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 ------- TOTAL LONG TERM LIABILITIES 3,744 ------- MINORITY INTEREST 0 ------- PREFERRED STOCK 0 ------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 15,916 LESS TREASURY STOCK 0 ------- TOTAL EQUITY 15,916 ------- TOTAL LIABILITIES & EQUITY $33,495 =======
Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED APRIL 30, 2005 ($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $1,721 PROVISION FOR DEPRECIATION 348 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE (98) PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) (46) PROVISION FOR LIFO RESERVE 0 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (3,452) (INCREASE) DECREASE INVENTORY (3,488) (INCREASE) DECREASE PREPAID EXPENSES 37 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (60) INCREASE (DECREASE) ACCRUED PENSIONS 75 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES (1,763) (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 2,269 ------- NET ADJUSTMENTS (6,178) ------- NET CASH PROVIDED (USED) BY OPERATIONS (4,457) ------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (55) INTERCO PP&E TRANSFERS NET 0 ------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (55) ------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET 4,412 REPAYMENTS OF OTHER DEBT (464) PROCEEDS OF OTHER DEBT 0 INCREASE (DECREASE) KCI LOAN 597 PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 ------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 4,545 ------- NET INCREASE (DECREASE) IN CASH 33 CASH AT BEGINNING OF PERIOD 277 ------- CASH AT END OF PERIOD $310 =======
-----END PRIVACY-ENHANCED MESSAGE-----