-----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, Ab1R1N+t1ysU/Xn1juJUpe9+zTpBQ2WKfSxbfhQMekRw0SQ6gKhi2LgbARoWtOu6 kgTLIXVCk2/x96EO3qhPCQ== 0000055604-05-000017.txt : 20050616 0000055604-05-000017.hdr.sgml : 20050615 20050616172737 ACCESSION NUMBER: 0000055604-05-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050613 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050616 DATE AS OF CHANGE: 20050616 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: 05901071 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 key8k061505.txt FORM 8-K, KEYSTONE 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): June 13, 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) Chteck 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 June 13, 2005, Keystone filed its Monthly Operating Report for the month of May 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 May 2005 99.2 EWP Financial Information for the month of May 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: June 16, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of May 2005 99.2 EWP Financial Information for the month of May 2005 EX-99.1 2 exhibit991may.txt EXHIBIT 99.2 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 MAY, 2005. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $2,967,010 $0 $0 ($1,867) $0 $2,965,143 -------------------------------------------------------------------------- B. RECEIPTS 0 69,822,495 0 0 9,903 1,400 69,833,798 C. DISBURSEMENTS 0 68,045,900 0 0 7,958 1,400 68,055,258 -------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 1,776,595 0 0 1,945 0 1,778,540 -------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $4,743,605 $0 $0 $78 $0 $4,743,683 ==========================================================================
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 $15,103,609. PROFIT AND LOSS STATEMENT ACCRUAL BASIS -------------------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- A NET SALES $0 $23,697,773 $0 $0 $1,427,365 $0 $25,125,138 ($1,788,458) $23,336,680 B. COST OF SALES 0 22,173,813 0 0 1,225,768 0 23,399,581 (1,788,458) 21,611,123 -------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 1,523,960 0 0 201,597 0 1,725,557 0 1,725,557 D. TOTAL OPERATING EXPENSES 3,549 5,971,802 0 60,000 371,791 8,295 6,415,437 (201,895) 6,213,542 -------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (3,549) (4,447,842) 0 (60,000) (170,194) (8,295) (4,689,880) 201,895 (4,487,985) F. NON-OPERATING, NON-RECURRING REVENUE (EXPENSES) 7,567 (539,017) 60,000 0 46,420 0 (425,030) (201,895) (626,925) -------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,018 ($4,986,859) $60,000 ($60,000) ($123,774) ($8,295) ($5,114,910) $0 ($5,114,910) ==================================================================================================
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) $23,697,773 $1,427,365 $25,125,138 ($1,788,458) $23,336,680 -------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 74,640,455 3,792,279 78,432,734 78,432,734 Add: Purchases 9,909,606 1,174,831 11,084,437 (1,788,458) 9,295,979 Less: Ending Inventory at Cost 62,376,248 3,741,342 66,117,590 66,117,590 -------------------------------------------------------------------------------------------------- Cost of Good Sold 0 22,173,813 0 0 1,225,768 0 23,399,581 (1,788,458) 21,611,123 -------------------------------------------------------------------------------------------------- Gross Profit 0 1,523,960 0 0 201,597 0 1,725,557 0 1,725,557 -------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 43,750 43,750 43,750 Salaries and Wages- - Other Employees 1,140,189 75,608 1,215,797 1,215,797 Employee Benefits and Pensions 105 1,110,923 23,921 1,639 1,136,588 1,136,588 Payroll Taxes 96,715 11,496 108,211 108,211 Real Estate Taxes 17,011 12,056 633 29,700 29,700 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 74,244 1,305 75,549 75,549 Interest Expense 425,506 60,000 485,506 (191,026) 294,480 Insurance 73,236 12,730 85,966 85,966 Automobile Expense 0 0 0 0 Utilities 249,393 10,310 267 259,970 259,970 Depreciation and Amortization 3,444 1,127,811 87,300 4,081 1,222,636 1,222,636 Repairs and Maintenance 307,143 6,402 425 313,970 313,970 Advertising 39,340 39,340 39,340 Supplies, Office Expense and Photocopies 55,074 9,511 64,585 64,585 Bad Debts 0 0 0 Miscellaneous 0 1,211,467 0 0 121,152 1,250 1,333,869 (10,869) 1,323,000 -------------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,971,802 0 60,000 371,791 8,295 6,415,437 (201,895) 6,213,542 -------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) (4,447,842) 0 (60,000) (170,194) (8,295) (4,689,880) 201,895 (4,487,985) -------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: Revenue: Interest Income 567 7 60,000 131,026 191,600 (191,026) 574 Net Gain (Loss) on Sale of Assets 0 0 0 Other 7,000 46,817 0 0 0 0 53,817 (10,869) 42,948 -------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,567 46,824 60,000 0 131,026 0 245,417 (201,895) 43,522 -------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 585,841 0 0 84,606 0 670,447 0 670,447 Other 0 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 585,841 0 0 84,606 0 670,447 0 670,447 -------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,018 ($4,986,859) $60,000 ($60,000) ($123,774) ($8,295) ($5,114,910) $0 ($5,114,910) ==================================================================================================
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 $4,743,605 $78 Inventory 53,582 35,548,779 3,315,678 Accounts Receivable 27,584,987 524,009 6,000 Prepaid Expenses 2,082,154 102,513 1,264 Other - Exhibit E 76,133 1,968,122 15,509,793 0 344,741 0 ------------------------------------------------------------------------------- Total Current Assets 129,715 71,927,647 15,509,793 0 4,287,019 7,264 ------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 327,770,567 20,937,452 2,285,279 Accumulated Depreciation (755,705) (248,025,988) (16,846,683) (1,850,105) ------------------------------------------------------------------------------- Total Fixed Assets 419,625 79,744,579 0 0 4,090,769 435,174 ------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,976,474 250,722 Prepaid Pension Asset 140,419,473 Deferred Financing Costs 922,798 Goodwill 751,508 Other - Exhibit F 40,000 39,504,966 0 0 2,246,871 0 ------------------------------------------------------------------------------- Total Other Assets 40,000 187,575,219 0 0 2,497,593 0 ------------------------------------------------------------------------------- Total Assets $589,340 $339,247,445 $15,509,793 $0 $10,875,381 $442,438 =============================================================================== LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 18,726,293 1,012,833 54,503 Post-Petition Accounts Payable 548,403 90,828 1,675 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 (244,240) 3,355,489 433,128 670,515 (117,198) (130,676) Pre-Petition Accrued Expenses - Exhibit G 3,183 13,409,121 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses - Exhibit H 0 13,805,572 0 0 92,762 (3,677) Post-Petition Accrued Professional Fees 3,329,947 2,939 Post-Petition Accrued Other Taxes - Exhibit M 0 (153,421) 0 0 21,779 (2,846) 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 37,299,863 (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 9,044,613 ------------------------------------------------------------------------------- Total Current Liabilities (2,890,130) 239,187,986 6,242,867 16,341,806 (81,688,171) (1,476,019) ------------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 149,573 Accrued OPEB Cost 34,849 121,128,936 1,446,589 9,391,962 Accrued Pension Cost 1,386,700 Pre-Petition Accrued Expenses - Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses - Exhibit J 0 201,270 (198,554) 0 0 0 ------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 166,151,929 3,375,354 1,446,589 9,391,962 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 32,180,883 27,579,007 Accumulated Deficit 3,434,621 (111,171,479) 5,891,566 (20,035,261) 83,530,762 1,917,457 Treasury Stock (12,125) (33,557,453) ------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,444,621 (68,204,470) 5,891,572 (17,788,395) 83,171,590 1,918,457 ------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $589,340 $339,247,445 $15,509,793 $0 $10,875,381 $442,438 ===============================================================================
Page 3 of 6 IV. BALANCE SHEET (CONTINUED) -----------------------------
Sub Elimin- Total ations Total ----- ------- ----- ASSETS ------ Current - ------- Cash $4,743,683 $4,743,683 Inventory 38,918,039 38,918,039 Accounts Receivable 28,114,996 28,114,996 Prepaid Expenses 2,185,931 2,185,931 Other - Exhibit E 17,898,789 (15,854,534) 2,044,255 ----------------------------------------- Total Current Assets 91,861,438 (15,854,534) 76,006,904 ----------------------------------------- Fixed - ----- Property and Equipment 352,168,628 352,168,628 Accumulated Depreciation (267,478,481) (267,478,481) ----------------------------------------- Total Fixed Assets 84,690,147 0 84,690,147 ----------------------------------------- Other - ----- Restricted Investments 6,227,196 6,227,196 Prepaid Pension Asset 140,419,473 140,419,473 Deferred Financing Costs 922,798 922,798 Goodwill 751,508 751,508 Other - Exhibit F 41,791,837 (41,173,674) 618,163 ----------------------------------------- Total Other Assets 190,112,812 (41,173,674) 148,939,138 ----------------------------------------- Total Assets $366,664,397 ($57,028,208) $309,636,189 ========================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,793,629 19,793,629 Post-Petition Accounts Payable 640,906 640,906 Pre-Petition Accounts Payable-Affiliates 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable-Affiliates 3,967,018 (950,184) 3,016,834 Pre-Petition Accrued Expenses - Exhibit G 20,144,398 0 20,144,398 Post-Petition Accrued Expenses - Exhibit H 13,894,657 0 13,894,657 Post-Petition Accrued Professional Fees 3,332,886 3,332,886 Post-Petition Accrued Other Taxes - Exhibit M (134,488) 0 (134,488) 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 37,279,573 37,279,573 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 9,044,613 9,044,613 ----------------------------------------- Total Current Liabilities 175,718,339 (15,854,534) 159,863,805 ----------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 149,573 149,573 Accrued OPEB Cost 132,002,336 132,002,336 Accrued Pension Cost 1,386,700 1,386,700 Pre-Petition Accrued Expenses - Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses - Exhibit J 2,716 0 2,716 ----------------------------------------- Total Long Term Liabilities 180,400,683 0 180,400,683 ----------------------------------------- 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 59,759,890 (27,579,007) 32,180,883 Accumulated Deficit (36,432,334) (39,274,975) (75,707,309) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 8,433,375 (41,173,674) (32,740,299) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $366,664,397 ($57,028,208) $309,636,189 =========================================
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 ---------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- -------- ----- Interest Receivable $1,133 $1,133 $1,133 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 1,749,724 15,509,793 344,741 17,604,258 (15,854,534) 1,749,724 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 195,543 195,543 195,543 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------ Total Other Current Assets $76,133 $1,968,122 $15,509,793 $0 $344,741 $0 $17,898,789 ($15,854,534) $2,044,255 ==========================================================================================
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 250,113 250,113 250,113 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 $39,504,966 $0 $0 $2,246,871 $0 $41,791,837 ($41,173,674) $618,163 ====================================================================================================
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 2,153,224 (168) 2,153,056 2,153,056 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 152,856 487,932 640,788 640,788 Self-Insurance Liability 2,403,446 5,050,166 7,453,612 7,453,612 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 7,836,035 7,836,035 7,836,035 Medical Insurance 0 0 0 Accrued State Franchise Tax 172,743 172,743 172,743 Accrued Bank Service Charge (9,925) (9,925) (9,925) Accrued Interest 454,639 454,639 454,639 Accrued travel 40,223 40,223 40,223 Accrued taxes - other 0 0 ---------------------------------------------------------------------------------------------------- Total Pre-Petition Accrued Expenses- Current $3,183 $13,409,121 $35,632 ($36,000) $6,668,380 $64,082 $20,144,398 $0 $20,144,398 ====================================================================================================
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 10,555 10,873 10,873 Pensions 0 24,602 24,602 24,602 Salaries/Wages 702,827 (6,220) 696,607 696,607 Holiday Pay/Vacations 4,350,606 4,859 4,355,465 4,355,465 Defined Contribution Plan 725,170 21,058 746,228 746,228 Medical Insurance 293,905 (37,518) (4,171) 252,216 252,216 Utilities 213,096 69,387 494 282,977 282,977 Legal 274,124 (24,202) 249,922 249,922 Professional Fees 415,558 415,558 415,558 Goods Received Not Invoiced 903,662 903,662 903,662 Worker's Compensation 2,912,758 2,912,758 2,912,758 Unearned Revenue 769 769 769 Sales Rebates/Discounts 1,026,388 1,026,388 1,026,388 Abanondon Property 0 0 0 Miscellaneous 698,500 30,241 728,741 728,741 Accrued Bank Service Charge 43,658 43,658 43,658 Accrued Self-Insurance Losses (90,901) (90,901) (90,901) Accrued Interest 777,634 777,634 777,634 Accrued Travel 0 0 0 Accrued Profit Sharing 250,000 250,000 250,000 Accrued Management Fees 307,500 307,500 307,500 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses- Current $0 $13,805,572 $0 $0 $92,762 ($3,677) $13,894,657 $0 $13,894,657 ============================================================================================
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 Expense 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 $195,588 $195,588 $195,588 Long Term Disability 5,682 5,682 5,682 Environmental (198,554) (198,554) (198,554) 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses- Long Term $0 $201,270 ($198,554) $0 $0 $0 $2,716 $0 $2,716 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES ---------------------------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer ($170,379) 2,438 ($167,941) ($167,941) Federal Unemployment Taxes 0 (3,024) (3,024) (3,024) State Unemployment Taxes 0 (10,094) (10,094) (10,094) Property Tax 228,589 29,430 (2,846) 255,173 255,173 Sales/Use Tax 930 3,029 3,959 3,959 Accrued State Franchise Tax (171,355) (171,355) (171,355) Miscellaneous (41,206) (41,206) (41,206) -------------------------------------------------------------------------------------------- Total Post Petition Accrued Other Taxes $0 ($153,421) $0 $0 $21,779 ($2,846) ($134,488) $0 ($134,488) ============================================================================================
EX-99.2 3 exhibit992may.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED MAY 31, 2005 ($'s IN THOUSANDS) Year to Date May 2005 May 2005 - ---------- ---------- $5,414 SALES - OUTSIDE CUSTOMERS $24,744 0 SALES - INTERCOMPANY 0 - ---------- ---------- 5,414 NET SALES 24,744 3,953 VARIABLE PRODUCTION COSTS 17,958 - ---------- ---------- 1,461 VARIABLE CONTRIBUTION 6,786 - ---------- ---------- 139 MANUFACTURING FIXED COSTS 725 87 DEPRECIATION 435 - ---------- ---------- 226 TOTAL FIXED COSTS 1,160 - ---------- ---------- 1,235 GROSS PROFIT 5,626 - ---------- ---------- 165 SELLING EXPENSE 902 144 ADMINISTRATIVE EXPENSE 812 - ---------- ---------- 309 TOTAL SELLING & ADMIN.EXPENSE 1,714 - ---------- ---------- 926 OPERATING PROFIT 3,912 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 47 INTEREST EXPENSE 189 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - ---------- ---------- 879 INCOME BEFORE TAXES 3,723 347 INCOME TAXES 1,470 - ---------- ---------- 532 INCOME FROM OPERATIONS 2,253 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ---------- ---------- $532 NET INCOME $2,253 ========== ========== Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET May 31, 2005 ($'s IN THOUSANDS) CURRENT ASSETS: CASH $718 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 8,804 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 16,397 LESS LIFO RESERVE 0 --------- INVENTORIES AT LIFO 16,397 --------- PREPAID EXPENSES 0 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------- TOTAL CURRENT ASSETS 25,919 --------- PROPERTY, PLANT & EQUIPMENT AT COST 18,898 LESS ACCUMULATED DEPRECIATION 12,904 --------- NET PROPERTY, PLANT & EQUIPMENT 5,994 --------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 --------- TOTAL ASSETS $31,913 ========= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $6,005 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 41 INTERCOMPANY ACCOUNTS PAYABLE 1,750 ACCOUNTS PAYABLE 419 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,282 ACCRUED PENSIONS 92 INCOME TAXES PAYABLE 859 --------- TOTAL CURRENT LIABILITIES 11,837 --------- LONG TERM DEBT 3,628 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 --------- TOTAL LONG TERM LIABILITIES 3,628 --------- MINORITY INTEREST 0 --------- PREFERRED STOCK 0 --------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 16,448 LESS TREASURY STOCK 0 --------- TOTAL EQUITY 16,448 --------- TOTAL LIABILITIES & EQUITY $31,913 ========= Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED MAY 31, 2005 ($'s IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $2,253 PROVISION FOR DEPRECIATION 435 (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. (3,103) (INCREASE) DECREASE INVENTORY (1,888) (INCREASE) DECREASE PREPAID EXPENSES 37 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (89) INCREASE (DECREASE) ACCRUED PENSIONS 92 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES (1,267) (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 816 --------- NET ADJUSTMENTS (5,111) --------- NET CASH PROVIDED (USED) BY OPERATIONS (2,858) --------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (101) INTERCO PP&E TRANSFERS NET 0 --------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (101) --------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET 4,016 REPAYMENTS OF OTHER DEBT (580) PROCEEDS OF OTHER DEBT 0 INCREASE (DECREASE) KCI LOAN (36) PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 --------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 3,400 --------- NET INCREASE (DECREASE) IN CASH 441 CASH AT BEGINNING OF PERIOD 277 --------- CASH AT END OF PERIOD $718 ========= Page 3 of 3 -----END PRIVACY-ENHANCED MESSAGE-----