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