-----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, V1jg5V4ke2WwbiJlPzmrH7ErcwNHDFsYROSfIWinEYwhpQRQ+4LbKL7XCY1LvsZs A0vq6Fn5FaNAyCGMR81ydg== 0000055604-05-000019.txt : 20050713 0000055604-05-000019.hdr.sgml : 20050713 20050713095547 ACCESSION NUMBER: 0000055604-05-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050711 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050713 DATE AS OF CHANGE: 20050713 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: 05951423 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 key8k071105.txt FORM 8-K, KEYSTONE, 07.11.05 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): July 11, 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 July 11, 2005, Keystone filed its Monthly Operating Report for the month of June 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 June 2005 99.2 EWP Financial Information for the month of June 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: July 13, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- ------------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of June 2005 99.2 EWP Financial Information for the month of June 2005 EX-99.1 2 exhibit991jun.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 JUNE, 2005. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $4,743,605 $0 $0 $78 $0 $4,743,683 ----------------------------------------------------------------------------- B. RECEIPTS 0 54,103,684 0 0 4,340 1,675 54,109,699 C. DISBURSEMENTS 0 54,257,444 0 0 4,679 1,675 54,263,798 ----------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (153,760) 0 0 (339) 0 (154,099) ----------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $4,589,845 $0 $0 ($261) $0 $4,589,584 =============================================================================
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 $11,824,108. PROFIT AND LOSS STATEMENT ACCRUAL BASIS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $23,157,487 $0 $0 $917,175 $0 $24,074,662 ($1,008,132) $23,066,530 B. COST OF SALES 0 20,835,741 0 0 889,966 0 21,725,707 (1,008,132) 20,717,575 --------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 2,321,746 0 0 27,209 0 2,348,955 0 2,348,955 D. TOTAL OPERATING EXPENSES 3,549 5,815,843 0 60,000 341,187 6,200 6,226,779 (202,660) 6,024,119 --------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (3,549) (3,494,097) 0 (60,000) (313,978) (6,200) (3,877,824) 202,660 (3,675,164) F. NON-OPERATING, NON-RECURRING REVENUE (EXPENSES) 7,520 (991,014) 60,000 0 83,124 0 (840,370) (202,660) (1,043,030) --------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $3,971 ($4,485,111) $60,000 ($60,000) ($230,854) ($6,200) ($4,718,194) $0 ($4,718,194) ===================================================================================================
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) $23,157,487 $917,175 $24,074,662 ($1,008,132) $23,066,530 ------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 62,376,248 3,741,342 66,117,590 66,117,590 Add: Purchases 18,825,273 709,980 19,535,253 (1,008,132) 18,527,121 Less: Ending Inventory at Cost 60,365,780 3,561,356 63,927,136 63,927,136 ------------------------------------------------------------------------------------------------- Cost of Good Sold 0 20,835,741 0 0 889,966 0 21,725,707 (1,008,132) 20,717,575 ------------------------------------------------------------------------------------------------- Gross Profit 0 2,321,746 0 0 27,209 0 2,348,955 0 2,348,955 ------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 43,750 43,750 43,750 Salaries and Wages -- Other Employees 1,120,236 72,173 1,192,409 1,192,409 Employee Benefits and Pensions 105 1,467,729 24,232 1,492,066 1,492,066 Payroll Taxes 93,341 10,967 104,308 104,308 Real Estate Taxes 26,389 12,057 633 39,079 39,079 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 69,146 953 70,099 70,099 Interest Expense 395,512 60,000 455,512 (191,791) 263,721 Insurance 147,873 12,730 160,603 160,603 Automobile Expense 0 0 0 0 Utilities 230,225 8,939 236 239,400 239,400 Depreciation and Amortization 3,444 1,141,937 87,300 4,081 1,236,762 1,236,762 Repairs and Maintenance 167,510 8,681 176,191 176,191 Advertising 120,908 120,908 120,908 Supplies, Office Expense and Photocopies 83,561 15,591 99,152 99,152 Bad Debts 0 0 0 Miscellaneous 0 707,726 0 0 87,564 1,250 796,540 (10,869) 785,671 ------------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,815,843 0 60,000 341,187 6,200 6,226,779 (202,660) 6,024,119 ------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) (3,494,097) 0 (60,000) (313,978) (6,200) (3,877,824) 202,660 (3,675,164) ------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: - -------------------------- Revenue: Interest Income 520 0 60,000 131,791 192,311 (191,791) 520 Net Gain (Loss) on Sale of Assets 0 (12,804) (12,804) (12,804) Other 7,000 53,602 0 0 0 0 60,602 (10,869) 49,733 ------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,520 53,602 60,000 0 118,987 0 240,109 (202,660) 37,449 ------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 1,044,616 0 0 35,863 0 1,080,479 0 1,080,479 Other 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 1,044,616 0 0 35,863 0 1,080,479 0 1,080,479 ------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $3,971 ($4,485,111) $60,000 ($60,000) ($230,854) ($6,200) ($4,718,194) $0 ($4,718,194) =================================================================================================
Page 2 of 6 IV. BALANCE SHEET
FVSW KCI DEMI JLP SWC SWCI ---- --- ---- --- --- ---- ASSETS ------ Current - ------- Cash $4,589,845 ($261) Inventory 53,582 27,649,465 3,135,692 Accounts Receivable 27,163,000 425,198 6,000 Prepaid Expenses 2,016,161 62,240 1,264 Other - Exhibit E 83,653 1,945,652 15,569,793 0 315,332 0 --------------------------------------------------------------------------------- Total Current Assets 137,235 63,364,123 15,569,793 0 3,938,201 7,264 --------------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 328,831,242 20,724,187 2,285,279 Accumulated Depreciation (759,149) (249,091,806) (16,716,484) (1,854,186) --------------------------------------------------------------------------------- Total Fixed Assets 416,181 79,739,436 0 0 4,007,703 431,093 --------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,976,474 250,722 Prepaid Pension Asset 141,688,002 Deferred Financing Costs 894,567 Goodwill 751,508 Other - Exhibit F 40,000 39,500,966 0 0 2,246,871 0 --------------------------------------------------------------------------------- Total Other Assets 40,000 188,811,517 0 0 2,497,593 0 --------------------------------------------------------------------------------- Total Assets $593,416 $331,915,076 $15,569,793 $0 $10,443,497 $438,357 ================================================================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 18,726,293 1,012,833 54,503 Post-Petition Accounts Payable 1,215,917 66,873 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 (244,136) 3,533,052 433,128 730,515 (326,241) (128,733) Pre-Petition Accrued Expenses - Exhibit G 3,183 13,302,829 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses - Exhibit H 0 14,480,310 0 0 68,205 (3,709) Post-Petition Accrued Professional Fees 3,688,011 2,939 Post-Petition Accrued Other Taxes - Exhibit M 0 (27,850) 0 0 35,170 (2,213) 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 31,298,247 (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 9,635,564 --------------------------------------------------------------------------------- Total Current Liabilities (2,890,026) 235,674,479 6,242,867 16,401,806 (81,932,335) (1,473,900) --------------------------------------------------------------------------------- Long Term Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 147,506 Accrued OPEB Cost 34,849 122,296,313 1,446,589 9,435,096 Accrued Pension Cost 1,638,828 Pre-Petition Accrued Expenses - Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses - Exhibit J 0 121,955 (198,554) 0 0 0 --------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 167,490,052 3,375,354 1,446,589 9,435,096 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 31,589,932 27,579,007 Accumulated Deficit 3,438,593 (115,737,513) 5,951,566 (20,095,261) 83,299,908 1,911,257 Treasury Stock (12,125) (33,557,453) --------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,448,593 (73,361,455) 5,951,572 (17,848,395) 82,940,736 1,912,257 --------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $593,416 $331,915,076 $15,569,793 $0 $10,443,497 $438,357 =================================================================================
Page 3 of 6 IV. BALANCE SHEET (Continued)
Sub Elimin- Total ations Total ----- ------- ----- ASSETS ------ Current - ------- Cash $4,589,584 $4,589,584 Inventory 30,838,739 30,838,739 Accounts Receivable 27,594,198 27,594,198 Prepaid Expenses 2,079,665 2,079,665 Other - Exhibit E 17,914,430 (15,885,125) 2,029,305 ------------------------------------------ Total Current Assets 83,016,616 (15,885,125) 67,131,491 ------------------------------------------ Fixed - ----- Property and Equipment 353,016,038 353,016,038 Accumulated Depreciation (268,421,625) (268,421,625) ------------------------------------------ Total Fixed Assets 84,594,413 0 84,594,413 ------------------------------------------ Other - ----- Restricted Investments 6,227,196 6,227,196 Prepaid Pension Asset 141,688,002 141,688,002 Deferred Financing Costs 894,567 894,567 Goodwill 751,508 751,508 Other - Exhibit F 41,787,837 (41,173,674) 614,163 ------------------------------------------ Total Other Assets 191,349,110 (41,173,674) 150,175,436 ------------------------------------------ Total Assets $358,960,139 ($57,058,799) $301,901,340 ========================================== LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,793,629 19,793,629 Post-Petition Accounts Payable 1,284,040 1,284,040 Pre-Petition Accounts Payable - Affiliates 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable - Affiliates 3,997,585 (980,775) 3,016,810 Pre-Petition Accrued Expenses - Exhibit G 20,038,106 0 20,038,106 Post-Petition Accrued Expenses - Exhibit H 14,544,806 0 14,544,806 Post-Petition Accrued Professional Fees 3,690,950 3,690,950 Post-Petition Accrued Other Taxes - Exhibit M 5,107 0 5,107 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 31,277,957 31,277,957 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 9,635,564 9,635,564 ------------------------------------------ Total Current Liabilities 172,022,891 (15,885,125) 156,137,766 ------------------------------------------ Long Term Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 147,506 147,506 Accrued OPEB Cost 133,212,847 133,212,847 Accrued Pension Cost 1,638,828 1,638,828 Pre-Petition Accrued Expenses - Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses - Exhibit J (76,599) 0 (76,599) ------------------------------------------ Total Long Term Liabilities 181,781,940 0 181,781,940 ------------------------------------------ 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 59,168,939 (27,579,007) 31,589,932 Accumulated Deficit (41,231,450) (39,274,975) (80,506,425) Treasury Stock (33,569,578) 33,557,453 (12,125) ------------------------------------------ Total Stockholders' Equity (Deficit) 3,043,308 (41,173,674) (38,130,366) ------------------------------------------ Total Liabilities & Stockholders' Equity (Deficit) $358,960,139 ($57,058,799) $301,901,340 ==========================================
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 incrred pre-petition. Page 4 of 6 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Interest Receivable $1,653 $1,653 $1,653 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 1,864,254 15,569,793 315,332 17,749,379 (15,885,125) 1,864,254 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 58,543 58,543 58,543 Stop Loss Receivable 1,927 1,927 1,927 Rent Receivable 7,000 7,000 7,000 Security Deposit 500 500 500 --------------------------------------------------------------------------------------------------------- Total Other Current Assets $83,653 $1,945,652 $15,569,793 $0 $315,332 $0 $17,914,430 ($15,885,125) $2,029,305 =========================================================================================================
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 246,113 246,113 246,113 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 $39,500,966 $0 $0 $2,246,871 $0 $41,787,837 ($41,173,674) $614,163 =========================================================================================================
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 2,059,343 (168) 2,059,175 2,059,175 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 2,403,446 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 7,833,624 7,833,624 7,833,624 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 $13,302,829 $35,632 ($36,000) $6,668,380 $64,082 $20,038,106 $0 $20,038,106 =========================================================================================================
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 11,055 11,373 11,373 Pensions 0 31,930 31,930 31,930 Salaries/Wages 893,568 (4,163) 889,405 889,405 Holiday Pay/Vacations 3,925,825 (1,734) 3,924,091 3,924,091 Defined Contribution Plan 828,993 24,880 853,873 853,873 Medical Insurance 293,905 (41,603) (4,171) 248,131 248,131 Utilities 295,763 54,769 462 350,994 350,994 Legal 271,951 (79,269) 192,682 192,682 Professional Fees 400,511 400,511 400,511 Goods Received Not Invoiced 843,297 843,297 843,297 Worker's Compensation 3,106,909 3,106,909 3,106,909 Unearned Revenue 0 0 0 Sales Rebates/Discounts 1,284,888 1,284,888 1,284,888 Abanondon Property 0 0 0 Miscellaneous 815,500 72,340 887,840 887,840 Accrued Bank Service Charge 48,114 48,114 48,114 Accrued Self-Insurance Losses 9,543 9,543 9,543 Accrued Interest 822,956 822,956 822,956 Accrued Travel 0 0 0 Accrued Profit Sharing 250,000 250,000 250,000 Accrued Management Fees 388,269 388,269 388,269 --------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Current $0 $14,480,310 $0 $0 $68,205 ($3,709) $14,544,806 $0 $14,544,806 =========================================================================================================
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 $115,888 $115,888 $115,888 Long Term Disability 6,067 6,067 6,067 Environmental (198,554) (198,554) (198,554) 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Long Term $0 $121,955 ($198,554) $0 $0 $0 ($76,599) $0 ($76,599) =========================================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer ($98,779) 2,137 ($96,642) ($96,642) Federal Unemployment Taxes 0 (3,024) (3,024) (3,024) State Unemployment Taxes 0 (9,110) (9,110) (9,110) Property Tax 254,978 42,033 (2,213) 294,798 294,798 Sales/Use Tax 1,712 3,134 4,846 4,846 Accrued State Franchise Tax (144,555) (144,555) (144,555) Miscellaneous (41,206) (41,206) (41,206) --------------------------------------------------------------------------------------------------------- Total Post Petition Accrued Other Taxes $0 ($27,850) $0 $0 $35,170 ($2,213) $5,107 $0 $5,107 =========================================================================================================
EX-99.2 3 exhibit992jun.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2005 ($'s IN THOUSANDS) Year to Date June 2005 June 2005 - ----------- --------- $5,062 SALES - OUTSIDE CUSTOMERS $29,806 0 SALES - INTERCOMPANY 0 - ---------- --------- 5,062 NET SALES 29,806 3,814 VARIABLE PRODUCTION COSTS 21,772 - ---------- --------- 1,248 VARIABLE CONTRIBUTION 8,034 - ---------- --------- 129 MANUFACTURING FIXED COSTS 854 87 DEPRECIATION 522 - ---------- --------- 216 TOTAL FIXED COSTS 1,376 - ---------- --------- 1,032 GROSS PROFIT 6,658 - ---------- --------- 163 SELLING EXPENSE 1,065 150 ADMINISTRATIVE EXPENSE 962 - ---------- --------- 313 TOTAL SELLING & ADMIN.EXPENSE 2,027 - ---------- --------- 719 OPERATING PROFIT 4,631 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 44 INTEREST EXPENSE 233 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - ---------- --------- 675 INCOME BEFORE TAXES 4,398 266 INCOME TAXES 1,736 - ---------- --------- 409 INCOME FROM OPERATIONS 2,662 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ---------- --------- $409 NET INCOME $2,662 ========== ========= Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET June 30, 2005 ($'s IN THOUSANDS) CURRENT ASSETS: CASH $415 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 8,829 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 16,168 LESS LIFO RESERVE 0 --------- INVENTORIES AT LIFO 16,168 --------- PREPAID EXPENSES 0 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 --------- TOTAL CURRENT ASSETS 25,412 --------- PROPERTY, PLANT & EQUIPMENT AT COST 18,898 LESS ACCUMULATED DEPRECIATION 12,991 --------- NET PROPERTY, PLANT & EQUIPMENT 5,907 --------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 --------- TOTAL ASSETS $31,319 ========= LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $4,631 NOTES PAYABLE & CURRENT L.T. DEBT 1,389 KCI LOAN ACCOUNT 41 INTERCOMPANY ACCOUNTS PAYABLE 1,865 ACCOUNTS PAYABLE 395 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,394 ACCRUED PENSIONS 109 INCOME TAXES PAYABLE 1,126 --------- TOTAL CURRENT LIABILITIES 10,950 --------- LONG TERM DEBT 3,512 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 --------- TOTAL LONG TERM LIABILITIES 3,512 --------- MINORITY INTEREST 0 --------- PREFERRED STOCK 0 --------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 16,857 LESS TREASURY STOCK 0 --------- TOTAL EQUITY 16,857 --------- TOTAL LIABILITIES & EQUITY $31,319 ========= Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE 30, 2005 ($'s IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $2,662 PROVISION FOR DEPRECIATION 522 (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. (3,128) (INCREASE) DECREASE INVENTORY (1,659) (INCREASE) DECREASE PREPAID EXPENSES 37 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. (113) INCREASE (DECREASE) ACCRUED PENSIONS 109 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES (888) (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. 931 ------- NET ADJUSTMENTS (4,333) ------- NET CASH PROVIDED (USED) BY OPERATIONS (1,671) ------- 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 2,642 REPAYMENTS OF OTHER DEBT (696) 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 1,910 ------- NET INCREASE (DECREASE) IN CASH 138 CASH AT BEGINNING OF PERIOD 277 ------- CASH AT END OF PERIOD $415 ======= Page 3 of 3 -----END PRIVACY-ENHANCED MESSAGE-----