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