-----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, PgQmqiTYrSzCW7WXsi8bWIA/DxzHn7iZVnstWbclU1Bv1k/faAycovICuCQnL0T5 mJ0DVZekwtoI7OqpKe9TyQ== 0000055604-05-000023.txt : 20050816 0000055604-05-000023.hdr.sgml : 20050816 20050816142111 ACCESSION NUMBER: 0000055604-05-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050815 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050816 DATE AS OF CHANGE: 20050816 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: 051030315 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 key8k081505.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): August 15, 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 August 15, 2005, Keystone filed its Monthly Operating Report for the month of July 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 July 2005 99.2 EWP Financial Information for the month of July 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: August 18, 2005 INDEX TO EXHIBITS Exhibit No. Description - ----------- --------------------------------------------------------- 99.1 Bankruptcy Financial Information contained in the Monthly Operating Report for the month of July 2005 99.2 EWP Financial Information for the month of July 2005 EX-99.1 2 exhibit991jul.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 JULY, 2005. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $4,589,845 $0 $0 ($261) $0 $4,589,584 ----------------------------------------------------------------------- B. RECEIPTS 0 86,340,467 0 0 15,173 1,250 86,356,890 C. DISBURSEMENTS 0 87,191,692 0 0 14,622 1,250 87,207,564 ----------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (851,225) 0 0 551 0 (850,674) ----------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $3,738,620 $0 $0 $290 $0 $3,738,910 =======================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,448,527 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 $24,970,427. PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- A. NET SALES $0 $29,081,179 $0 $0 $1,499,449 $0 $30,580,628 ($1,140,384) $29,440,244 B. COST OF SALES 0 17,808,276 0 0 1,285,761 0 19,094,037 (1,140,384) 17,953,653 ---------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 11,272,903 0 0 213,688 0 11,486,591 0 11,486,591 D. TOTAL OPERATING EXPENSES 4,394 5,708,493 0 60,000 450,114 7,800 6,230,801 (204,693) 6,026,108 ---------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (4,394) 5,564,410 0 (60,000) (236,426) (7,800) 5,255,790 204,693 5,460,483 F. NON-OPERATING, NON-RECURRING REVENUE(EXPENSES) 14,551 (744,805) 60,000 0 106,836 0 (563,418) (204,693) (768,111) ---------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $10,157 $4,819,605 $60,000 ($60,000) ($129,590) ($7,800) $4,692,372 $0 $4,692,372 =====================================================================================================
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) $29,081,179 $1,499,449 $30,580,628 ($1,140,384) $29,440,244 ------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 60,365,780 3,561,356 63,927,136 63,927,136 Add: Purchases 20,130,269 931,911 21,062,180 (1,140,384) 19,921,796 Less: Ending Inventory at Cost 62,687,773 3,207,506 65,895,279 65,895,279 ------------------------------------------------------------------------------------------------- Cost of Good Sold 0 17,808,276 0 0 1,285,761 0 19,094,037 (1,140,384) 17,953,653 ------------------------------------------------------------------------------------------------- Gross Profit 0 11,272,903 0 0 213,688 0 11,486,591 0 11,486,591 ------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 43,750 43,750 43,750 Salaries and Wages- Other Employees 1,419,569 88,122 1,507,691 1,507,691 Employee Benefits and Pensions 89 938,309 24,920 963,318 963,318 Payroll Taxes 118,718 14,400 133,118 133,118 Real Estate Taxes 2,292 15,071 791 18,154 18,154 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 72,382 747 73,129 73,129 Interest Expense 399,795 60,000 459,795 (191,108) 268,687 Insurance 83,600 15,912 99,512 99,512 Automobile Expense 0 0 0 0 Utilities 148,967 10,647 171 159,785 159,785 Depreciation and Amortization 4,305 1,101,100 109,125 5,101 1,219,631 1,219,631 Repairs and Maintenance 428,226 12,197 400 440,823 440,823 Advertising 73,126 73,126 73,126 Supplies, Office Expense and Photocopies 106,001 13,185 119,186 119,186 Bad Debts 0 0 0 Miscellaneous 0 772,658 0 0 145,788 1,337 919,783 (13,585) 906,198 ------------------------------------------------------------------------------------------------- Total Operating Expenses 4,394 5,708,493 0 60,000 450,114 7,800 6,230,801 (204,693) 6,026,108 ------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,394) 5,564,410 0 (60,000) (236,426) (7,800) 5,255,790 204,693 5,460,483 ------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: Revenue: Interest Income 551 75,634 60,000 131,108 267,293 (191,108) 76,185 Net Gain (Loss) on Sale of Assets 0 0 0 0 Other 14,000 53,212 0 0 0 0 67,212 (13,585) 53,627 ------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 14,551 128,846 60,000 0 131,108 0 334,505 (204,693) 129,812 ------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 873,651 0 0 24,272 0 897,923 0 897,923 Other 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 873,651 0 0 24,272 0 897,923 0 897,923 ------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $10,157 $4,819,605 $60,000 ($60,000) ($129,590) ($7,800) $4,692,372 $0 $4,692,372 =================================================================================================
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 $3,738,620 $290 Inventory 53,582 34,469,241 2,781,842 Accounts Receivable 24,477,708 755,182 6,000 Prepaid Expenses 2,146,168 112,776 1,264 Other - Exhibit E 75,551 3,189,878 15,629,793 0 386,677 0 ----------------------------------------------------------------------------- Total Current Assets 129,133 68,021,615 15,629,793 0 4,036,767 7,264 ----------------------------------------------------------------------------- Fixed - ----- Property and Equipment 1,175,330 329,458,082 20,727,225 2,285,279 Accumulated Depreciation (763,454) (250,120,464) (16,825,610) (1,859,286) ----------------------------------------------------------------------------- Total Fixed Assets 411,876 79,337,618 0 0 3,901,615 425,993 ----------------------------------------------------------------------------- Other - ----- Restricted Investments 5,997,136 252,123 Prepaid Pension Asset 143,273,663 Deferred Financing Costs 859,278 Goodwill 751,508 Other - Exhibit F 40,000 39,172,716 0 0 2,246,871 0 ----------------------------------------------------------------------------- Total Other Assets 40,000 190,054,301 0 0 2,498,994 0 ----------------------------------------------------------------------------- Total Assets $581,009 $337,413,534 $15,629,793 $0 $10,437,376 $433,257 ============================================================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 18,726,293 1,012,833 54,503 Post-Petition Accounts Payable 1,484,840 78,992 1,650 Pre-Petition Accounts Payable - Affiliate (2,649,073) 88,419,300 5,774,107 15,552,291 (89,758,156) (1,459,080) Post-Petition Accounts Payable - Affiliates (262,488) 2,647,563 485,726 736,515 (465,458) (140,905) Pre-Petition Accrued Expenses - Exhibit G 3,183 12,839,871 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses - Exhibit H 0 16,136,779 0 0 69,701 (3,752) Post-Petition Accrued Professional Fees 3,288,995 2,939 Post-Petition Accrued Other Taxes - Exhibit M 0 35,973 0 0 37,016 (1,421) 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 28,769,663 (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 10,246,213 ----------------------------------------------------------------------------- Total Current Liabilities (2,908,378) 233,998,296 6,295,465 16,407,806 (82,056,091) (1,484,923) ----------------------------------------------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 142,117 Accrued OPEB Cost 36,677 121,554,749 1,446,589 12,045,355 Accrued Pension Cost 1,953,986 Pre-Petition Accrued Expenses - Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses - Exhibit J 0 23,314 (197,152) 0 0 0 ----------------------------------------------------------------------------- Total Long Term Liabilities 36,677 166,959,616 3,376,756 1,446,589 12,045,355 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 30,979,282 27,579,007 Accumulated Deficit 3,442,710 (107,421,786) 5,957,566 (20,101,261) 80,807,284 1,917,180 Treasury Stock (12,125) (33,557,453) ----------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,452,710 (65,656,378) 5,957,572 (17,854,395) 80,448,112 1,918,180 ----------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $581,009 $337,413,534 $15,629,793 $0 $10,437,376 $433,257 =============================================================================
Page 3 of 6 IV. BALANCE SHEET (Continued) -----------------------------
Sub Elimin- Total ations Total ----- ------- ----- ASSETS ------ Current - ------- Cash $3,738,910 $3,738,910 Inventory 37,304,665 37,304,665 Accounts Receivable 25,238,890 25,238,890 Prepaid Expenses 2,260,208 2,260,208 Other - Exhibit E 19,281,899 (16,034,067) 3,247,832 ----------------------------------------- Total Current Assets 87,824,572 (16,034,067) 71,790,505 ----------------------------------------- Fixed - ----- Property and Equipment 353,645,916 353,645,916 Accumulated Depreciation (269,568,814) (269,568,814) ----------------------------------------- Total Fixed Assets 84,077,102 0 84,077,102 ----------------------------------------- Other - ----- Restricted Investments 6,249,259 6,249,259 Prepaid Pension Asset 143,273,663 143,273,663 Deferred Financing Costs 859,278 859,278 Goodwill 751,508 751,508 Other - Exhibit F 41,459,587 (41,173,674) 285,913 ----------------------------------------- Total Other Assets 192,593,295 (41,173,674) 151,419,621 ----------------------------------------- Total Assets $364,494,969 ($57,207,741) $307,287,228 ========================================= LIABILITIES ----------- Current - ------- Pre-Petition Accounts Payable 19,793,629 19,793,629 Post-Petition Accounts Payable 1,565,482 1,565,482 Pre-Petition Accounts Payable - Affiliate 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable - Affiliates 3,000,953 (1,129,717) 1,871,236 Pre-Petition Accrued Expenses - Exhibit G 19,575,148 0 19,575,148 Post-Petition Accrued Expenses - Exhibit H 16,202,728 0 16,202,728 Post-Petition Accrued Professional Fees 3,291,934 3,291,934 Post-Petition Accrued Other Taxes - Exhibit M 71,568 0 71,568 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 28,749,373 28,749,373 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 10,246,213 10,246,213 ----------------------------------------- Total Current Liabilities 170,252,175 (16,034,067) 154,218,108 ----------------------------------------- Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 142,117 142,117 Accrued OPEB Cost 135,083,370 135,083,370 Accrued Pension Cost 1,953,986 1,953,986 Pre-Petition Accrued Expenses - Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses - Exhibit J (173,838) 0 (173,838) ----------------------------------------- Total Long Term Liabilities 183,864,993 0 183,864,993 ----------------------------------------- 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 58,558,289 (27,579,007) 30,979,282 Accumulated Deficit (35,398,307) (39,274,975) (74,673,282) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 8,265,801 (41,173,674) (32,907,873) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $364,494,969 ($57,207,741) $307,287,228 =========================================
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 $551 $551 $551 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 3,108,480 15,629,793 386,677 19,124,950 (16,034,067) 3,090,883 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 0 0 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------ Total Other Current Assets $75,551 $3,189,878 $15,629,793 $0 $386,677 $0 $19,281,899 ($16,034,067) $3,247,832 ======================================================================================================
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 241,113 241,113 241,113 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 0 0 Deposits 4,800 4,800 4,800 0 0 ------------------------------------------------------------------------------------------------------ Total Other Long Term Assets $40,000 $39,172,716 $0 $0 $2,246,871 $0 $41,459,587 ($41,173,674) $285,913 ======================================================================================================
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 1,963,785 (168) 1,963,617 1,963,617 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 0 0 0 Manufacturing Misc 0 0 0 EPA 7,507,499 7,507,499 7,507,499 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 $12,839,871 $35,632 ($36,000) $6,668,380 $64,082 $19,575,148 $0 $19,575,148 ======================================================================================================
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 19,955 20,273 20,273 Pensions 0 41,091 41,091 41,091 Salaries/Wages 1,297,717 18,307 1,316,024 1,316,024 Holiday Pay/Vacations 3,958,807 (21,643) 3,937,164 3,937,164 Defined Contribution Plan 975,987 29,021 1,005,008 1,005,008 Medical Insurance 600,905 (31,226) (4,172) 565,507 565,507 Utilities 410,300 69,677 420 480,397 480,397 Legal 295,266 (127,821) 167,445 167,445 Professional Fees 373,628 373,628 373,628 Goods Received Not Invoiced 2,287,976 2,287,976 2,287,976 Worker's Compensation 1,084,816 1,084,816 1,084,816 Unearned Revenue 0 0 0 Sales Rebates/Discounts 1,474,091 1,474,091 1,474,091 EPA 351,980 351,980 351,980 Miscellaneous 1,596,500 72,340 1,668,840 1,668,840 Accrued Bank Service Charge 51,446 51,446 51,446 Accrued Self-Insurance Losses 6,897 6,897 6,897 Accrued Interest 880,914 880,914 880,914 Accrued Travel 0 0 0 Accrued Profit Sharing 0 0 0 Accrued Management Fees 489,231 489,231 489,231 ------------------------------------------------------------------------------------------ Total Post Petition Accrued Expenses -Current $0 $16,136,779 $0 $0 $69,701 ($3,752) $16,202,728 $0 $16,202,728 ==========================================================================================
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 $16,767 $16,767 $16,767 Long Term Disability 6,547 6,547 6,547 Environmental (197,152) (197,152) (197,152) 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------ Total Post Petition Accrued Expenses -Long Term $0 $23,314 ($197,152) $0 $0 $0 ($173,838) $0 ($173,838) ==========================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- FICA - Employer ($93,128) (326) ($93,454) ($93,454) Federal Unemployment Taxes 0 (3,366) (3,366) (3,366) State Unemployment Taxes 0 (19,966) (19,966) (19,966) Property Tax 273,038 57,746 (1,421) 329,363 329,363 Sales/Use Tax 2,574 2,928 5,502 5,502 Accrued State Franchise Tax (105,305) (105,305) (105,305) Miscellaneous (41,206) (41,206) (41,206) ------------------------------------------------------------------------------------------ Total Post Petition Accrued Other Taxes $0 $35,973 $0 $0 $37,016 ($1,421) $71,568 $0 $71,568 ==========================================================================================
Page 6 of 6 EX-99.2 3 exhibit992jul.txt EXHIBIT 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED JULY 31, 2005 ($'s IN THOUSANDS)
Year to Date July 2005 July 2005 - ---------- --------- $6,834 SALES - OUTSIDE CUSTOMERS $36,640 0 SALES - INTERCOMPANY 0 - ---------- --------- 6,834 NET SALES 36,640 5,229 VARIABLE PRODUCTION COSTS 27,001 - ---------- --------- 1,605 VARIABLE CONTRIBUTION 9,639 - ---------- --------- 153 MANUFACTURING FIXED COSTS 1,007 87 DEPRECIATION 609 - ---------- --------- 240 TOTAL FIXED COSTS 1,616 - ---------- --------- 1,365 GROSS PROFIT 8,023 - ---------- --------- 208 SELLING EXPENSE 1,273 184 ADMINISTRATIVE EXPENSE 1,146 - ---------- --------- 392 TOTAL SELLING & ADMIN.EXPENSE 2,419 - ---------- --------- 973 OPERATING PROFIT 5,604 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 47 INTEREST EXPENSE 280 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - ---------- --------- 926 INCOME BEFORE TAXES 5,324 366 INCOME TAXES 2,102 - ---------- --------- 560 INCOME FROM OPERATIONS 3,222 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ---------- --------- $560 NET INCOME $3,222 ========== =========
Page 1 of 3 ENGINEERED WIRE PRODUCTS BALANCE SHEET July 31, 2005 ($'s IN THOUSANDS)
CURRENT ASSETS: CASH $420 MARKETABLE SECURITIES 0 NOTES & ACCOUNT RECEIVABLE NET 8,890 INTERCOMPANY ACCOUNTS RECEIVABLE 0 INVENTORIES AT COST 17,162 LESS LIFO RESERVE 0 -------- INVENTORIES AT LIFO 17,162 -------- PREPAID EXPENSES 0 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 -------- TOTAL CURRENT ASSETS 26,472 -------- PROPERTY, PLANT, & EQUIPMENT AT COST 18,927 LESS ACCUMULATED DEPRECIATION 13,078 -------- NET PROPERTY, PLANT, & EQUIPMENT 5,849 -------- DEFERRED FINANCING EXPENSE 0 DEFERRED INCOME TAXES 0 PREPAID PENSION ASSET 0 RESTRICTED INVESTMENTS 0 GOODWILL 0 OTHER LONG TERM ASSETS 0 -------- TOTAL ASSETS $32,321 ======== LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $3,357 NOTES PAYABLE & CURRENT L.T. DEBT 1,388 KCI LOAN ACCOUNT 1,186 INTERCOMPANY ACCOUNTS PAYABLE 474 ACCOUNTS PAYABLE 3,041 ACCRUED OPEB 0 ACCRUED PREFERRED STOCK DIVIDENDS 0 ACCRUED LIABILITIES 1,564 ACCRUED PENSIONS 130 INCOME TAXES PAYABLE 366 -------- TOTAL CURRENT LIABILITIES 11,506 -------- LONG TERM DEBT 3,398 ACCRUED OPEB 0 LONG TERM PENSIONS 0 LONG TERM OTHER 0 DEFERRED FEDERAL INCOME TAX 0 -------- TOTAL LONG TERM LIABILITIES 3,398 -------- MINORITY INTEREST 0 -------- PREFERRED STOCK 0 -------- SFAS #87 ADJUSTMENT 0 COMMON STOCK 0 OTHER CAPITAL 0 INVESTMENT EQUITY 0 RETAINED EARNINGS 17,417 LESS TREASURY STOCK 0 -------- TOTAL EQUITY 17,417 -------- TOTAL LIABILITIES & EQUITY $32,321 ========
Page 2 of 3 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JULY 31, 2005 ($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $3,222 PROVISION FOR DEPRECIATION 609 (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. (3,189) (INCREASE) DECREASE INVENTORY (2,653) (INCREASE) DECREASE PREPAID EXPENSES 37 (INCREASE) DECREASE OTHER ASSETS 0 INCREASE (DECREASE) ACCTS PAY. 2,533 INCREASE (DECREASE) ACCRUED PENSIONS 130 INCREASE (DECREASE) DEFERRED TAXES 0 INCREASE (DECREASE) OPEB LIABILITIES 0 INCREASE (DECREASE) OTHER LIABILITIES (1,478) (INCREASE) DECREASE INTERCO ACCT. REC 0 INCREASE (DECREASE) INTERCO ACCTS PAY. (460) ------- NET ADJUSTMENTS (4,615) ------- NET CASH PROVIDED (USED) BY OPERATIONS (1,393) ------- CASH FLOW FROM INVESTING ACTIVITIES: PROCEEDS FROM SALE OF PP & E 0 CAPITAL EXPENDITURES (130) INTERCO PP&E TRANSFERS NET 0 ------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (130) ------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET 1,368 REPAYMENTS OF OTHER DEBT (811) PROCEEDS OF OTHER DEBT 0 INCREASE (DECREASE) KCI LOAN 1,109 PROCEEDS FROM ISSUANCE OF COMMON STOCK 0 DIVIDENDS PAID 0 ------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 1,666 ------- NET INCREASE (DECREASE) IN CASH 143 CASH AT BEGINNING OF PERIOD 277 ------- CASH AT END OF PERIOD $420 =======
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