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 ==========================================================================================
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