-----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, Jq7NqQSnE3kpG2Jl7EnDDA31dxfP7M30tBv6++ySXjTumVXN/KIeax7ssrP+TBrD JGdm1Zkqi2k4rUvoyR2Sbg== 0000072162-04-000007.txt : 20040423 0000072162-04-000007.hdr.sgml : 20040423 20040422182256 ACCESSION NUMBER: 0000072162-04-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040416 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040423 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: 04749115 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 key8k042204.txt FORM 8-K, KEYSTONE, 041604 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): April 16, 2004 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) Item 9: 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 April 16, 2004, Keystone filed its Monthly Operating Report for the month of March 2004 (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. 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. 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: April 22, 2004 INDEX TO EXHIBITS Exhibit No. Description - ----------- -------------------------------------------------------- 99.1 Bankrupty Financial Information contained in the Monthly Operating Report for the month of March 2004 99.2 EWP Financial Information for the month of March 2004 EX-99.1 3 exhibit991.txt BANKRUPTCY FINANCIAL INFORMATION Exhibit 99.1 This Financial Report (the "Financial Report") 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 United States Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee. 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 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. A-1 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 MARCH, 2004. I. FINANCIAL SUMMARY
CASH RECEIPTS AND DISBURSEMENTS FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $342,038 $0 $0 $660 $0 $342,698 -------------------------------------------------------------------------- B. RECEIPTS 0 61,213,335 0 0 8,449 0 61,221,784 C. DISBURSEMENTS 0 57,558,038 0 0 9,559 0 57,567,597 -------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 3,655,297 0 0 (1,110) 0 3,654,187 -------------------------------------------------------------------------- -------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $3,997,335 $0 $0 ($450) $0 $3,996,885 ==========================================================================
Note 1 - KCI Cash On Hand At End of Month includes $4,437,996 of cash held in escrow for PSC Metals, Inc. pending resolution of disputed ferrous scrap ownership. Note 2 - KCI Receipts include $23,003,540 of advances on its Revolving Line of Credit (RLC). Note 3 - KCI Disbursements include $22,011,530 of payments on its RLC. Note 4 - KCI Receipts and Disbursements include transfers from and to, respectively KCI accounts of $10,446,114 Note 5 - SWC Receipts and KCI Disbursements include transfers from KCI to SWC of $8,449. CASH DISBURSEMENT RECONCILIATION
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- Per Schedule of Receipts and Disbursement 0 57,558,038 0 0 9,559 0 57,567,597 Less: Payments on Revolving Credit Facility (22,011,530) (22,011,530) Transfers to other cash accounts (10,454,563) (10,454,563) -------------------------------------------------------------------------- Net Cash Disbursements $0 $25,091,945 $0 $0 $9,559 $0 $25,101,504 ==========================================================================
PROFIT AND LOSS STATEMENT ACCRUAL BASIS Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $23,880,692 $0 $0 $896,203 $771 $24,777,666 ($1,266,025) $23,511,641 B. COST OF SALES 0 19,753,083 0 0 924,849 13,848 20,691,780 (1,266,025) 19,425,755 ------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 4,127,609 0 0 (28,646) (13,077) 4,085,886 0 4,085,886 D. TOTAL OPERATING EXPENSES 3,549 4,789,488 0 60,000 95,204 2,222 4,950,463 (200,239) 4,750,224 ------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION(3,549) (661,879) (3,549) (661,879) 0 (60,000) (123,850) (15,299) (864,577) 200,239 (664,338) F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES)) 8,049 (651,122) 60,000 0 129,370 0 (453,703) (200,239) (653,942) ------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,500 ($1,313,001) $60,000 ($60,000) $5,520 ($15,299) ($1,318,280) $0 ($1,318,280) =================================================================================================
A-2 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) $23,880,692 $896,203 $771 $24,777,666 ($1,266,025) $23,511,641 ------------------------------------------------------------------------------------------------ Less: Cost of Goods Sold: Beginning Inventory at Cost 20,711,733 1,313,953 22,025,686 22,025,686 Add: Purchases 25,776,642 1,131,462 13,848 26,921,952 (1,266,025) 25,655,927 Less: Ending Inventory at Cost 26,735,292 1,520,566 28,255,858 28,255,858 ------------------------------------------------------------------------------------------------ Cost of Goods Sold 0 19,753,083 0 0 924,849 13,848 20,691,780 (1,266,025) 19,425,755 ------------------------------------------------------------------------------------------------ Gross Profit 0 4,127,609 0 0 (28,646) (13,077) 4,085,886 0 4,085,886 ------------------------------------------------------------------------------------------------ Less: Operating Expenses: Officer Compensation 29,038 29,038 29,038 Salaries and Wages -- Other Employees 1,013,710 31,975 1,045,685 1,045,685 Employee Benefits and Pensions 105 769,221 17,294 786,620 786,620 Payroll Taxes 89,611 3,817 93,428 93,428 Real Estate Taxes 12,231 0 12,231 12,231 Federal and State Income Taxes 0 0 Rent and Lease Expense 1,889 955 2,844 2,844 Interest Expense 560,728 60,000 620,728 (189,370) 431,358 Insurance 47,911 0 47,911 47,911 Automobile Expense 53 53 53 Utilities 383,132 5,086 30 388,248 388,248 Depreciation and Amortization 3,444 1,128,724 0 1,132,168 1,132,168 Repairs and Maintenance 141,991 1,069 143,060 143,060 Advertising 39,706 0 39,706 39,706 Supplies, Office Expense and Photocopies 51,647 65 51,712 51,712 Bad Debts 0 0 0 Miscellaneous 0 519,949 0 0 34,890 2,192 557,031 (10,869) 546,162 ------------------------------------------------------------------------------------------------ Total Operating Expenses 3,549 4,789,488 0 60,000 95,204 2,222 4,950,463 (200,239) 4,750,224 ------------------------------------------------------------------------------------------------ Net Income (Loss) From Operation (3,549) (661,879) 0 (60,000) (123,850) (15,299) (864,577) 200,239 (664,338) ------------------------------------------------------------------------------------------------ B. Not Related to Business Operations: Revenue: Interest Income 1,049 60,000 129,370 190,419 (189,370) 1,049 Net Gain (Loss) on Sale of Assets 0 0 Other 7,000 48,878 0 0 0 0 55,878 (10,869) 45,009 ------------------------------------------------------------------------------------------------ Total Non-Operating Revenue 8,049 48,878 60,000 0 129,370 0 246,297 (200,239) 46,058 ------------------------------------------------------------------------------------------------ Expenses: Legal and Professional Fees 0 700,000 0 0 0 0 700,000 0 700,000 Other 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------ Total Non-Operating Expenses 0 700,000 0 0 0 0 700,000 0 700,000 ------------------------------------------------------------------------------------------------ Net Income (Loss) For Period $4,500 ($1,313,001) $60,000 ($60,000) $5,520 ($15,299) ($1,318,280) $0 ($1,318,280) ================================================================================================
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. A-3 IV. BALANCE SHEET
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- ASSETS ------ Current Cash $3,997,336 ($451) $3,996,885 $3,996,885 Inventory 53,582 21,954,159 1,715,758 23,723,499 23,723,499 Accounts Receivable 17,311,837 506,688 17,818,525 17,818,525 Prepaid Expenses 1,071,906 25,068 1,096,974 1,096,974 Other - Exhibit H 78,147 30,999 14,669,793 0 299,430 0 15,078,369 (14,964,350) 114,019 -------------------------------------------------------------------------------------------------------------- Total Current Assets 131,729 44,366,237 14,669,793 0 2,546,493 0 61,714,252 (14,964,350) 46,749,902 -------------------------------------------------------------------------------------------------------------- Fixed Property and Equipment 1,175,330 323,119,224 21,201,404 3,659,087 349,155,045 349,155,045 Accumulated Depreciation (703,183)(234,802,221) (16,004,527) (2,989,169)(254,499,100) (254,499,100) -------------------------------------------------------------------------------------------------------------- Total Fixed Assets 472,147 88,317,003 0 0 5,196,877 669,918 94,655,945 0 94,655,945 -------------------------------------------------------------------------------------------------------------- Other - ----- Restricted Investments 5,549,168 401,599 5,950,767 5,950,767 Prepaid Pension Asset 129,088,715 129,088,715 129,088,715 Deferred Financing Costs 1,619,992 1,619,992 1,619,992 Goodwill 751,508 751,508 751,508 Investment in J.L. Prescott/DEMI 2,246,871 2,246,871 (2,246,871) 0 Other - Exhibit I 190,000 44,933,719 0 0 0 0 45,123,719 (38,926,803) 6,196,916 -------------------------------------------------------------------------------------------------------------- Total Other Assets 190,000 181,943,102 0 0 2,648,470 0 184,781,572 (41,173,674) 143,607,898 -------------------------------------------------------------------------------------------------------------- Total Assets $793,876 $314,626,342 $14,669,793 $0 $10,391,840 $669,918 $341,151,769 ($56,138,024) $285,013,745 ============================================================================================================== LIABILITIES - -------------- Current - ------- Pre-Petition Accounts Payable 19,487,042 883,007 53,018 20,423,067 20,423,067 Post-Petition Accounts Payable 5,253,075 25,253 2,119 5,280,447 5,280,447 Pre-Petition Accounts Payable - Affiliates (2,649,073) 90,549,820 5,774,107 15,552,291 (89,758,156) (1,475,294) 17,993,695 (14,904,350) 3,089,345 Post-Petition Accounts Payable - Affiliates (6,896) 463,557 60,000 (59,927) 21,426 478,160 (60,000) 418,160 Pre-Petition Accrued Expenses - Exhibit J 3,183 27,927,526 35,632 (36,000) 6,668,381 62,661 34,661,383 0 34,661,383 Post-Petition Accrued Expenses - Exhibit K 0 1,771,955 0 0 118,030 1,739 1,891,724 0 1,891,724 Pre-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,159,816 20,290 0 28,180,106 28,180,106 Post-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 31,393,488 0 31,393,488 31,393,488 Accrued OPEB Cost 11,441,001 155,000 297,662 0 11,893,663 11,893,663 Income Taxes Payable 0 0 0 Pre-petition accrued pref. Stock dividends 11,651,342 11,651,342 11,651,342 Post petition accrued pref. Stock dividends 456,915 0 456,915 456,915 ------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,652,786) 228,555,537 5,809,739 15,731,291 (81,805,460) (1,334,331) 164,303,990 (14,964,350) 149,339,640 --------------------------------------------------------------------------------------------------------------
A-4 Long Term - --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 32,180,761 Post-Petition Long Term Debt 0 0 Accrued OPEB Cost 33,000 101,993,060 1,620,194 9,223,555 112,869,809 112,869,809 Accrued Pension Cost 819,412 819,412 819,412 Pre-Petition Accrued Expenses - Exhibit L 0 11,096,137 3,573,908 0 0 0 14,670,045 0 14,670,045 Post-Petition Accrued Expenses - Exhibit M 0 150,577 0 0 0 0 150,577 0 150,577 -------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 146,239,947 3,573,908 1,620,194 9,223,555 0 160,690,604 0 160,690,604 -------------------------------------------------------------------------------------------------------------- Preferred Stock 2,112,000 2,112,000 2,112,000 - --------------- -------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 10,000 10,798,251 6 2,246,866 5,619,274 1,000 18,675,397 (7,877,145) 10,798,252 Additional Paid-In Capital 40,963,043 27,579,007 68,542,050 (27,579,007) 40,963,043 Accumulated Deficit 3,403,662 (114,030,311) 5,286,140 (19,598,351) 83,332,917 2,003,249 (39,602,694) (39,274,975) (78,877,669) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) -------------------------------------------------------------------------------------------------------------- Total Stockholders's Equity (Deficit) 3,413,662 (62,281,142) 5,286,146 (17,351,485) 82,973,745 2,004,249 14,045,175 (41,173,674) (27,128,499) -------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholder's Equity (Deficit) $793,876 $314,626,34 $14,669,793 $0 10,391,840 $669,918 $341,151,769 ($56,138,024) $285,013,745 ==============================================================================================================
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. A-5 EXHIBIT H OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Interest Receivable $3,147 $3,147 $3,147 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 14,669,793 294,557 14,964,350 (14,964,350) 0 Receivable from R. Missar 4,873 4,873 4,873 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 1,641 1,641 1,641 Stop Loss Receivable 8,930 8,930 8,930 0 0 0 0 ------------------------------------------------------------------------------------------------ $78,147 $30,999 $14,669,793 $0 $299,430 $0 $15,078,369 ($14,964,350) $114,019 ================================================================================================
EXHIBIT I OTHER LONG TERM ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Note Receivable $190,000 $190,000 $190,000 Rail Cars 386,866 386,866 386,866 Long Term Deferred Tax Asset 5,292,000 5,292,000 5,292,000 Investment in Sherman Wire Corp. 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 Long Term Insurance Receivable 323,250 323,250 323,250 Deposits 4,800 4,800 4,800 0 0 ------------------------------------------------------------------------------------------------ $190,000 $44,933,719 $0 $0 $0 $0 $45,123,719 ($38,926,80) $6,196,916 ================================================================================================
A-6 EXHIBIT J 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) ($1,838) ($69,114) ($69,114) Worker Comp Exp 4,028,477 (168) 4,028,309 4,028,309 Missar Pension 19,935 19,935 19,935 Unclaimed Property 17,540 17,540 17,540 Abandoned Real Estate Exp 6,487 658,744 665,231 665,231 Legal Fees 311,357 487,932 799,289 799,289 Self-Insurance Liability 2,537,192 5,050,166 7,587,358 7,587,358 Pensions 15,704 15,704 15,704 Salaries/Wages 717,383 47,301 764,684 764,684 Holiday Pay/Vacations 3,680,051 127,854 3,807,905 3,807,905 FICA - Employer 281,257 3,257 284,514 284,514 Federal Unemployment Taxes 3,397 3,397 3,397 State Unemployment Taxes 20,577 20,577 20,577 Defined Contribution Plan 1,521,426 28,615 1,550,041 1,550,041 Medical Insurance 206,559 88,737 16,419 311,715 311,715 Utilities 105,646 5,049 307 111,002 111,002 Volume Incentive Plan 72,000 72,000 72,000 Property Tax 204,119 32,865 5,973 242,957 242,957 Sales/Use Tax 375 8,124 1,800 10,299 10,299 Customer Overpayments 50,843 50,843 50,843 Other - Plant Shut-Down 40,000 40,000 40,000 Goods received not invoiced 295,647 295,647 295,647 Unearned Revenue 2,416,171 2,416,171 2,416,171 Sales 1,685,748 1,685,748 1,685,748 Manufacturing Misc 300,000 300,000 300,000 Environmental 7,951,976 7,951,976 7,951,976 Medical Insurance 951,800 951,800 951,800 Accrued State Franchise Tax 215,742 215,742 215,742 Accrued Bank Service Charge (9,925) (9,925) (9,925) Accrued Interest 454,639 454,639 454,639 Accrued aircraft fees 40,223 40,223 40,223 Accrued taxes - other 25,176 25,176 25,176 ------------------------------------------------------------------------------------------------ $3,183 $27,927,526 $35,632 ($36,000) $6,668,381 $62,661 $34,661,383 $0 $34,661,383 ================================================================================================
A-7 EXHIBIT K POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 4,200 4,200 4,200 Pensions 8,113 8,113 8,113 Salaries/Wages 453,423 11,439 464,862 464,862 Holiday Pay/Vacations 33,217 6,431 39,648 39,648 FICA - Employer 152,974 (218) 152,756 152,756 Federal Unemployment Taxes 1,065 1,065 1,065 State Unemployment Taxes 8,130 8,130 8,130 Defined Contribution Plan 122,807 7,332 130,139 130,139 Medical Insurance (66,861) (1,669) (606) (69,136) (69,136) Utilities 335,977 54,911 30 390,918 390,918 Property Tax 12,231 18,003 2,315 32,549 32,549 Sales/Use Tax 1,871 (321) 1,550 1,550 Legal 46,286 614 46,900 46,900 Professional Fees 700,000 700,000 700,000 Goods Received Not Invoiced 1,828,507 1,828,507 1,828,507 Worker's Compensation (147,738) (147,738) (147,738) Unearned Revenue (2,170,566) (2,170,566) (2,170,566) Sales 219,646 219,646 219,646 Abanondon Property 154 154 154 Miscellaneous 340 340 340 Accrued State Franchise Tax 21,619 21,619 21,619 Accrued Bank Service Charge 2,726 2,726 2,726 Accrued Self-Insurance Losses 79,260 79,260 79,260 Accrued Interest 62,236 62,236 62,236 Accrued travel 3,077 3,077 3,077 Accrued Management Fees 80,769 80,769 80,769 ------------------------------------------------------------------------------------------------ $0 $1,771,955 $0 $0 $118,030 $1,739 $1,891,724 $0 $1,891,724 ================================================================================================
A-8 EXHIBIT L 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 15,660 15,660 15,660 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 ------------------------------------------------------------------------------------------------ $0 $11,096,13 $3,573,908 $0 $0 $0 $14,670,045 $0 $14,670,045 ================================================================================================
EXHIBIT M POST PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Workmans compensation $118,448 $118,448 $118,448 Accrued Deferred Interest Exp. 32,199 32,199 32,199 Long Term Disability (70) (70) (70) 0 0 0 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------ $0 $150,577 $0 $0 $0 $0 $150,577 $0 $150,577 ================================================================================================
EX-99.2 4 exhibit992.txt EWP FINANCIAL INFORMATION Exhibit 99.2 A copy of certain financial information of Engineered Wire Products, Inc. ("EWP") is presented below. Such financial information is limited in scope, covers a limited time period and has been prepared solely for purposes of internal reporting within Keystone Consolidated Industries, Inc. The financial information is unaudited and does not purport to show the financial statements of EWP in accordance with accounting principles generally accepted in the United States ("GAAP"), and therefore excludes items required by GAAP, such as certain reclassifications, eliminations, accruals and disclosure items. Undue reliance should not be placed on this financial information. There can be no assurance that such financial information is complete. ENGINEERED WIRE PRODUCTS STATEMENT OF OPERATIONS FOR THE PERIOD ENDED MARCH 28, 2004 ($'s IN THOUSANDS)
Year to date March 2004 March 2004 - ----------------- ----------------- $4,523 SALES - OUTSIDE CUSTOMERS $11,090 0 SALES - INTERCOMPANY 0 - ------------- -------------- 4,523 NET SALES 11,090 3,224 VARIABLE PRODUCTION COSTS 8,210 - ------------- -------------- 1,299 VARIABLE CONTRIBUTION 2,880 - ------------- -------------- 133 MANUFACTURING FIXED COSTS 414 87 DEPRECIATION 261 - ------------- -------------- 220 TOTAL FIXED COSTS 675 - ------------- -------------- 1,079 GROSS PROFIT 2,205 - ------------- -------------- 195 SELLING EXPENSE 472 181 ADMINISTRATIVE EXPENSE 465 - ------------- -------------- 376 TOTAL SELLING & ADMIN.EXPENSE 937 - ------------- -------------- 703 OPERATING PROFIT 1,268 0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0 0 INTEREST INCOME 0 22 INTEREST EXPENSE 115 0 OTHER INCOME (EXPENSE) 0 0 GAIN ON SALE OF FIXED ASSETS 0 - ------------- -------------- 681 INCOME BEFORE TAXES 1,153 269 INCOME TAXES 455 - ------------- -------------- 412 INCOME FROM OPERATIONS 698 0 ACCOUNTING CHANGE 0 0 MINORITY INTEREST 0 - ------------- -------------- - ------------- -------------- $412 NET INCOME $698 ============= ==============
B-1 ENGINEERED WIRE PRODUCTS BALANCE SHEET MARCH 28, 2004 ($'s IN THOUSANDS) CURRENT ASSETS: CASH $315 NOTES & ACCOUNT RECEIVABLE NET 5,930 INVENTORIES AT COST 4,177 LESS LIFO RESERVE 0 -------------- INVENTORIES AT LIFO 4,177 -------------- PREPAID EXPENSES 229 DEFERRED INCOME TAXES 0 OTHER CURRENT ASSETS 0 -------------- TOTAL CURRENT ASSETS 10,651 -------------- PROPERTY PLANT & EQUIPMENT AT COST 18,663 LESS ACCUMULATED DEPRECIATION 11,731 -------------- NET PLANT, PROPERTY & EQUIPMENT 6,932 -------------- OTHER LONG TERM ASSETS 0 -------------- TOTAL ASSETS $17,583 ============== LIABILITIES AND EQUITIES: REVOLVING LOAN FACILITY $771 NOTES PAYABLE & CURRENT L.T. DEBT 1,383 KCI LOAN ACCOUNT 87 ACCOUNTS PAYABLE 212 ACCRUED LIABILITIES 914 ACCRUED PENSIONS 54 INCOME TAXES PAYABLE 455 -------------- -------------- TOTAL CURRENT LIABILITIES 3,876 -------------- LONG TERM DEBT 5,229 TOTAL LONG TERM LIABILITIES 5,229 -------------- TOTAL EQUITY 8,478 -------------- TOTAL LIABILITIES & EQUITY $17,583 ==============
B-2 ENGINEERED WIRE PRODUCTS STATEMENT OF CASH FLOWS FOR THE YEAR-TO-DATE PERIOD ENDED MARCH 28, 2004 (IN $ THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $698 PROVISION FOR DEPRECIATION 261 (GAIN) LOSS ON SALE OF ASSETS 0 PROVISION FOR BAD DEBT ALLOWANCE 9 CHANGE IN ASSETS AND LIABILITIES: (INCREASE) DECREASE ACCTS. & NOTES REC. (2,699) (INCREASE) DECREASE INVENTORY 2,475 (INCREASE) DECREASE PREPAID EXPENSES 3,152 INCREASE (DECREASE) ACCTS PAY. (222) INCREASE (DECREASE) ACCRUED PENSIONS 54 INCREASE (DECREASE) OTHER LIABILITIES 187 OTHER, NET 0 -------------- NET ADJUSTMENTS 3,217 -------------- NET CASH PROVIDED (USED) BY OPERATIONS 3,915 -------------- CASH FLOW FROM INVESTING ACTIVITIES: CAPITAL EXPENDITURES (102) OTHER, NET 0 -------------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (102) -------------- CASH FLOW FROM FINANCING ACTIVITIES: REVOLVING CREDIT FACILITY, NET (3,226) REPAYMENTS OF OTHER DEBT (234) PROCEEDS OF OTHER DEBT 6,776 INCREASE (DECREASE) KCI LOAN (7,085) DIVIDENDS PAID 0 -------------- NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (3,769) -------------- NET INCREASE (DECREASE) IN CASH 44 CASH AT BEGINNING OF PERIOD 271 -------------- CASH AT END OF PERIOD 315 ==============
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