-----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, EAur1E2X3l045GLuf8KkjwZa7sn7FJT+9MaIN0KVWQBg4jGK7Twrr7+87qNK+ZhP DHgqddaf+I2jPD/kYNohEw== 0000910394-97-000003.txt : 19970514 0000910394-97-000003.hdr.sgml : 19970514 ACCESSION NUMBER: 0000910394-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970329 FILED AS OF DATE: 19970513 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENTUCKY ELECTRIC STEEL INC /DE/ CENTRAL INDEX KEY: 0000910394 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 611244541 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-22416 FILM NUMBER: 97602046 BUSINESS ADDRESS: STREET 1: P O BOX 3500 CITY: ASHLAND STATE: KY ZIP: 41105-3500 BUSINESS PHONE: 6069291222 MAIL ADDRESS: STREET 1: P O BOX 3500 CITY: ASHLAND STATE: KY ZIP: 41105-3500 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 1997 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to ___________. Commission File No. 0-22416 KENTUCKY ELECTRIC STEEL, INC. (Exact name of Registrant as specified in its charter) Delaware 61-1244541 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) P. O. Box 3500, Ashland, Kentucky 41105-3500 (Address of principal executive office, Zip Code) (606) 929-1222 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO The number of shares outstanding of each of the issuer's classes of common stock, as of May 12, 1997, is as follows: 4,623,123 shares of voting common stock, par value $.01 per share. KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY TABLE OF CONTENTS Page PART I. FINANCIAL INFORMATION Item 1 - Financial Statements Condensed Consolidated Balance Sheets ..... 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statement of Cash Flows 5 Notes to Consolidated Condensed Financial Statements 6-7 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations ..... 8-11 PART II. OTHER INFORMATION Item 4 - Submission of Matters to a Vote of Security Holders 12 Item 6 - Exhibits and Reports on Form 8-K ............. 12 SIGNATURES ................................... 13 KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
March 29, Sept. 28, 1997 1997 ASSETS CURRENT ASSETS Cash and cash equivalents $ 124 $ 124 Accounts receivable, less allowance for doubtful accounts and claims of $530 at March 29, 1997 and $390 at September 28, 1996 11,186 12,113 Inventories 15,157 17,367 Operating supplies and other current assets 6,044 5,067 Refundable income taxes 951 540 Deferred tax assets 309 680 ------- ------- Total current assets 33,771 35,891 ------- ------- PROPERTY, PLANT AND EQUIPMENT Land and buildings 4,448 4,353 Machinery and equipment 38,861 37,774 Construction in progress 1,958 1,412 Less - accumulated depreciation (9,500) (7,852) ------- ------- Net property, plant and equipment 35,767 35,687 ------- ------- DEFERRED TAX ASSETS 7,680 6,263 ------- ------- OTHER ASSETS 747 592 ------- ------- Total assets $ 77,965 $ 78,433 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Advances on line of credit $ 10,120 $ 7,546 Accounts payable 9,283 7,214 Capital expenditures payable 906 2,404 Accrued liabilities 3,292 3,639 Current portion of long-term debt 125 125 ------- ------- Total current liabilities 23,726 20,928 ------- ------- LONG-TERM DEBT 20,000 20,000 ------- ------- OTHER LIABILITIES 494 395 ------- ------- Total liabilities 44,220 41,323 ------- ------- SHAREHOLDERS' EQUITY Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued - - Common stock, $.01 par value, 15,000,000 shares authorized, 4,974,099 shares issued, respectively 50 50 Additional paid-in capital 15,710 15,710 Less treasury stock - 349,176 and 273,000 shares at cost, respectively (2,628) (2,165) Deferred compensation (280) (421) Retained earnings 20,893 23,936 ------- ------- Total shareholders' equity 33,745 37,110 ------- ------- Total liabilities and shareholders' equity$ 77,965 $ 78,433 See notes to condensed consolidated financial statements
KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in Thousands, Except Per Share Data) (Unaudited)
Three Months Ended Six Months Ended March 29, March 30, March 29, March 30, 1997 1996 1997 1996 NET SALES $ 23,159 $ 24,625 $ 46,541 $ 48,313 COST OF GOODS SOLD 23,615 22,178 47,011 43,290 ------ ------- ------- ------- Gross Profit (Loss) (456) 2,447 (470) 5,023 SELLING AND ADMINISTRATIVE EXPENSES 1,658 2,024 3,383 3,987 ------- ------- ------- ------- Operating income (loss) (2,114) 423 (3,853) 1,036 INTEREST INCOME AND OTHER 6 14 11 19 INTEREST EXPENSE (554) (415) (1,048) (773) GAIN ON INVOLUNTARY CONVERSION OF EQUIPMENT - 369 - 369 ------- ------- ------- ------- Income (loss) before income taxes (2,662) 391 (4,890) 651 PROVISION (CREDIT) FOR INCOME TAXES (1,003) 148 (1,847) 246 ------- ------- ------- ------- Net income (loss) $ (1,659) $ 243 $ (3,043) $ 405 NET INCOME (LOSS) PER COMMON SHARE $ (.36) $ .05 $ (.66) $ .08 WEIGHTED AVERAGE SHARES OUTSTANDING 4,626,639 4,828,055 4,643,258 4,850,395 See notes to condensed consolidated financial statements
KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Six Months Ended March 29, March 30, 1997 1996 Cash Flows From Operating Activities: Net income (loss) $ (3,043) $ 405 Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 1,821 1,291 Gain on involuntary conversion of equipment - (369) Change in deferred taxes (1,417) 746 Change in other (88) (218) Change in current assets and current liabilities: Accounts receivable 927 (517) Insurance claim receivable - (2,600) Inventories 2,210 4,366 Operating supplies and other current assets (977) (546) Deferred tax assets 371 (72) Accounts payable 2,069 1,977 Accrued liabilities (347) (508) Accrued income taxes refundable/payable (411) (441) ------- ------- Net cash flows from operating activities 1,115 3,514 ------- ------- Cash Flows From Investing Activities: Proceeds from involuntary conversion of equipment - 912 Capital expenditures (1,728) (5,634) Change in capital expenditures payable (1,498) 549 ------- ------- Net cash flows from investing activities (3,226) (4,173) ------- ------- Cash Flows From Financing Activities: Net advances (repayments) on line of credit 2,574 (9,944) Repayments on long-term debt - (9,001) Proceeds from long-term debt borrowing - 20,000 Purchases of treasury stock (463) (539) ------- ------- Net cash flows from financing activities 2,111 516 ------- ------- Net decrease in cash and cash equivalents - (143) Cash and Cash Equivalents at Beginning of Period 124 327 ------- ------- Cash and Cash Equivalents at End of Period $ 124 $ 184 Interest Paid, net of amount capitalized$ 1,050 $ 306 Income Taxes Paid $ - $ 14 See notes to condensed consolidated financial statements
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements represent Kentucky Electric Steel, Inc. and its wholly-owned subsidiary, KESI Finance Company, (the Company). KESI Finance Company was formed in October 1996 to finance the Ladle Metallurgy Project. All significant intercompany accounts and transactions have been eliminated. These statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six-month period ended March 29, 1997, are not necessarily indicative of the results that may be expected for the year ended September 27, 1997. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended September 28, 1996. Net income per common share is calculated based on 4,626,639 and 4,828,055 weighted average number of common shares outstanding during the quarters ended March 29, 1997, and March 30, 1996, respectively. Net income per common share is calculated based on 4,643,258 and 4,850,395 weighted average number of shares outstanding for the six months ended March 29, 1997 and March 30, 1996, respectively. (2) Accounting Policies Fiscal Year End The Company's fiscal year ends on the last Saturday of September. Property, Plant, Equipment and Depreciation Property, plant and equipment is recorded at cost, less accumulated depreciation. For financial reporting purposes, depreciation is provided on the straight-line method over the estimated useful lives of the assets, generally 3 to 12 years for machinery and equipment and 15 to 30 years for buildings and improvements. Depreciation for income tax purposes is computed using accelerated methods. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures for equipment renewals which extend the useful life of any asset are capitalized. The Company capitalizes interest costs as part of the historical cost of constructing major capital assets. Interest costs of $3,000 and $32,000 were capitalized for the quarters ended March 29, 1997 and March 30, 1996, respectively. Interest costs of $11,000 and $84,000 were capitalized for the six months ended March 29, 1997 and March 30, 1996, respectively. (3) Inventories Inventories at March 29, 1997 and September 28, 1996 consist of the following ($000's): March 29, September 28, 1997 1996 Raw materials $ 3,067 $ 4,069 Semi-finished and finished goods 12,090 13,298 Total inventories $ 15,157 $ 17,367 (4) Long-Term Debt The Company's unsecured senior notes and bank credit facility agreements were amended, effective December 28, 1996, to reduce the required fixed charge coverage ratio, increase the minimum net worth requirement and revise other miscellaneous provisions of the agreements. In connection with the amendment, the amount of the Company's unsecured bank credit facility has been reduced from $24.5 million to $17.5 million. With this amendment, the Company continues to be in compliance with the financial covenants and management believes it is probable that the Company will continue to be in compliance with the amended covenants. (5) Commitments and Contingencies The Company has various commitments for the purchase of materials, supplies and energy arising in the ordinary course of business. The Company is subject to various claims, lawsuits and administrative proceedings arising in the ordinary course of business with respect to commercial, product liability and other matters, which seek remedies or damages. The Company believes that any liability that may ultimately be determined will not have a material effect on its financial position or results of operations. The Company generates both hazardous wastes and non-hazardous wastes which are subject to various governmental regulations. Estimated costs to be incurred in connection with environmental matters are accrued when the prospect of incurring costs for testing or remedial action is deemed probable. The Company is not aware of any material asserted or unasserted environmental claims against the Company and no accruals for such matters have been recorded in the accompanying balance sheets. However, discovery of unknown conditions could result in the recording of accruals in the periods in which they become known. (6) Subsequent Event Subsequent to the end of the fiscal quarter, the Company reported the detection of a radioactive substance in baghouse dust, a by-product of the melting process. As a result, the Company's melt shop operations were shut down for twelve days in order to decontaminate its baghouse facility. The contaminated dust was handled in such a manner that it posed no safety or health threat and the clean-up and disposal is being performed under the direction and oversight of appropriate governmental agencies and with the help of outside consultants. The Company maintains both radiation contamination and business interruption insurance and therefore believes that the contamination will not have a material effect on the Company's financial position or results of operations. Management is in the process of assessing the full impact of the event. KENTUCKY ELECTRIC STEEL, INC. AND SUBSIDIARY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General. The Company manufactures special bar quality alloy and carbon steel bar flats to precise customer specifications for sale in a variety of niche markets. Its primary markets are manufacturers of leaf-spring suspensions, cold drawn bar converters, flat bed truck trailers, and steel service centers. Net Sales. Net sales decreased $1.5 million (6.0%) in the second quarter of fiscal 1997 to $23.1 million, as compared to $24.6 million for the second quarter of fiscal 1996. The decrease in net sales is attributed to a decrease in average net selling price and a 3.0% decrease in shipments. Net sales for the six months ended March 29, 1997 decreased $1.8 million (3.7%) to $46.5 million, as compared to $48.3 million for the six months ended March 30, 1996. The decrease in net sales is attributed to a decrease in average net selling price with shipments remaining constant for the six months ended March 29, 1997 as compared to the six months ended March 30, 1996. The decrease in average selling price is attributed to a change in product mix and downward pricing pressures. The change in product mix reflects an increase in shipments to the cold drawn bar converter market in the highly competitive, lower priced, smaller size ranges, which has been partially offset by an increase of shipments of higher priced thicker, wider bar flats. Cost of Goods Sold. Cost of goods sold increased $1.4 million (6.5%) in the second quarter of fiscal 1997 to $23.6 million, as compared to $22.2 million for the second quarter of fiscal 1996. As a percentage of net sales, cost of goods sold increased from 90.1% for the three months ended March 30, 1996 to 102.0% for the three months ended March 29, 1997. Cost of goods sold for the six months ended March 29, 1997 increased $3.7 million (8.6%) to $47.0 million as compared to $43.3 million for the six months ended March 30, 1996. As a percentage of net sales, cost of goods sold increased from 89.6% for the six months ended March 30, 1996 to 101.0% for the six months ended March 29, 1997. The increase in cost of goods sold is due to higher conversion costs and additional depreciation related to the start-up of the ladle metallurgy and casting facilities, which has been partially offset by a decrease in material costs. Conversion costs for the three and six months ended March 29, 1997 were adversely impacted by repair and maintenance cost and supply cost related to a major repair of the caster superstructure, as well as by significant production inefficiencies related to the shut-down and restart of the caster. The caster was shut-down for 10 days in late December and early January to allow for the repairs to be made. At the same time, the Company converted an additional caster strand to allow for increased production of thicker, wider products. The production inefficiencies caused by the shut-down were largely overcome by late in the second quarter. Also adversely impacting conversion costs, although to a lesser degree, was the continued start-up phase of the new ladle metallurgy facility, which came on-line in the fourth quarter of fiscal 1996. The quarter and six months ended March 30, 1996 includes a $1.7 million reimbursement from business interruption insurance, related to the caster fire, in the calculation of cost of goods sold. Gross Profit (Loss). As a result of the above, the second quarter of fiscal 1997 reflected a gross loss of $.5 million as compared to gross profit of $2.4 million for the second fiscal quarter of 1996. As a percentage of net sales, gross profit decreased from 9.9% for the three months ended March 30, 1996 to (2.0%) for the three months ended March 29, 1997. Similarly, the six months ended March 29, 1997 reflected a gross loss of $.5 million as compared to gross profit of $5.0 million for the six months ended March 30, 1996. As a percentage of net sales, gross profit decreased from 10.4% for the six months ended March 30, 1996 to (1.0%) for the six months ended March 29, 1997. Selling and Administrative Expenses. Selling and administrative expenses include salaries and benefits, corporate overhead, insurance, sales commissions and other expenses incurred in the executive, sales and marketing, shipping, personnel, and other administrative departments. Selling and administrative expenses decreased by approximately $366,000 and $604,000 for the three months and six months ended March 29, 1997, respectively, as compared to the same periods in fiscal 1996. These decreases in selling and administrative expenses were primarily the result of a reduction in the provision for uncollectible accounts (which was higher in the prior periods due to problems with certain specific accounts), a decrease in health benefit costs, and a decrease in legal and professional fees. The decreases for the second quarter of 1997 have been slightly offset by an increase in workers compensation expense. As a percentage of net sales, such expenses decreased from 8.2% for the three months ended March 30, 1996 to 7.2% for the three months ended March 29, 1997. As a percentage of net sales, such expenses decreased from 8.3% for the six months ended March 30, 1996 to 7.3% for the six months ended March 29, 1997. Operating Income (Loss). For the reasons described above, the second quarter of fiscal 1997 reflected an operating loss of $2.1 million as compared to operating income of $.4 million for the second fiscal quarter of 1996. As a percentage of net sales, operating income decreased from 1.7% in the second quarter of 1996 to (9.1%) in the second quarter of 1997. Similarly, the six months ended March 29, 1997 reflected an operating loss of $3.9 million as compared to operating income of $1.0 million for the six months ended March 30, 1996. As a percentage of net sales, operating income decreased from 2.1% for the six months ended March 30, 1996 to (8.3%) for the six months ended March 29, 1997. Interest Expense. Interest expense increased by $139,000 for the three months ended March 29, 1997 from $415,000 for the second quarter of fiscal 1996 to $554,000 for the second quarter of fiscal 1997, net of interest capitalized of $32,000 and $3,000, respectively. Interest expense for the six months ended March 29, 1997 increased $275,000 from $773,000 for the six months ended March 30, 1996 to $1,048,000 for the six months ended March 29, 1997, net of interest capitalized of $84,000 and $11,000, respectively. The increase in interest expense was attributed to the additional debt incurred in financing the capital expansion projects and the reduction of capitalized interest due to the completion and start-up of the ladle metallurgy facility. Gain on Involuntary Conversion of Equipment. As a result of the caster fire, during the second quarter of fiscal 1996, the Company received insurance proceeds of $912,000 for the replacement cost of the equipment destroyed which had a net book value of $543,000. The excess of the replacement cost over the net book value of the equipment destroyed resulted in a gain of approximately $369,000. Net Income (Loss). As a result of the above, the second quarter of fiscal 1997 reflected a net loss of $1.7 million as compared to net income of $.2 million for the second quarter of fiscal 1996. Similarly, the six months ended March 29, 1997 reflected a net loss of $3.0 million as compared to net income of $.4 million for the six months ended March 30, 1996. Liquidity and Capital Resources. The cash flows provided from operating activities were $1.1 million for the first six months of fiscal 1997 as compared to $3.5 million for the first six months of fiscal 1996. The first six months of fiscal 1997 operating cash flows reflect a reduction in accounts receivable and inventories and an increase in accounts payable. The first six months of fiscal 1996 operating cash flows reflect the reduction in raw material and work in process inventories and an increase in accounts payable. The cash flows used by investing activities were $3.2 million for the first six months of fiscal 1997 as compared to $4.2 million for the first six months of fiscal 1996. The first six months of fiscal 1997 investing cash flows reflect capital expenditures of $1.7 million and payments on capital expenditures payable of $1.5 million. The first six months of fiscal 1996 investing cash flows reflect capital expenditures of $5.6 million which has been offset by an increase in capital expenditures payable of $.5 million and the proceeds from the involuntary conversion of equipment of $.9 million. The cash flows from financing activities were $2.1 million for the first six months of fiscal 1997 as compared to $.5 million for the first six months of fiscal 1996. The cash flows from financing activities for fiscal 1997 reflect net advances of $2.6 million on the Company's line of credit and $.5 million for purchase of treasury stock. The cash flows from financing activities for fiscal 1996 reflect net repayments of $10.0 million on the Company's line of credit, $9.0 million repayment on long-term debt, and $.5 million for purchase of treasury stock; however, these amounts were offset with the proceeds of $20.0 million of new long-term debt. Working capital at March 29, 1997 was $10.0 million as compared to $15.0 million at September 28, 1996, and the current ratio was 1.4 to 1.0 as compared to 1.7 to 1.0. The decrease in working capital and current ratio is primarily attributed to a decrease in accounts receivable and inventories and an increase in accounts payable and advances on the line of credit. The Company's primary ongoing cash requirements are for the payment of retainage on the capital expansion projects and current capital expenditures. The two sources for the Company's liquidity are internally generated funds and its bank credit facility. The Company had $10.1 million in borrowings outstanding on its line of credit as of March 29, 1997. The Company believes that the bank credit facility and internally generated funds will be sufficient to fund its ongoing cash needs through the next twelve-month period. Recent Accounting Pronouncements In February 1997, the Financial Accounting Standards Board issued Statement No. 128 (SFAS No. 128) related to the computation and presentation of earnings per share data. Under SFAS No. 128, basic and diluted earnings per share for the three months and six months ended March 29, 1997 would have been the same as reported. Outlook Management believes that the major modifications to the new equipment are complete as indicated by the productivity gains realized during the second quarter. Also, although spring pricing remains soft, demand is strong in the other markets the Company serves and price increases have been implemented on many products effective in March and April. Continued strength in certain markets and productivity improvements should improve third and fourth quarter operating results. Subsequent to the end of the fiscal quarter, the Company reported the detection of a radioactive substance in baghouse dust, a by-product of the melting process. The company's melt shop operations were shut down for twelve days in order to decontaminate its baghouse facility. The Company maintains both radiation contamination and business interruption insurance and therefore believes that the contamination will not have a material effect on the Company's financial position or result of operations. Management is in the process of assessing the full impact of the event. Forward-Looking Statements The matters discussed or incorporated by reference in this Report on Form 10-Q that are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995) including those statements in "Outlook" above, involve risks and uncertainties. These risks and uncertainties include, but are not limited to, the reliance on truck and utility vehicle industry; excess industry capacity; product demand and industry pricing; volatility of raw material costs, especially steel scrap; intense foreign and domestic competition; management's estimate of niche market data; the cyclical and capital intensive nature of the industry; and cost of compliance with environmental regulations. These risks and uncertainties could cause actual results of the Company to differ materially from those projected or implied by such forward-looking statements. PART II. - OTHER INFORMATION ITEM 4. Submission of Matters to a Vote of Security-Holders The annual meeting of shareholders was held on February 6, 1997. In connection with the meeting, proxies were solicited pursuant to the Securities Exchange Act. The following are the voting results on proposals considered and voted upon at the meeting, all of which were described in the proxy statement. 1. The nominee for director was elected. The vote was as follows: For Withheld Term Expires Charles C. Hanebuth 3,885,412 285,726 2000 2. The proposal to ratify the Board of Directors' appointment of Arthur Andersen LLP as the Company's independent public accountants for the fiscal year ending September 27, 1997. (For 4,162,263; Against 5,741; Abstain 3,134) ITEM 6. Exhibits and Reports on Form 8-K A) Exhibits 3.1 Certificate of Incorporation of Kentucky Electric Steel, Inc., filed as Exhibit 3.1 to Registrant's Registration Statement on Form S-1 (No. 33-67140), and incorporated by reference herein. 3.2 By-Laws of Kentucky Electric Steel, Inc., filed as Exhibit 3.2 to Registrant's Registration Statement on Form S-1 (No. 33-67140), and incorporated by reference herein. 27 - Financial Data Schedule B) Reports on Form 8-K - None SIGNATURES 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 thereunto duly authorized. DATED: May 12, 1997 KENTUCKY ELECTRIC STEEL, INC. (Registrant) William J. Jessie William J. Jessie, Vice President, Secretary, Treasurer, and Principal Financial Officer EX-27 2 ART.5 FDS FOR 2ND QUARTER 10-Q
5 This schedule contains summary financial information extracted from Kentucky Electric Steel, Inc.'s condensed financial statements as of and for the six month period ended March 29, 1997, included in this Company's quarterly report on Form 10-Q and is qualified in its entirety by reference to such condensed financial statements. 0000910394 KENTUCKY ELECTRIC STEEL, INC. 1,000 U.S. DOLLARS 6-MOS SEP-27-1997 SEP-29-1996 MAR-29-1997 1 124 0 11,716 530 15,157 33,771 45,267 9,500 77,965 23,726 20,000 50 0 0 33,695 77,965 46,541 46,541 47,011 47,011 0 0 1,048 (4,890) (1,847) (3,043) 0 0 0 (3,043) (.66) (.66)
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