Exhibit 99.1
------------
Financial Statements
and Supplemental Schedules
Amcast Industrial Corporation
401(k) Salary Deferral Plan
December 31, 2001 and 2000,
and for the years then ended
with Independent Auditors' Report
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Financial Statements
and Supplemental Schedules
December 31, 2001 and 2000,
and for the years then ended
Table of Contents
Independent Auditors' Report...................................................1
Audited Financial Statements
Statement of Net Assets Available for Benefits.................................2
Statement of Changes in Net Assets Available for Benefits....................3-4
Notes to Financial Statements................................................5-9
Supplemental Schedules
Schedule G, Part III - Schedule of Nonexempt Transactions.....................10
Schedule H, Part IV, 4i - Schedule of Assets Held for Investment Purposes..11-12
Schedule H, Part IV, 4j - Schedule of Reportable Transactions..............13-14
Independent Auditors' Report
Amcast Industrial Corporation
401(k) Salary Deferral Plan
We have audited the accompanying statement of net assets available for benefits
of the Amcast Industrial Corporation 401(k) Salary Deferral Plan as of December
31, 2001 and 2000, and the related statement of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2001 and 2000, and the changes in its net assets available for
benefits for the years then ended, in conformity with accounting principles
generally accepted in the United States of America.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of
nonexempt transactions, assets held for investment purposes, and reportable
transactions as of and for the years ended December 31, 2001 and 2000 are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in our audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/ Battelle & Battelle LLP
June 6, 2002
Dayton, Ohio
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Statement of Net Assets Available for Benefits
December 31
-----------------------------
2001 2000
------------- ------------
Assets
Cash $ 1,950 $ 4,314
Participant-directed investments, at fair value
Shares of registered investment companies 23,117,026 23,381,886
Common/collective trust fund 9,590,459 9,814,763
Amcast Industrial Corporation common stock 2,662,044 4,187,570
Loans to participants 1,609,626 1,491,459
------------- ------------
36,979,155 38,875,678
------------- ------------
Receivables
Interest and dividend income 3,198 4,705
Participant contributions 89,305 125,491
Employer contributions 14,978 26,830
------------- ------------
107,481 157,026
------------- ------------
Net assets available for benefits $ 37,088,586 $ 39,037,018
============= ============
The accompanying notes are an integral part of the financial statements.
2
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2001
Fund Information
-----------------------------------------------------------------------
Amcast T. Rowe T. Rowe T. Rowe T. Rowe T. Rowe
Industrial Price Price Price Price Price
Corporation Stable International New New Equity
Common Value Stock Horizons Income Index 500
Stock Fund Fund Fund Fund Fund
------------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 58,357 $ 557,662 $ 14,220 $ 31,575 $ 87,148 $ 63,207
Net (depreciation)
appreciation in fair
value of investments (2,008,534) - (161,215) (61,816) 27,949 (890,455)
Contributions
Participant 208,004 560,326 116,925 224,273 186,310 769,981
Employer 555,168 - - - - -
Transfer from Casting
Technology Company 401(k)
Salary Deferral Plan - 88,113 7,738 113,691 70,351 104,582
------------------------------------------------------------------------
(1,187,005) 1,206,101 (22,332) 307,723 371,758 47,315
Deductions
Benefit payments (428,637) (1,517,735) (130,284) (67,256) (175,034) (670,283)
Interfund transfers 74,168 80,272 (127,388) (315,581) 260,831 (519,784)
-------------------------------------------------------------------------
Net (decrease) increase (1,541,474) (231,362) (280,004) (75,114) 457,555 (1,142,752)
Net assets available for
benefits, December 31, 2000 4,224,361 9,838,499 771,832 1,392,896 1,263,667 7,220,304
------------------------------------------------------------------------
Net assets available for
benefits, December 31, 2001 $ 2,682,887 $ 9,607,137 $ 491,828 $ 1,317,782 $1,721,222 $6,077,552
========================================================================
T. Rowe T. Rowe
Price Price
Equity Capital
Income Appreciation Loans to Unallocated
Fund Fund Participants Funds Total
------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 499,748 $ 224,305 $ 132,300 $ - $ 1,668,522
Net (depreciation)
appreciation in fair
value of investments (361,967) 196,585 - - (3,259,453)
Contributions
Participant 713,873 336,147 - - 3,115,839
Employer - - - - 555,168
Transfer from Casting
Technology Company 401(k)
Salary Deferral Plan 106,406 152,028 28,629 - 671,538
------------------------------------------------------------
958,060 909,065 160,929 - 2,751,614
Deductions
Benefit payments (1,022,624) (521,879) (166,314) - (4,700,046)
Interfund transfers (27,071) 453,365 123,552 (2,364) -
------------------------------------------------------------
Net (decrease) increase (91,635) 840,551 118,167 (2,364) (1,948,432)
Net assets available for
benefits, December 31, 2000 8,962,032 3,867,654 1,491,459 4,314 39,037,018
------------------------------------------------------------
Net assets available for
benefits, December 31, 2001 $ 8,870,397 $ 4,708,205 $1,609,626 $ 1,950 $37,088,586
============================================================
The accompanying notes are an integral part of the financial statements.
3
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Statement of Changes in Net Assets Available for Benefits
For the year ended December 31, 2000
Fund Information
-----------------------------------------------------------------------
Amcast T. Rowe T. Rowe T. Rowe T. Rowe T. Rowe
Industrial Price Price Price Price Price
Corporation Stable International New New Equity
Common Value Stock Horizons Income Index 500
Stock Fund Fund Fund Fund Fund
------------------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 212,776 $ 574,222 $ 64,554 $ 171,234 $ 78,782 $ 107,398
Net (depreciation)
appreciation in fair
value of investments (1,861,188) - (203,576) (254,253) 48,889 (823,980)
Contributions
Participant 310,786 593,515 152,737 329,295 218,636 908,293
Employer 598,162 - - - - -
Transfer from other Company
sponsored plan - 6,073 - - - -
------------------------------------------------------------------------
(739,464) 1,173,810 13,715 246,276 346,307 191,711
Deductions
Benefit payments (252,651) (995,751) (84,075) (113,607) (236,229) (915,527)
Interfund transfers 631,726 (141,272) 399,378 788,818 (116,737) (402,395)
------------------------------------------------------------------------
Net (decrease) increase (360,389) 36,787 329,018 921,487 (6,659) (1,126,211)
Net assets available for
benefits, December 31, 1999 4,584,750 9,801,712 442,814 471,409 1,270,326 8,346,515
------------------------------------------------------------------------
Net assets available for
benefits, December 31, 2000 $ 4,224,361 $ 9,838,499 $ 771,832 $ 1,392,896 $1,263,667 $7,220,304
========================================================================
T. Rowe T. Rowe
Price Price
Equity Capital
Income Appreciation Loans to Unallocated
Fund Fund Participants Funds Total
------------------------------------------------------------
Additions
Investment income
Interest and dividends $ 1,076,473 $ 336,401 $ 114,403 $ - $ 2,736,243
Net (depreciation)
appreciation in fair
value of investments (87,325) 381,344 - - (2,800,089)
Contributions
Participant 743,324 330,967 - - 3,587,553
Employer - - - - 598,162
Transfer from other Company
sponsored plan 32,465 - - - 38,538
------------------------------------------------------------
1,764,937 1,048,712 114,403 - 4,160,407
Deductions
Benefit payments (1,331,334) (484,736) (75,416) - (4,489,326)
Interfund transfers (755,290) (348,833) 62,705 (118,100) -
------------------------------------------------------------
Net (decrease) increase (321,687) 215,143 101,692 (118,100) (328,919)
Net assets available for
benefits, December 31, 1999 9,283,719 3,652,511 1,389,767 122,414 39,365,937
------------------------------------------------------------
Net assets available for
benefits, December 31, 2000 $ 8,962,032 $ 3,867,654 $1,491,459 $ 4,314 $39,037,018
============================================================
The accompanying notes are an integral part of the financial statements.
4
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2001
1. Description of the Plan
The following description of the Amcast Industrial Corporation 401(k) Salary
Deferral Plan (the Plan) is provided for general information purposes only.
Participants should refer to the Summary Plan Description for a more complete
description of the Plan's provisions.
General
The Plan is a contributory defined contribution plan covering substantially all
employees of Amcast Industrial Corporation (the Company and Plan Sponsor) who
are compensated on a salary or hourly basis and are not covered by a collective
bargaining agreement. Eligible employees may participate on the first day of the
month coincident with, or first following six months of employment. The Plan is
subject to the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions
Each year, participants may contribute, in whole percentages, an amount up to 20
percent of annual compensation, as defined by the Plan Document. Additionally,
participants may make up to two lump sum contributions to the Plan per year.
Participants may also contribute amounts representing distributions from other
qualified defined benefit or defined contribution plans. The Company makes
matching contributions equal to 25 percent of the first 6 percent of
compensation that is deferred by participants to the Plan. These matching
contributions are made in common stock of the Company. The Company also makes
supplemental matching contributions to the Plan provided that the Company's
annual minimum return on net worth is at least 9 percent. The amount of these
supplemental matching contributions increases based upon the level of return;
however, the amount shall not exceed 35 percent of the participants' salary
deferral contributions.
Vesting
Participants are immediately vested in their deferral contributions plus actual
earnings thereon. Vesting in the Company contribution portion of their accounts
plus actual earnings thereon is based on years of continuous service.
Participants are 50 percent vested in Company contributions made after one year
of service with the Company, 75 percent vested after two years of service, and
fully vested after three years of service.
5
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2001
1. Description of the Plan (continued)
Participant Loans
Participants may borrow from their fund accounts a minimum of $500 up to a
maximum of the lesser of $50,000 (less the highest outstanding balance of any
loan made to the participant under the Plan during the 12-month period preceding
the date of the loan) or 50 percent of their vested account balance. The loan
term is not to exceed 5 years unless the loan is for the purchase of a principal
residence, in which case the term may be as long as 30 years. Interest rates on
these loans are one percent above the prime rate of interest on the first
business day of the calendar quarter in which a loan application is made to the
Company.
Participant Accounts
Each participant's account is credited with the participant's contributions and
allocations of (a) the Company's contributions and (b) Plan earnings. The
benefit to which a participant is entitled is the benefit that can be provided
from the participant's account.
Payment of Benefits
On termination of service for any reason, a participant may receive a lump-sum
amount equal to the vested value of his or her account, in either (a) cash or
(b) cash for all investments other than Company stock and the participant's
related shares of the Company's stock.
Administrative Expenses
Substantially all expenses of the Plan are paid by the Company.
2. Summary of Significant Accounting Policies
Basis of Accounting
The Plan's financial statements are prepared on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the Plan
administrator to make estimates that affect the amounts reported in the
financial statements and accompanying notes. Actual results could differ from
those estimates.
6
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2001
2. Summary of Significant Accounting Policies (continued)
Investment Valuation
The Plan's investments are stated at fair value. The shares of registered
investment companies are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year-end. Participant loans are
valued at their outstanding balances, which approximate fair value. Company
common stock and the participation units owned by the Plan in the
common/collective trust fund are based on quoted redemption value on the last
business day of the Plan year.
3. Investments
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets at December 31 are as follows:
2001 2000
------------ ------------
Shares of registered investment companies:
T. Rowe Price Capital Appreciation Fund $ 4,697,089 $ 3,856,041
T. Rowe Price Equity Index 500 Fund 6,055,610 7,187,009
T. Rowe Price Equity Income Fund 8,849,038 8,933,729
Common/collective trust fund:
T. Rowe Price Stable Value Fund 9,590,459 9,814,763
Amcast Industrial Corporation common stock 2,662,044 4,187,570
For the years ended December 31, 2001 and 2000, the Plan's investments
(including investments bought, sold, and held during the year) depreciated in
value by $3,259,453 and $2,800,089, respectively:
2001 2000
------------ ------------
Shares of registered investment companies $ 1,250,919 $ 938,901
Amcast Industrial Corporation common stock 2,008,534 1,861,188
------------ ------------
$ 3,259,453 $ 2,800,089
============ ============
7
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2001
4. Income Tax Status
The Internal Revenue Service (IRS) ruled on July 21, 1992, that the Plan
qualifies under Section 401(a) of the Internal Revenue Code (the IRC) and,
therefore, the underlying trust is not subject to income tax under present tax
law. The Plan was subsequently amended. The Company is currently waiting for an
IRS determination for the Plan, as amended. The Pension Administration Committee
believes that the Plan, as amended, is operating in conformity with the IRC.
Once qualified, the Plan is required to operate in conformity with the IRC to
maintain its qualification. The Pension Administration Committee is not aware of
any course of action or series of events that have occurred that might adversely
affect the Plan's qualified status.
5. Transactions With Parties-In-Interest
The Trust is not charged for administrative services performed on its behalf by
the Company. The Plan also invests in common stock of the Company (the Plan
Sponsor).
6. Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
7. Prohibited Transactions
During 2001, the Plan sponsor discovered that it had failed to remit certain
participants' deferral contributions and the related employer matching
contributions to the Plan for a pay period that had occurred in December, 1999.
Consequently, in October of 2001, the Plan sponsor made additional contributions
to the Plan consisting of $4,451, the original amount of the participant
deferrals, $745, the amount of the employer matching contribution, and $1,085,
the amount calculated by the sponsor for lost Plan income on these
contributions.
8
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2001
8. Transfer from Other Company Sponsored Plan
Effective August 31, 2001, the participants and net assets of the Casting
Technology Company 401(k) Salary Deferral Plan were merged into the Plan.
The following is a summary of the net assets transferred:
Shares of registered investment companies $ 554,796
Common/collective trust fund 88,113
Loans to participants 28,629
---------
$ 671,538
=========
9
Supplemental Schedules
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule G, Part III
Schedule of Nonexempt Transactions
December 31, 2001
(c) (i)
(b) Decription of Current (j)
(a) Relationship of Transaction Including Value of Net
Identity Plan, Employer Maturity Date, Rate of (d) (e) (h) Asset at Gain or (Loss)
of Party or Other Interest, Collateral, Purchase Selling Cost of Date of on Each
Involved Party-In-Interest Par or Maturity Value Price Price Asset Transaction Transaction
- ------------ ------------------- ------------------------- --------- -------- -------- ------------ -----------------
Amcast Plan Sponsor Overdue employee 4,451 N/A N/A 4,451 N/A
Industrial contributions not timely
Corporation remitted to the plan
Amcast Plan Sponsor Overdue employer 745 N/A N/A 745 N/A
Industrial contributions not timely
Corporation remitted to the plan
There were no lease rental activities or expenses incurred with the above
transactions.
Therefore, columns (f) and (g) were eliminated for presentation purposes.
10
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes
December 31, 2001
(a),(b) (c) (e)
Identity of Party Involved and Description of (d) Fair
Description of Asset Investment Cost Value
- ----------------------------------------------- ------------------ ------------ ------------
Shares of registered investment companies
* T. Rowe Price International Stock Fund 44,429 shares 686,179 488,270
* T. Rowe Price New Horizons Fund 57,970 shares 1,456,373 1,311,864
* T. Rowe Price New Income Fund 197,599 shares 1,715,750 1,715,155
* T. Rowe Price Capital Appreciation Fund 320,839 shares 4,487,221 4,697,089
* T. Rowe Price Equity Index 500 Fund 196,356 shares 5,691,409 6,055,610
* T. Rowe Price Equity Income Fund 374,167 shares 8,803,675 8,849,038
----------- -----------
22,840,607 23,117,026
Common/collective trust fund
* T. Rowe Price Stable Value Fund 9,590,459 units 9,590,459 9,590,459
Common stock
* Amcast Industrial Corporation common stock 494,791 shares 6,273,469 2,662,044
Loans to participants Rates ranging from
Participant loans 6.5% to 10.5% 1,609,626 1,609,626
----------- -----------
$40,314,161 $36,979,155
=========== ===========
* Indicates party-in-interest to the Plan.
11
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes
December 31, 2000
(a),(b) (c) (e)
Identity of Party Involved and Description of (d) Fair
Description of Asset Investment Cost Value
- ----------------------------------------------- ----------------- ----------- -----------
Shares of registered investment companies
* T. Rowe Price International Stock Fund 52,796 shares 904,415 766,602
* T. Rowe Price New Horizons Fund 57,867 shares 1,582,712 1,382,438
* T. Rowe Price New Income Fund 147,773 shares 1,281,158 1,256,067
* T. Rowe Price Capital Appreciation Fund 276,419 shares 3,788,696 3,856,041
* T. Rowe Price Equity Index 500 Fund 202,451 shares 5,838,694 7,187,009
* T. Rowe Price Equity Income Fund 362,129 shares 8,498,607 8,933,729
----------- -----------
21,894,282 23,381,886
Common/collective trust fund
* T. Rowe Price Stable Value Fund 9,814,763 units 9,814,763 9,814,763
Common stock
* Amcast Industrial Corporation common stock 421,391 shares 5,876,280 4,187,570
Loans to participants Rates ranging from
Participant loans 7% to 11% 1,491,459 1,491,459
----------- -----------
$39,076,784 $38,875,678
=========== ===========
* Indicates party-in-interest to the Plan.
12
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
For the year ended December 31, 2001
(h)
Fair
(b) (g) Value of (i)
Description (c) (d) Cost Asset at Net
(a) of Purchase Selling of Date of Gain or
Identity of Party Involved Investment Price Price Asset Transaction (Loss)
- -----------------------------------------------------------------------------------------------------------------
- - No Reportable Transactions - -
There were no category (i) (ii) (iii) or (iv) transactions during the year.
There were no lease rental activities or expenses incurred with the plan.
Therefore, columns (e) and (f) were eliminated for presentation purposes.
13
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
For the year ended December 31, 2000
(h)
Fair
(b) (g) Value of (i)
Description (c) (d) Cost Asset at Net
(a) of Purchase Selling of Date of Gain or
Identity of Party Involved Investment Price Price Asset Transaction (Loss)
- -----------------------------------------------------------------------------------------------------------------
- - No Reportable Transactions - -
There were no category (i) (ii) (iii) or (iv) transactions during the year.
There were no lease rental activities or expenses incurred with the plan.
Therefore, columns (e) and (f) were eliminated for presentation purposes.
14