Financial Statements
and Supplemental Schedule
Amcast Industrial Corporation
401(k) Salary Deferral Plan
December 31, 2003 and 2002,
and for the year ended December 31, 2003,
with Independent Auditors' Report
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Financial Statements
and Supplemental Schedule
December 31, 2003 and 2002,
and for the year ended December 31, 2003
Table of Contents
Independent Auditors' Report...................................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits................................2
Statement of Changes in Net Assets Available for Benefits......................3
Notes to Financial Statements................................................4-8
Supplemental Schedule
Schedule H, Part IV, 4i - Schedule of Assets (Held at End of Year).............9
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 (the "Plan") as
of December 31, 2003, and the related statement of changes in net assets
available for benefits for the year ended December 31, 2003. 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 audit. The
financial statements of the Plan as of December 31, 2002, were audited by other
auditors whose report dated, May 23, 2003, expressed an unqualified opinion on
those statements.
We conducted our audit 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 audit provides 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, 2003, and the changes in its net assets available for benefits for
the year ended December 31, 2003, in conformity with accounting principles
generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2003 is not a required part of the
basic financial statements but is 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 schedule
has been subjected to the auditing procedures applied in our audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/ Clark, Schaefer, Hackett & Co.
May 20, 2004
Dayton, Ohio
1
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Statements of Net Assets Available for Benefits
December 31, 2003 and 2002
2003 2002
-------------- --------------
Cash $ 9,438 $ -
Participant-directed investments, at fair value
Shares of registered investment companies 24,507,570 19,461,785
Common/collective trust fund 10,316,412 10,099,018
Amcast Industrial Corporation common stock 2,433,654 1,152,780
Loans to participants 1,605,794 1,722,305
-------------- --------------
38,863,430 32,435,888
Receivables
Interest income 4,236 2,826
Participant contributions 141,040 70,069
Employer contributions - 12,502
-------------- --------------
145,276 85,397
-------------- --------------
Net assets available for benefits $ 39,018,144 $ 32,521,285
============== ==============
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
Year Ended December 31, 2003
Additions to assets attributed to:
Net appreciation in fair value of investments $ 5,446,067
Interest and dividend income 1,040,069
Contributions
Participants 2,804,567
Employer 248,484
--------------
Total additions 9,539,187
Deductions from assets attributed to:
Benefits paid to participants 3,042,328
--------------
Increase in net assets available for benefits 6,496,859
Assets available for benefits at beginning of year 32,521,285
--------------
Assets available for benefits at end of year $ 39,018,144
==============
The accompanying notes are an integral part of the financial statements.
3
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2003
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 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 day of the month 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. Effective June 28,
2003, the Company discontinued its 401(k) matching contribution on behalf of
Plan participants. Prior to June 28, 2003, the Company made matching
contributions equal to 25 percent of the first 6 percent of compensation that
was deferred by participants to the Plan. These matching contributions were made
in common stock of the Company. Prior to June 28, 2003 the Company also made
supplemental matching contributions to the Plan provided that the Company's
annual minimum return on net worth was at least 9 percent. The amount of these
supplemental matching contributions increased based upon the level of return;
however, the amount was not permitted to exceed 35 percent of the participants'
salary deferral contributions.
Vesting
Participants are immediately vested in their deferral contributions plus actual
earnings thereon. Vesting for any Company contributions made prior to June 28,
2003, 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. Amounts not vested are forfeited upon termination of employment.
Forfeited amounts are allocated to current plan participants at the end of the
plan year.
4
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2003
1. Description of the Plan (continued)
Investment Options
Participants may direct investments to be split between any of the investment
fund options available, including shares of Company stock.
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 Plan earnings, and prior to June 28, 2003, company
contributions. 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.
5
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2003
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.
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. Investment securities, in general, are exposed to
various risks, such as interest rate, credit, and overall market volatility. Due
to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investment securities will
occur in the near term and that such changes could materially affect the amounts
reported in the statements of net assets available for benefits.
6
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2003
3. Investments
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets available for benefits at December 31 are as follows:
2003 2002
-------------- ---------------
Shares of registered investment companies:
T. Rowe Price New Income Fund $ 2,321,271 $ 2,064,303
T. Rowe Price Capital Appreciation Fund 5,230,774 4,278,891
T. Rowe Price Equity Index 500 Fund 5,755,557 4,530,775
T. Rowe Price Equity Income Fund 9,009,228 7,200,033
Common/collective trust fund:
T. Rowe Price Stable Value Fund 10,316,412 10,099,018
Amcast Industrial Corporation common stock 2,433,654 Less than 5%
Loans to participants Less than 5% 1,722,305
For the year ended December 31, 2003 the Plan's investments (including
investments bought, sold, and held during the year) appreciated as follows:
2003
---------------
Shares of registered investment companies $ 4,424,778
Amcast Industrial Corporation common stock 1,021,289
---------------
$ 5,446,067
===============
7
Amcast Industrial Corporation
401(k) Salary Deferral Plan
Notes to Financial Statements
December 31, 2003
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 Company's Pension Administration
Committee and the Company's tax counsel believe 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 Company's
Pension Administration Committee and the Company's tax counsel are 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 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 terminate the Plan subject to the provisions of ERISA. In the
event of Plan termination, participants will become 100 percent vested in their
accounts.
8
Supplemental Schedule
Amcast Industrial Corporation
401(k) Salary Deferral Plan
EIN 31-0258080 / Plan 002
Schedule H, Part IV, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2003
(a) , (b) ( c ) (e)
Identity of Party Involved and Description of (d) Current
Description of Asset Investment Cost Value
- ----------------------------------------------------------- ------------------------ ----------------- -----------------
Shares of registered investment companies
* T. Rowe Price International Stock Fund 47,193 shares 610,478 542,250
* T. Rowe Price New Horizons Fund 66,471 shares 1,524,027 1,648,490
* T. Rowe Price New Income Fund 256,494 shares 2,251,002 2,321,271
* T. Rowe Price Capital Appreciation Fund 298,901 shares 4,267,819 5,230,774
* T. Rowe Price Equity Index 500 Fund 192,172 shares 5,400,972 5,755,557
* T. Rowe Price Equity Income Fund 372,898 shares 8,558,048 9,009,228
----------------- -----------------
22,612,346 24,507,570
Common/collective trust fund
* T. Rowe Price Stable Value Fund 10,316,412 units 10,316,412 10,316,412
Common stock
* Amcast Industrial Corporation common stock 936,021 shares 5,931,282 2,433,654
Loans to participants Rates ranging from
Participant loans 5.0% to 10.5% 1,605,794 1,605,794
----------------- -----------------
$40,465,834 $38,863,430
================= =================
* Indicates party-in-interest to the Plan.
9