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 MAY 31, 2004
($'s IN THOUSANDS)
Year to Date
May 2004 May 2004
------------ ------------
$4,471 SALES - OUTSIDE CUSTOMERS $22,348
0 SALES - INTERCOMPANY 0
------------ ------------
4,471 NET SALES 22,348
2,974 VARIABLE PRODUCTION COSTS 15,765
------------ ------------
1,497 VARIABLE CONTRIBUTION 6,583
------------ ------------
139 MANUFACTURING FIXED COSTS 700
87 DEPRECIATION 435
------------ ------------
226 TOTAL FIXED COSTS 1,135
------------ ------------
1,271 GROSS PROFIT 5,448
------------ ------------
207 SELLING EXPENSE 864
209 ADMINISTRATIVE EXPENSE 857
------------ ------------
416 TOTAL SELLING & ADMIN.EXPENSE 1,721
------------ ------------
855 OPERATING PROFIT 3,727
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
24 INTEREST EXPENSE 162
5 OTHER INCOME (EXPENSE) 8
0 GAIN ON SALE OF FIXED ASSETS 0
------------ ------------
836 INCOME BEFORE TAXES 3,573
330 INCOME TAXES 1,411
------------ ------------
506 INCOME FROM OPERATIONS 2,162
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
------------ ------------
------------ ------------
$506 NET INCOME $2,162
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ENGINEERED WIRE PRODUCTS
BALANCE SHEET
MAY 31, 2004
($ IN THOUSANDS)
CURRENT ASSETS:
CASH $450
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 7,426
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 9,345
LESS LIFO RESERVE 0
-------
INVENTORIES AT LIFO 9,345
-------
PREPAID EXPENSES 249
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
-------
TOTAL CURRENT ASSETS 17,470
-------
PROPERTY PLANT & EQUIPMENT AT COST 18,676
LESS ACCUMULATED DEPRECIATION 11,905
-------
NET PLANT, PROPERTY & EQUIPMENT 6,771
-------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
-------
TOTAL ASSETS $24,241
=======
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $2,642
NOTES PAYABLE & CURRENT L.T. DEBT 1,381
KCI LOAN ACCOUNT 48
INTERCOMPANY ACCOUNTS PAYABLE 2,126
ACCOUNTS PAYABLE 346
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 1,254
ACCRUED PENSIONS 92
INCOME TAXES PAYABLE 1,411
-------
TOTAL CURRENT LIABILITIES 9,300
-------
LONG TERM DEBT 4,999
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
-------
-------
TOTAL LONG TERM LIABILITIES 4,999
-------
MINORITY INTEREST 0
-------
-------
PREFERRED STOCK 0
-------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 9,942
LESS TREASURY STOCK 0
-------
TOTAL EQUITY 9,942
-------
TOTAL LIABILITIES & EQUITY $24,241
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ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED MAY 31, 2004
(IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $2,162
PROVISION FOR DEPRECIATION 435
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE 16
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. (4,202)
(INCREASE) DECREASE INVENTORY (2,693)
(INCREASE) DECREASE PREPAID EXPENSES 3,132
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. (88)
INCREASE (DECREASE) ACCRUED PENSIONS 92
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES 1,483
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. 2,126
-----------
NET ADJUSTMENTS 301
-----------
NET CASH PROVIDED (USED) BY OPERATIONS 2,463
-----------
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP & E 0
CAPITAL EXPENDITURES (115)
INTERCO PP&E TRANSFERS NET 0
-----------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (115)
-----------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET (1,355)
REPAYMENTS OF OTHER DEBT (466)
PROCEEDS OF OTHER DEBT 6,776
INCREASE (DECREASE) KCI LOAN (7,124)
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
-----------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (2,169)
-----------
NET INCREASE (DECREASE) IN CASH 179
CASH AT BEGINNING OF PERIOD 271
-----------
CASH AT END OF PERIOD $450
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