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 JUNE 30, 2004
($'s IN THOUSANDS)
Year to Date
June 2004 June 2004
------------ ------------
$4,691 SALES - OUTSIDE CUSTOMERS $27,039
0 SALES - INTERCOMPANY 0
------------ ------------
4,691 NET SALES 27,039
3,169 VARIABLE PRODUCTION COSTS 18,934
------------ ------------
1,522 VARIABLE CONTRIBUTION 8,105
------------ ------------
125 MANUFACTURING FIXED COSTS 825
87 DEPRECIATION 522
------------ ------------
212 TOTAL FIXED COSTS 1,347
------------ ------------
1,310 GROSS PROFIT 6,758
------------ ------------
216 SELLING EXPENSE 1,080
220 ADMINISTRATIVE EXPENSE 1,077
------------ ------------
436 TOTAL SELLING & ADMIN.EXPENSE 2,157
------------ ------------
874 OPERATING PROFIT 4,601
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
25 INTEREST EXPENSE 187
(3) OTHER INCOME (EXPENSE) 5
0 GAIN ON SALE OF FIXED ASSETS 0
------------ ------------
846 INCOME BEFORE TAXES 4,419
334 INCOME TAXES 1,745
------------ ------------
512 INCOME FROM OPERATIONS 2,674
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
------------ ------------
$512 NET INCOME $2,674
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ENGINEERED WIRE PRODUCTS
BALANCE SHEET
JUNE 30, 2004
($ IN THOUSANDS)
CURRENT ASSETS:
CASH $157
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 7,653
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 12,153
LESS LIFO RESERVE 0
---------
INVENTORIES AT LIFO 12,153
---------
PREPAID EXPENSES 20
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
---------
TOTAL CURRENT ASSETS 19,983
---------
PROPERTY PLANT & EQUIPMENT AT COST 18,676
LESS ACCUMULATED DEPRECIATION 11,992
---------
NET PLANT, PROPERTY & EQUIPMENT 6,684
---------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
---------
TOTAL ASSETS $26,667
=========
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $2,221
NOTES PAYABLE & CURRENT L.T. DEBT 1,381
KCI LOAN ACCOUNT 47
INTERCOMPANY ACCOUNTS PAYABLE 3,946
ACCOUNTS PAYABLE 389
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 1,490
ACCRUED PENSIONS 109
INCOME TAXES PAYABLE 1,746
---------
TOTAL CURRENT LIABILITIES 11,329
---------
LONG TERM DEBT 4,884
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
---------
TOTAL LONG TERM LIABILITIES 4,884
---------
MINORITY INTEREST 0
---------
PREFERRED STOCK 0
---------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 10,454
LESS TREASURY STOCK 0
---------
TOTAL EQUITY 10,454
---------
TOTAL LIABILITIES & EQUITY $26,667
=========
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ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED JUNE 30, 2004
(IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $2,674
PROVISION FOR DEPRECIATION 522
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE 19
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. (4,432)
(INCREASE) DECREASE INVENTORY (5,501)
(INCREASE) DECREASE PREPAID EXPENSES 3,361
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. (45)
INCREASE (DECREASE) ACCRUED PENSIONS 109
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES 2,054
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. 3,946
----------
NET ADJUSTMENTS 33
----------
NET CASH PROVIDED (USED) BY OPERATIONS 2,707
----------
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 (1,776)
REPAYMENTS OF OTHER DEBT (581)
PROCEEDS OF OTHER DEBT 6,776
INCREASE (DECREASE) KCI LOAN (7,125)
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
----------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (2,706)
----------
NET INCREASE (DECREASE) IN CASH (114)
CASH AT BEGINNING OF PERIOD 271
----------
CASH AT END OF PERIOD $157
==========
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