A copy of certain financial information of Engineered Wire Products, Inc.
("EWP") is presented below. Such financial information is limited 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 SEPTEMBER 30, 2004
($'s IN THOUSANDS)
Year to Date
September September
2004 2004
- --------- ----------
$6,351 SALES - OUTSIDE CUSTOMERS $45,577
0 SALES - INTERCOMPANY 0
- -------- ------
6,351 NET SALES 45,577
4,526 VARIABLE PRODUCTION COSTS 31,988
- -------- ------
1,825 VARIABLE CONTRIBUTION 13,589
- -------- ------
140 MANUFACTURING FIXED COSTS 1,225
87 DEPRECIATION 783
- -------- ------
227 TOTAL FIXED COSTS 2,008
- -------- ------
1,598 GROSS PROFIT 11,581
- -------- ------
229 SELLING EXPENSE 1,789
209 ADMINISTRATIVE EXPENSE 1,768
- -------- ------
438 TOTAL SELLING & ADMIN.EXPENSE 3,557
- -------- ------
1,160 OPERATING PROFIT 8,024
0 EARNINGS IN UNCONSOL.
SUBSIDIARIES 0
0 INTEREST INCOME 0
37 INTEREST EXPENSE 296
7 OTHER INCOME (EXPENSE) 12
0 GAIN ON SALE OF FIXED ASSETS 0
- -------- ------
1,130 INCOME BEFORE TAXES 7,740
446 INCOME TAXES 3,057
- -------- ------
684 INCOME FROM OPERATIONS 4,683
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
- -------- ------
$684 NET INCOME $4,683
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Page 1
ENGINEERED WIRE PRODUCTS
BALANCE SHEET
September 30, 2004
CURRENT ASSETS:
CASH $201
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 9,926
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 12,988
LESS LIFO RESERVE 0
-------
INVENTORIES AT LIFO 12,988
-------
PREPAID EXPENSES 35
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
-------
TOTAL CURRENT ASSETS 23,150
-------
PROPERTY PLANT & EQUIPMENT AT COST 18,698
LESS ACCUMULATED DEPRECIATION 12,215
-------
NET PLANT, PROPERTY & EQUIPMENT 6,483
-------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
-------
TOTAL ASSETS $29,633
=======
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $5,052
NOTES PAYABLE & CURRENT L.T. DEBT 1,389
KCI LOAN ACCOUNT 90
INTERCOMPANY ACCOUNTS PAYABLE 1,971
ACCOUNTS PAYABLE 496
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 2,141
ACCRUED PENSIONS 164
INCOME TAXES PAYABLE 1,312
-------
TOTAL CURRENT LIABILITIES 12,615
-------
LONG TERM DEBT 4,555
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
-------
TOTAL LONG TERM LIABILITIES 4,555
-------
MINORITY INTEREST 0
-------
PREFERRED STOCK 0
-------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 12,463
LESS TREASURY STOCK 0
-------
TOTAL EQUITY 12,463
-------
TOTAL LIABILITIES & EQUITY $29,633
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Page 2
ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED SEPTEMBER 30, 2004
(IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $4,683
PROVISION FOR DEPRECIATION 783
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE 42
PROV. FOR INVENT. RESERVES
(EXCLUDING LIFO) 0
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. REC. (6,728)
(INCREASE) DECREASE INVENTORY (6,336)
(INCREASE) DECREASE PREPAID EXPENSES 3,346
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. 62
INCREASE (DECREASE) ACCRUED PENSIONS 164
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES 2,271
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO PAY. 1,971
-------
NET ADJUSTMENTS (4,425)
-------
NET CASH PROVIDED (USED) BY OPERATIONS 258
-------
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP&E 0
CAPITAL EXPENDITURES (175)
INTERCO PP&E TRANSFERS NET 0
-------
NET CASH PROVIDED (USED) BY INVESTING
ACTIVITIES (175)
-------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET 1,055
REPAYMENTS OF OTHER DEBT (924)
PROCEEDS OF OTHER DEBT 6,798
INCREASE (DECREASE) KCI LOAN (7,082)
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
-------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES (153)
-------
NET INCREASE (DECREASE) IN CASH (70)
CASH AT BEGINNING OF PERIOD 271
-------
CASH AT END OF PERIOD $201
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