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 NOVEMBER 30, 2004
($'s IN THOUSANDS)
Year to Date
November 2004 November 2004
- -------------- -----------------
$4,363 SALES - OUTSIDE CUSTOMERS ....................... $56,262
0 SALES - INTERCOMPANY ............................ 0
- ------- ------------------------------------------------- -------
4,363 NET SALES ....................................... 56,262
3,062 VARIABLE PRODUCTION COSTS ....................... 39,517
- ------- ------------------------------------------------- -------
1,301 VARIABLE CONTRIBUTION ........................... 16,745
- ------- ------------------------------------------------- -------
129 MANUFACTURING FIXED COSTS ....................... 1,489
87 DEPRECIATION .................................... 957
- ------- ------------------------------------------------- -------
216 TOTAL FIXED COSTS ............................... 2,446
- ------- ------------------------------------------------- -------
1,085 GROSS PROFIT .................................... 14,299
- ------- ------------------------------------------------- -------
168 SELLING EXPENSE ................................. 2,173
165 ADMINISTRATIVE EXPENSE .......................... 2,175
- ------- ------------------------------------------------- -------
333 TOTAL SELLING & ADMIN.EXPENSE ................... 4,348
- ------- ------------------------------------------------- -------
752 OPERATING PROFIT ................................ 9,951
0 EARNINGS IN UNCONSOL. SUBSIDIARIES .............. 0
0 INTEREST INCOME ................................. 0
31 INTEREST EXPENSE ................................ 369
26 OTHER INCOME (EXPENSE) .......................... 38
0 GAIN ON SALE OF FIXED ASSETS .................... 0
- ------- ------------------------------------------------- -------
747 INCOME BEFORE TAXES ............................. 9,620
295 INCOME TAXES .................................... 3,800
- ------- ------------------------------------------------- -------
452 INCOME FROM OPERATIONS .......................... 5,820
0 ACCOUNTING CHANGE ............................... 0
0 MINORITY INTEREST ............................... 0
- ------- ------------------------------------------------- -------
$ 452 NET INCOME ...................................... $ 5,820
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ENGINEERED WIRE PRODUCTS
BALANCE SHEET
November 30, 2004
($'s IN THOUSANDS)
CURRENT ASSETS:
CASH ....................................................... $ 669
MARKETABLE SECURITIES ...................................... 0
NOTES & ACCOUNT RECEIVABLE NET ............................. 6,780
INTERCOMPANY ACCOUNTS RECEIVABLE ........................... 0
INVENTORIES AT COST ......................................... 12,869
LESS LIFO RESERVE ......................................... 0
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INVENTORIES AT LIFO ......................................... 12,869
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PREPAID EXPENSES ........................................... 3
DEFERRED INCOME TAXES ...................................... 0
OTHER CURRENT ASSETS ....................................... 0
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TOTAL CURRENT ASSETS ...................................... 20,321
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PROPERTY PLANT & EQUIPMENT AT COST .......................... 18,744
LESS ACCUMULATED DEPRECIATION ............................ 12,389
-------
NET PLANT, PROPERTY & EQUIPMENT ........................ 6,355
-------
DEFERRED FINANCING EXPENSE ................................. 0
DEFERRED INCOME TAXES ....................................... 0
PREPAID PENSION ASSET ....................................... 0
RESTRICTED INVESTMENTS ...................................... 0
GOODWILL .................................................... 0
OTHER LONG TERM ASSETS ..................................... 0
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TOTAL ASSETS ............................................ $26,676
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LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY .................................... $ 2,682
NOTES PAYABLE & CURRENT L.T. DEBT .......................... 1,389
KCI LOAN ACCOUNT ........................................... 42
INTERCOMPANY ACCOUNTS PAYABLE .............................. 822
ACCOUNTS PAYABLE ........................................... 359
ACCRUED OPEB ............................................... 0
ACCRUED PREFERRED STOCK DIVIDENDS .......................... 0
ACCRUED LIABILITIES ........................................ 2,516
ACCRUED PENSIONS ........................................... 201
INCOME TAXES PAYABLE ....................................... 742
-------
TOTAL CURRENT LIABILITIES ............................... 8,753
-------
LONG TERM DEBT ............................................. 4,323
ACCRUED OPEB ............................................... 0
LONG TERM PENSIONS ......................................... 0
LONG TERM OTHER ............................................ 0
DEFERRED FEDERAL INCOME TAX ................................ 0
-------
TOTAL LONG TERM LIABILITIES ............................. 4,323
-------
MINORITY INTEREST .......................................... 0
-------
PREFERRED STOCK ............................................ 0
-------
SFAS #87 ADJUSTMENT ........................................ 0
COMMON STOCK ............................................... 0
OTHER CAPITAL .............................................. 0
INVESTMENT EQUITY .......................................... 0
RETAINED EARNINGS .......................................... 13,600
LESS TREASURY STOCK ....................................... 0
-------
TOTAL EQUITY ............................................ 13,600
-------
TOTAL LIABILITIES & EQUITY ................................... $26,676
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ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED NOVEMBER 30, 2004
($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME ..................................................... $ 5,820
PROVISION FOR DEPRECIATION .................................. 957
(GAIN) LOSS ON SALE OF ASSETS ............................... 0
PROVISION FOR BAD DEBT ALLOWANCE ............................ 51
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) ................. 0
PROVISION FOR LIFO RESERVE .................................. 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. (3,591)
(INCREASE) DECREASE INVENTORY .............................. (6,217)
(INCREASE) DECREASE PREPAID EXPENSES ....................... 3,378
(INCREASE) DECREASE OTHER ASSETS ........................... 0
INCREASE (DECREASE) ACCTS PAY .............................. (75)
INCREASE (DECREASE) ACCRUED PENSIONS ....................... 201
INCREASE (DECREASE) DEFERRED TAXES ......................... 0
INCREASE (DECREASE) OPEB LIABILITIES ....................... 0
INCREASE (DECREASE) OTHER LIABILITIES ...................... 2,076
(INCREASE) DECREASE INTERCO ACCT. REC ...................... 0
INCREASE (DECREASE) INTERCO ACCTS PAY ...................... 822
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NET ADJUSTMENTS ................................................ (2,398)
-------
NET CASH PROVIDED (USED) BY OPERATIONS ......................... 3,422
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CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP & E ............................... 0
CAPITAL EXPENDITURES ....................................... (221)
INTERCO PP&E TRANSFERS NET ................................. 0
-------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITY (221)
-------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET .............................. (1,315)
REPAYMENTS OF OTHER DEBT .................................... (1,156)
PROCEEDS OF OTHER DEBT ...................................... 6,798
INCREASE (DECREASE) KCI LOAN ................................ (7,130)
PROCEEDS FROM ISSUANCE OF COMMON STOCK ...................... 0
DIVIDENDS PAID .............................................. 0
-------
NET CASH PROVIDED (USED) BY FINANCING ACTIV (2,803)
-------
NET INCREASE (DECREASE) IN CASH ................................ 398
CASH AT BEGINNING OF PERIOD .................................... 271
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CASH AT END OF PERIOD .......................................... $ 669
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