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 JANUARY 31, 2005
($'s IN THOUSANDS)
Year to
Date
January, January,
2005 2005
- -------- --------
$3,020 SALES - OUTSIDE CUSTOMERS $3,020
0 SALES - INTERCOMPANY 0
- -------- --------
3,020 NET SALES 3,020
2,166 VARIABLE PRODUCTION COSTS 2,166
- -------- --------
854 VARIABLE CONTRIBUTION 854
- -------- --------
153 MANUFACTURING FIXED COSTS 153
87 DEPRECIATION 87
- -------- --------
240 TOTAL FIXED COSTS 240
- -------- --------
614 GROSS PROFIT 614
- -------- --------
200 SELLING EXPENSE 200
176 ADMINISTRATIVE EXPENSE 176
- -------- --------
376 TOTAL SELLING & ADMIN.EXPENSE 376
- -------- --------
238 OPERATING PROFIT 238
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
31 INTEREST EXPENSE 31
0 OTHER INCOME (EXPENSE) 0
0 GAIN ON SALE OF FIXED ASSETS 0
- -------- --------
207 INCOME BEFORE TAXES 207
82 INCOME TAXES 82
- -------- --------
125 INCOME FROM OPERATIONS 125
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
- -------- --------
$125 NET INCOME $125
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Page 1
ENGINEERED WIRE PRODUCTS
BALANCE SHEET
January 31, 2005
($'s IN THOUSANDS)
CURRENT ASSETS:
CASH $315
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 3,946
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 15,708
LESS LIFO RESERVE 0
---------
INVENTORIES AT LIFO 15,708
---------
PREPAID EXPENSES 6
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
---------
TOTAL CURRENT ASSETS 19,975
---------
PROPERTY PLANT & EQUIPMENT AT COST 18,808
LESS ACCUMULATED DEPRECIATION 12,556
---------
NET PLANT, PROPERTY & EQUIPMENT 6,252
---------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
---------
TOTAL ASSETS $26,227
=========
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $133
NOTES PAYABLE & CURRENT L.T. DEBT 1,389
KCI LOAN ACCOUNT 62
INTERCOMPANY ACCOUNTS PAYABLE 2,147
ACCOUNTS PAYABLE 399
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 2,595
ACCRUED PENSIONS 21
INCOME TAXES PAYABLE 1,070
---------
TOTAL CURRENT LIABILITIES 7,816
---------
LONG TERM DEBT 4,091
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
---------
TOTAL LONG TERM LIABILITIES 4,091
---------
MINORITY INTEREST 0
---------
PREFERRED STOCK 0
---------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 14,320
LESS TREASURY STOCK 0
---------
TOTAL EQUITY 14,320
---------
TOTAL LIABILITIES & EQUITY $26,227
=========
Page 2
ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED JANUARY 31, 2005
($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $125
PROVISION FOR DEPRECIATION 87
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE 5
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. 1,652
(INCREASE) DECREASE INVENTORY (1,245)
(INCREASE) DECREASE PREPAID EXPENSES 31
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. (109)
INCREASE (DECREASE) ACCRUED PENSIONS 21
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES 257
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. 1,213
--------
NET ADJUSTMENTS 1,912
--------
NET CASH PROVIDED (USED) BY OPERATIONS 2,037
--------
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP & E 0
CAPITAL EXPENDITURES (11)
INTERCO PP&E TRANSFERS NET 0
--------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (11)
--------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET (1,856)
REPAYMENTS OF OTHER DEBT (117)
PROCEEDS OF OTHER DEBT 0
INCREASE (DECREASE) KCI LOAN (15)
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
--------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (1,988)
--------
NET INCREASE (DECREASE) IN CASH 38
CASH AT BEGINNING OF PERIOD 277
--------
CASH AT END OF PERIOD $315
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