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, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 2005
($s IN THOUSANDS)
Year-to-Date
March, 2005 March 2005
- -------------- --------------
$5,347 SALES - OUTSIDE CUSTOMERS $12,051
0 SALES - INTERCOMPANY 0
- ---------- --------
5,347 NET SALES 12,051
3,893 VARIABLE PRODUCTION COSTS 8,692
- ---------- --------
1,454 VARIABLE CONTRIBUTION 3,359
- ---------- --------
159 MANUFACTURING FIXED COSTS 442
87 DEPRECIATION 261
- ---------- --------
246 TOTAL FIXED COSTS 703
- ---------- --------
1,208 GROSS PROFIT 2,656
- ---------- --------
169 SELLING EXPENSE 531
161 ADMINISTRATIVE EXPENSE 486
- ---------- --------
330 TOTAL SELLING & ADMIN.EXPENSE 1,017
- ---------- --------
878 OPERATING PROFIT 1,639
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
33 INTEREST EXPENSE 90
0 OTHER INCOME (EXPENSE) 0
0 GAIN ON SALE OF FIXED ASSETS 0
- ---------- --------
845 INCOME BEFORE TAXES 1,549
334 INCOME TAXES 612
- ---------- --------
511 INCOME FROM OPERATIONS 937
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
- ---------- --------
$511 NET INCOME $937
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ENGINEERED WIRE PRODUCTS, INC.
BALANCE SHEET
March 31, 2005
($s IN THOUSANDS)
CURRENT ASSETS:
CASH $367
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 7,046
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 17,554
LESS LIFO RESERVE 0
-------
INVENTORIES AT LIFO 17,554
-------
PREPAID EXPENSES 0
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
-------
TOTAL CURRENT ASSETS 24,967
-------
PROPERTY PLANT & EQUIPMENT AT COST 18,852
LESS ACCUMULATED DEPRECIATION 12,730
-------
NET PLANT, PROPERTY & EQUIPMENT 6,122
-------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
-------
TOTAL ASSETS $31,089
=======
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $4,087
NOTES PAYABLE & CURRENT L.T. DEBT 1,389
KCI LOAN ACCOUNT 1,170
INTERCOMPANY ACCOUNTS PAYABLE 3,042
ACCOUNTS PAYABLE 658
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 1,085
ACCRUED PENSIONS 54
INCOME TAXES PAYABLE 612
-------
TOTAL CURRENT LIABILITIES 12,097
-------
LONG TERM DEBT 3,860
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
-------
TOTAL LONG TERM LIABILITIES 3,860
-------
MINORITY INTEREST 0
-------
PREFERRED STOCK 0
-------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 15,132
LESS TREASURY STOCK 0
-------
TOTAL EQUITY 15,132
-------
TOTAL LIABILITIES & EQUITY $31,089
=======
ENGINEERED WIRE PRODUCTS, INC.
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2005
($s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $937
PROVISION FOR DEPRECIATION 261
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE 12
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) 0
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. (1,455)
(INCREASE) DECREASE INVENTORY (3,091)
(INCREASE) DECREASE PREPAID EXPENSES 37
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. 150
INCREASE (DECREASE) ACCRUED PENSIONS 54
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES (1,711)
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. 2,108
-------
NET ADJUSTMENTS (3,635)
-------
NET CASH PROVIDED (USED) BY OPERATIONS (2,698)
-------
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP & E 0
CAPITAL EXPENDITURES (55)
INTERCO PP&E TRANSFERS NET 0
-------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (55)
-------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET 2,098
REPAYMENTS OF OTHER DEBT (348)
PROCEEDS OF OTHER DEBT 0
INCREASE (DECREASE) KCI LOAN 1,093
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
-------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 2,843
-------
NET INCREASE (DECREASE) IN CASH 90
CASH AT BEGINNING OF PERIOD 277
-------
CASH AT END OF PERIOD $367
=======