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 APRIL 30, 2005
($'s IN THOUSANDS)
Year to Date
April 2005 April 2005
- ----------- ------------
$7,279 SALES - OUTSIDE CUSTOMERS $19,330
0 SALES - INTERCOMPANY 0
- ---------- ---------
7,279 NET SALES 19,330
5,313 VARIABLE PRODUCTION COSTS 14,005
- ---------- ---------
1,966 VARIABLE CONTRIBUTION 5,325
- ---------- ---------
144 MANUFACTURING FIXED COSTS 586
87 DEPRECIATION 348
- ---------- ---------
231 TOTAL FIXED COSTS 934
- ---------- ---------
1,735 GROSS PROFIT 4,391
- ---------- ---------
206 SELLING EXPENSE 737
182 ADMINISTRATIVE EXPENSE 668
- ---------- ---------
388 TOTAL SELLING & ADMIN.EXPENSE 1,405
- ---------- ---------
1,347 OPERATING PROFIT 2,986
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
52 INTEREST EXPENSE 142
0 OTHER INCOME (EXPENSE) 0
0 GAIN ON SALE OF FIXED ASSETS 0
- ---------- ---------
1,295 INCOME BEFORE TAXES 2,844
511 INCOME TAXES 1,123
- ---------- ---------
784 INCOME FROM OPERATIONS 1,721
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
- ---------- ---------
$784 NET INCOME $1,721
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Page 1 of 3
ENGINEERED WIRE PRODUCTS
BALANCE SHEET
April 30, 2005
($'s IN THOUSANDS)
CURRENT ASSETS:
CASH $310
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 9,153
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 17,997
LESS LIFO RESERVE 0
-------
INVENTORIES AT LIFO 17,997
-------
PREPAID EXPENSES 0
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
-------
TOTAL CURRENT ASSETS 27,460
-------
PROPERTY PLANT & EQUIPMENT AT COST 18,852
LESS ACCUMULATED DEPRECIATION 12,817
-------
NET PLANT, PROPERTY & EQUIPMENT 6,035
-------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
-------
TOTAL ASSETS $33,495
=======
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $6,401
NOTES PAYABLE & CURRENT L.T. DEBT 1,389
KCI LOAN ACCOUNT 674
INTERCOMPANY ACCOUNTS PAYABLE 3,203
ACCOUNTS PAYABLE 448
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 1,133
ACCRUED PENSIONS 75
INCOME TAXES PAYABLE 512
-------
TOTAL CURRENT LIABILITIES 13,835
-------
LONG TERM DEBT 3,744
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
-------
TOTAL LONG TERM LIABILITIES 3,744
-------
MINORITY INTEREST 0
-------
PREFERRED STOCK 0
-------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 15,916
LESS TREASURY STOCK 0
-------
TOTAL EQUITY 15,916
-------
TOTAL LIABILITIES & EQUITY $33,495
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Page 2 of 3
ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED APRIL 30, 2005
($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $1,721
PROVISION FOR DEPRECIATION 348
(GAIN) LOSS ON SALE OF ASSETS 0
PROVISION FOR BAD DEBT ALLOWANCE (98)
PROV. FOR INVENT. RESERVES (EXCLUDING LIFO) (46)
PROVISION FOR LIFO RESERVE 0
CHANGE IN ASSETS AND LIABILITIES:
(INCREASE) DECREASE ACCTS. & NOTES REC. (3,452)
(INCREASE) DECREASE INVENTORY (3,488)
(INCREASE) DECREASE PREPAID EXPENSES 37
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. (60)
INCREASE (DECREASE) ACCRUED PENSIONS 75
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES (1,763)
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. 2,269
-------
NET ADJUSTMENTS (6,178)
-------
NET CASH PROVIDED (USED) BY OPERATIONS (4,457)
-------
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 4,412
REPAYMENTS OF OTHER DEBT (464)
PROCEEDS OF OTHER DEBT 0
INCREASE (DECREASE) KCI LOAN 597
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
-------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 4,545
-------
NET INCREASE (DECREASE) IN CASH 33
CASH AT BEGINNING OF PERIOD 277
-------
CASH AT END OF PERIOD $310
=======