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 AUGUST 31, 2005
($'s IN THOUSANDS)
Year to Date
August 2005 August 2005
- ----------- ------------
$5,944 SALES - OUTSIDE CUSTOMERS $42,584
0 SALES - INTERCOMPANY 0
- ---------- ---------
5,944 NET SALES 42,584
4,432 VARIABLE PRODUCTION COSTS 31,433
- ---------- ---------
1,512 VARIABLE CONTRIBUTION 11,151
- ---------- ---------
138 MANUFACTURING FIXED COSTS 1,145
87 DEPRECIATION 696
- ---------- ---------
225 TOTAL FIXED COSTS 1,841
- ---------- ---------
1,287 GROSS PROFIT 9,310
- ---------- ---------
220 SELLING EXPENSE 1,493
236 ADMINISTRATIVE EXPENSE 1,382
- ---------- ---------
456 TOTAL SELLING & ADMIN.EXPENSE 2,875
- ---------- ---------
831 OPERATING PROFIT 6,435
0 EARNINGS IN UNCONSOL. SUBSIDIARIES 0
0 INTEREST INCOME 0
39 INTEREST EXPENSE 319
0 OTHER INCOME (EXPENSE) 0
0 GAIN ON SALE OF FIXED ASSETS 0
- ---------- ---------
792 INCOME BEFORE TAXES 6,116
313 INCOME TAXES 2,415
- ---------- ---------
479 INCOME FROM OPERATIONS 3,701
0 ACCOUNTING CHANGE 0
0 MINORITY INTEREST 0
- ---------- ---------
$479 NET INCOME $3,701
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Page 1 of 3
ENGINEERED WIRE PRODUCTS
BALANCE SHEET
August 31, 2005
($'s IN THOUSANDS)
CURRENT ASSETS:
CASH $142
MARKETABLE SECURITIES 0
NOTES & ACCOUNT RECEIVABLE NET 9,752
INTERCOMPANY ACCOUNTS RECEIVABLE 0
INVENTORIES AT COST 15,966
LESS LIFO RESERVE 0
---------
INVENTORIES AT LIFO 15,966
---------
PREPAID EXPENSES 0
DEFERRED INCOME TAXES 0
OTHER CURRENT ASSETS 0
---------
TOTAL CURRENT ASSETS 25,860
---------
PROPERTY, PLANT & EQUIPMENT AT COST 18,928
LESS ACCUMULATED DEPRECIATION 13,165
---------
NET PROPERTY, PLANT & EQUIPMENT 5,763
---------
DEFERRED FINANCING EXPENSE 0
DEFERRED INCOME TAXES 0
PREPAID PENSION ASSET 0
RESTRICTED INVESTMENTS 0
GOODWILL 0
OTHER LONG TERM ASSETS 0
---------
TOTAL ASSETS $31,623
=========
LIABILITIES AND EQUITIES:
REVOLVING LOAN FACILITY $3,544
NOTES PAYABLE & CURRENT L.T. DEBT 1,387
KCI LOAN ACCOUNT 1,232
INTERCOMPANY ACCOUNTS PAYABLE 672
ACCOUNTS PAYABLE 969
ACCRUED OPEB 0
ACCRUED PREFERRED STOCK DIVIDENDS 0
ACCRUED LIABILITIES 1,814
ACCRUED PENSIONS 147
INCOME TAXES PAYABLE 679
---------
TOTAL CURRENT LIABILITIES 10,444
---------
LONG TERM DEBT 3,283
ACCRUED OPEB 0
LONG TERM PENSIONS 0
LONG TERM OTHER 0
DEFERRED FEDERAL INCOME TAX 0
---------
TOTAL LONG TERM LIABILITIES 3,283
---------
MINORITY INTEREST 0
---------
PREFERRED STOCK 0
---------
SFAS #87 ADJUSTMENT 0
COMMON STOCK 0
OTHER CAPITAL 0
INVESTMENT EQUITY 0
RETAINED EARNINGS 17,896
LESS TREASURY STOCK 0
---------
TOTAL EQUITY 17,896
---------
TOTAL LIABILITIES & EQUITY $31,623
=========
Page 2 of 3
ENGINEERED WIRE PRODUCTS
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED AUGUST 31, 2005
($'s IN THOUSANDS)
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $3,701
PROVISION FOR DEPRECIATION 696
(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. (4,051)
(INCREASE) DECREASE INVENTORY (1,457)
(INCREASE) DECREASE PREPAID EXPENSES 37
(INCREASE) DECREASE OTHER ASSETS 0
INCREASE (DECREASE) ACCTS PAY. 461
INCREASE (DECREASE) ACCRUED PENSIONS 147
INCREASE (DECREASE) DEFERRED TAXES 0
INCREASE (DECREASE) OPEB LIABILITIES 0
INCREASE (DECREASE) OTHER LIABILITIES (915)
(INCREASE) DECREASE INTERCO ACCT. REC 0
INCREASE (DECREASE) INTERCO ACCTS PAY. (262)
---------
NET ADJUSTMENTS (5,488)
---------
NET CASH PROVIDED (USED) BY OPERATIONS (1,787)
---------
CASH FLOW FROM INVESTING ACTIVITIES:
PROCEEDS FROM SALE OF PP & E 0
CAPITAL EXPENDITURES (131)
INTERCO PP&E TRANSFERS NET 0
---------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (131)
---------
CASH FLOW FROM FINANCING ACTIVITIES:
REVOLVING CREDIT FACILITY, NET 1,555
REPAYMENTS OF OTHER DEBT (927)
PROCEEDS OF OTHER DEBT 0
INCREASE (DECREASE) KCI LOAN 1,155
PROCEEDS FROM ISSUANCE OF COMMON STOCK 0
DIVIDENDS PAID 0
---------
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES 1,783
---------
NET INCREASE (DECREASE) IN CASH (135)
CASH AT BEGINNING OF PERIOD 277
---------
CASH AT END OF PERIOD $142
=========