EX-99.1 2 exhibit991july.txt EXHIBIT 99.1 This Monthly Financial Report (the "Financial Report") is limited in scope, covers a limited time period and has been prepared soley for purposes of complying with the monthly reporting requirements of the United States Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee. Keystone Consolidated Industries, Inc's ("Keystone") wholly-owned subsidiary, Engineered Wire Products, Inc. ("EWP") has not filed for protection under Chapter 11 of Title 11 of the United States Bankruptcy Code, and financial information for EWP has been omitted from the Financial Report. The Financial Report is unaudited and does not purport to show the financial statements of Keystone or any of its subsidiaries 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 upon the Financial Report. There can be no assurance that such information is complete. MONTHLY FINANCIAL REPORT OFFICE OF THE U.S. TRUSTEE EASTERN DISTRICT OF WISCONSIN FV Steel & Wire Company ("FVSW") Case No: 04-22421-SVK Keystone Consolidated Industries, Inc. ("KCI") 04-22422-SVK DeSoto Environmental Management, Inc. ("DEMI") 04-22423-SVK J.L. Prescott Company ("JLP") 04-22424-SVK Sherman Wire Company ("SWC") 04-22425-SVK Sherman Wire of Caldwell, Inc.("SWCI") 04-22426-SVK FOR MONTH OF JULY, 2004. I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $7,177,739 $0 $0 ($14,784) ($4,000) $7,158,955 ------------------------------------------------------------------- B. RECEIPTS 0 72,867,996 0 0 16,108 4,000 72,888,104 C. DISBURSEMENTS 0 72,288,448 0 0 24,468 3,000 72,315,916 ------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 579,548 0 0 (8,360) 1,000 572,188 ------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $7,757,287 $0 $0 ($23,144) ($3,000) $7,731,143 ===================================================================
Note 1 - KCI Cash On Hand At End of Month includes $7,892,490 of cash held in escrow for PSC Metals, Inc. pending resolution of disputed ferrous scrap ownership. (See U.S. Bank - Portland, Oregon accounts # 15365681004 and # 436000100). Note 2 - KCI Receipts and Disbursement exclude transfers between KCI cash accounts of $67,501,574. PROFIT AND LOSS STATEMENT ------------------------- ACCRUAL BASIS -------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A NET SALES $0 $45,370,354 $0 $0 $1,780,738 $0 $47,151,092 ($1,978,214) $45,172,878 B. COST OF SALES 0 30,830,954 0 0 1,325,230 0 32,156,184 (1,978,214) 30,177,970 --------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 14,539,400 0 0 455,508 0 14,994,908 0 14,994,908 D. TOTAL OPERATING EXPENSES 4,410 6,553,996 0 60,000 430,293 22,639 7,071,338 (233,107) 6,838,231 --------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATION (4,410) 7,985,404 0 (60,000) 25,215 (22,639) 7,923,570 233,107 8,156,677 F. NON-OPERATING, NON-RECURRING REVENUE (EXPENSES) 7,000 (670,054) 60,000 0 (60,333) 0 (663,387) (233,107) (896,494) --------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $2,590 $7,315,350 $60,000 ($60,000) ($35,118)($22,639) $7,260,183 $0 $7,260,183 =============================================================================================
Page 1 II. PROFIT & LOSS STATEMENT (ACCRUAL BASIS)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- A. Related to Business Operations: ------------------------------ Total Revenue (Sales) $45,370,354 $1,780,738 $47,151,092 ($1,978,214) $45,172,878 --------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 41,816,830 2,299,536 44,116,366 44,116,366 Add: Purchases 31,414,979 1,369,728 32,784,707 (1,978,214) 30,806,493 Less: Ending Inventory at Cost 42,400,855 2,344,034 44,744,889 44,744,889 --------------------------------------------------------------------------------------------- Cost of Good Sold 0 30,830,954 0 0 1,325,230 0 32,156,184 (1,978,214) 30,177,970 --------------------------------------------------------------------------------------------- Gross Profit 0 14,539,400 0 0 455,508 0 14,994,908 0 14,994,908 --------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 40,577 40,577 40,577 Salaries and Wages - Other Employees 1,372,689 105,374 1,478,063 1,478,063 Employee Benefits and Pensions 105 1,627,829 32,514 12,125 1,672,573 1,672,573 Payroll Taxes 115,846 17,730 133,576 133,576 Real Estate Taxes 15,288 13,090 (240) 28,138 28,138 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 75,946 3,296 549 79,791 79,791 Interest Expense 573,402 60,000 633,402 (219,522) 413,880 Insurance 229,392 15,912 245,304 245,304 Automobile Expense 0 46 46 46 Utilities 185,214 9,518 971 195,703 195,703 Depreciation and Amortization 4,305 1,098,936 111,982 7,394 1,222,617 1,222,617 Repairs and Maintenance 160,672 9,579 350 170,601 170,601 Advertising 133,413 133,413 133,413 Supplies, Office Expense and Photocopies 113,584 6,330 119,914 119,914 Bad Debts 0 0 0 Miscellaneous 0 811,208 0 0 104,922 1,490 917,620 (13,585) 904,035 --------------------------------------------------------------------------------------------- Total Operating Expenses 4,410 6,553,996 0 60,000 430,293 22,639 7,071,338 (233,107) 6,838,231 --------------------------------------------------------------------------------------------- Net Income (Loss) From Operation (4,410) 7,985,404 0 (60,000) 25,215 (22,639) 7,923,570 233,107 8,156,677 --------------------------------------------------------------------------------------------- B. Not Related to Business Operations: ---------------------------------- Revenue: Interest Income 17,009 60,000 159,522 236,531 (219,522) 17,009 Net Gain (Loss) on Sale of Assets 0 0 Other 7,000 53,142 0 0 0 0 60,142 (13,585) 46,557 --------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,000 70,151 60,000 0 159,522 0 296,673 (233,107) 63,566 --------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 740,205 0 0 219,855 0 960,060 0 960,060 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 740,205 0 0 219,855 0 960,060 0 960,060 --------------------------------------------------------------------------------------------- Net Income (Loss) For Period $2,590 $7,315,350 $60,000 ($60,000) ($35,118)($22,639) $7,260,183 $0 $7,260,183 =============================================================================================
Note 1 - Beginning and ending inventory balances shown above do not include reserves related to LIFO and obsolescence that are reflected in the inventory balances shown on the Balance Sheet. Note 2 - Interest income at DEMI and SWC is based on the balance of intercompany receivables. Page 2 IV. BALANCE SHEET
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- ASSETS ------ Current ------- Cash $7,757,287 ($23,144) ($3,000) $7,731,143 $7,731,143 Inventory 53,582 25,380,274 2,539,224 27,973,080 27,973,080 Accounts Receivable 38,603,191 763,399 39,366,590 39,366,590 Prepaid Expenses 1,747,343 110,058 1,264 1,858,665 1,858,665 Other - Exhibit E 75,844 2,051,119 14,909,793 0 340,151 0 17,376,907 (15,220,152) 2,156,755 -------------------------------------------------------------------------------------------------------------- Total Current Assets 129,426 75,539,214 14,909,793 0 3,729,688 (1,736) 94,306,385 (15,220,152) 79,086,233 -------------------------------------------------------------------------------------------------------------- Fixed ----- Property and Equipment 1,175,330 323,415,515 21,595,221 2,829,738 349,015,804 349,015,804 Accumulated Depreciation (718,681)(239,135,847) (16,648,135)(2,336,115) (258,838,778) (258,838,778) -------------------------------------------------------------------------------------------------------------- Total Fixed Assets 456,649 84,279,668 0 0 4,947,086 493,623 90,177,026 0 90,177,026 -------------------------------------------------------------------------------------------------------------- Other ----- Restricted Investments 5,634,134 382,365 6,016,499 6,016,499 Prepaid Pension Asset 132,408,633 132,408,633 132,408,633 Deferred Financing Costs 1,482,208 1,482,208 1,482,208 Goodwill 751,508 751,508 751,508 Other - Exhibit F 115,000 39,623,719 0 0 2,246,871 0 41,985,590 (41,173,674) 811,916 -------------------------------------------------------------------------------------------------------------- Total Other Assets 115,000 179,900,202 0 0 2,629,236 0 182,644,438 (41,173,674) 141,470,764 -------------------------------------------------------------------------------------------------------------- Total Assets $701,075 $339,719,084 $14,909,793 $0 $11,306,010 $491,887 $367,127,849 ($56,393,826)$310,734,023 ===============================================================================================================
Page 3 IV. BALANCE SHEET (con't)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- LIABILITIES ----------- Current ------- Pre-Petition Accounts Payable 19,217,991 993,205 54,503 20,265,699 20,265,699 Post-Petition Accounts Payable 10,566,856 91,583 1,599 10,660,038 10,660,038 Pre-Petition Accounts Payable- Affiliates (2,649,073) 90,305,714 5,774,107 15,552,291 (89,758,156)(1,459,080) 17,765,803 (14,904,350) 2,861,453 Post-Petition Accounts Payable- Affiliates (107,806) (1,286,046) 98,459 228,875 204,392 (148,524) (1,010,650) (315,802) (1,326,452) Pre-Petition Accrued Expenses- Exhibit G 3,183 19,681,526 35,632 (36,000) 6,668,380 64,082 26,416,803 0 26,416,803 Post-Petition Accrued Expenses- Exhibit H 0 11,822,591 0 0 242,820 (1,134) 12,064,277 0 12,064,277 Post-Petition Accrued Professional Fees 2,859,530 2,100 2,861,630 2,861,630 Post-Petition Accrued Other Taxes- Exhibit M 0 (36,126) 0 0 42,345 1,881 8,100 0 8,100 Pre-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,149,055 20,290 28,169,345 28,169,345 Post-Petition Notes Payable and Current 0 0 Maturities of Long Term Debt 28,733,454 (15,743) 28,717,711 28,717,711 Accrued OPEB Cost 11,441,001 155,000 297,662 11,893,663 11,893,663 Income Taxes Payable 0 0 Pre-petition accrued pref. Stock dividends 11,845,805 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 3,064,548 3,064,548 3,064,548 -------------------------------------------------------------------------------------------------------------- Total Current Liabilities (2,753,696) 236,365,899 5,908,198 15,900,166 (81,211,122)(1,486,673) 172,722,772 (15,220,152) 157,502,620 --------------------------------------------------------------------------------------------------------------
Page 4 IV. BALANCE SHEET (con't)
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Long Term --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 32,180,761 Post-Petition Long Term Debt 0 0 Accrued OPEB Cost 33,000 109,170,099 1,620,194 9,404,199 120,227,492 120,227,492 Accrued Pension Cost 1,953,986 1,953,986 1,953,986 Pre-Petition Accrued Expenses- Exhibit I 0 11,096,137 3,573,908 0 0 0 14,670,045 0 14,670,045 Post-Petition Accrued Expenses- Exhibit J 0 735,709 (26,088) 0 0 0 709,621 0 709,621 -------------------------------------------------------------------------------------------------------------- Total Long Term Liabilities 33,000 155,136,692 3,547,820 1,620,194 9,404,199 0 169,741,905 0 169,741,905 -------------------------------------------------------------------------------------------------------------- Preferred Stock 2,112,000 2,112,000 2,112,000 --------------- -------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 10,000 10,798,251 6 2,246,866 5,619,274 1,000 18,675,397 (7,877,145) 10,798,252 Additional Paid-In Capital 38,160,948 27,579,007 65,739,955 (27,579,007) 38,160,948 Accumulated Deficit 3,411,771 (102,842,581) 5,453,769 (19,767,226) 83,472,105 1,977,560 (28,294,602) (39,274,975) (67,569,577) Treasury Stock (12,125) (33,557,453) (33,569,578) 33,557,453 (12,125) -------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,421,771 (53,895,507) 5,453,775 (17,520,360) 83,112,933 1,978,560 22,551,172 (41,173,674) (18,622,502) -------------------------------------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $701,075 $339,719,084 $14,909,793 $0 $11,306,010 $491,887 $367,127,849 ($56,393,826)$310,734,023 ===============================================================================================================
Note 1 - Inventory balances above reflect reserves related to LIFO and obslescence that are not reflected in the inventory balances shown on the Profit & Loss Statement. Note 2 - Substantially all Current and Long Term Accrued OPEB (Future Retiree Medical) Costs were incurred pre-petition. Page 5 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Interest Receivable $844 $844 $844 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 2,016,872 14,909,793 340,151 17,266,816 (15,220,152) 2,046,664 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 4,320 4,320 4,320 Stop Loss Receivable 8,999 8,999 8,999 Security Deposit 500 500 500 ---------------------------------------------------------------------------------------------------- $75,844 $2,051,119 $14,909,793 $0 $340,151 $0 $17,376,907 ($15,220,152) $2,156,755 ====================================================================================================
EXHIBIT F OTHER LONG TERM ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Note Receivable $115,000 $115,000 $115,000 Rail Cars 368,866 368,866 368,866 Investment in Sherman Wire Corp. 38,915,803 38,915,803 (38,915,803) 0 Investment in Fox Valley Steel & Wire 10,000 10,000 (10,000) 0 Investment in Sherman Wire of Caldwell Inc. 1,000 1,000 (1,000) 0 Investment in J.L. Prescott/DEMI 2,246,871 2,246,871 (2,246,871) 0 Long Term Insurance Receivable 323,250 323,250 323,250 Deposits 4,800 4,800 4,800 ---------------------------------------------------------------------------------------------------- $115,000 $39,623,719 $0 $0 $2,246,871 $0 $41,985,590 ($41,173,674) $811,916 ====================================================================================================
Page 6 EXHIBIT G PRE-PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Income Taxes $3,183 $35,632 ($36,000) ($70,091) ($67,276) ($67,276) Worker Comp Exp 3,647,313 (168) 3,647,145 3,647,145 Missar Pension 0 19,935 19,935 19,935 Unclaimed Property 6,487 17,540 24,027 24,027 Abandoned Real Estate Exp 0 658,744 658,744 658,744 Legal and Professional Fees 296,879 487,932 784,811 784,811 Self-Insurance Liability 2,726,435 5,050,166 7,776,601 7,776,601 Pensions 0 15,704 15,704 15,704 Salaries/Wages 77,616 47,300 124,916 124,916 Holiday Pay/Vacations 710,658 127,854 838,512 838,512 FICA - Employer 0 3,257 3,257 3,257 Federal Unemployment Taxes 0 3,397 3,397 3,397 State Unemployment Taxes 0 20,577 20,577 20,577 Defined Contribution Plan 1,321,074 28,615 1,349,689 1,349,689 Medical Insurance 86,560 88,737 16,419 191,716 191,716 Utilities 0 5,049 (110) 4,939 4,939 Volume Incentive Plan 0 72,000 72,000 72,000 Property Tax 0 32,865 5,973 38,838 38,838 Sales/Use Tax 0 8,124 1,800 9,924 9,924 Customer Overpayments 0 50,843 50,843 50,843 Other - Plant Shut-Down 0 40,000 40,000 40,000 Goods received not invoiced 0 0 0 Unearned Revenue 0 0 0 Sales Rebates/Discounts 1,204,596 1,204,596 1,204,596 Manufacturing Misc 0 0 0 EPA 7,926,253 7,926,253 7,926,253 Medical Insurance 951,800 951,800 951,800 Accrued State Franchise Tax 206,742 206,742 206,742 Accrued Bank Service Charge (9,925) (9,925) (9,925) Accrued Interest 454,639 454,639 454,639 Accrued travel 40,223 40,223 40,223 Accrued taxes - other 34,176 34,176 34,176 ---------------------------------------------------------------------------------------------------- $3,183 $19,681,526 $35,632 ($36,000) $6,668,380 $64,082 $26,416,803 $0 $26,416,803 ====================================================================================================
EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Abandoned Real Estate Exp 154 22,000 22,154 22,154 Pensions 0 41,091 41,091 41,091 Salaries/Wages 1,261,877 13,109 1,274,986 1,274,986 Holiday Pay/Vacations 3,086,111 17,020 3,103,131 3,103,131 Defined Contribution Plan 830,137 29,518 859,655 859,655 Medical Insurance 182,033 21,422 (2,447) 201,008 201,008 Utilities 187,453 74,161 1,313 262,927 262,927 Legal 101,565 (519) 101,046 101,046 Professional Fees 169,516 169,516 169,516 Goods Received Not Invoiced 1,672,769 1,672,769 1,672,769 Worker's Compensation 361,965 361,965 361,965 Unearned Revenue 28,268 28,268 28,268 Sales Rebates/Discounts 970,379 970,379 970,379 Abanondon Property 0 0 0 Miscellaneous 1,836,260 25,018 1,861,278 1,861,278 Accrued Bank Service Charge 12,344 12,344 12,344 Accrued Self-Insurance Losses 141,824 141,824 141,824 Accrued Interest 396,778 396,778 396,778 Accrued Travel 0 0 0 Accrued Profit Sharing 390,177 390,177 390,177 Accrued Management Fees 192,981 192,981 192,981 ---------------------------------------------------------------------------------------------------- $0 $11,822,591 $0 $0 $242,820 ($1,134) $12,064,277 $0 $12,064,277 ====================================================================================================
Page 7 EXHIBIT I PRE-PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Environmental 3,127,000 3,573,908 6,700,908 6,700,908 Workmans Compensation 1,846,775 1,846,775 1,846,775 Accrued Deferred Interest Exp. 781,715 781,715 781,715 L/T Deferred Compensation 15,660 15,660 15,660 Long Term Disability 32,987 32,987 32,987 L/T Deferred Tax Liability 5,292,000 5,292,000 5,292,000 0 0 ---------------------------------------------------------------------------------------------------- $0 $11,096,137 $3,573,908 $0 $0 $0 $14,670,045 $0 $14,670,045 ====================================================================================================
EXHIBIT J POST PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- Workmans Compensation $734,617 $734,617 $734,617 Long Term Disability 1,092 1,092 1,092 Environmental (26,088) (26,088) (26,088) 0 0 0 0 0 0 0 0 ---------------------------------------------------------------------------------------------------- $0 $735,709 ($26,088) $0 $0 $0 $709,621 $0 $709,621 ====================================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------ ----- FICA - Employer ($181,232) 642 ($180,590) ($180,590) Federal Unemployment Taxes 0 (3,203) (3,203) (3,203) State Unemployment Taxes 0 (18,906) (18,906) (18,906) Property Tax 274,209 60,989 1,881 337,079 337,079 Sales/Use Tax 967 2,823 3,790 3,790 Accrued State Franchise Tax (90,807) (90,807) (90,807) Miscellaneous (39,263) (39,263) (39,263) ---------------------------------------------------------------------------------------------------- $0 ($36,126) $0 $0 $42,345 $1,881 $8,100 $0 $8,100 ====================================================================================================
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