EX-99.1 2 exhibit991mar.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 Trustee's Office of the United States Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee (the "Trustee"). 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. In addition, in order to comply with the 15-day filing requirements of the Trustee, certain year-end adjustments have been excluded from this report. The debtors anticipate filing an amended report when information relative to these adjustments becomes available. MONTHLY FINANCIAL REPORT OFFICE OF THE U.S. TRUSTEE EASTERN DISTRICT OF WISCONSIN Case Name: 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 MARCH, 2005. I. FINANCIAL SUMMARY
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $3,632,845 $0 $0 $337 $0 $3,633,182 ------------------------------------------------------------------------------------------- B. RECEIPTS 0 73,244,277 0 0 12,098 1,250 73,257,625 C. DISBURSEMENTS 0 73,055,342 0 0 14,975 1,250 73,071,567 ------------------------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 188,935 0 0 (2,877) 0 186,058 ------------------------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $3,821,780 $0 $0 ($2,540) $0 $3,819,240 ===========================================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,385,147 of cash held in escrow for anticipated payment to Unsecured Creditors' Committee upon emergence from Chapter 11. (See U.S. Bank - Portland, Oregon accounts # 15365681004 and # 436000100). Note 2 - KCI Receipts and Disbursement exclude transfers between KCI cash accounts of $15,440,949. PROFIT AND LOSS STATEMENT ACCRUAL BASIS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- A NET SALES $0 $28,915,411 $0 $0 $1,380,165 $0 $30,295,576 ($1,974,196) $28,321,380 B. COST OF SALES 0 25,873,665 0 0 1,209,821 0 27,083,486 (1,974,196) 25,109,290 ---------------------------------------------------------------------------------------------------- C. GROSS PROFIT 0 3,041,746 0 0 170,344 0 3,212,090 0 3,212,090 D. TOTAL OPERATING EXPENSES 3,549 5,681,869 290 60,000 293,359 6,281 6,045,348 (203,720) 5,841,628 ---------------------------------------------------------------------------------------------------- E. NET INCOME (LOSS) FROM OPERATIONS (3,549) (2,640,123) (290) (60,000) (123,015) (6,281) (2,833,258) 203,720 (2,629,538) F. NON-OPERATING, NON-RECURRING REVENUE (EXPENSES) 7,713 (560,784) 60,000 0 (50,422) 0 (543,493) (203,720) (747,213) ---------------------------------------------------------------------------------------------------- H. NET INCOME (LOSS) $4,164 ($3,200,907) $59,710 ($60,000) ($173,437) ($6,281) ($3,376,751) $0 ($3,376,751) ====================================================================================================
Page 1 of 6 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) $28,915,411 $1,380,165 $30,295,576 ($1,974,196) $28,321,380 -------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 78,522,322 3,093,123 81,615,445 81,615,445 Add: Purchases 24,384,466 1,643,494 26,027,960 (1,974,196) 24,053,764 Less: Ending Inventory at Cost 77,033,123 3,526,796 80,559,919 80,559,919 -------------------------------------------------------------------------------------------------- Cost of Goods Sold 0 25,873,665 0 0 1,209,821 0 27,083,486 (1,974,196) 25,109,290 -------------------------------------------------------------------------------------------------- Gross Profit 0 3,041,746 0 0 170,344 0 3,212,090 0 3,212,090 -------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 41,923 41,923 41,923 Salaries and Wages- Other Employees 1,160,434 75,504 1,235,938 1,235,938 Employee Benefits and Pensions 105 989,303 24,800 1,014,208 1,014,208 Payroll Taxes 99,068 14,246 113,314 113,314 Real Estate Taxes 12,231 12,057 633 24,921 24,921 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 82,315 701 83,016 83,016 Interest Expense 483,883 60,000 543,883 (192,851) 351,032 Insurance 69,375 12,730 82,105 82,105 Automobile Expense 0 0 0 0 Utilities 474,914 10,325 167 485,406 485,406 Depreciation and Amortization 3,444 1,120,534 87,292 4,081 1,215,351 1,215,351 Repairs and Maintenance 193,682 5,032 400 199,114 199,114 Advertising 61,488 61,488 61,488 Supplies, Office Expense and Photocopies 88,578 8,476 97,054 97,054 Bad Debts 0 0 0 Miscellaneous 0 804,141 290 0 42,196 1,000 847,627 (10,869) 836,758 -------------------------------------------------------------------------------------------------- Total Operating Expenses 3,549 5,681,869 290 60,000 293,359 6,281 6,045,348 (203,720) 5,841,628 -------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (3,549) (2,640,123) (290) (60,000) (123,015) (6,281) (2,833,258) 203,720 (2,629,538) -------------------------------------------------------------------------------------------------- B.Not Related to Business Operations: -------------------------- Revenue: Interest Income 713 0 60,000 132,851 193,564 (192,851) 713 Net Gain (Loss) on Sale of Assets 1,000 1,000 1,000 Other 7,000 56,699 0 0 0 0 63,699 (10,869) 52,830 -------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,713 57,699 60,000 0 132,851 0 258,263 (203,720) 54,543 -------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 618,483 0 0 183,273 0 801,756 0 801,756 Other 0 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 618,483 0 0 183,273 0 801,756 0 801,756 -------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $4,164 ($3,200,907) $59,710 ($60,000) ($173,437) ($6,281) ($3,376,751) $0 ($3,376,751) ====================================================================================================
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. Page 2 of 6 IV. BALANCE SHEET
FVSW KCI DEMI JLP SWC SWCI ---- --- ---- --- --- ---- ASSETS ------ Current ------- Cash $3,821,780 ($2,540) Inventory 53,582 42,238,617 3,101,132 Accounts Receivable 31,958,386 495,079 6,000 Prepaid Expenses 2,249,496 37,262 1,264 Other-Exhibit E 77,138 3,368,782 15,389,793 0 301,647 0 ---------------------------------------------------------------------------- Total Current Assets 130,720 83,637,061 15,389,793 0 3,932,580 7,264 ---------------------------------------------------------------------------- Fixed ----- Property and Equipment 1,175,330 326,635,885 21,679,728 2,285,279 Accumulated Depreciation (747,956) (246,001,298) (17,411,577) (1,840,923) ---------------------------------------------------------------------------- Total Fixed Assets 427,374 80,634,587 0 0 4,268,151 444,356 ---------------------------------------------------------------------------- Other ----- Restricted Investments 5,878,315 248,296 Prepaid Pension Asset 137,565,283 Deferred Financing Costs 986,318 Goodwill 751,508 Other-Exhibit F 40,000 39,513,966 0 0 2,246,871 0 ---------------------------------------------------------------------------- Total Other Assets 40,000 184,695,390 0 0 2,495,167 0 ---------------------------------------------------------------------------- Total Assets $598,094 $348,967,038 $15,389,793 $0 $10,695,898 $451,620 ============================================================================ LIABILITIES ----------- Current ------- Pre-Petition Accounts Payable 19,645,542 1,012,833 54,503 Post-Petition Accounts Payable 1,617,039 64,769 1,400 Pre-Petition Accounts Payable- Affiliates (2,649,073) 88,419,300 5,774,107 15,552,291 (89,758,156) (1,459,080) Post-Petition Accounts Payable- Affiliates (233,390) 2,420,196 381,640 604,515 (357,658) (139,789) Pre-Petition Accrued Expenses- Exhibit G 3,183 14,049,359 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses- Exhibit H 0 12,851,929 0 0 153,689 (3,447) Post-Petition Accrued Professional Fees 3,808,747 2,939 Post-Petition Accrued Other Taxes- Exhibit M 0 435,657 0 0 32,139 (4,270) Pre-Petition Notes Payable and Current 0 Maturities of Long Term Debt 28,116,000 20,290 Post-Petition Notes Payable and Current 0 Maturities of Long Term Debt 42,045,372 (20,290) Accrued OPEB Cost 11,441,001 155,000 297,662 Income Taxes Payable Pre-petition accrued pref. Stock dividends 11,845,805 Post petition accrued pref. Stock dividends 7,843,014 ---------------------------------------------------------------------------- Total Current Liabilities (2,879,280) 244,538,961 6,191,379 16,275,806 (81,883,403) (1,486,601) ---------------------------------------------------------------------------- Long Term --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 157,261 Accrued OPEB Cost 34,849 118,729,833 1,446,589 9,292,461 Accrued Pension Cost 819,414 Pre-Petition Accrued Expenses-Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses-Exhibit J 0 601,180 (200,979) 0 0 0 ---------------------------------------------------------------------------- Total Long Term Liabilities 34,849 163,593,138 3,372,929 1,446,589 9,292,461 0 ---------------------------------------------------------------------------- Preferred Stock 2,112,000 --------------- ---------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 10,000 10,798,251 6 2,246,866 5,619,274 1,000 Additional Paid-In Capital 33,382,482 27,579,007 Accumulated Deficit 3,432,525 (105,445,669) 5,825,479 (19,969,261) 83,646,012 1,937,221 Treasury Stock (12,125) (33,557,453) ---------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,442,525 (61,277,061) 5,825,485 (17,722,395) 83,286,840 1,938,221 ---------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $598,094 $348,967,038 $15,389,793 $0 $10,695,898 $451,620 ============================================================================
Page 3 of 6 IV. BALANCE SHEET (Continued)
Sub Elimin- Total ations Total ----- ------- ----- ASSETS ------ Current ------- Cash $3,819,240 $3,819,240 Inventory 45,393,331 45,393,331 Accounts Receivable 32,459,465 32,459,465 Prepaid Expenses 2,288,022 2,288,022 Other - Exhibit E 19,137,360 (15,691,440) 3,445,920 ----------------------------------------- Total Current Assets 103,097,418 (15,691,440) 87,405,978 ----------------------------------------- Fixed ----- Property and Equipment 351,776,222 351,776,222 Accumulated Depreciation (266,001,754) (266,001,754) ----------------------------------------- Total Fixed Assets 85,774,468 0 85,774,468 ----------------------------------------- Other ----- Restricted Investments 6,126,611 6,126,611 Prepaid Pension Asset 137,565,283 137,565,283 Deferred Financing Costs 986,318 986,318 Goodwill 751,508 751,508 Other-Exhibit F 41,800,837 (41,173,674) 627,163 ----------------------------------------- Total Other Assets 187,230,557 (41,173,674) 146,056,883 ----------------------------------------- Total Assets $376,102,443 ($56,865,114) $319,237,329 ========================================= LIABILITIES ----------- Current ------- Pre-Petition Accounts Payable 20,712,878 20,712,878 Post-Petition Accounts Payable 1,683,208 1,683,208 Pre-Petition Accounts Payable- Affiliates 15,879,389 (14,904,350) 975,039 Post-Petition Accounts Payable- Affiliates 2,675,514 (787,090) 1,888,424 Pre-Petition Accrued Expenses- Exhibit G 20,784,636 0 20,784,636 Post-Petition Accrued Expenses- Exhibit H 13,002,171 0 13,002,171 Post-Petition Accrued Professional Fees 3,811,686 3,811,686 Post-Petition Accrued Other Taxes- Exhibit M 463,526 0 463,526 Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,136,290 28,136,290 Post-Petition Notes Payable and Current Maturities of Long Term Debt 42,025,082 42,025,082 Accrued OPEB Cost 11,893,663 11,893,663 Income Taxes Payable 0 0 Pre-petition accrued pref. Stock dividends 11,845,805 11,845,805 Post petition accrued pref. Stock dividends 7,843,014 7,843,014 ----------------------------------------- Total Current Liabilities 180,756,862 (15,691,440) 165,065,422 ----------------------------------------- Long Term --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 157,261 157,261 Accrued OPEB Cost 129,503,732 129,503,732 Accrued Pension Cost 819,414 819,414 Pre-Petition Accrued Expenses-Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses-Exhibit J 400,201 0 400,201 ----------------------------------------- Total Long Term Liabilities 177,739,966 0 177,739,966 ----------------------------------------- Preferred Stock 2,112,000 2,112,000 --------------- ------------------------------------------ STOCKHOLDERS' EQUITY (DEFICIT) Common Stock 18,675,397 (7,877,145) 10,798,252 Additional Paid-In Capital 60,961,489 (27,579,007) 33,382,482 Accumulated Deficit (30,573,693) (39,274,975) (69,848,668) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 15,493,615 (41,173,674) (25,680,059) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $376,102,443 ($56,865,114) $319,237,329 ==========================================
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 4 of 6 EXHIBIT E OTHER CURRENT ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Interest Receivable $2,138 $2,138 $2,138 Note Receivable 75,000 75,000 75,000 Intercompany Receivable 3,276,026 15,389,793 301,647 18,967,466 (15,691,440) 3,276,026 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 69,901 69,901 69,901 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------- Total Other Current Assets $77,138 $3,368,782 $15,389,793 $0 $301,647 $0 $19,137,360 ($15,691,440) $3,445,920 =======================================================================================================
EXHIBIT F OTHER LONG TERM ASSETS
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Note Receivable $40,000 $40,000 $40,000 Rail Cars 259,113 259,113 259,113 Investment in Sherman Wire Comany 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 ------------------------------------------------------------------------------------------------------- Total Other Long Term Assets $40,000 $39,513,966 $0 $0 $2,246,871 $0 $41,800,837 ($41,173,674) $627,163 =======================================================================================================
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 2,490,749 (168) 2,490,581 2,490,581 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 245,464 487,932 733,396 733,396 Self-Insurance Liability 2,605,387 5,050,166 7,655,553 7,655,553 Pensions 0 15,704 15,704 15,704 Salaries/Wages 71,558 47,300 118,858 118,858 Holiday Pay/Vacations 0 127,854 127,854 127,854 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 0 28,615 28,615 28,615 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 41,275 41,275 41,275 Manufacturing Misc 0 0 0 EPA 7,844,269 7,844,269 7,844,269 Medical Insurance 0 0 0 Accrued State Franchise Tax 172,743 172,743 172,743 Accrued Bank Service Charge (9,995) (9,995) (9,995) Accrued Interest 454,639 454,639 454,639 Accrued travel 40,223 40,223 40,223 Accrued taxes - other 0 0 ------------------------------------------------------------------------------------------------------- Total Pre-Petition Accrued Expenses- Current $3,183 $14,049,359 $35,632 ($36,000) $6,668,380 $64,082 $20,784,636 $0 $20,784,636 =======================================================================================================
Page 5 of 6 EXHIBIT H POST PETITION ACCRUED EXPENSES - CURRENT
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Abandoned Real Estate Exp 502 (3,045) (2,543) (2,543) Pensions 0 8,113 8,113 8,113 Salaries/Wages 1,237,831 13,514 1,251,345 1,251,345 Holiday Pay/Vacations 4,181,660 (7,932) 4,173,728 4,173,728 Defined Contribution Plan 456,907 12,826 469,733 469,733 Medical Insurance 293,959 (8,090) (3,906) 281,963 281,963 Utilities 422,341 115,186 459 537,986 537,986 Legal 335,000 (7,124) 327,876 327,876 Professional Fees 282,225 282,225 282,225 Goods Received Not Invoiced 748,953 748,953 748,953 Worker's Compensation 2,051,583 2,051,583 2,051,583 Unearned Revenue 2,500 2,500 2,500 Sales Rebates/Discounts 1,223,965 1,223,965 1,223,965 Abanondon Property 0 0 0 Miscellaneous 464,500 30,241 494,741 494,741 Accrued Bank Service Charge 39,087 39,087 39,087 Accrued Self-Insurance Losses 26,599 26,599 26,599 Accrued Interest 708,548 708,548 708,548 Accrued Travel 0 0 0 Accrued Profit Sharing 250,000 250,000 250,000 Accrued Management Fees 125,769 125,769 125,769 --------------------------------------------------------------------------------------- Total Post-Petition Accrued Expenses- Current $0 $12,851,929 $0 $0 $153,689 ($3,447) $13,002,171 $0 $13,002,171 =======================================================================================
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 24,212 24,212 24,212 Long Term Disability 32,987 32,987 32,987 L/T Deferred Tax Liability 5,292,000 5,292,000 5,292,000 --------------------------------------------------------------------------------------- Total Pre-Petition Accrued Expenses- Long Term $0 $11,104,689 $3,573,908 $0 $0 $0 $14,678,597 $0 $14,678,597 =======================================================================================
EXHIBIT J POST PETITION ACCRUED EXPENSES - LONG TERM
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- Workmans Compensation $596,363 $596,363 $596,363 Long Term Disability 4,817 4,817 4,817 Environmental (200,979) (200,979) (200,979) --------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses- Long Term $0 $601,180 ($200,979) $0 $0 $0 $400,201 $0 $400,201 =======================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer $522,483 (3,257) $519,226 $519,226 Federal Unemployment Taxes 0 1,413 1,413 1,413 State Unemployment Taxes 0 30,349 30,349 30,349 Property Tax 275,787 1,114 (4,270) 272,631 272,631 Sales/Use Tax 1,551 2,520 4,071 4,071 Accrued State Franchise Tax (322,958) (322,958) (322,958) Miscellaneous (41,206) (41,206) (41,206) --------------------------------------------------------------------------------------- Total Post Petition Accrued Other Taxes $0 $435,657 $0 $0 $32,139 ($4,270) $463,526 $0 $463,526 ===========================================================================================