EX-99.1 2 exhibit991apr.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 (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 APRIL, 2005 I. FINANCIAL SUMMARY CASH RECEIPTS AND DISBURSEMENTS -------------------------------
FVSW KCI DEMI JLP SWC SWCI Total ---- --- ---- --- --- ---- ----- A. CASH ON HAND START OF MONTH $0 $3,821,780 $0 $0 ($2,540) $0 $3,819,240 ----------------------------------------------------------------------------- B. RECEIPTS 0 98,826,675 0 0 10,774 1,400 98,838,849 C. DISBURSEMENTS 0 99,681,445 0 0 10,101 1,400 99,692,946 ----------------------------------------------------------------------------- D. NET RECEIPTS (DISBURSEMENTS) 0 (854,770) 0 0 673 0 (854,097) ----------------------------------------------------------------------------- E. CASH ON HAND END OF MONTH $0 $2,967,010 $0 $0 ($1,867) $0 $2,965,143 =============================================================================
Note 1 - KCI Cash On Hand At End of Month includes $5,407,584 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 $28,929,653. PROFIT AND LOSS STATEMENT ACCRUAL BASIS ---------------------------------------
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- -------- ----- A NET SALES $0 $35,031,789 $0 $0 $1,768,389 $0 $36,800,178 ($2,465,114) $34,335,064 B. COST OF SALES 0 29,420,188 0 0 1,537,116 0 30,957,304 (2,465,114) 28,492,190 ------------------------------------------------------------------------------------------------------ C. GROSS PROFIT 0 5,611,601 0 0 231,273 0 5,842,874 0 5,842,874 D. TOTAL OPERATING EXPENSES 4,410 6,097,365 0 60,000 425,973 20,245 6,607,993 (239,211) 6,368,782 ------------------------------------------------------------------------------------------------------ E. NET INCOME (LOSS) FROM OPERATIONS (4,410) (485,764) 0 (60,000) (194,700) (20,245) (765,119) 239,211 (525,908) F. NON-OPERATING, NON-RECURRING REVENUEE(EXPENSES) 7,082 (676,828) 60,000 0 15,349 0 (594,397) (239,211) (833,608) ------------------------------------------------------------------------------------------------------ H. NET INCOME (LOSS) $2,672 ($1,162,592) $60,000 ($60,000) ($179,351) ($20,245) ($1,359,516) $0 ($1,359,516) ======================================================================================================
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) $35,031,789 $1,768,389 $36,800,178 ($2,465,114) $34,335,064 --------------------------------------------------------------------------------------------------- Less: Cost of Goods Sold: Beginning Inventory at Cost 77,033,123 3,526,796 80,559,919 80,559,919 Add: Purchases 27,027,520 1,802,599 28,830,119 (2,465,114) 26,365,005 Less: Ending Inventory at Cost 74,640,455 3,792,279 78,432,734 78,432,734 --------------------------------------------------------------------------------------------------- Cost of Goods Sold $0 $29,420,188 $0 $0 1,537,116 $0 $30,957,304 $(2,465,114) $28,492,190 --------------------------------------------------------------------------------------------------- Gross Profit 0 5,611,601 0 0 231,273 0 5,842,874 0 5,842,874 --------------------------------------------------------------------------------------------------- Less: Operating Expenses: Officer Compensation 56,250 56,250 56,250 Salaries and Wages- Other Employees 1,447,532 93,058 1,540,590 1,540,590 Employee Benefits and Pensions 105 1,451,875 21,936 12,293 1,486,209 1,486,209 Payroll Taxes 130,020 16,388 146,408 146,408 Real Estate Taxes 15,768 15,071 791 31,630 31,630 Federal and State Income Taxes 0 0 0 Rent and Lease Expense 14,825 3,340 18,165 18,165 Interest Expense 501,440 60,000 561,440 (225,626) 335,814 Insurance (254,957) 15,912 (239,045) (239,045) Automobile Expense 0 0 0 0 Utilities 386,981 10,882 660 398,523 398,523 Depreciation and Amortization 4,305 1,124,241 109,125 5,101 1,242,772 1,242,772 Repairs and Maintenance 231,795 9,164 400 241,359 241,359 Advertising 157,686 157,686 157,686 Supplies, Office Expense and Photocopies 92,531 9,848 102,379 102,379 Bad Debts 0 0 0 Miscellaneous 0 741,378 0 0 121,249 1,000 863,627 (13,585) 850,042 --------------------------------------------------------------------------------------------------- Total Operating Expenses 4,410 6,097,365 0 60,000 425,973 20,245 6,607,993 (239,211) 6,368,782 --------------------------------------------------------------------------------------------------- Net Income (Loss) From Operations (4,410) (485,764) 0 (60,000) (194,700) (20,245) (765,119) 239,211 (525,908) --------------------------------------------------------------------------------------------------- B. Not Related to Business Operations: -------------------------- Revenue: Interest Income 82 46,260 60,000 165,626 271,968 (225,626) 46,342 Net Gain (Loss) on Sale of Assets 0 0 0 Other 7,000 62,261 0 0 0 0 69,261 (13,585) 55,676 --------------------------------------------------------------------------------------------------- Total Non-Operating Revenue 7,082 108,521 60,000 0 165,626 0 341,229 (239,211) 102,018 --------------------------------------------------------------------------------------------------- Expenses: Legal and Professional Fees 0 785,349 0 0 150,277 0 935,626 0 935,626 Other 0 0 0 0 0 0 0 0 0 --------------------------------------------------------------------------------------------------- Total Non-Operating Expenses 0 785,349 0 0 150,277 0 935,626 0 935,626 --------------------------------------------------------------------------------------------------- Net Income (Loss) For Period $2,672 ($1,162,592) $60,000 ($60,000) ($179,351) ($20,245) ($1,359,516) $0 ($1,359,516) ===================================================================================================
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 of 6 IV. BALANCE SHEET
FVSW KCI DEMI JLP SWC SWCI ---- --- ---- --- --- ---- ASSETS ------ Current ------- Cash $2,967,010 ($1,867) Inventory $53,582 38,670,151 3,366,614 Accounts Receivable 30,260,635 540,586 $6,000 Prepaid Expenses 1,863,896 91,013 1,264 Other-Exhibit E 75,567 3,323,149 $15,449,793 0 412,297 0 ------------------------------------------------------------------------------- Total Current Assets 129,149 77,084,841 15,449,793 0 4,408,643 7,264 ------------------------------------------------------------------------------- Fixed ----- Property and Equipment 1,175,330 327,330,654 20,922,199 2,285,279 Accumulated Depreciation (752,261) (246,986,004) (16,759,382) (1,846,024) ------------------------------------------------------------------------------- Total Fixed Assets 423,069 80,344,650 0 0 4,162,817 439,255 ------------------------------------------------------------------------------- Other ----- Restricted Investments 5,976,474 250,722 Prepaid Pension Asset 139,150,944 Deferred Financing Costs 951,028 Goodwill 751,508 Other-Exhibit F 40,000 39,508,966 0 0 2,246,871 0 ------------------------------------------------------------------------------- Total Other Assets 40,000 186,338,920 0 0 2,497,593 0 ------------------------------------------------------------------------------- Total Assets $592,218 $343,768,411 $15,449,793 $0 $11,069,053 $446,519 =============================================================================== LIABILITIES ----------- Current ------- Pre-Petition Accounts Payable $19,597,061 $1,012,833 $54,503 Post-Petition Accounts Payable 1,574,933 86,623 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 (237,345) 2,696,515 433,128 610,515 (12,116) (134,080) Pre-Petition Accrued Expenses-Exhibit G 3,183 13,578,654 35,632 (36,000) 6,668,380 64,082 Post-Petition Accrued Expenses-Exhibit H 0 13,513,700 0 0 115,324 (3,580) Post-Petition Accrued Professional Fees 3,482,945 2,939 Post-Petition Accrued Other Taxes-Exhibit M 0 (372,056) 0 0 11,617 (3,479) Pre-Petition Notes Payable and Current Maturities of Long Term Debt 28,116,000 20,290 Post-Petition Notes Payable and Current Maturities of Long Term Debt 37,096,279 (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 8,433,964 ------------------------------------------------------------------------------- Total Current Liabilities (2,883,235) 239,424,101 6,242,867 16,281,806 (81,574,894) (1,480,234) ------------------------------------------------------------------------------- Long Term --------- Pre-Petition Long Term Debt 32,180,761 Post-Petition Long Term Debt 153,205 Accrued OPEB Cost 34,849 119,859,724 1,446,589 9,348,584 Accrued Pension Cost 1,134,572 Pre-Petition Accrued Expenses-Exhibit I 0 11,104,689 3,573,908 0 0 0 Post-Petition Accrued Expenses-Exhibit J 0 406,322 (198,554) 0 0 0 ------------------------------------------------------------------------------- Total Long Term Liabilities 34,849 164,839,273 3,375,354 1,446,589 9,348,584 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 32,791,532 27,579,007 Accumulated Deficit 3,430,604 (106,184,621) 5,831,566 (19,975,261) 83,654,535 1,925,753 Treasury Stock (12,125) (33,557,453) ------------------------------------------------------------------------------- Total Stockholders' Equity (Deficit) 3,440,604 (62,606,963) 5,831,572 (17,728,395) 83,295,363 1,926,753 ------------------------------------------------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $592,218 $343,768,411 $15,449,793 $0 $11,069,053 $446,519 ===============================================================================
Page 3 of 6 IV. BALANCE SHEET (Continued)
Sub Elimin- Total ations Total ----- -------- ----- ASSETS ------ Current ------- Cash $2,965,143 $2,965,143 Inventory 42,090,347 42,090,347 Accounts Receivable 30,807,221 30,807,221 Prepaid Expenses 1,956,173 1,956,173 Other-Exhibit E 19,260,806 (15,877,776) 3,383,030 ----------------------------------------- Total Current Assets 97,079,690 (15,877,776) 81,201,914 ----------------------------------------- Fixed ----- Property and Equipment 351,713,462 351,713,462 Accumulated Depreciation (266,343,671) (266,343,671) ----------------------------------------- Total Fixed Assets 85,369,791 0 85,369,791 ----------------------------------------- Other ----- Restricted Investments 6,227,196 6,227,196 Prepaid Pension Asset 139,150,944 139,150,944 Deferred Financing Costs 951,028 951,028 Goodwill 751,508 751,508 Other-Exhibit F 41,795,837 (41,173,674) 622,163 ----------------------------------------- Total Other Assets 188,876,513 (41,173,674) 147,702,839 ----------------------------------------- Total Assets $371,325,994 ($57,051,450) $314,274,544 ========================================= LIABILITIES ----------- Current ------- Pre-Petition Accounts Payable $20,664,397 $20,664,397 Post-Petition Accounts Payable 1,662,956 1,662,956 Pre-Petition Accounts Payable-Affiliates 15,879,389 $(14,904,350) 975,039 Post-Petition Accounts Payable-Affiliates 3,356,617 (973,426) 2,383,191 Pre-Petition Accrued Expenses-Exhibit G 20,313,931 0 20,313,931 Post-Petition Accrued Expenses-Exhibit H 13,625,444 0 13,625,444 Post-Petition Accrued Professional Fees 3,485,884 3,485,884 Post-Petition Accrued Other Taxes-Exhibit M (363,918) 0 (363,918) 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 37,075,989 37,075,989 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 8,433,964 8,433,964 ----------------------------------------- Total Current Liabilities 176,010,411 (15,877,776) 160,132,635 ----------------------------------------- Long Term --------- Pre-Petition Long Term Debt 32,180,761 32,180,761 Post-Petition Long Term Debt 153,205 153,205 Accrued OPEB Cost 130,689,746 130,689,746 Accrued Pension Cost 1,134,572 1,134,572 Pre-Petition Accrued Expenses-Exhibit I 14,678,597 0 14,678,597 Post-Petition Accrued Expenses-Exhibit J 207,768 0 207,768 ----------------------------------------- Total Long Term Liabilities 179,044,649 0 179,044,649 ----------------------------------------- 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 60,370,539 (27,579,007) 32,791,532 Accumulated Deficit (31,317,424) (39,274,975) (70,592,399) Treasury Stock (33,569,578) 33,557,453 (12,125) ----------------------------------------- Total Stockholders' Equity (Deficit) 14,158,934 (41,173,674) (27,014,740) ----------------------------------------- Total Liabilities & Stockholders' Equity (Deficit) $371,325,994 ($57,051,450) $314,274,544 =========================================
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 $567 $567 $567 Note Receivable 75,000 75,000 75,000 Intercompany Receivable $3,227,457 $15,449,793 $412,297 19,089,547 $(15,877,776) 3,211,771 Short Term Investments 20,428 20,428 20,428 Receivable From EB Plans 72,837 72,837 72,837 Stop Loss Receivable 1,927 1,927 1,927 Security Deposit 500 500 500 ------------------------------------------------------------------------------------------------------ Total Other Current Assets $75,567 $3,323,149 $15,449,793 $0 $412,297 $0 $19,260,806 ($15,877,776) $3,383,030 ======================================================================================================
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 $254,113 254,113 254,113 Investment in Sherman Wire Company 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 0 0 ------------------------------------------------------------------------------------------------------ Total Other Long Term Assets $40,000 $39,508,966 $0 $0 $2,246,871 $0 $41,795,837 ($41,173,674) $622,163 ======================================================================================================
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 $2,325,119 (168) 2,324,951 2,324,951 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 142,856 487,932 630,788 630,788 Self-Insurance Liability 2,410,006 5,050,166 7,460,172 7,460,172 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 7,837,183 7,837,183 7,837,183 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 $13,578,654 $35,632 ($36,000) $6,668,380 $64,082 $20,313,931 $0 $20,313,931 ======================================================================================================
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 $318 $5,855 $6,173 $6,173 Pensions 0 17,274 17,274 17,274 Salaries/Wages 666,112 (2,971) 663,141 663,141 Holiday Pay/Vacations 4,257,585 (739) 4,256,846 4,256,846 Defined Contribution Plan 606,367 17,122 623,489 623,489 Medical Insurance 293,932 (13,482) $(4,039) 276,411 276,411 Utilities 270,363 75,145 459 345,967 345,967 Legal 301,804 (13,121) 288,683 288,683 Professional Fees 283,691 283,691 283,691 Goods Received Not Invoiced 795,808 795,808 795,808 Worker's Compensation 2,837,804 2,837,804 2,837,804 Unearned Revenue 1,539 1,539 1,539 Sales Rebates/Discounts 1,516,290 1,516,290 1,516,290 Abanondon Property 0 0 0 Miscellaneous 581,500 30,241 611,741 611,741 Accrued Bank Service Charge 42,595 42,595 42,595 Accrued Self-Insurance Losses (149,856) (149,856) (149,856) Accrued Interest 731,117 731,117 731,117 Accrued Travel 0 0 0 Accrued Profit Sharing 250,000 250,000 250,000 Accrued Management Fees 226,731 226,731 226,731 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Current $0 $13,513,700 $0 $0 $115,324 ($3,580) $13,625,444 $0 $13,625,444 ============================================================================================
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 0 0 -------------------------------------------------------------------------------------------- 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 $401,025 $401,025 $401,025 Long Term Disability 5,297 5,297 5,297 Environmental $(198,554) (198,554) (198,554) 0 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------- Total Post Petition Accrued Expenses -Long Term $0 $406,322 ($198,554) $0 $0 $0 $207,768 $0 $207,768 ============================================================================================
EXHIBIT M POST PETITION ACCRUED OTHER TAXES
Sub Elimin- FVSW KCI DEMI JLP SWC SWCI Total ations Total ---- --- ---- --- --- ---- ----- ------- ----- FICA - Employer ($263,134) $2,181 ($260,953) ($260,953) Federal Unemployment Taxes 0 1,684 1,684 1,684 State Unemployment Taxes 0 (11,946) (11,946) (11,946) Property Tax 291,556 16,828 $(3,479) 304,905 304,905 Sales/Use Tax 2,830 2,870 5,700 5,700 Accrued State Franchise Tax (362,102) (362,102) (362,102) Miscellaneous (41,206) (41,206) (41,206) ------------------------------------------------------------------------------------------------ Total Post Petition Accrued Other Taxes $0 ($372,056) $0 $0 $11,617 ($3,479) ($363,918) $0 ($363,918) ================================================================================================
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