Guarantor Financial Information

The accompanying condensed consolidating financial information has been prepared and presented pursuant to Rule 3-10 of SEC Regulation S-X “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” The consolidating financial information presents A. M. Castle & Co. (Parent) and subsidiaries. The consolidating financial information has been prepared on the same basis as the consolidated statements of the Parent. The equity method of accounting is followed within this financial information.

In September 2012, the Company merged Tube Supply, LLC, a guarantor, with the Parent. The Company has reflected this change in its accompanying condensed consolidating financial statements of guarantors and non-guarantors.

Condensed Consolidating Balance Sheet As of June 30, 2013

	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	13,313	$	1,570		$	18,301		$	—		$	33,184
Accounts receivable, less allowance for doubtful accounts	66,154		37,798			48,041			—			151,993
Receivables from affiliates	1,274		1,693			—			(2,967		)	—
Inventories	143,744		35,155			68,031			(68		)	246,862
Prepaid expenses and other current assets	23,604		(1,137		)	9,576			(202		)	31,841
Total current assets	248,089		75,079			143,949			(3,237		)	463,880
Investment in joint venture	38,727		—			—			—			38,727
Goodwill	12,921		41,556			15,036			—			69,513
Intangible assets	32,394		25,291			17,918			—			75,603
Other assets	28,330		101			4,275			—			32,706
Investment in subsidiaries	248,767		9,510			—			(258,277		)	—
Receivables from affiliates	62,288		89,415			5,704			(157,407		)	—
Property, plant and equipment, net	48,442		15,406			12,492			—			76,340
Total assets	$	719,958	$	256,358		$	199,374		$	(418,921	)	$	756,769
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	56,263	$	14,962		$	15,980		$	—		$	87,205
Payables due to affiliates	1,576		253			1,138			(2,967		)	—
Other current liabilities	26,437		4,491			7,846			—			38,774
Current portion of long-term debt and short-term debt	371		—			27			—			398
Total current liabilities	84,647		19,706			24,991			(2,967		)	126,377
Long-term debt, less current portion	258,315		—			51			—			258,366
Payables due to affiliates	25,792		6,971			124,644			(157,407		)	—
Deferred income taxes	13,559		18,615			(1,070		)	—			31,104
Other non-current liabilities	14,366		2,629			648			—			17,643
Stockholders’ equity	323,279		208,437			50,110			(258,547		)	323,279
Total liabilities and stockholders’ equity	$	719,958	$	256,358		$	199,374		$	(418,921	)	$	756,769

Condensed Consolidating Balance Sheet As of December 31, 2012

	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	3,332	$	1,677		$	16,598		$	—		$	21,607
Accounts receivable, less allowance for doubtful accounts	60,293		34,037			43,981			—			138,311
Receivables from affiliates	95		1,118			668			(1,881		)	—
Inventories	183,189		44,874			75,777			(68		)	303,772
Prepaid expenses and other current assets	16,141		(1,490		)	8,239			(202		)	22,688
Total current assets	263,050		80,216			145,263			(2,151		)	486,378
Investment in joint venture	38,854		—			—			—			38,854
Goodwill	12,921		41,556			15,823			—			70,300
Intangible assets	34,343		28,325			19,809			—			82,477
Other assets	28,142		(98		)	3,113			—			31,157
Investment in subsidiaries	245,798		11,526			—			(257,324		)	—
Receivables from affiliates	62,696		83,891			3,280			(149,867		)	—
Property, plant and equipment, net	52,424		15,403			11,813			—			79,640
Total assets	$	738,228	$	260,819		$	199,101		$	(409,342	)	$	788,806
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	40,510	$	13,434		$	14,046		$	—		$	67,990
Payables due to affiliates	742		95			1,044			(1,881		)	—
Other current liabilities	26,566		3,478			8,083			—			38,127
Current portion of long-term debt and short-term debt	386		1			528			—			915
Total current liabilities	68,204		17,008			23,701			(1,881		)	107,032
Long-term debt, less current portion	292,086		—			4,068			—			296,154
Payables due to affiliates	12,114		11,994			125,759			(149,867		)	—
Deferred income taxes	14,209		18,614			(473		)	—			32,350
Other non-current liabilities	14,275		1,339			316			—			15,930
Stockholders’ equity	337,340		211,864			45,730			(257,594		)	337,340
Total liabilities and stockholders’ equity	$	738,228	$	260,819		$	199,101		$	(409,342	)	$	788,806

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Three Months Ended June 30, 2013

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	152,504		$	69,424		$	58,612		$	(7,130	)	$	273,410
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	110,690			52,323			45,578			(7,130		)	201,461
Warehouse, processing and delivery expense	21,995			8,020			5,805			—			35,820
Sales, general and administrative expense	15,534			7,047			5,085			—			27,666
Restructuring charges	1,436			2,674			1,483			—			5,593
Depreciation and amortization expense	3,394			2,220			1,019			—			6,633
Operating (loss) income	(545		)	(2,860		)	(358		)	—			(3,763		)
Interest expense, net	(5,843		)	—			(4,247		)	—			(10,090		)
Other income (expense)	—			—			745			—			745
Loss before income taxes and equity in earnings of subsidiaries and joint venture	(6,388		)	(2,860		)	(3,860		)	—			(13,108		)
Income taxes	(8,843		)	2,048			14,610			—			7,815
Equity in earnings (losses) of subsidiaries	9,938			(889		)	—			(9,049		)	—
Equity in earnings of joint venture	1,494			—			—			—			1,494
Net (loss) income	(3,799		)	(1,701		)	10,750			(9,049		)	(3,799		)
Comprehensive (loss) income	$	(5,987	)	$	(1,364	)	$	8,217		$	(6,853	)	$	(5,987	)

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Three Months Ended June 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	200,681		$	67,861		$	70,439		$	(9,589	)	$	329,392
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	147,387			49,001			54,025			(9,732		)	240,681
Warehouse, processing and delivery expense	23,788			8,644			6,042			—			38,474
Sales, general and administrative expense	20,202			8,351			5,650			—			34,203
Depreciation and amortization expense	3,237			2,246			991			—			6,474
Operating income (loss)	6,067			(381		)	3,731			143			9,560
Interest expense, net	(5,886		)	—			(4,078		)	—			(9,964		)
Interest expense - unrealized loss on debt conversion option	(4,257		)	—			—			—			(4,257		)
Other income (expense)	—			—			(691		)	—			(691		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(4,076		)	(381		)	(1,038		)	143			(5,352		)
Income taxes	122			252			267			—			641
Equity in earnings of subsidiaries	(757		)	(277		)	—			1,034			—
Equity in earnings of joint venture	1,733			—			—			—			1,733
Net (loss) income	$	(2,978	)	$	(406	)	$	(771	)	$	1,177		$	(2,978	)
Comprehensive (loss) income	$	(6,462	)	$	(686	)	$	(4,145	)	$	4,831		$	(6,462	)

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Six Months Ended June 30, 2013

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	321,288		$	137,996		$	125,179		$	(18,339	)	$	566,124
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	239,254			103,037			96,940			(18,339		)	420,892
Warehouse, processing and delivery expense	43,293			16,322			11,789			—			71,404
Sales, general and administrative expense	32,233			14,477			10,832			—			57,542
Restructuring charges	2,683			3,247			1,888			—			7,818
Depreciation and amortization expense	6,695			4,464			2,045			—			13,204
Operating (loss) income	(2,870		)	(3,551		)	1,685			—			(4,736		)
Interest expense, net	(11,834		)	—			(8,444		)	—			(20,278		)
Other income (expense)	—			—			(1,554		)	—			(1,554		)
Loss before income taxes and equity in earnings of subsidiaries and joint venture	(14,704		)	(3,551		)	(8,313		)	—			(26,568		)
Income taxes	(8,133		)	2,140			15,177			—			9,184
Equity in earnings (losses) of subsidiaries	5,453			(1,010		)	—			(4,443		)	—
Equity in earnings of joint venture	2,963			—			—			—			2,963
Net (loss) income	(14,421		)	(2,421		)	6,864			(4,443		)	(14,421		)
Comprehensive (loss) income	$	(16,231	)	$	(3,450	)	$	4,364		$	(914	)	$	(16,231	)

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Six Months Ended June 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	426,400		$	139,613		$	147,634		$	(21,339	)	$	692,308
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	311,616			100,788			113,000			(20,756		)	504,648
Warehouse, processing and delivery expense	47,899			17,190			11,911			—			77,000
Sales, general and administrative expense	41,537			16,642			11,678			—			69,857
Depreciation and amortization expense	6,606			4,492			1,989			—			13,087
Operating income (loss)	18,742			501			9,056			(583		)	27,716
Interest expense, net	(12,809		)	—			(7,348		)	—			(20,157		)
Interest expense - unrealized loss on debt conversion option	(15,597		)	—			—			—			(15,597		)
Other income (expense)	—			—			(249		)	—			(249		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(9,664		)	501			1,459			(583		)	(8,287		)
Income taxes	(3,520		)	(45		)	(378		)	211			(3,732		)
Equity in earnings of subsidiaries	1,165			(241		)	—			(924		)	—
Equity in earnings of joint venture	4,741			—			—			—			4,741
Net (loss) income	$	(7,278	)	$	215		$	1,081		$	(1,296	)	$	(7,278	)
Comprehensive (loss) income	$	(7,538	)	$	(69	)	$	1,040		$	(971	)	$	(7,538	)

Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2013

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(14,421	)	$	(2,421	)	$	6,864		$	(4,443	)	$	(14,421	)
Equity in (earnings) losses of subsidiaries	(5,453		)	1,010			—			4,443			—
Adjustments to reconcile net (loss) income to cash provided by operating activities	50,789			13,604			6,142			—			70,535
Net cash from (used in) operating activities	30,915			12,193			13,006			—			56,114
Investing activities:
Capital expenditures	(1,512		)	(1,768		)	(2,156		)	—			(5,436		)
Other investing activities, net	730			15			—			—			745
Net cash used in investing activities	(782		)	(1,753		)	(2,156		)	—			(4,691		)
Financing activities:
Proceeds from long-term debt	115,300			—			—			—			115,300
Repayments of long-term debt	(151,000		)	—			(4,169		)	—			(155,169		)
Net intercompany (repayments) borrowings	14,086			(10,547		)	(3,539		)	—			—
Other financing	1,462			—			(500		)	—			962
Net cash (used in) from financing activities	(20,152		)	(10,547		)	(8,208		)	—			(38,907		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(939		)	—			(939		)
Increase (decrease) in cash and cash equivalents	9,981			(107		)	1,703			—			11,577
Cash and cash equivalents - beginning of year	3,332			1,677			16,598			—			21,607
Cash and cash equivalents - end of period	$	13,313		$	1,570		$	18,301		$	—		$	33,184

Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(7,278	)	$	215		$	1,081		$	(1,296	)	$	(7,278	)
Equity in (earnings) losses of subsidiaries	(1,165		)	241			—			924			—
Adjustments to reconcile net (loss) income to cash provided by operating activities	25,939			(17,300		)	(7,362		)	372			1,649
Net cash from (used in) operating activities	17,496			(16,844		)	(6,281		)	—			(5,629		)
Investing activities:
Capital expenditures	(2,302		)	(1,033		)	(1,354		)	—			(4,689		)
Proceeds from the sale of fixed assets	—			6			—			—			6
Net cash used in investing activities	(2,302		)	(1,027		)	(1,354		)	—			(4,683		)
Financing activities:
Proceeds from long-term debt	326,404			—			10,731			—			337,135
Repayments of long-term debt	(318,717		)	(29		)	(17,374		)	—			(336,120		)
Payment of debt issue costs	(1,503		)	—			—			—			(1,503		)
Net intercompany (repayments) borrowings	(31,292		)	19,089			12,203			—			—
Other financing	167			—			500			—			667
Net cash (used in) from financing activities	(24,941		)	19,060			6,060			—			179
Effect of exchange rate changes on cash and cash equivalents	—			—			58			—			58
(Decrease) increase in cash and cash equivalents	(9,747		)	1,189			(1,517		)	—			(10,075		)
Cash and cash equivalents - beginning of year	11,534			582			18,408			—			30,524
Cash and cash equivalents - end of period	$	1,787		$	1,771		$	16,891		$	—		$	20,449