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 2013, the Company merged Transtar Metals Corp. and Oliver Steel Plate Co., guarantors, with the Parent. In addition, certain non-guarantor subsidiaries were merged with the parent in September 2013. The Company has reflected these changes in its accompanying condensed consolidating financial statements of guarantors and non-guarantors.

Condensed Consolidating Balance Sheet As of March 31, 2014

	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	3,893	$	1,350	$	20,465		$	—		$	25,708
Accounts receivable, less allowance for doubtful accounts	78,266		20,686		46,959			—			145,911
Receivables from affiliates	3,475		—		—			(3,475		)	—
Inventories	127,660		18,174		68,080			(68		)	213,846
Prepaid expenses and other current assets	8,269		1,874		6,970			(202		)	16,911
Total current assets	221,563		42,084		142,474			(3,745		)	402,376
Investment in joint venture	43,179		—		—			—			43,179
Goodwill	41,504		12,973		14,277			—			68,754
Intangible assets	50,212		—		15,756			—			65,968
Other assets	27,733		—		3,554			—			31,287
Investment in subsidiaries	113,646		—		—			(113,646		)	—
Receivables from affiliates	93,399		35,145		3,513			(132,057		)	—
Property, plant and equipment, net	49,810		12,472		12,932			—			75,214
Total assets	$	641,046	$	102,674	$	192,506		$	(249,448	)	$	686,778
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	55,502	$	10,467	$	22,305		$	—		$	88,274
Payables due to affiliates	2,724		—		751			(3,475		)	—
Other current liabilities	26,427		598		8,889			—			35,914
Current portion of long-term debt	371		—		25			—			396
Total current liabilities	85,024		11,065		31,970			(3,475		)	124,584
Long-term debt, less current portion	246,571		—		30			—			246,601
Payables due to affiliates	—		7,971		124,086			(132,057		)	—
Deferred income taxes	4,193		7,111		(1,155		)	—			10,149
Other non-current liabilities	11,541		—		186			—			11,727
Stockholders’ equity	293,717		76,527		37,389			(113,916		)	293,717
Total liabilities and stockholders’ equity	$	641,046	$	102,674	$	192,506		$	(249,448	)	$	686,778

Condensed Consolidating Balance Sheet As of December 31, 2013

	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	8,675	$	495	$	21,659		$	—		$	30,829
Accounts receivable, less allowance for doubtful accounts	67,536		18,305		42,703			—			128,544
Receivables from affiliates	2,811		—		—			(2,811		)	—
Inventories	133,139		16,357		65,472			(68		)	214,900
Prepaid expenses and other current assets	8,383		2,244		5,993			(202		)	16,418
Total current assets	220,544		37,401		135,827			(3,081		)	390,691
Investment in joint venture	41,879		—		—			—			41,879
Goodwill	41,504		12,973		14,812			—			69,289
Intangible assets	52,703		—		16,786			—			69,489
Other assets	28,145		—		3,635			—			31,780
Investment in subsidiaries	119,075		—		—			(119,075		)	—
Receivables from affiliates	87,247		34,637		1,465			(123,349		)	—
Property, plant and equipment, net	50,812		12,855		13,027			—			76,694
Total assets	$	641,909	$	97,866	$	185,552		$	(245,505	)	$	679,822
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	41,233	$	8,274	$	20,070		$	—		$	69,577
Payables due to affiliates	2,270		—		541			(2,811		)	—
Other current liabilities	22,801		944		7,622			—			31,367
Current portion of long-term debt	371		—		26			—			397
Total current liabilities	66,675		9,218		28,259			(2,811		)	101,341
Long-term debt, less current portion	245,561		—		38			—			245,599
Payables due to affiliates	—		6,579		116,770			(123,349		)	—
Deferred income taxes	7,823		7,061		(4,151		)	—			10,733
Other non-current liabilities	11,956		—		299			—			12,255
Stockholders’ equity	309,894		75,008		44,337			(119,345		)	309,894
Total liabilities and stockholders’ equity	$	641,909	$	97,866	$	185,552		$	(245,505	)	$	679,822

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Three Months Ended March 31, 2014

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	164,206		$	34,347		$	59,966		$	(5,109	)	$	253,410
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	121,912			24,105			47,623			(5,109		)	188,531
Warehouse, processing and delivery expense	26,003			2,982			6,396			—			35,381
Sales, general and administrative expense	19,961			4,829			4,834			—			29,624
Restructuring charges	739			—			—			—			739
Depreciation and amortization expense	4,890			532			1,035			—			6,457
Operating (loss) income	(9,299		)	1,899			78			—			(7,322		)
Interest expense, net	(6,166		)	—			(3,786		)	—			(9,952		)
Other expense	—			—			(682		)	—			(682		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(15,465		)	1,899			(4,390		)	—			(17,956		)
Income taxes	2,574			(380		)	(2,143		)	—			51
Equity in (losses) earnings of subsidiaries	(5,014		)	—			—			5,014			—
Equity in earnings of joint venture	1,907			—			—			—			1,907
Net (loss) income	(15,998		)	1,519			(6,533		)	5,014			(15,998		)
Comprehensive (loss) income	$	(16,160	)	$	1,519		$	(6,948	)	$	5,429		$	(16,160	)

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Three Months Ended March 31, 2013

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	202,909		$	34,334		$	66,568		$	(11,097	)	$	292,714
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	154,728			24,438			51,362			(11,097		)	219,431
Warehouse, processing and delivery expense	26,502			3,098			5,984			—			35,584
Sales, general and administrative expense	19,615			4,509			5,752			—			29,876
Restructuring charges	1,820			—			405			—			2,225
Depreciation and amortization expense	5,008			544			1,019			—			6,571
Operating (loss) income	(4,764		)	1,745			2,046			—			(973		)
Interest expense, net	(6,492		)	—			(3,696		)	—			(10,188		)
Other expense	—			—			(2,299		)	—			(2,299		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(11,256		)	1,745			(3,949		)	—			(13,460		)
Income taxes	1,110			(198		)	457			—			1,369
Equity in (losses) earnings of subsidiaries	(1,945		)	—			—			1,945			—
Equity in earnings of joint venture	1,469			—			—			—			1,469
Net (loss) income	$	(10,622	)	$	1,547		$	(3,492	)	$	1,945		$	(10,622	)
Comprehensive (loss) income	$	(10,244	)	$	1,547		$	(3,459	)	$	1,912		$	(10,244	)

Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2014

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(15,998	)	$	1,519		$	(6,533	)	$	5,014		$	(15,998	)
Equity in losses (earnings) of subsidiaries	5,014			—			—			(5,014		)	—
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities	13,635			(1,399		)	893			—			13,129
Net cash (used in) from operating activities	2,651			120			(5,640		)	—			(2,869		)
Investing activities:
Capital expenditures	(1,236		)	(149		)	(627		)	—			(2,012		)
Other investing activities	3			—			43			—			46
Net cash used in investing activities	(1,233		)	(149		)	(584		)	—			(1,966		)
Financing activities:
Proceeds from long-term debt	10,500			—			1,006			—			11,506
Repayments of long-term debt	(10,593		)	—			(1,012		)	—			(11,605		)
Net intercompany (repayments) borrowings	(6,152		)	884			5,268			—			—
Other financing activities	45			—			—			—			45
Net cash (used in) from financing activities	(6,200		)	884			5,262			—			(54		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(232		)	—			(232		)
(Decrease) increase in cash and cash equivalents	(4,782		)	855			(1,194		)	—			(5,121		)
Cash and cash equivalents - beginning of year	8,675			495			21,659			—			30,829
Cash and cash equivalents - end of period	$	3,893		$	1,350		$	20,465		$	—		$	25,708

Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2013

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(10,622	)	$	1,547		$	(3,492	)	$	1,945		$	(10,622	)
Equity in losses (earnings) of subsidiaries	1,945			—			—			(1,945		)	—
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities	45,508			(2,424		)	123			—			43,207
Net cash from (used in) operating activities	36,831			(877		)	(3,369		)	—			32,585
Investing activities:
Capital expenditures	(1,287		)	(482		)	(112		)	—			(1,881		)
Other investing activities	463			5			—			—			468
Net cash used in investing activities	(824		)	(477		)	(112		)	—			(1,413		)
Financing activities:
Proceeds from long-term debt	106,500			—			—			—			106,500
Repayments of long-term debt	(137,107		)	—			(762		)	—			(137,869		)
Net intercompany (repayments) borrowings	(4,717		)	475			4,242			—			—
Other financing activities	651			—			—			—			651
Net cash (used in) from financing activities	(34,673		)	475			3,480			—			(30,718		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(691		)	—			(691		)
(Decrease) increase in cash and cash equivalents	1,334			(879		)	(692		)	—			(237		)
Cash and cash equivalents - beginning of year	4,106			903			16,598			—			21,607
Cash and cash equivalents - end of period	$	5,440		$	24		$	15,906		$	—		$	21,370