SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 6.875% senior secured notes due 2020 and 5.625% convertible senior subordinated notes are guaranteed by the following 100% owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	263,958		$	274,982		$	—	$	538,940
Cost of sales	210			228,239			255,941			—		484,390
Gross profit (loss)	(210		)	35,719			19,041			—		54,550
Selling, general and administrative expenses	1,644			18,990			26,201			—		46,835
Research and development expenses	—			2,153			1,557			—		3,710
Royalty expense	—			1,848			1,893			—		3,741
Income (loss) from operations	(1,854		)	12,728			(10,610		)	—		264
Interest expense	(8,262		)	—			(997		)	—		(9,259		)
Intercompany interest income (expense)	1,684			—			(1,684		)	—		—
Other income (loss)	342			(55		)	229			—		516
Income (loss) before income taxes	(8,090		)	12,673			(13,062		)	—		(8,479		)
Provision (benefit) for income taxes	(6,040		)	4,810			(2,121		)	—		(3,351		)
Equity in earnings of subsidiaries	(3,078		)	—			(877		)	3,955		—
Net income (loss)	(5,128		)	7,863			(11,818		)	3,955		(5,128		)
Net loss noncontrolling interests	—			—			(7,291		)	—		(7,291		)
Net income (loss) attributable to Titan	$	(5,128	)	$	7,863		$	(4,527	)	$	3,955	$	2,163



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	323,894	$	254,493		$	—		$	578,387
Cost of sales	390			256,226		225,020			—			481,636
Gross profit (loss)	(390		)	67,668		29,473			—			96,751
Selling, general and administrative expenses	2,317			17,824		22,302			—			42,443
Research and development expenses	10			1,313		1,379			—			2,702
Royalty expense	—			1,778		1,945			—			3,723
Income (loss) from operations	(2,717		)	46,753		3,847			—			47,883
Interest expense	(7,731		)	—		(2,710		)	—			(10,441		)
Convertible debt conversion charge	(7,273		)	—		—			—			(7,273		)
Intercompany interest income (expense)	497			—		(497		)	—			—
Other income	644			24		751			—			1,419
Income (loss) before income taxes	(16,580		)	46,777		1,391			—			31,588
Provision (benefit) for income taxes	(8,335		)	16,953		3,581			—			12,199
Equity in earnings of subsidiaries	27,634			—		18,632			(46,266		)	—
Net income (loss)	19,389			29,824		16,442			(46,266		)	19,389
Net loss noncontrolling interests	—			—		(86		)	—			(86		)
Net income (loss) attributable to Titan	$	19,389		$	29,824	$	16,528		$	(46,266	)	$	19,475



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(5,128	)	$	7,863	$	(11,818	)	$	3,955		$	(5,128	)
Currency translation adjustment, net	388			—		388			(388		)	388
Pension liability adjustments, net of tax	717			450		267			(717		)	717
Comprehensive income (loss)	(4,023		)	8,313		(11,163		)	2,850			(4,023		)
Net comprehensive loss attributable to noncontrolling interests	—			—		(12,183		)	—			(12,183		)
Comprehensive income (loss) attributable to Titan	$	(4,023	)	$	8,313	$	1,020		$	2,850		$	8,160



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income For the Three Months Ended March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	19,389		$	29,824	$	16,442		$	(46,266	)	$	19,389
Unrealized gain (loss) on investments, net of tax	(3		)	—		(3		)	3			(3		)
Currency translation adjustment, net	(196		)	—		(196		)	196			(196		)
Pension liability adjustments, net of tax	951			781		170			(951		)	951
Comprehensive income (loss)	20,141			30,605		16,413			(47,018		)	20,141
Net comprehensive income attributable to noncontrolling interests	—			—		9			—			9
Comprehensive income (loss) attributable to Titan	$	20,141		$	30,605	$	16,404		$	(47,018	)	$	20,132



(Amounts in thousands)	Consolidating Condensed Balance Sheets March 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	90,826		$	9		$	109,259	$	—		$	200,094
Accounts receivable, net	—			126,645			201,382		—			328,027
Inventories	—			135,189			259,361		—			394,550
Prepaid and other current assets	49,175			15,830			65,190		—			130,195
Total current assets	140,001			277,673			635,192		—			1,052,866
Property, plant and equipment, net	9,968			201,228			417,611		—			628,807
Investment in subsidiaries	893,313			—			140,695		(1,034,008		)	—
Other assets	37,695			372			138,758		—			176,825
Total assets	$	1,080,977		$	479,273		$	1,332,256	$	(1,034,008	)	$	1,858,498
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	78,022	$	—		$	78,022
Accounts payable	820			19,182			193,462		—			213,464
Other current liabilities	28,117			56,925			66,808		—			151,850
Total current liabilities	28,937			76,107			338,292		—			443,336
Long-term debt	460,161			—			38,613		—			498,774
Other long-term liabilities	40,330			14,787			79,147		—			134,264
Intercompany accounts	(144,002		)	(126,832		)	270,834		—			—
Titan stockholders' equity	695,551			515,211			518,797		(1,034,008		)	695,551
Noncontrolling interests	—			—			86,573		—			86,573
Total liabilities and stockholders’ equity	$	1,080,977		$	479,273		$	1,332,256	$	(1,034,008	)	$	1,858,498



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	81,472		$	4		$	107,884	$	—		$	189,360
Restricted cash	—			—			14,268		—			14,268
Accounts receivable, net	—			89,259			173,794		—			263,053
Inventories	—			129,113			255,807		—			384,920
Prepaid and other current assets	80,876			20,416			54,985		—			156,277
Total current assets	162,348			238,792			606,738		—			1,007,878
Property, plant and equipment, net	9,885			206,928			421,994		—			638,807
Investment in subsidiaries	884,222			—			141,752		(1,025,974		)	—
Other assets	34,259			387			139,900		—			174,546
Total assets	$	1,090,714		$	446,107		$	1,310,384	$	(1,025,974	)	$	1,821,231
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	75,061	$	—		$	75,061
Accounts payable	368			12,525			163,826		—			176,719
Other current liabilities	15,278			58,001			61,512		—			134,791
Total current liabilities	15,646			70,526			300,399		—			386,571
Long-term debt	460,161			—			37,533		—			497,694
Other long-term liabilities	40,658			15,571			82,701		—			138,930
Intercompany accounts	(113,474		)	(147,529		)	261,003		—			—
Titan stockholders' equity	687,723			507,539			518,435		(1,025,974		)	687,723
Noncontrolling interests	—			—			110,313		—			110,313
Total liabilities and stockholders’ equity	$	1,090,714		$	446,107		$	1,310,384	$	(1,025,974	)	$	1,821,231



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	9,782		$	737		$	7,472		$	17,991
Cash flows from investing activities:
Capital expenditures	(120		)	(3,486		)	(13,148		)	(16,754		)
Acquisition of additional interest	(25		)	—			(12,651		)	(12,676		)
Decrease in restricted cash deposits	—			—			14,188			14,188
Other, net	—			2,754			524			3,278
Net cash used for investing activities	(145		)	(732		)	(11,087		)	(11,964		)
Cash flows from financing activities:
Payment on debt	—			—			(4,248		)	(4,248		)
Term loan borrowing	—			—			6,945			6,945
Proceeds from exercise of stock options	20			—			—			20
Excess tax benefit from stock options exercised	(2		)	—			—			(2		)
Payment of financing fees	(33		)	—			—			(33		)
Dividends paid	(268		)	—			—			(268		)
Net cash provided by (used for) financing activities	(283		)	—			2,697			2,414
Effect of exchange rate change on cash	—			—			2,293			2,293
Net increase in cash and cash equivalents	9,354			5			1,375			10,734
Cash and cash equivalents, beginning of period	81,472			4			107,884			189,360
Cash and cash equivalents, end of period	$	90,826		$	9		$	109,259		$	200,094



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(4,453	)	$	9,099		$	16,634		$	21,280
Cash flows from investing activities:
Capital expenditures	(1,955		)	(9,099		)	(10,120		)	(21,174		)
Other, net	—			—			(219		)	(219		)
Net cash used for investing activities	(1,955		)	(9,099		)	(10,339		)	(21,393		)
Cash flows from financing activities:
Proceeds from borrowings	345,313			—			—			345,313
Payment on debt	—			—			(18,059		)	(18,059		)
Term loan borrowing	—			—			10,818			10,818
Convertible note conversion	(14,090		)	—			—			(14,090		)
Proceeds from exercise of stock options	739			—			—			739
Excess tax benefit from stock options exercised	(29		)	—			—			(29		)
Payment of financing fees	(5,064		)	—			—			(5,064		)
Dividends paid	(243		)	—			—			(243		)
Net cash provided by (used for) financing activities	326,626			—			(7,241		)	319,385
Effect of exchange rate change on cash	—			—			61			61
Net increase (decrease) in cash and cash equivalents	320,218			—			(885		)	319,333
Cash and cash equivalents, beginning of period	103,154			4			85,956			189,114
Cash and cash equivalents, end of period	$	423,372		$	4		$	85,071		$	508,447