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 June 30, 2014

	Parent			Guarantors		Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	3,999		$	1,237	$	11,840		$	—		$	17,076
Accounts receivable, less allowance for doubtful accounts	74,095			21,476		50,497			—			146,068
Receivables from affiliates	2,982			—		—			(2,982		)	—
Inventories	127,762			18,995		75,505			(68		)	222,194
Prepaid expenses and other current assets	9,182			1,643		8,413			(202		)	19,036
Total current assets	218,020			43,351		146,255			(3,252		)	404,374
Investment in joint venture	44,495			—		—			—			44,495
Goodwill	—			12,973		—			—			12,973
Intangible assets	47,721			—		15,855			—			63,576
Other assets	27,476			—		3,318			—			30,794
Investment in subsidiaries	101,357			—		—			(101,357		)	—
Receivables from affiliates	97,116			35,657		1,195			(133,968		)	—
Property, plant and equipment, net	48,488			12,347		13,717			—			74,552
Total assets	$	584,673		$	104,328	$	180,340		$	(238,577	)	$	630,764
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	55,702		$	10,161	$	23,573		$	—		$	89,436
Payables due to affiliates	2,198			—		784			(2,982		)	—
Other current liabilities	23,164			925		7,554			—			31,643
Current portion of long-term debt	371			—		26			—			397
Total current liabilities	81,435			11,086		31,937			(2,982		)	121,476
Long-term debt, less current portion	270,449			—		24			—			270,473
Payables due to affiliates	—			8,511		125,457			(133,968		)	—
Deferred income taxes	(1,471		)	6,929		(1,093		)	—			4,365
Other non-current liabilities	10,809			—		190			—			10,999
Stockholders’ equity	223,451			77,802		23,825			(101,627		)	223,451
Total liabilities and stockholders’ equity	$	584,673		$	104,328	$	180,340		$	(238,577	)	$	630,764

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 June 30, 2014

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	153,251		$	35,397		$	63,503		$	(2,659	)	$	249,492
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	116,974			25,255			51,995			(2,659		)	191,565
Warehouse, processing and delivery expense	26,789			2,889			7,069			—			36,747
Sales, general and administrative expense	19,436			4,633			5,402			—			29,471
Restructuring charges	733			—			174			—			907
Depreciation and amortization expense	4,934			561			1,038			—			6,533
Impairment of goodwill	41,308			—			14,852			—			56,160
Operating (loss) income	(56,923		)	2,059			(17,027		)	—			(71,891		)
Interest expense, net	(6,294		)	—			(3,594		)	—			(9,888		)
Other income	—			—			1,590			—			1,590
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(63,217		)	2,059			(19,031		)	—			(80,189		)
Income taxes	2,452			(782		)	4,427			—			6,097
Equity in (losses) earnings of subsidiaries	(13,327		)	—			—			13,327			—
Equity in earnings of joint venture	1,794			—			—			—			1,794
Net (loss) income	$	(72,298	)	$	1,277		$	(14,604	)	$	13,327		$	(72,298	)
Comprehensive (loss) income	$	(71,003	)	$	1,277		$	(13,563	)	$	12,286		$	(71,003	)

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

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	187,888		$	33,965		$	58,612		$	(7,055	)	$	273,410
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	138,419			24,520			45,577			(7,055		)	201,461
Warehouse, processing and delivery expense	26,896			3,119			5,805			—			35,820
Sales, general and administrative expense	18,098			4,482			5,086			—			27,666
Restructuring charges	4,110			—			1,483			—			5,593
Depreciation and amortization expense	5,061			560			1,012			—			6,633
Operating (loss) income	(4,696		)	1,284			(351		)	—			(3,763		)
Interest expense, net	(6,332		)	—			(3,758		)	—			(10,090		)
Other income	—			—			745			—			745
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(11,028		)	1,284			(3,364		)	—			(13,108		)
Income taxes	6,634			(882		)	2,063			—			7,815
Equity in (losses) earnings of subsidiaries	(899		)	—			—			899			—
Equity in earnings of joint venture	1,494			—			—			—			1,494
Net (loss) income	$	(3,799	)	$	402		$	(1,301	)	$	899		$	(3,799	)
Comprehensive (loss) income	$	(5,987	)	$	402		$	(3,834	)	$	3,432		$	(5,987	)

Condensed Consolidating Statement of Operations and Comprehensive Loss For the Six Months Ended June 30, 2014

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	317,457		$	69,744		$	123,469		$	(7,768	)	$	502,902
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	238,886			49,360			99,618			(7,768		)	380,096
Warehouse, processing and delivery expense	52,792			5,871			13,465			—			72,128
Sales, general and administrative expense	39,397			9,462			10,236			—			59,095
Restructuring charges	1,472			—			174			—			1,646
Depreciation and amortization expense	9,824			1,093			2,073			—			12,990
Impairment of goodwill	41,308			—			14,852			—			56,160
Operating (loss) income	(66,222		)	3,958			(16,949		)	—			(79,213		)
Interest expense, net	(12,460		)	—			(7,380		)	—			(19,840		)
Other income	—			—			908			—			908
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(78,682		)	3,958			(23,421		)	—			(98,145		)
Income taxes	5,026			(1,162		)	2,284			—			6,148
Equity in (losses) earnings of subsidiaries	(18,341		)	—			—			18,341			—
Equity in earnings of joint venture	3,701			—			—			—			3,701
Net (loss) income	$	(88,296	)	$	2,796		$	(21,137	)	$	18,341		$	(88,296	)
Comprehensive (loss) income	$	(87,163	)	$	2,796		$	(20,511	)	$	17,715		$	(87,163	)

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

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	390,797		$	68,299		$	125,180		$	(18,152	)	$	566,124
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	293,147			48,958			96,939			(18,152		)	420,892
Warehouse, processing and delivery expense	53,398			6,217			11,789			—			71,404
Sales, general and administrative expense	37,713			8,991			10,838			—			57,542
Restructuring charges	5,930			—			1,888			—			7,818
Depreciation and amortization expense	10,069			1,104			2,031			—			13,204
Operating (loss) income	(9,460		)	3,029			1,695			—			(4,736		)
Interest expense, net	(12,824		)	—			(7,454		)	—			(20,278		)
Other expense	—			—			(1,554		)	—			(1,554		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(22,284		)	3,029			(7,313		)	—			(26,568		)
Income taxes	7,744			(1,080		)	2,520			—			9,184
Equity in (losses) earnings of subsidiaries	(2,844		)	—			—			2,844			—
Equity in earnings of joint venture	2,963			—			—			—			2,963
Net (loss) income	$	(14,421	)	$	1,949		$	(4,793	)	$	2,844		$	(14,421	)
Comprehensive (loss) income	$	(16,231	)	$	1,949		$	(7,293	)	$	5,344		$	(16,231	)

Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2014

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(88,296	)	$	2,796		$	(21,137	)	$	18,341		$	(88,296	)
Equity in losses (earnings) of subsidiaries	18,341			—			—			(18,341		)	—
Adjustments to reconcile net (loss) income to cash (used in) from operating activities	54,603			(2,381		)	3,555			—			55,777
Net cash (used in) from operating activities	(15,352		)	415			(17,582		)	—			(32,519		)
Investing activities:
Capital expenditures	(2,364		)	(585		)	(1,350		)	—			(4,299		)
Other investing activities	51			—			52			—			103
Net cash used in investing activities	(2,313		)	(585		)	(1,298		)	—			(4,196		)
Financing activities:
Proceeds from long-term debt	78,450			—			1,000			—			79,450
Repayments of long-term debt	(55,785		)	—			(1,013		)	—			(56,798		)
Net intercompany (repayments) borrowings	(9,869		)	912			8,957			—			—
Other financing activities	193			—			—			—			193
Net cash from financing activities	12,989			912			8,944			—			22,845
Effect of exchange rate changes on cash and cash equivalents	—			—			117			—			117
(Decrease) increase in cash and cash equivalents	(4,676		)	742			(9,819		)	—			(13,753		)
Cash and cash equivalents - beginning of year	8,675			495			21,659			—			30,829
Cash and cash equivalents - end of period	$	3,999		$	1,237		$	11,840		$	—		$	17,076

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	)	$	1,949		$	(4,793	)	$	2,844		$	(14,421	)
Equity in losses (earnings) of subsidiaries	2,844			—			—			(2,844		)	—
Adjustments to reconcile net (loss) income to cash from operating activities	63,246			(68		)	7,357			—			70,535
Net cash from operating activities	51,669			1,881			2,564			—			56,114
Investing activities:
Capital expenditures	(2,282		)	(998		)	(2,156		)	—			(5,436		)
Other investing activities	730			15			—			—			745
Net cash used in investing activities	(1,552		)	(983		)	(2,156		)	—			(4,691		)
Financing activities:
Short-term debt repayments	—			—			(500		)	—			(500		)
Proceeds from long-term debt	115,300			—			—			—			115,300
Repayments of long-term debt	(151,000		)	—			(4,169		)	—			(155,169		)
Net intercompany (repayments) borrowings	(5,334		)	(1,569		)	6,903			—			—
Other financing activities	1,462			—			—			—			1,462
Net cash (used in) from financing activities	(39,572		)	(1,569		)	2,234			—			(38,907		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(939		)	—			(939		)
Increase (decrease) in cash and cash equivalents	10,545			(671		)	1,703			—			11,577
Cash and cash equivalents - beginning of year	4,106			903			16,598			—			21,607
Cash and cash equivalents - end of period	$	14,651		$	232		$	18,301		$	—		$	33,184