Guarantor Financial Information

The Company's Senior Secured Notes are guaranteed by certain 100% directly owned subsidiaries of the Company (the "Guarantors"). As of March 31, 2015, the Guarantors included Total Plastics, Inc., Advanced Fabricating Technology, LLC, Keystone Tube Company, LLC and Paramount Machine Company, LLC, each of which fully and unconditionally guarantee the Senior Secured Notes on a joint and several basis.

The accompanying financial statements have 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 financial statements present condensed consolidating financial information for A. M. Castle & Co. (the "Parent"), the Guarantors, the non-guarantor subsidiaries (all other subsidiaries) and an elimination column for adjustments to arrive at the information for the Parent, Guarantors, and non-guarantors on a consolidated basis. The condensed consolidating financial information has been prepared on the same basis as the consolidated financial statements of the Parent. The equity method of accounting is followed within this financial information.

Condensed Consolidating Balance Sheet As of March 31, 2015

	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	3,947	$	970	$	8,449		$	—		$	13,366
Accounts receivable, less allowance for doubtful accounts	63,995		20,903		44,306			—			129,204
Receivables from affiliates	1,154		113		—			(1,267		)	—
Inventories	144,964		19,720		78,715			(68		)	243,331
Prepaid expenses and other current assets	5,734		1,060		9,378			—			16,172
Total current assets	219,794		42,766		140,848			(1,335		)	402,073
Investment in joint venture	38,003		—		—			—			38,003
Goodwill	—		12,973		—			—			12,973
Intangible assets, net	40,480		—		12,215			—			52,695
Other assets	19,431		—		997			(2,432		)	17,996
Investment in subsidiaries	58,142		—		—			(58,142		)	—
Receivables from affiliates	126,815		39,249		—			(166,064		)	—
Property, plant and equipment, net	43,027		11,858		13,651			—			68,536
Total assets	$	545,692	$	106,846	$	167,711		$	(227,973	)	$	592,276
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	53,995	$	11,593	$	20,410		$	—		$	85,998
Payables due to affiliates	1,154		—		113			(1,267		)	—
Other current liabilities	29,609		2,281		4,649			—			36,539
Current portion of long-term debt	691		—		43			—			734
Total current liabilities	85,449		13,874		25,215			(1,267		)	123,271
Long-term debt, less current portion	311,201		—		2,038			—			313,239
Payables due to affiliates	—		6,194		159,870			(166,064		)	—
Deferred income taxes	—		5,524		3,493			(2,432		)	6,585
Other non-current liabilities	22,029		—		139			—			22,168
Stockholders’ equity (deficit)	127,013		81,254		(23,044		)	(58,210		)	127,013
Total liabilities and stockholders’ equity	$	545,692	$	106,846	$	167,711		$	(227,973	)	$	592,276

Condensed Consolidating Balance Sheet As of December 31, 2014

	Parent		Guarantors		Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	511	$	977	$	6,966		$	—		$	8,454
Accounts receivable, less allowance for doubtful accounts	66,178		19,303		45,522			—			131,003
Receivables from affiliates	2,071		81		—			(2,152		)	—
Inventories	142,314		19,320		75,366			(68		)	236,932
Prepaid expenses and other current assets	3,490		1,033		8,506			—			13,029
Total current assets	214,564		40,714		136,360			(2,220		)	389,418
Investment in joint venture	37,443		—		—			—			37,443
Goodwill	—		12,973		—			—			12,973
Intangible assets, net	42,772		—		13,783			—			56,555
Other assets	18,766		—		996			(1,010		)	18,752
Investment in subsidiaries	70,274		—		—			(70,274		)	—
Receivables from affiliates	113,188		36,607		2,157			(151,952		)	—
Property, plant and equipment, net	46,094		12,184		14,557			—			72,835
Total assets	$	543,101	$	102,478	$	167,853		$	(225,456	)	$	587,976
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	41,613	$	8,055	$	19,114		$	—		$	68,782
Payables due to affiliates	2,071		—		81			(2,152		)	—
Other current liabilities	18,841		3,065		6,092			—			27,998
Current portion of long-term debt	691		—		46			—			737
Total current liabilities	63,216		11,120		25,333			(2,152		)	97,517
Long-term debt, less current portion	307,327		—		2,050			—			309,377
Payables due to affiliates	—		5,581		146,371			(151,952		)	—
Deferred income taxes	—		5,524		3,846			(1,010		)	8,360
Other non-current liabilities	22,238		—		164			—			22,402
Stockholders’ equity (deficit)	150,320		80,253		(9,911		)	(70,342		)	150,320
Total liabilities and stockholders’ equity	$	543,101	$	102,478	$	167,853		$	(225,456	)	$	587,976

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income For the Three Months Ended March 31, 2015

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	132,450		$	33,688		$	59,000		$	(2,910	)	$	222,228
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)	99,793			23,990			47,238			(2,910		)	168,111
Warehouse, processing and delivery expense	17,542			2,918			6,571			—			27,031
Sales, general and administrative expense	17,342			4,567			3,626			—			25,535
Restructuring activity	831			—			—			—			831
Depreciation and amortization expense	4,743			599			1,013			—			6,355
Operating (loss) income	(7,801		)	1,614			552			—			(5,635		)
Interest expense, net	(6,413		)	—			(4,133		)	—			(10,546		)
Other expense, net	—			—			(6,225		)	—			(6,225		)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture	(14,214		)	1,614			(9,806		)	—			(22,406		)
Income taxes	447			(613		)	991			—			825
Equity in losses of subsidiaries	(7,814		)	—			—			7,814			—
Equity in earnings of joint venture	875			—			—			—			875
Net (loss) income	$	(20,706	)	$	1,001		$	(8,815	)	$	7,814		$	(20,706	)
Comprehensive (loss) income	$	(23,998	)	$	1,001		$	(13,129	)	$	12,128		$	(23,998	)

Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income 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 activity	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, net	—			—			(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 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 Cash Flows For the Three Months Ended March 31, 2015

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(20,706	)	$	1,001		$	(8,815	)	$	7,814		$	(20,706	)
Equity in losses of subsidiaries	7,814			—			—			(7,814		)	—
Adjustments to reconcile net (loss) income to cash from (used in) operating activities	21,121			1,294			(4,489		)	—			17,926
Net cash from (used in) operating activities	8,229			2,295			(13,304		)	—			(2,780		)
Investing activities:
Capital expenditures	(1,257		)	(273		)	(531		)	—			(2,061		)
Proceeds from sale of property, plant and equipment	7,541			—			—			—			7,541
Net advances to subsidiaries	(13,627		)	—			—			13,627			—
Net cash used in investing activities	(7,343		)	(273		)	(531		)	13,627			5,480
Financing activities:
Proceeds from long-term debt	206,900			—			—			—			206,900
Repayments of long-term debt	(204,350		)	—			(7		)	—			(204,357		)
Net intercompany (repayments) borrowings	—			(2,029		)	15,656			(13,627		)	—
Net cash from (used in) financing activities	2,550			(2,029		)	15,649			(13,627		)	2,543
Effect of exchange rate changes on cash and cash equivalents	—			—			(331		)	—			(331		)
Net change in cash and cash equivalents	3,436			(7		)	1,483			—			4,912
Cash and cash equivalents - beginning of year	511			977			6,966			—			8,454
Cash and cash equivalents - end of period	$	3,947		$	970		$	8,449		$	—		$	13,366

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 of subsidiaries	5,014			—			—			(5,014		)	—
Adjustments to reconcile net (loss) income to cash from (used in) operating activities	13,635			(1,399		)	893			—			13,129
Net cash from (used in) operating activities	2,651			120			(5,640		)	—			(2,869		)
Investing activities:
Capital expenditures	(1,236		)	(149		)	(627		)	—			(2,012		)
Proceeds from sale of property, plant and equipment	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		)
Net change 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