Guarantor Financial Information

9 Months Ended

Sep. 30, 2012

Guarantor Financial Information [Abstract]

Guarantor Financial Information

(15) 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 September 30, 2012

	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	1,929	$	2,152		$	15,907		$	—		$	19,988
Accounts receivable, less allowance for doubtful accounts		81,738		37,250			52,265			—			171,253
Receivables from affiliates		55		1,554			683			(2,292	)		—
Inventories		221,144		49,886			86,480			(128	)		357,382
Prepaid expenses and other current assets		18,203		(3,731	)		8,162			36			22,670
Total current assets		323,069		87,111			163,497			(2,384	)		571,293
Investment in joint venture		40,731		—			—			—			40,731
Goodwill		12,921		41,556			16,039			—			70,516
Intangible assets		35,316		29,843			20,550			—			85,709
Other assets		30,917		152			6,025						37,094
Investment in subsidiaries		249,421		11,742			—			(261,163	)		—
Receivables from affiliates		72,686		79,498			634			(152,818	)		—
Property, plant and equipment, net		52,476		15,308			12,038			—			79,822
Total assets	$	817,537	$	265,210		$	218,783		$	(416,365	)	$	885,165
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	95,552	$	13,573		$	24,598		$	—		$	133,723
Payables due to affiliates		1,093		55			1,144			(2,292	)		—
Other current liabilities		35,497		4,675			9,727			—			49,899
Current portion of long-term debt and short-term debt		292		7			1,010			—			1,309
Total current liabilities		132,434		18,310			36,479			(2,292	)		184,931
Long-term debt, less current portion		298,259		—			4,024			—			302,283
Payables due to affiliates		9,716		13,935			129,167			(152,818	)		—
Deferred income taxes		15,341		19,119			(465	)		—			33,995
Other non-current liabilities		13,935		1,537			632			—			16,104
Stockholders’ equity		347,852		212,309			48,946			(261,255	)		347,852
Total liabilities and stockholders’ equity	$	817,537	$	265,210		$	218,783		$	(416,365	)	$	885,165

Condensed Consolidating Balance Sheet

As of December 31, 2011

	Parent		Guarantors			Non-Guarantors			Eliminations			Consolidated
Assets
Current assets
Cash and cash equivalents	$	11,534	$	582		$	18,408		$	—		$	30,524
Accounts receivable, less allowance for doubtful accounts		88,434		37,487			55,115			—			181,036
Receivables from affiliates		273		3,495			146			(3,914	)		—
Inventories		163,776		48,980			59,547			(264	)		272,039
Prepaid expenses and other current assets		18,517		(3,331	)		3,483			—			18,669
Total current assets		282,534		87,213			136,699			(4,178	)		502,268
Investment in joint venture		36,460		—			—			—			36,460
Goodwill		12,921		41,556			15,424			—			69,901
Intangible assets		38,238		34,395			21,180			—			93,813
Other assets		34,691		237			2,812			—			37,740
Investment in subsidiaries		243,823		12,151			—			(255,974	)		—
Receivables from affiliates		66,878		71,041			7,292			(145,211	)		—
Property, plant and equipment, net		56,266		15,416			10,459			—			82,141
Total assets	$	771,811	$	262,009		$	193,866		$	(405,363	)	$	822,323
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	84,437	$	14,826		$	17,611		$	—		$	116,874
Payables due to affiliates		1,387		76			2,451			(3,914	)		—
Other current liabilities		25,895		4,459			5,358			—			35,712
Current portion of long-term debt and short-term debt		82		50			560			—			692
Total current liabilities		111,801		19,411			25,980			(3,914	)		153,278
Long-term debt, less current portion		303,739		1			10,500			—			314,240
Payables due to affiliates		23,727		8,572			112,912			(145,211	)		—
Deferred income taxes		6,280		19,647			(277	)		—			25,650
Other non-current liabilities		13,985		2,324			567			—			16,876
Stockholders’ equity		312,279		212,054			44,184			(256,238	)		312,279
Total liabilities and stockholders’ equity	$	771,811	$	262,009		$	193,866		$	(405,363	)	$	822,323

Condensed Consolidating Statement of Operations

For the Quarter ended September 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	177,094		$	65,238		$	68,842		$	(7,135	)	$	304,039
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)		125,199			47,154			53,253			(7,591	)		218,015
Warehouse, processing and delivery expense		22,642			8,497			5,755			—			36,894
Sales, general and administrative expense		18,982			7,399			3,938			—			30,319
Depreciation and amortization expense		3,075			2,184			1,004			—			6,263
Operating income		7,196			4			4,892			456			12,548
Interest expense, net		(6,293	)		—			(3,987	)		—			(10,280	)
Interest expense - unrealized loss on debt conversion option		—			—			—			—			—
Income (loss) before income taxes and equity in earnings of subsidiaries and joint venture		903			4			905			456			2,268
Income taxes		(231	)		183			(230	)		(175	)		(453	)
Equity in earnings (losses) of subsidiaries		1,143			(516	)		—			(627	)		—
Equity in earnings of joint venture		1,358			—			—			—			1,358
Net income (loss)		3,173			(329	)		675			(346	)		3,173
Comprehensive income (loss)	$	6,123		$	303		$	3,735		$	(4,038	)	$	6,123

Condensed Consolidating Statement of Operations

For the Quarter ended September 30, 2011

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	160,196		$	74,872		$	61,658		$	(1,866	)	$	294,860
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)		121,829			54,809			46,918			(1,866	)		221,690
Warehouse, processing and delivery expense		21,008			8,753			5,315			—			35,076
Sales, general and administrative expense		18,203			7,564			4,293			—			30,060
Depreciation and amortization expense		2,101			2,122			638			—			4,861
Operating (loss) income		(2,945	)		1,624			4,494			—			3,173
Interest expense, net		(472	)		—			(749	)		—			(1,221	)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture		(3,417	)		1,624			3,745			—			1,952
Income taxes		95			(562	)		(799	)		—			(1,266	)
Equity in earnings of subsidiaries		4,008			(43	)		—			(3,965	)		—
Equity in earnings of joint venture		3,117			—			—			—			3,117
Net income		3,803			1,019			2,946			(3,965	)		3,803
Comprehensive (loss) income	$	(385	)	$	1,246		$	(1,323	)	$	77		$	(385	)

Condensed Consolidating Statement of Operations

For the Nine Months ended September 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	603,494		$	204,851		$	216,476		$	(28,474	)	$	996,347
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)		436,815			147,942			166,253			(28,347	)		722,663
Warehouse, processing and delivery expense		70,541			25,687			17,666			—			113,894
Sales, general and administrative expense		60,519			24,041			15,865			—			100,425
Depreciation and amortization expense		9,681			6,676			2,993			—			19,350
Operating income		25,938			505			13,699			(127	)		40,015
Interest expense, net		(19,102	)		—			(11,335	)		—			(30,437	)
Interest expense - unrealized loss on debt conversion option		(15,597	)		—			—			—			(15,597	)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture		(8,761	)		505			2,364			(127	)		(6,019	)
Income taxes		(3,751	)		138			(608	)		36			(4,185	)
Equity in earnings (losses) of subsidiaries		2,308			(757	)		—			(1,551	)		—
Equity in earnings of joint venture		6,099			—			—			—			6,099
Net (loss) income		(4,105	)		(114	)		1,756			(1,642	)		(4,105	)
Comprehensive (loss) income	$	(1,415	)	$	234		$	4,775		$	(5,009	)	$	(1,415	)

Condensed Consolidating Statement of Operations

For the Nine Months ended September 30, 2011

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net Sales	$	462,700		$	215,767		$	177,347		$	(5,598	)	$	850,216
Costs and expenses:
Cost of materials (exclusive of depreciation and amortization)		345,549			156,977			134,660			(5,598	)		631,588
Warehouse, processing and delivery expense		61,274			25,604			15,214			—			102,092
Sales, general and administrative expense		54,804			24,187			13,054			—			92,045
Depreciation and amortization expense		6,369			6,585			1,965			—			14,919
Operating (loss) income		(5,296	)		2,414			12,454			—			9,572
Interest expense, net		(877	)		—			(2,450	)		—			(3,327	)
(Loss) income before income taxes and equity in earnings of subsidiaries and joint venture		(6,173	)		2,414			10,004			—			6,245
Income taxes		(1,853	)		(885	)		(2,262	)		—			(5,000	)
Equity in earnings of subsidiaries		9,271			348			—			(9,619	)		—
Equity in earnings of joint venture		8,958			—			—			—			8,958
Net income		10,203			1,877			7,742			(9,619	)		10,203
Comprehensive income	$	8,212		$	2,320		$	5,506		$	(7,826	)	$	8,212

Condensed Consolidating Statement of Cash Flows For the Period ended September 30, 2012

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net (loss) income	$	(4,105	)	$	(114	)	$	1,756		$	(1,642	)	$	(4,105	)
Equity in earnings of subsidiaries		2,308			(757	)		—			(1,551	)		—
Adjustments to reconcile net (loss) income to cash provided by operating activities		(1,037	)		7,585			(18,565	)		3,193			(8,824	)
Net cash (used in) from operating activities		(2,834	)		6,714			(16,809	)		—			(12,929	)
Investing activities:
Capital expenditures and other		(4,270	)		(2,007	)		(2,692	)		—			(8,969	)
Net cash used in investing activities		(4,270	)		(2,007	)		(2,692	)		—			(8,969	)
Financing activities:
Proceeds from long-term debt, including new revolving credit facility		566,131			—			10,346			—			576,477
Repayments of long-term debt, including new revolving credit facility		(547,477	)		(43	)		(16,753	)		—			(564,273	)
Payment of debt issue costs		(1,503	)		—			—			—			(1,503	)
Net intercompany (repayments) borrowings		(19,819	)		(3,094	)		22,913			—			—
Other financing		167			—			500			—			667
Net cash (used in) from financing activities		(2,501	)		(3,137	)		17,006			—			11,368
Effect of exchange rate changes on cash and cash equivalents		—			—			(6	)		—			(6	)
(Decrease) increase in cash and cash equivalents		(9,605	)		1,570			(2,501	)		—			(10,536	)
Cash and cash equivalents - beginning of year		11,534			582			18,408			—			30,524
Cash and cash equivalents - end of period	$	1,929		$	2,152		$	15,907		$	—		$	19,988

Condensed Consolidating Statement of Cash Flows

For the Period ended September 30, 2011

	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating activities:
Net income	$	10,203		$	1,877		$	7,742		$	(9,619	)	$	10,203
Equity in earnings of subsidiaries		9,271			348			—			(9,619	)		—
Adjustments to reconcile net (loss) income to cash provided by operating activities		(51,659	)		4,110			(19,476	)		19,238			(47,787	)
Net cash (used in) from operating activities		(32,185	)		6,335			(11,734	)		—			(37,584	)
Investing activities:
Capital expenditures and other		(5,441)			(1,529)			(1,049)			—			(8,019)
Insurance proceeds		573			—			—			—			573
Net cash used in investing activities		(4,868	)		(1,529	)		(1,049	)		—			(7,446	)
Financing activities:
Short term borrowings		31,900			—			1,671			—			33,571
Net (repayments) borrowings on revolving lines of credit and long-term debt		(62)			(30)			1,410			—			1,318
Net intercompany (repayments) borrowings		(1,316)			(4,009)			5,325			—			—
Other financing activities, net		385			—			—			—			385
Net cash from (used in) financing activities		30,907			(4,039	)		8,406			—			35,274
Effect of exchange rate changes on cash and cash equivalents		—			—			(1,059	)		—			(1,059	)
(Decrease) increase in cash and cash equivalents		(6,146	)		767			(5,436	)		—			(10,815	)
Cash and cash equivalents - beginning of year		7,629			1,068			28,019			—			36,716
Cash and cash equivalents - end of period	$	1,483		$	1,835		$	22,583		$	—		$	25,901