CAS Simplify China A Shares Plus Income ETF

A. M. Castle & Co. Announces Record First Quarter 2005 Results FRANKLIN PARK, Ill., May 10 /PRNewswire-FirstCall/ -- A. M. CASTLE & CO. (AMEX:CAS) announced today record sales and earnings performance for the first quarter ended March 31, 2005. Consolidated net sales increased 40% to $246.2 million, up $70.6 million from $175.6 million in the same period of 2004. Net income applicable to common stock totalled $11.9 million, or $0.75 per share (basic), compared to net income applicable to common stock of $2.1 million, or $0.13 per share (basic), in the prior year. In making the announcement, G. Thomas McKane, Chairman and CEO, noted that the Company's primary customer markets within the producer durable goods equipment manufacturing segment of North America remain strong. "The aerospace, oil and gas, mining and construction equipment, along with heavy truck and railroad equipment sectors, are showing particular strength." McKane added, "Additionally, the average metal pricing for our primary products has risen modestly since the end of 2004, mostly in our nickel alloy, stainless steel and aluminum product lines." The Company estimates real volume growth in its metal segment at approximately 5% with average metal prices up 37% versus the first quarter last year. Plastic segment net sales increased 25% versus the first quarter of 2004, comprised of an estimated favorable 16% material price impact and 9% real growth. The Company's incremental operating income of 22% on incremental sales growth during the quarter reflected continued strong operating expense leverage. "One of our key objectives for 2005 is the replacement of our existing receivables purchase facility with a more traditional revolving credit line," McKane commented. "Our continued strong operating performance allows us greater flexibility in pursuing refinancing options that will reduce debt service expense over the long-term." In closing, Mr. McKane invited interested parties to listen to its conference call scheduled for 11:00 a.m. (EDT) today, Tuesday, May 10, 2005. Connection is available at http://www.amcastle.com/ and will be available for 14 days following the call. Founded in 1890, A. M. Castle & Co. is a specialty metals and plastics distribution company serving the North American market, principally within the producer durable equipment sector. Its customer base includes many Fortune 500 companies as well as thousands of medium and smaller-sized firms spread across a wide spectrum of industries. Within its core metals business, it specializes in the distribution of carbon, alloy and stainless steels; nickel alloy; aluminum; copper and brass. Through its subsidiary, Total Plastics, Inc., the Company also distributes a broad range of value-added industrial plastics. Together, Castle operates over 50 locations throughout North America. Its common stock is traded on the American and Chicago Stock Exchange under the ticker symbol "CAS". The financial statements included in this release contain a non-GAAP disclosure, EBITDA, which consists of income before provision for income taxes plus depreciation and amortization, and interest expense (including discount on accounts receivable sold), less interest income. EBITDA is presented as a supplemental disclosure because this measure is widely used by the investment community for evaluation purposes and provides the reader with additional information in analyzing the Company's operating results. A reconciliation of EBITDA to net income is provided per Securities Exchange Commission requirements. This release may contain forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company's reports on file with the Securities Exchange Commission. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per For the Three share data) Months Ended Unaudited Mar. 31 2005 2004 Net sales $246,203 $175,634 Cost of material sold (173,300) (124,481) Gross material margin 72,903 51,153 Plant and delivery expense (26,368) (23,599) Sales, general, and administrative expense (22,955) (19,454) Depreciation and amortization expense (2,273) (2,247) Total operating expense (51,596) (45,300) Operating income 21,307 5,853 Interest expense, net (2,083) (2,314) Discount on sale of accounts receivable (536) (283) Income before income tax and equity in unconsolidated subsidiaries 18,688 3,256 Income taxes Federal (6,009) (1,025) State (1,476) (312) (7,485) (1,337) Net income before equity in unconsolidated subsidiaries 11,203 1,919 Equity earnings of joint ventures, net of tax 915 383 Net income 12,118 2,302 Preferred Dividends (240) (240) Net income applicable to common stock $11,878 $2,062 Basic earnings per share $0.75 $0.13 Diluted earnings per share $0.70 $0.13 EBITDA * $25,089 $8,732 *Earnings before interest, discount on sale of accounts receivable, taxes, depreciation and amortization Reconciliation of EBITDA to net income: For the Three Months Ended Mar 31, 2005 2004 Net income $12,118 $2,302 Depreciation and amortization 2,273 2,247 Interest, net 2,083 2,314 Discount on sales of accounts receivable 536 283 Income taxes 7,485 1,337 Tax on equity in unconsolidated subsidiaries 594 249 EBITDA $25,089 $8,732 CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Period Ended Unaudited* Mar. 31 Dec. 31 Mar. 31 2005* 2004 2004* ASSETS Current assets Cash and equivalents $4,945 $3,106 $4,434 Accounts receivable, less allowances of $2,013 in March 2005, $1,760 in December 2004 and $526 in March 2004 95,194 80,323 77,348 Inventories (principally on last-in first-out basis) (latest cost higher by approximately $95,700 in March 2005, $92,500 in December 2004 and $55,600 in March 2004) 139,219 135,588 104,040 Income tax receivable 162 169 652 Assets held for sale 995 995 1,117 Advances to joint ventures and other current assets 7,624 7,325 6,599 Total current assets 248,139 227,506 194,190 Investment in joint ventures 9,204 8,463 5,060 Goodwill 32,196 32,201 31,935 Pension assets 41,933 42,262 42,122 Advances to joint ventures and other assets 6,967 7,586 8,265 Property, plant and equipment, at cost Land 4,770 4,771 4,767 Building 45,495 45,514 46,975 Machinery and equipment 125,339 124,641 119,253 175,604 174,926 170,995 Less - accumulated depreciation (111,931) (109,928) (103,079) 63,673 64,998 67,916 Total assets $402,112 $383,016 $349,488 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $96,595 $93,342 $77,056 Accrued liabilities and deferred gains 22,695 23,016 18,665 Current and deferred income taxes 10,235 4,349 4,656 Current portion of long-term debt 16,390 11,607 8,308 Total current liabilities 145,915 132,314 108,685 Long-term debt, less current portion 82,706 89,771 98,409 Deferred income taxes 20,462 19,668 15,670 Deferred gain on sale of assets 6,251 6,465 7,095 Minority interest 1,653 1,644 1,261 Post retirement benefits obligations 2,901 2,905 2,765 Stockholders' equity Preferred stock, no par value - 10,000,000 shares authorized; 12,000 shares issued and outstanding 11,239 11,239 11,239 Common stock, $0.01 par value - authorized 30,000,000 shares; issued and outstanding 15,823,079 at March 2005, 15,806,366 at December 2004 and 15,788,442 at March 2004 159 159 159 Additional paid in capital 35,150 35,082 35,009 Earnings reinvested in the business 94,278 82,400 68,542 Accumulated other comprehensive income 1,643 1,616 928 Other - deferred compensation - (2) (29) Treasury stock, at cost - 63,331 shares at March 2005, 62,065 shares at December 2004 and 57,019 shares at March 2004 (245) (245) (245) Total stockholders' equity 142,224 130,249 115,603 Total liabilities and stockholders' equity $402,112 $383,016 $349,488 CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) For the Three Months Unaudited Ended Mar. 31 2005 2004 Cash flows from operating activities: Net income $12,118 $2,302 Adjustments to reconcile net income to net cash from operating activities: Depreciation 2,273 2,247 Amortization of deferred gain (214) (209) Equity in (earnings) from joint ventures (1,509) (632) Deferred taxes and income tax receivable 807 1,666 Non-cash pension loss and post- retirement benefits 562 105 Other 383 93 Cash from operating activities before working capital changes 14,420 5,572 Increase (decrease) from changes in: Accounts receivable sold 13,500 5,000 Accounts receivable (28,429) (26,883) Inventory (3,718) 14,962 Accounts payable and accrued liabilities 3,075 8,212 Other current assets (300) 240 Income tax payable 5,885 (143) Net cash from operating activities 4,433 6,959 Cash flows from investing activities: Investments and acquisitions - (1,744) Cash from joint ventures 767 - Capital expenditures (989) (1,430) Net cash from investing activities (222) (3,174) Cash flows from financing activities: Repayment of long-term debt (2,217) (1,479) Preferred stock dividend (240) (240) Other 68 17 Net cash from financing activities (2,389) (1,702) Effect of exchange rate changes on cash 17 (104) Net increase in cash 1,839 1,979 Cash - beginning of year 3,106 2,455 Cash - end of period $4,945 $4,434 DATASOURCE: A. M. Castle & Co. CONTACT: G. Thomas McKane, Chairman & CEO of A. M. Castle & Co., +1-847-349-2502, or ; or Analysts, John McNamara, +1-212-827-3771, or , or General Information, George Zagoudis, +1-312-640-6663, or , both of Financial Relations Board Web site: http://www.amcastle.com/

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