CAS Simplify China A Shares Plus Income ETF

FRANKLIN PARK, Ill., May 5 /PRNewswire-FirstCall/ -- A. M. CASTLE & CO. (AMEX:CAS) a leading North American distributor of highly engineered metals and plastics, announced today record sales and earnings performance for the first quarter ended March 31, 2006. Consolidated net sales increased 13.4% to $279.2 million, up $33.0 million from the first quarter of 2005. Net income applicable to common stock was $15.8 million, or $0.86 per diluted share, compared to $11.5 million, or $0.65 per diluted share, in the first quarter of the prior year. "Our growth reflects continued strong demand in the end markets we serve," stated Michael Goldberg, President and CEO of A. M. Castle & Co. "Previously, we stated our expectation to increase consolidated revenues in the mid single digit range, exclusive of material price impact. In the first quarter of 2006, we achieved 9% sales growth net of price and were able to drive incremental operating profits at a rate of 16 cents for every new dollar of sales," continued Goldberg. The Company reported 10% sales growth in its Metals business, net of price on a year over year basis. "Metals prices for our current product mix remain near the end of year 2005 levels and were 4% higher than the first quarter of last year, resulting in our reported 14% comparative sales growth," commented Stephen Hooks, President of Castle Metals. "The aerospace, oil and gas, and mining and heavy industrial equipment sectors continue to show particular strength for our Metals business with no signs of slowing down for the balance of this year," Hooks said. Plastics segment sales increased 9% versus the first quarter of 2005, including a favorable 8% material price impact and 1% volume growth. "Our Plastics business remains a key growth segment for us," commented Goldberg. "We expect revenue growth in plastics to keep pace, at a minimum, with our metals growth rate over the course of the year." Larry Boik, Vice President and CFO added, "We completed the purchase of our new Birmingham, Alabama facility in the first quarter and we expect this location to be fully operational this summer. Additionally, our business systems replacement initiative continues as planned. Both of these investments in the Company's future were reflected in our capital spending for the first quarter of 2006." The Company reported a debt-to-capital ratio of 29.4%, down from 31.3% at the end of 2005 and a cash position of $32.7 million, as of March 31, 2006. The Company's Board of Directors approved a quarterly cash dividend of 6 cents per share, payable May 26, 2006 to shareholders of record at the close of business on May 12th. In closing, Mr. Goldberg invited interested parties to listen to its conference call scheduled for 11:00 a.m. (EDT) today, Friday, May 5, 2006. Connection is available at http://www.amcastle.com/ and will be available for 14 days following the call. About A. M. Castle & Co. 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; and aluminum. 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". Safe Harbor Statement / Regulation G Disclosure 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. 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. EBITDA should not be considered as an alternative to net income or any other item calculated in accordance with U.S. GAAP, or as an indicator of operating performance. Our definition of EBITDA used here may differ from that used by other companies. A reconciliation of EBITDA to net income is provided per U.S. Securities and Exchange Commission requirements. CONSOLIDATED STATEMENTS OF INCOME For the Three (Dollars in thousands, except per Months Ended share data) March 31, Unaudited 2006 2005 Net sales $279,193 $246,203 Cost of material sold 196,100 173,300 Gross material margin 83,093 72,903 Plant and delivery expense 29,625 26,368 Sales, general, and administrative expense 24,885 23,487 Depreciation and amortization expense 2,444 2,273 Total operating expense 56,954 52,128 Operating income 26,139 20,775 Interest expense, net (1,087) (2,083) Discount on sale of accounts receivable - (536) Income before income taxes and equity earnings of joint venture 25,052 18,156 Income taxes (10,242) (7,895) Income before equity in earnings of joint venture 14,810 10,261 Equity in earnings of joint venture 1,239 1,509 Net income 16,049 11,770 Preferred dividends (242) (240) Net income applicable to common stock $15,807 $11,530 Basic earnings per share $0.95 $0.73 Diluted earnings per share $0.86 $0.65 EBITDA * $29,822 $24,557 *Earnings before interest, discount on sale of accounts receivable, taxes, depreciation and amortization Reconciliation of EBITDA to net income: For the Three Months Ended March 31, 2006 2005 Net income $16,049 $11,770 Depreciation and amortization 2,444 2,273 Interest, net 1,087 2,083 Discount on accounts receivable sold - 536 Provision from income taxes 10,242 7,895 EBITDA $29,822 $24,557 CONSOLIDATED BALANCE SHEETS (Dollars in thousands) As of Unaudited March 31, Dec. 31, 2006 2005 ASSETS Current assets Cash and cash equivalents $32,704 $37,392 Accounts receivable, less allowances of $1,897 at March 31, 2006 and $1,763 at December 31, 2005 133,614 107,064 Inventories (principally on last- in, first-out basis) (latest cost higher by $103,870 at March 31, 2006 and $104,036 at December 31, 2005) 121,020 119,306 Other current assets 7,124 6,351 Total current assets 294,462 270,113 Investment in joint venture 11,740 10,850 Goodwill 32,219 32,222 Prepaid pension cost 40,889 41,946 Other assets 4,186 4,182 Property, plant and equipment, at cost Land 5,200 4,772 Building 48,106 45,890 Machinery and equipment 129,426 127,048 182,732 177,710 Less - accumulated depreciation (115,793) (113,288) 66,939 64,422 Total assets $450,435 $423,735 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $113,176 $103,246 Accrued liabilities 19,007 21,535 Current and deferred income taxes 10,746 7,052 Current portion of long-term debt 6,233 6,233 Total current liabilities 149,162 138,066 Long-term debt, less current portion 73,698 73,827 Deferred income taxes 21,418 21,903 Deferred gain on sale of assets 5,754 5,967 Pension and postretirement benefit obligations 8,719 8,467 Commitments and contingencies Stockholders' equity Preferred stock, $0.01 par value - 10,000,000 shares authorized; 12,000 shares issued and outstanding 11,239 11,239 Common stock, $0.01 par value - authorized 30,000,000 shares; issued and outstanding 16,659,525 at March 31, 2006 and 16,605,714 at December 31, 2005 166 166 Additional paid-in capital 62,582 60,916 Retained earnings 125,333 110,530 Accumulated other comprehensive income 2,119 2,370 Treasury stock, at cost - 547,685 shares at March 31, 2006 and 546,055 shares at December 31, 2005 (9,755) (9,716) Total stockholders' equity 191,684 175,505 Total liabilities and stockholders' equity $450,435 $423,735 CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) For the Three Months Unaudited Ended March 31, 2006 2005 Cash flows from operating activities: Net income $16,049 $11,770 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 2,444 2,273 Amortization of deferred gain (213) (214) Equity in earnings from joint venture (1,239) (1,509) Stock compensation expense 974 348 Deferred tax provision (benefit) (1,117) 716 Excess tax benefits from stock- based payment arrangements (168) - Increase (decrease) from changes in: Accounts receivable (26,712) (14,929) Inventories (1,846) (3,718) Prepaid pension costs 1,058 329 Other current assets (813) (300) Accounts payable 10,100 3,389 Accrued liabilities (2,514) (314) Income tax payable 4,395 5,976 Postretirement benefit obligations and other liabilities 220 616 Net cash from operating activities 618 4,433 Cash flows from investing activities: Dividends from joint venture 354 767 Capital expenditures (4,999) (989) Net cash from investing activities (4,645) (222) Cash flows from financing activities: Repayments of long-term debt (129) (2,217) Preferred stock dividend (242) (240) Common stock dividend (1,004) - Exercise of stock options 479 68 Excess tax benefits from stock- based payment arrangements 168 - Net cash from financing activities (728) (2,389) Effect of exchange rate changes on cash and cash equivalents 67 17 Net increase (decrease) in cash and cash equivalents (4,688) 1,839 Cash and cash equivalents - beginning of year $37,392 $3,106 Cash and cash equivalents - end of period $32,704 $4,945 DATASOURCE: A. M. CASTLE & CO. CONTACT: Larry A. Boik, Vice President-Finance & CFO of A. M. CASTLE & CO., +1-847-349-2576, ; or, Katie Pyra of Ashton Partners, +1-312-553-6717, Web site: http://www.amcastle.com/

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