BARRINGTON, IL--(Marketwire - November 11, 2009) - CTI Industries Corporation (
Consolidated net sales for the third quarter of 2009 were $10,175,000 compared to consolidated net sales of $11,953,000 for the third quarter of 2008, a decrease of 14.9%. The Company earned net income of $205,000 or $0.07 per share (basic and diluted) for the third quarter of 2009 compared to net income of $269,000 or $0.10 per share (basic) and $0.09 (diluted) for the third quarter of 2008.
For the nine month period ended September 30, 2009, consolidated net sales were $30,558,000 compared to $35,149,000 for the same period in 2008, a decrease of 13.1%. For this nine month period in 2009, net income was $707,000 or $0.25 per share (basic and diluted) compared to net income of $1,033,000, or $0.38 per share (basic) and $0.35 per share (diluted) for the same period of 2008.
Key Factors and Trends
Net sales of foil balloons increased by 7.8% in the third quarter compared to the same period of 2008, from $3,313,000 to $3,573,000. For the nine month period ended September 30, 2009, net sales of foil balloons increased by 11.9% compared to the same period of 2008, from $12,829,000 to $14,359,000.
For the third quarter 2009, net sales of pouch products were $2,337,000 compared to $3,767,000 for the third quarter of 2008. For the nine months ended September 30, 2009, pouch sales were $4,899,000 compared to $9,656,000 for the same period of 2008. In the first nine months of 2008, the high level of net sales of pouches was attributable to the build-up of inventory by a principle customer for a July 2008 product launch. During the first nine months of 2009, sales to that customer continue but at a lower level than during the product launch build-up in 2008.
During the third quarter 2009, the dollar value of latex balloon sales decreased by 5.2% compared to the third quarter of 2008, from $2,267,000 to $2,150,000. The unit volume of sales, however, was up slightly in 2009. The decline in the dollar value of the sales was due to the fact that a significant portion of the Company's latex sales are in Mexico and are denominated in Mexican pesos. The value of the Mexican peso against the U.S. dollar has declined when compared to the third quarter of 2008. For the same reasons, the dollar volume of latex sales in the nine month period ended September 30, 2009 was down 6.8% compared to the same period of 2008, from $5,737,000 to $5,346,000.
Operating expenses declined by approximately $517,000 for the third quarter of 2009 compared to the same period of 2008, and they declined by about $836,000 for the nine month period ended September 30, 2009 compared to the same period of 2008.
CTI Industries Corporation will host a conference call to discuss third-quarter earnings with investors. The conference call will be held on November 11, 2009 at 10:00 a.m. Central Standard Time (11:00 a.m. Eastern Standard Time). The dial-in telephone number is 888-211-9951. The participant passcode is 4524004. A replay will be available from November 11, 2009 through November 25, 2009 by dialing 888-203-1112. The replay passcode is 4524004.
Statements made in this release that are not historical facts are "forward-looking" statement (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These "forward-looking" statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "goal," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar expressions. Factors that could cause results to differ are identified in the public filings of the Company with the Securities and Exchange Commission. More information on factors that could affect CTI's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
– FINANCIAL HIGHLIGHTS FOLLOW -
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, December 31,
2009 2008
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Assets (Unaudited)
Current Assets:
Cash and cash equivalents $ 365,710 $ 180,578
Accounts receivable, net 6,329,068 5,821,593
Inventories, net 9,974,206 10,504,769
Other current assets 1,244,590 1,181,097
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Total current assets 17,913,574 17,688,037
Property, plant and equipment, net 9,855,795 10,575,982
Other assets 1,556,882 1,724,172
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Total Assets $ 29,326,251 $ 29,988,191
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Liabilities & Equity
Total current liabilities $ 15,546,727 $ 16,222,180
Long term debt, less current maturities 5,208,609 6,018,655
Stockholders' equity 8,555,136 7,734,600
Noncontrolling interest 15,779 12,756
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Total Liabilities & Equity $ 29,326,251 $ 29,988,191
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Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30 September 30
2009 2008 2009 2008
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $ 10,175,245 $ 11,952,979 $ 30,557,569 $ 35,148,626
Cost of sales 7,997,292 9,210,708 23,712,414 27,161,791
------------ ------------ ------------ ------------
Gross profit 2,177,953 2,742,271 6,845,155 7,986,835
Operating expenses 1,671,958 2,188,645 5,202,480 6,038,694
------------ ------------ ------------ ------------
Income from
operations 505,995 553,626 1,642,675 1,948,141
Other (expense)
income:
Net Interest
expense (256,635) (242,646) (824,753) (799,311)
Other 12,549 24,912 (6,449) 67,123
------------ ------------ ------------ ------------
Income before
income taxes and
noncontrolling
interest 261,909 335,892 811,473 1,215,953
Income tax expense 55,666 66,487 101,787 182,326
------------ ------------ ------------ ------------
Income before
noncontrolling
interest 206,243 269,405 709,686 1,033,627
Noncontrolling
interest income of
subsidiary 1,526 (24) 3,023 241
------------ ------------ ------------ ------------
Net income $ 204,717 $ 269,429 $ 706,663 $ 1,033,386
============ ============ ============ ============
Basic income per
common and common
equivalent shares $ 0.07 $ 0.10 $ 0.25 $ 0.38
============ ============ ============ ============
Diluted income per
common and common
equivalent shares $ 0.07 $ 0.09 $ 0.25 $ 0.35
============ ============ ============ ============
Weighted average
number of shares
and equivalent
shares of common
stock outstanding:
Basic 2,739,481 2,799,501 2,774,447 2,747,604
============ ============ ============ ============
Diluted 2,749,685 2,968,895 2,781,178 2,934,736
============ ============ ============ ============
Contact Information: FOR FURTHER INFORMATION CONTACT: Stephen M. Merrick Executive Vice President (847) 382-1000 Catherine E. Lawler Investor Relations (773) 478-0631