SOURCE: CTI Industries Corporation

November 11, 2009 07:30 ET

CTI Industries Corporation Reports Third Quarter 2009 Financial Results

BARRINGTON, IL--(Marketwire - November 11, 2009) - CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the third quarter of 2009 and for the nine month period ended September 30, 2009.

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
                                                ------------- -------------
                   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
                                                ------------- -------------
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
                                                ------------- -------------

Total Assets                                    $  29,326,251 $  29,988,191
                                                ============= =============

            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
                                                ------------- -------------
Total Liabilities & Equity                      $  29,326,251 $  29,988,191
                                                ============= =============




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