SOURCE: CTI Industries Corporation

March 22, 2010 07:30 ET

CTI Industries Corporation Reports 2009 Results, Including Strong Sales and Profits for the Fourth Quarter and Year End 2009

BARRINGTON, IL--(Marketwire - March 22, 2010) - CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its full-year results of operations for 2009, as well as for the three months ended December 31, 2009.

Fourth Quarter Results

Consolidated net sales for the fourth quarter 2009 were $10,738,000 compared to consolidated net sales of $9,832,000 for the fourth quarter of 2008, an increase of 9.2%. For the quarter, CTI had net income of $296,000, or $0.11 per share (basic and diluted), compared to net income of $121,000, or $0.04 per share (basic and diluted), for the fourth quarter of 2008, an increase of 145%.

Year-End Results

For the year ended December 31, 2009, consolidated net sales totaled $41,295,000, compared to consolidated net sales of $44,981,000 for the year ended December 31, 2008. For the year, CTI achieved net income of $1,003,000, or $0.36 per share (basic and diluted). For the year ended December 31, 2008, CTI had a net profit of $1,154,000, representing $0.42 per share (basic) and $0.40 per share (diluted).

Key Factors and Trends

During 2009, CTI experienced a modest decline in revenues of 8.2% compared to 2008 revenues. However, fourth quarter revenues increased by 9.2% over the same period of 2008, reflecting improved prospects toward the end of the year. For the year, revenues from the sale of foil balloon products increased by 12.5%, from $17,629,000 in 2008 to $19,824,000 in 2009. Revenues from the sale of pouch products declined in 2009 to $6,895,000 from $10,893,000 in 2008. However, 2008 pouch revenues included significant sales in the first half of the year due to the initial purchases arising from the introduction of a vacuumable pouch product line for S.C. Johnson & Son. In the second half of 2009, revenues from pouch sales were up substantially over the same period of 2008, reflecting CTI's strong pouch sales in that period.

Gross margin levels declined modestly in 2009 to 22.3% from 22.9% in 2008. This decline resulted principally from an increase in sales of certain novelty items that have higher costs in relation to their selling price.

CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.

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, 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


                                             December 31,    December 31,
                                                 2009            2008
                                            --------------- ---------------
                      ASSETS
Current assets:
    Cash                                    $       870,446 $       180,578
    Accounts receivable, (less allowance
     for doubtful accounts of $57,000 and
     $39,000 respectively)                        7,320,181       5,821,593
    Inventories, net                              9,643,914      10,504,769
    Net deferred income tax asset                   706,754         674,872
    Prepaid expenses and other current
     assets                                         607,127         506,225
                                            --------------- ---------------

      Total current assets                       19,148,422      17,688,037

      Total property, plant and equipment,
       net                                        9,533,411      10,575,982


      Total other assets                          1,713,476       1,724,172
                                            --------------- ---------------

TOTAL ASSETS                                $    30,395,309 $    29,988,191
                                            =============== ===============


     LIABILITIES AND STOCKHOLDERS' EQUITY


      Total current liabilities                  16,734,520      16,222,180
      Total long-term liabilities, less
       current maturities                         4,881,568       6,018,655
                                            --------------- ---------------
        Total Liabilities                        21,616,088      22,240,835

      Total CTI Industries Corporation
       stockholders' equity                       8,762,663       7,734,600

Noncontrolling Interest                              16,558          12,756
                                            --------------- ---------------

        Total Equity                              8,779,221       7,747,356

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY    $    30,395,309 $    29,988,191
                                            =============== ===============




CTI Industries Corporation and Subsidiaries
Condensed Consolidated Statements of Operations


                                                    Three months ended
                      Year ended December 31,          December 31,
                        2009          2008          2009          2008

                    ------------  ------------  ------------  ------------
Net sales           $ 41,295,152  $ 44,980,674  $ 10,737,583  $  9,832,048
Cost of sales         32,081,779    34,658,271     8,369,364     7,496,480
                    ------------  ------------  ------------  ------------
      Gross profit     9,213,373    10,322,403     2,368,219     2,335,568

Operating expenses:
  General and
   administrative      4,539,494     5,375,526     1,151,999     1,311,912
  Selling                871,258       886,391       269,438       176,195
  Advertising and
   marketing           1,576,225     1,677,900       363,059       413,016
                    ------------  ------------  ------------  ------------

      Total
       operating
       expenses        6,986,977     7,939,817     1,784,496     1,901,123
                    ------------  ------------  ------------  ------------

Income from
 operations            2,226,396     2,382,586       583,723       434,445

Other (expense)
 income:
  Interest expense    (1,085,107)   (1,031,457)     (260,355)     (232,146)
  Other                  (19,956)       50,003       (13,509)      (17,118)
                    ------------  ------------  ------------  ------------

      Total other
       expense        (1,105,063)     (981,454)     (273,864)     (249,264)
                    ------------  ------------  ------------  ------------

Income before taxes    1,121,333     1,401,132       309,859       185,181

Income tax expense       114,391       246,779        12,604        64,454
                    ------------  ------------  ------------  ------------

Net Income             1,006,942     1,154,353       297,255       120,727

Less: Net income
 (loss)
 attributable to
 noncontrolling
 interest                  3,802           222           779           (18)
                    ------------  ------------  ------------  ------------

      Net income
       attributable
       to CTI
       Industries
       Corporation  $  1,003,140  $  1,154,131  $    296,476  $    120,745
                    ============  ============  ============  ============

Income applicable
 to common shares   $  1,003,140  $  1,154,131  $    296,476  $    120,745
                    ============  ============  ============  ============

Basic income per
 common share       $       0.36  $       0.42  $       0.11  $       0.04
                    ============  ============  ============  ============

Diluted income per
 common share       $       0.36  $       0.40  $       0.11  $       0.04
                    ============  ============  ============  ============

Weighted average
 number of shares
 and equivalent
 shares of common
 stock outstanding:
    Basic              2,765,277     2,763,017     2,738,063     2,808,720
                    ============  ============  ============  ============

    Diluted            2,775,062     2,898,681     2,757,058     2,843,196
                    ============  ============  ============  ============

Contact Information

  • FOR FURTHER INFORMATION CONTACT:

    Stephen M. Merrick
    Executive Vice President
    (847) 382-1000

    Catherine E. Lawler
    Investor Relations
    (773) 478-0631