BARRINGTON, IL--(Marketwire - March 22, 2010) - CTI Industries Corporation (
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