SOURCE: CTI Industries Corporation

CTI Industries Corporation

March 26, 2015 06:30 ET

CTI Industries Corporation Reports Results for Full Year and Fourth Quarter 2014

Record Sales; Profits Jump 37%

LAKE BARRINGTON, IL--(Marketwired - Mar 26, 2015) - CTI Industries Corporation (NASDAQ: CTIB), a manufacturer and marketer of novelty balloons, flexible packaging and storage products and printed and laminated films, today announced its full-year results of operations for 2014, as well as for the three months ended December 31, 2014.

  • Record Sales at almost $58 million.
  • Profits Jump 37% to $0.15 per share
  • Fourth Quarter Profit Up 471%
  • Gross Margins Up From 22.5% to 24.6%

Year-End Results

For the year ended December 31, 2014, consolidated net sales totaled $57,828,000, compared to consolidated net sales of $56,059,000 for the year ended December 31, 2013, an increase of 3.2%. Sales for 2014 were at an all-time record high for CTI. For the year, CTI achieved net income of $514,000 or $0.16 per share (basic) and $0.15 (diluted), compared to $376,000 or $0.12 per share (basic) and $0.11 (diluted) in 2013, an increase of over 36%.

Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2014 were $15,180,000 compared to consolidated net sales of $15,200,000 for the fourth quarter of 2013. For the fourth quarter of 2014, CTI had net income of $382,000, $0.12 per share (basic) and $0.11 per share (diluted), compared to net income of $67,000 for the fourth quarter of 2013, $0.02 per share (basic and diluted).

Key Factors and Trends

In 2014, net sales rose to the highest level in CTI's 39 year history, to almost $58 million as sales in both the vacuum sealer system and novelty lines continued to expand.

Net income increased both for the Year and the Fourth Quarter as margins increased and interest expense declined.

Gross margin levels increased from 22.5% in 2013 to 24.6% in 2014. This increase resulted from a decrease in our raw materials costs and increased sales of higher margin products.

About CTI: CTI Industries Corporation is one of the leading manufacturers and marketers of foil and latex balloons, develops, produces and markets vacuum sealing systems for household use and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in a number of other countries.

Statements made in this release that are not historical facts are "forward-looking" statements (within the meaning of Section 21E of the Securities Exchange Act of 1934) 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. We have based these forward-looking statements on our current expectations and projections about future results. Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from statements made herein. 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.

           
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
   
           
    December 31, 2014     December 31, 2013
ASSETS          
Current assets:              
  Cash and cash equivalents (VIE $14,000 and $54,000, respectively)   $ 150,332     $ 666,616
  Accounts receivable, (less allowance for doubtful accounts of $230,000 and $217,000 respectively)     11,286,797       8,883,106
  Inventories, net (VIE $699,000 and $390,000, respectively)     17,755,300       15,428,413
  Net deferred income tax asset     718,694       931,245
  Prepaid expenses and other current assets (VIE $68,000 and $79,000, respectively)     2,562,803       2,261,298
    Total current assets     32,473,926       28,170,678
                 
    Total property, plant and equipment, net (VIE $557,000 and $670,000, respectively)     7,755,527       8,681,771
                     
    Total other assets (VIE $440,000 and $440,000, respectively)     2,817,457       2,219,051
               
TOTAL ASSETS   $ 43,046,910     $ 39,071,500
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
               
    Total current liabilities (VIE $742,000 and $493,000, respectively)   $ 20,929,377     $ 16,432,989
    Total long-term liabilities, less current maturities (VIE $322,000 and $441,000, respectively)     9,310,164       9,874,386
      Total Liabilities     30,239,541       26,307,375
               
    Total CTI Industries Corporation stockholders' equity     12,880,171       12,655,890
               
    Noncontrolling Interest     (72,802 )     108,235
               
      Total Equity     12,807,369       12,764,125
               
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY   $ 43,046,910     $ 39,071,500
                         
                         
                         
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
 
                         
    Year ended December 31,     Three months ended December 31,  
    2014     2013     2014     2013  
Net sales   $ 57,828,200     $ 56,059,477     $ 15,179,684     $ 15,200,470  
Cost of sales     43,623,666       43,446,618       11,243,139       11,341,234  
    Gross profit     14,204,534       12,612,859       3,936,545       3,859,236  
                                 
Operating expenses:                                
  General and administrative     7,231,243       6,564,355       1,732,408       2,002,032  
  Selling     3,041,937       2,224,551       708,414       775,654  
  Advertising and marketing     2,322,172       1,733,609       675,777       478,271  
                                 
    Total operating expenses     12,595,352       10,522,515       3,116,599       3,255,957  
                                 
Income from operations     1,609,182       2,090,344       819,946       603,279  
                                 
Other (expense) income:                                
  Interest expense, net     (1,109,301 )     (1,439,712 )     (367,151 )     (467,662 )
  Other     39,367       27,232       33,800       12,889  
                                 
    Total other expense     (1,069,934 )     (1,412,480 )     (333,351 )     (454,773 )
                                 
Income before income taxes and noncontrolling interest     539,248       677,864       486,595       148,507  
                                 
Income tax expense     189,967       269,836       153,668       46,074  
                                 
Net income     349,281       408,028       332,927       102,432  
                                 
Less: Net (loss) income attributable to noncontrolling interest     (165,037 )     32,519       (48,940 )     35,601  
                                 
    Net income attributable to CTI Industries Corporation   $ 514,318     $ 375,509     $ 381,867     $ 66,831  
                                 
Income applicable to common shares   $ 514,318     $ 375,509     $ 381,867     $ 66,831  
                                 
Other Comprehensive (Loss) Income                                
  Foreign currency adjustment     (647,711 )     (81,919 )     (95,697 )     (201,813 )
    Comprehensive (loss) income attributable to CTI Industries Corporation   $ (133,393 )   $ 293,590     $ 286,170     $ (134,982 )
                                 
Basic income per common share   $ 0.16     $ 0.12     $ 0.12     $ 0.02  
                                 
Diluted income per common share   $ 0.15     $ 0.11     $ 0.11     $ 0.02  
                                 
Weighted average number of shares and equivalent shares of common stock outstanding:                                
  Basic     3,288,332       3,248,646       3,301,116       3,248,646  
                                 
  Diluted     3,439,427       3,404,804       3,448,406       3,407,288