LAKE BARRINGTON, IL--(Marketwired - Mar 26, 2015) - CTI Industries Corporation (
- 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 |
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| 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 |
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| 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 | ||||||||||||||