SOURCE: CTI Industries Corporation

August 12, 2009 06:30 ET

CTI Industries Corporation Reports Second Quarter 2009 Financial Results

BARRINGTON, IL--(Marketwire - August 12, 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 second quarter of 2009 and for the six month period ended June 30, 2009.

Consolidated net sales for the second quarter of 2009 were $10,779,000 compared to consolidated net sales of $12,461,000 for the second quarter of 2008, a decrease of 13.5%. The Company earned net income of $409,000 or $0.15 per share (basic and diluted) for the second quarter of 2009 compared to net income of $485,000 or $0.17 per share (basic and diluted) for the second quarter of 2008.

For the six month period ended June 30, 2009, consolidated net sales were $20,382,000 compared to $23,196,000 for the same period in 2008, a decrease of 12.1%. For this six month period in 2009, net income was $502,000 or $0.18 per share (basic and diluted) compared to net income of $764,000, or $0.28 per share (basic) and $0.26 per share (diluted) for the same period of 2008.

Key Factors and Trends

Net sales of foil balloons increased by 16.9% in the second quarter compared to the same period of 2008, from $4,918,000 to $5,747,000. For the six month period, net sales of foil balloons increased by 13.3% from $9,516,000 in the six months ended June 30, 2008 to $10,786,000 for the same period of 2009.

For the second quarter of 2009, net sales of pouch products were $1,577,000 compared to $3,441,000 for the second quarter of 2008. For the six months ended June 30, 2009, pouch sales were $2,562,000 compared to $5,889,000 for the same period of 2008. In the first six 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 six months of 2009, sales to that customer continued but at a lower level than during the product launch build-up in 2008.

During the second quarter 2009, the dollar value of latex balloon sales decreased by 16% compared to the second quarter of 2008, from $1,969,000 in the second quarter of 2008 to $1,653,000 for the same period of 2009. 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 denominated in Mexican pesos and the value of the Mexican peso has declined compared to the second quarter of 2008.

Operating expenses declined by approximately $230,000 for the second quarter of 2009 compared to the same period of 2008, and they declined by about $320,000 for the six month period ended June 30, 2009 compared to the same period of 2008.

Statements made in this release that are not historical facts are "forward-looking" statements (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

                                                    June 30,   December 31,
                                                      2009         2008
                                                  ------------ ------------
                Assets                             (Unaudited)
Current assets:
   Cash and cash equivalents                      $    202,656 $    180,578
   Accounts receivable, net                          6,617,105    5,821,593
   Inventories, net                                 10,169,120   10,504,769
   Other current assets                              1,365,456    1,181,097
                                                  ------------ ------------
   Total current assets                             18,354,337   17,688,037

Property, plant and equipment, net                  10,125,682   10,575,982
Other assets                                         1,698,968    1,724,172
                                                  ------------ ------------

Total assets                                      $ 30,178,987 $ 29,988,191
                                                  ============ ============

          Liabilities & Equity
Total current liabilities                         $ 16,299,152 $ 16,222,180
Long term debt, less current maturities              5,469,538    6,018,655
Stockholders' equity                                 8,396,044    7,734,600
Noncontrolling interest                                 14,253       12,756
                                                  ------------ ------------
Total Liabilities & Equity                        $ 30,178,987 $ 29,988,191
                                                  ============ ============




Consolidated Statements of Operations

                    Three Months Ended June 30   Six Months Ended June 30
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
                    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Net sales           $ 10,778,903  $ 12,460,945  $ 20,382,324  $ 23,195,646
Cost of sales          8,178,204     9,548,061    15,715,122    17,951,083
                    ------------  ------------  ------------  ------------

Gross profit           2,600,699     2,912,884     4,667,202     5,244,563

Operating expenses     1,925,768     2,158,074     3,530,523     3,850,048
                    ------------  ------------  ------------  ------------

Income from
 operations.             674,931       754,810     1,136,679     1,394,515

Other (expenses)
 income:
  Net interest
   expense              (272,566)     (286,404)     (568,117)     (556,665)
  Other                    2,599        11,889       (18,998)       42,211
                    ------------  ------------  ------------  ------------

Income before
 income taxes and
 noncontrolling
 interests               404,964       480,295       549,564       880,061

Income tax expense        (4,037)       (4,818)       46,121       115,839
                    ------------  ------------  ------------  ------------

Income before
 noncontrolling
 interests               409,001       485,113       503,443       764,222

Noncontrolling
 interest income of
 subsidiary                  263           (24)        1,497           264

Net income          $    408,738  $    485,137  $    501,946  $    763,958
                    ============  ============  ============  ============
Basic income per
 common and common
 equivalent shares  $       0.15  $       0.17  $       0.18  $       0.28
                    ============  ============  ============  ============
Diluted income per
 common and common
 equivalent shares  $       0.15  $       0.17  $       0.18  $       0.26
                    ============  ============  ============  ============

Weighted average
 number of shares
 and equivalent
 shares
 of common stock
 outstanding:
  Basic                2,775,902     2,781,025     2,792,220     2,721,646
                    ============  ============  ============  ============
  Diluted              2,776,797     2,929,548     2,797,256     2,885,783
                    ============  ============  ============  ============

Contact Information

  • FOR FURTHER INFORMATION CONTACT:

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

    Catherine E. Lawler
    Investor Relations
    (847) 671-1177