LAKE BARRINGTON, IL--(Marketwire - November 9, 2010) - CTI Industries Corporation (
Consolidated net sales for the third quarter of 2010 were $10,962,000 compared to consolidated net sales of $10,175,000 for the third quarter of 2009, an increase of 7.7%. The Company earned net income of $243,000 or $0.08 per share (basic and diluted) for the third quarter of 2010 compared to net income of $205,000 or $0.07 per share (basic and diluted) for the third quarter of 2009, an increase of 18.5%.
For the nine month period ended September 30, 2010, consolidated net sales were $36,337,000 compared to $30,558,000 for the same period in 2009, an increase of 18.9%. For this nine month period in 2010, net income was $1,449,000 or $0.49 per share (basic and diluted) compared to net income of $707,000, or $0.25 per share (basic and diluted) for the same period of 2009.
Key Factors and Trends
Net sales of foil balloons increased by 17.7% in the third quarter compared to the same period of 2009, from $3,573,000 to $4,204,000. For the nine month period, net sales of foil balloons increased by 14.0% from $14,359,000 in the nine months ended September 30, 2009 to $16,370,000 for the same period of 2010.
During the third quarter 2010, the dollar value of latex balloon sales increased by 17.3% compared to the third quarter of 2009 from $2,150,000 in the third quarter of 2009 to $2,523,000 for the same period of 2010. The dollar volume of latex sales in the nine month period ended September 30, 2010 was up 24.7% compared to the same period of 2009, from $5,346,000 to $6,668,000.
Net sales of film products increased by 30.5% in the quarter, from $1,945,000 in the third quarter 2009 to $2,538,000 in the third quarter this year. For the nine month period net sales of film products were $5,811,000 compared to $5,464,000 for the same period last year.
For the third quarter 2010, net sales of pouch products were $1,431,000 compared to $2,337,000 for the third quarter of 2009. For the nine months ended September 30, 2010, pouch sales were $6,697,000 compared to $4,899,000 for the same period of 2009.
Gross margins declined from 21.4% in the third quarter of 2009 to 20.5% in the third quarter this year. The decline for the quarter reflects a change in product mix to film products as well as increases in the costs of raw materials including resin, plastic sheeting and latex. For the nine months ended September 30, 2010, gross margins were 22.5% compared to 22.4% for the same period last year.
Operating expenses were up modestly in both the third quarter of 2010 and the nine months ended September 30, 2010 over the same periods in the prior year. However, as a percentage of revenues, operating expenses declined from 17.0% of sales in the nine months ended September 30, 2009 to 16.0% of sales for the same period in 2010.
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.
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, December 31,
2010 2009
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Assets (Unaudited)
Current Assets:
Cash and cash equivalents $ 682,193 $ 870,446
Accounts receivable, net 7,567,111 7,320,181
Inventories, net 10,554,914 9,643,914
Other current assets 1,494,131 1,313,881
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Total current assets 20,298,349 19,148,422
Property, plant and equipment, net 8,944,270 9,533,411
Other assets 1,861,090 1,713,476
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Total Assets $ 31,103,709 $ 30,395,309
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Liabilities & Equity
Total current liabilities $ 16,206,382 $ 16,740,313
Long term debt, less current maturities 3,192,341 4,875,775
Stockholders' equity 11,671,332 8,762,663
Noncontrolling interest 33,654 16,558
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Total Liabilities & Equity $ 31,103,709 $ 30,395,309
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Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30 September 30
2010 2009 2010 2009
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $10,962,272 $10,175,245 $36,337,241 $30,557,569
Cost of sales 8,713,084 7,997,292 28,170,431 23,712,414
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Gross profit 2,249,188 2,177,953 8,166,810 6,845,155
Operating expenses 1,740,466 1,671,958 5,808,372 5,202,480
----------- ----------- ----------- -----------
Income from operations 508,722 505,995 2,358,438 1,642,675
Other (expense) income:
Net Interest expense (159,338) (256,635) (699,806) (824,753)
Other (2,660) 12,549 (37,348) (6,449)
----------- ----------- ----------- -----------
Income before income
taxes and
noncontrolling
interest 346,724 261,909 1,621,284 811,473
Income tax expense 112,939 55,666 208,262 101,787
----------- ----------- ----------- -----------
Net Income 233,785 206,243 1,413,022 709,686
Less: Net (loss) income
attributable to
noncontrolling
interest (9,543) 1,526 (35,916) 3,023
----------- ----------- ----------- -----------
Net income
attributable to
CTI Industries
Corporation $ 243,328 $ 204,717 $ 1,448,938 $ 706,663
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Income applicable to
common shares $ 243,328 $ 204,717 $ 1,448,938 $ 706,663
=========== =========== =========== ===========
Basic income per common
share $ 0.08 $ 0.07 $ 0.49 $ 0.25
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Diluted income per
common share $ 0.08 $ 0.07 $ 0.49 $ 0.25
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Weighted average number
of shares and
equivalent shares
of common stock
outstanding:
Basic 3,120,568 2,739,481 2,930,748 2,774,447
=========== =========== =========== ===========
Diluted 3,201,064 2,749,685 2,985,697 2,781,178
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