LAKE BARRINGTON, IL--(Marketwired - May 13, 2014) - CTI Industries Corporation (
Consolidated net sales for the first quarter of 2014 were $14,920,000 compared to consolidated net sales of $13,345,000 for the first quarter of 2013, an increase of almost 12%. The increase in sales was led by sales increases in the two principal product lines of the Company -- vacuum sealing systems and foil balloons. Sales of vacuum sealing systems and products continued their rapid rate of increase growing by over 44% for the quarter to $2,781,000 from $1,929,000 in the first quarter 2013. Sales of foil balloons continued their consistent rise, reaching $7,273,000 in the quarter compared to $6,782,000 same period of the prior year, a growth rate of 7.2%.
For both of these product lines, sales growth was market by increased in sales to existing customers as well as sales to new customers. Foil balloons saw growth particularly in the Company's operations in the United Kingdom, Europe and Mexico.
For the quarter, the Company had net income of $45,000 or $0.01 per share, compared to net income in the first quarter last year of $130,000, or $0.04 per share. Income from operations for the quarter was $326,000, which was affected principally by net interest expense of $301,000 for the quarter. This interest expense reflects to significant expense the interest expense arising from the $5 million mezzanine loan the Company obtained in July, 2012 to finance its investment in the vacuum sealing system product line and market.
"Sales continue to advance at a strong rate, particularly for two of our principal product lines -- consumer vacuum sealing systems and foil balloons, and we anticipate further growth in both of those lines as well as in our line of latex balloons," said John Schwan, Chief Executive Officer. "As we continue this growth, we are focused on controlling our operating expenses and structuring our debt in a manner that will result in improved bottom line performance," he said.
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. 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 | |||||||||
| March 31, 2014 | *December 31, 2013 | ||||||||
| Assets | (Unaudited) | ||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents (VIE $6,000 and $54,000, respectively) | $ | 427,601 | $ | 666,616 | |||||
| Accounts receivable, net | 9,236,593 | 8,883,106 | |||||||
| Inventories, net (VIE $543,000 and $390,000, respectively) | 15,842,318 | 15,428,413 | |||||||
| Other current assets (VIE $79,000 and $79,000, respectively) | 2,733,102 | 3,192,543 | |||||||
| Total current assets | 28,239,614 | 28,170,678 | |||||||
| Property, plant and equipment, net (VIE $763,000 and $762,000, respectively) | 8,571,582 | 8,681,771 | |||||||
| Other assets | 2,381,894 | 2,219,051 | |||||||
| Total Assets | $ | 39,193,090 | $ | 39,071,500 | |||||
| Liabilities & Equity | |||||||||
| Total current liabilities (VIE $925,000 and $493,000, respectively) | $ | 16,509,079 | $ | 16,432,989 | |||||
| Long term debt, less current maturities (VIE $413,000 and $441,000, respectively) | 9,779,823 | 9,874,386 | |||||||
| CTI Industries Corporation stockholders' equity | 12,835,916 | 12,655,890 | |||||||
| Noncontrolling interest | 68,272 | 108,235 | |||||||
| Total Liabilities & Equity | $ | 39,193,090 | $ | 39,071,500 | |||||
| Condensed Consolidated Statements of Operations | |||||||||
| Three Months Ended March 31 | |||||||||
| 2014 | 2013 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| Net sales | $ | 14,920,330 | $ | 13,344,766 | |||||
| Cost of sales | 11,422,921 | 10,370,749 | |||||||
| Gross profit | 3,497,409 | 2,974,017 | |||||||
| Operating expenses | 3,171,459 | 2,443,866 | |||||||
| Income from operations. | 325,950 | 530,151 | |||||||
| Other (expense) income: | |||||||||
| Net Interest expense | (301,487 | ) | (467,975 | ) | |||||
| Other | (5,179 | ) | 144,524 | ||||||
| Income before income taxes | 19,284 | 206,700 | |||||||
| Income tax (benefit) expense | (2,177 | ) | 85,768 | ||||||
| Net Income | 21,461 | 120,932 | |||||||
| Less: Net income attributable to noncontrolling interest | (23,962 | ) | (9,400 | ) | |||||
| Net income attributable to CTI Industries Corporation | $ | 45,423 | $ | 130,332 | |||||
| Income applicable to common shares | $ | 45,423 | $ | 130,332 | |||||
| Other Comprehensive (Loss) Income | |||||||||
| Foreign currency adjustment | (188,092 | ) | (30,400 | ) | |||||
| Comprehensive (loss) income | $ | (142,669 | ) | $ | 99,932 | ||||
| Basic income per common share | $ | 0.01 | $ | 0.04 | |||||
| Diluted income per common share | $ | 0.01 | $ | 0.04 | |||||
| Weighted average number of shares and equivalent shares of common stock outstanding: | |||||||||
| Basic | 3,249,268 | 3,248,646 | |||||||
| Diluted | 3,413,800 | 3,415,911 | |||||||
| *The condensed consolidated financial statements do not include all required disclosures, refer to the Form 10K for omitted disclosures. | |||||||||