BARRINGTON, IL--(Marketwire - November 11, 2008) - CTI Industries Corporation (
Net income per share for the three months ending September 30, 2008 was $0.10 (basic) and $0.09 (diluted), compared to a net loss per share for the three months ending September 30, 2007 of $(0.18) (basic and diluted).
For the nine month period ending September 30, 2008, net revenues were $35,149,000, compared to net revenues for the same period in 2007 of $26,210,000, an increase of 34%. For the nine month period, the Company had net income of $1,033,000, representing net income per share of $0.38 (basic) and $0.35 (diluted), compared to a net loss of $(43,000) for the same period of 2007 which represented a loss per share of $(0.02) (basic and diluted).
Stephen M. Merrick, Chief Financial Officer of the Company, said, "We continued our rapid rate of growth in the third quarter. Growth in our zippered pouch sales represented the most significant component but we also experienced growth in each of our other product lines -- foil balloons, latex balloons and commercial films. Our profitability was limited by the significant increases in raw materials costs we experienced through the first three quarters of the year. However, with the recent decline in the market price of oil and latex, we are now beginning to see reductions in our raw materials costs."
John Schwan, Chairman of the Company, reported, "In July, the roll-out of the S.C. Johnson & Son, Inc. ZipLoc Vacuum Bag system commenced to retail outlets throughout the United States. This is a product that we are producing for S.C. Johnson & Son, Inc. under a long-term agreement. Much of our increased sales of zippered pouch product during the Third Quarter represents sales of this product."
In the third quarter, sales of pouch products increased by 138% compared to the third quarter 2007, from $1,581,000 to $3,767,000. Sales of foil balloons were up 14% for the quarter, commercial films up 15% and latex balloons up 19%.
For the nine months gross margins were 23%, down from 24% for the same period of 2007.
CTI Industries is one of the leading manufacturers and marketers of metallized and latex balloons, develops, produces and markets bags and pouches for storage and packaging applications and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in a number of other countries.
This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly competitive market, (ii) the ability of the Company to enter into or maintain contracts or relationships with customers, distributors, licensors and suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company in its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in the Company's most recent filing with the Securities and Exchange Commission on Form 10-K.
- FINANCIAL HIGHLIGHTS FOLLOW --
Consolidated Statements of Operations Three Months Ended Nine Months Ended September 30 September 30 2008 2007 2008 2007 ------------ ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net sales $ 11,952,979 $ 8,672,726 $ 35,148,626 $ 26,210,428 Cost of sales 9,210,708 7,055,243 27,161,791 19,945,862 ------------ ------------ ------------ ------------ Gross profit 2,742,271 1,617,483 7,986,835 6,264,566 Operating expenses 2,188,645 1,900,596 6,038,694 5,527,728 ------------ ------------ ------------ ------------ Income (loss) from operations 553,626 (283,113) 1,948,141 736,838 Other income (expense): Net Interest expense (242,646) (348,829) (799,311) (976,327) Other 24,912 72,135 67,123 165,482 ------------ ------------ ------------ ------------ Income (loss) before income taxes and minority interest 335,892 (559,807) 1,215,953 (74,007) Income tax expese (benefit) 66,487 (145,939) 182,326 (31,053) ------------ ------------ ------------ ------------ Income (loss) before minority interest 269,405 (413,868) 1,033,627 (42,954) Minority interest (loss) income of subsidiary (24) (34) 241 (103) ------------ ------------ ------------ ------------ Net income (loss) $ 269,429 $ (413,834) $ 1,033,386 $ (42,851) ============ ============ ============ ============ Basic income (loss) per common and common equivalent shares $ 0.10 $ (0.18) $ 0.38 $ (0.02) ============ ============ ============ ============ Diluted income (loss) per common and common equivalent shares $ 0.09 $ (0.18) $ 0.35 $ (0.02) ============ ============ ============ ============ Weighted average number of shares and equivalent shares of common stock outstanding: Basic 2,799,501 2,339,467 2,747,604 2,275,541 ============ ============ ============ ============ Diluted 2,968,895 2,339,467 2,934,736 2,275,541 ============ ============ ============ ============ CTI Industries Corporation and Subsidiaries Condensed Consolidated Balance Sheet September 30, 2008 December 31, 2007 ------------------ ------------------ Assets (Unaudited) Current Assets: Cash and cash equivalents $ 860,016 $ 483,112 Accounts receivable, net 6,738,667 5,950,551 Inventories, net 10,742,677 9,700,618 Other current assets 1,425,475 1,666,420 ------------------ ------------------ Total current assets 19,766,835 17,800,701 Property, plant and equipment, net 10,568,979 10,096,155 Other assets 1,366,797 1,427,279 ------------------ ------------------ Total Assets $ 31,702,611 $ 29,324,135 ================== ================== Liabilities & Stockholders' Equity Total current liabilities $ 16,900,234 $ 16,483,109 Long term debt, less current maturities 5,376,543 5,167,039 Other liabilities 953,488 1,070,151 Minority interest 12,775 12,534 Stockholders' equity 8,459,571 6,591,302 ------------------ ------------------ Total Liabilities & Stockholders' Equity $ 31,702,611 $ 29,324,135 ================== ==================
Contact Information: FOR FURTHER INFORMATION CONTACT: Stephen M. Merrick Executive Vice President (847) 382-1000 Catherine E. Lawler Investor Relations (847) 671-1177