LAKE BARRINGTON, IL--(Marketwired - Nov 11, 2013) -  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 third quarter of 2013 and for the nine month period ended September 30, 2013.

Quarter Highlights

•  Sales Up 22.9% to $14.5 million
•  Profits Up from $6,000 to $234,000
•  Operating Income Up 147.6% from $269,000 to $666,000
•  Vacuum Sealer Line Sales Up 46.8% to $3.0 million
•  Foil Balloon Sales Up 14.3% to $4.7 million
•  Latex Balloon Sales Up 20.3% to $3.2 million

Nine Month Highlights

•  Sales Up 9.2% to $40.9 million 
•  Operating Income Up 32.3% to $1.5 million
•  Vacuum Sealer Line Sales Up 70.5% to $6.5 million
•  Foil Balloon Sales Up 2.8% to $17.0 million
•  Latex Balloon Sales Up 11.4% to $9.2 million

Financial Results

Consolidated net sales for the third quarter of 2013 were $14,480,000 compared to consolidated net sales of $11,786,000 for the third quarter of 2012, an increase of 22.9%. The Company earned net income of $234,000 or $0.07 per share (basic and diluted) for the third quarter of 2013 compared to net income of $6,000 for the third quarter of 2012.

For the nine month period ended September 30, 2013, consolidated net sales were $40,859,000 compared to $37,410,000 for the same period in 2012, an increase of 9.2%. For this nine month period in 2013, net income was $309,000 or $0.10 per share (basic) and $0.09 per share (diluted) compared to net income of $317,000 or $0.10 per share (basic and diluted) for the same period of 2012.

Key Factors and Trends

The pace of increase in sales revenue accelerated in the third quarter of 2013 with sales increasing at a rate of 22.9% over the third quarter last year. For the nine months ended September 30, 2013, net sales increased 9.2% compared to the same period of 2012.

The increase was led by a 46.8% increase in the sales of the Company's branded vacuum sealer line during the third quarter and a 70.5% increase in that line for the nine month period compared to the same period of 2012. For the third quarter of 2013, sales in this line were $2,957,000 and, for the nine months, $6,454,000. The Company's branded vacuum sealer line is now being sold in more than 6,000 retail stores throughout the United States. During the third quarter of 2013, the Company introduced an additional model of its vacuum sealing machine into one of its high volume customers and generated a strong initial response. The Company has also made significant progress in developing new, more advanced models and look forward to their introduction over the coming months.

The pace of increase in foil balloon sales also accelerated during the third quarter of 2013 as sales in this product line were up by 14.3% to $4,679,000 for the third quarter of 2013 over third quarter 2012 sales of $4,092,000. For the nine months ended September 30, 2013, sales of foil balloons were $17,021,000 up 2.8% over the same period last year. Sales of latex balloons were up 20.3% in the quarter ended September 30, 2013 compared to the third quarter last year, from $2,641,000 to $3,178,000. For the nine months ended September 30, 2013, sales of latex balloons were $9,174,000, up 11.4% over the same period last year.

Revenues from the sale of commercial films were also up to $1,919,000 in the third quarter of 2013 compared to $1,033,000 in the third quarter last year and reached a level of $4.1 million for the nine months ended September 30, 2013.

Gross margins were strong in the third quarter of 2013 at a level of 22.8%. For the nine months ended September 30, 2013, the gross margin rate was 21.4%.

As a result of the increase in revenues and strong gross margin rate, the Company reached income from operations of $666,000 in the third quarter of 2013, compared to $269,000 for the third quarter last year. For the nine months ended September 30, 2013, income from operations was $1,487,000 compared to $1,124,000 for the same period last year.

About CTI

CTI Industries Corporation, headquartered in Lake Barrington, Illinois, designs, develops, produces, markets and sells a line of foil balloons, vacuum sealing machines, pouches and related items for the storage of food and other household items, latex balloons and commercial film products. CTI markets its products throughout the United States, Canada, Mexico, the United Kingdom and Europe and in Latin America. 

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. The Company's actual results and future developments could differ materially from the results or developments expressed in, or implied by these forward-looking statements. Factors that could cause results to differ from those contemplated by such forward-looking statements, include, but are not limited to, product demand and market acceptance, competition, cost and availability of raw materials, new technology or product developments and other risks 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, 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, 2013				*December 31, 2012
Assets			(Unaudited)
Current Assets:
	Cash and cash equivalents (VIE $29,000 and $22,000, respectively)		$	332,490			$	351,064
	Accounts receivable, net			9,424,104				7,773,332
	Inventories, net			15,269,890				15,813,276
	Other current assets (VIE $76,000 and $108,000, respectively)			2,868,264				3,192,082
Total current assets				27,894,748				27,129,754
Property, plant and equipment, net				8,581,684				8,699,070
Other assets				1,943,753				1,918,319
Total Assets			$	38,420,185			$	37,747,143
Liabilities & Equity
Total current liabilities (VIE $120,000 and $198,000, respectively)			$	16,178,185			$	16,963,447
Long term debt, less current maturities				9,640,832				8,701,650
CTI Industries Corporation stockholders' equity				12,764,942				12,242,738
Noncontrolling interest				(163,774	)			(160,692	)
Total Liabilities & Equity			$	38,420,185			$	37,747,143

Condensed Consolidated Statements of Operations
				Three Months Ended September 30								Nine Months Ended September 30
				2013				2012				2013				2012
				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Net sales				$	14,479,934			$	11,786,226			$	40,859,007			$	37,409,817
Cost of sales					11,182,419				9,114,918				32,105,384				29,290,188
Gross profit					3,297,515				2,671,308				8,753,623				8,119,629
Operating expenses					2,631,736				2,402,505				7,266,558				6,995,319
Income from operations					665,779				268,803				1,487,065				1,124,310
Other (expense) income:
	Net Interest expense				(303,836	)			(265,257	)			(972,050	)			(613,247	)
	Other				40,641				5,301				14,343				13,206
Net income before taxes					402,584				8,847				529,358				524,269
Income tax expense					162,362				1,451				223,762				203,726
Net income					240,222				7,396				305,596				320,543
Less: Net income (loss) attributable to noncontrolling interest					5,898				1,359				(3,082	)			3,425
	Net income attributable to CTI Industries Corporation			$	234,324			$	6,037			$	308,678			$	317,118
Net income applicable to common shares				$	234,324			$	6,037			$	308,678			$	317,118
Other Comprehensive Income
	Foreign currency adjustment				(50,338	)			387,275				119,894				88,082
		Comprehensive income		$	183,986			$	393,312			$	428,572			$	405,200
Basic income per common share				$	0.07			$	0.00			$	0.10			$	0.10
Diluted income per common share				$	0.07			$	0.00			$	0.09			$	0.10
Weighted average number of shares and equivalent shares of common stock outstanding:
	Basic				3,248,646				3,214,771				3,248,646				3,208,862
	Diluted				3,401,294				3,353,267				3,404,109				3,269,941

*The condensed consolidated financial statements do not include all required disclosures, refer to the Form 10K for omitted disclosures.