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CTI Industries Corporation Reports Results for the Third Quarter 2008 BARRINGTON, IL--(MARKET WIRE)--Nov 11, 2008 -- CTI Industries Corporation (NasdaqCM:CTIB - News), a
manufacturer and marketer of metallized balloons, latex
balloons, novelty
items, packaging and storage bags and pouches and printed
and laminated
films, today released financial results for its third quarter
and for the
nine months ending September 30, 2008. For the quarter,
net sales were
$11,953,000, compared to net sales for the third quarter
2007 of
$8,673,000, an increase of about 38%. The Company had a
net income for the
quarter of $269,000 compared to a net loss for the same
period of 2007 of
$(414,000).
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: FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick
Executive Vice President
(847) 382-1000
Catherine E. Lawler
Investor Relations
(847) 671-1177
Source: CTI Industries Corporation
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