-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UbSDN8v9Ot89BJ/+NVGW62uO/VVoFtsVr6PvuskyiNbPpxOqgOGc4TN4P++EWvro OkP232FGzkE5LTAF03XN3w== 0001057056-98-000025.txt : 19980911 0001057056-98-000025.hdr.sgml : 19980911 ACCESSION NUMBER: 0001057056-98-000025 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980731 FILED AS OF DATE: 19980910 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CTI INDUSTRIES CORP CENTRAL INDEX KEY: 0001042187 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS MANUFACTURING INDUSTRIES [3990] IRS NUMBER: 362848943 FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-23115 FILM NUMBER: 98707444 BUSINESS ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 MAIL ADDRESS: STREET 1: 22160 N PEPPER RD STREET 2: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 10QSB 1 FORM 10-QSB FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 1998 Commission File No. 000-23115 CTI INDUSTRIES CORPORATION (Exact name of registrant as specified in its charter) Delaware 36-2848943 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 22160 North Pepper Road, Barrington, Illinois 60010 (Address of principal executive offices) (Zip Code) (847) 382-1000 (Registrant's telephone number, including area code) Registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days. APPLICABLE ONLY TO CORPORATE ISSUERS: COMMON STOCK, $.065 par value, 2,737,495 outstanding Shares and CLASS B COMMON STOCK, $.91 par value, 1,098,901 outstanding Shares, as of July 31, 1998. Part I. FINANCIAL INFORMATION Item 1. Financial Statements The following consolidated financial statements of the Registrant are attached to this Form 10-QSB: 1. Interim Balance Sheet as of July 31, 1998 and Balance Sheet as of October 31, 1997. 2. Interim Statements of Operations for the three and nine month periods ending July 31, 1998 and July 31, 1997. 3. Interim Statements of Cash Flows for the nine month periods ending July 31, 1998 and July 31, 1997. The Financial Statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of results for the periods presented. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation Results of Operations Net Sales. For the fiscal quarter ended July 31, 1998, net sales increased to $4,382,000 from $3,346,000 for the same quarter of 1997, an increase of approximately 31%. The Company experienced increases in sales, as compared to the third quarter of fiscal 1997, in each of its product lines -- mylar balloons, latex balloons and printed and laminated films. Net sales for the first nine months of fiscal 1998 were $15,714,000 as compared to $12,082,000 for the same period of 1997. Cost of Sales. For the quarter ended July 31, 1998, cost of sales decreased to 52.6% of net sales as compared to 58.6% of net sales in the third fiscal quarter of 1997. The decrease was a result of increased production absorbing a greater portion of overhead. Cost of goods sold were 57.3% of net sales for the first nine months of fiscal 1998, as compared to 60.8% for the same period of 1997. Administrative. For the quarter ended July 31, 1998, administrative expenses were $654,000, or 14.9% of sales as compared to $435,000, or 13.0% of sales for the same fiscal quarter of 1997. Administrative expenses were $1,877,000 or 11.9% of net sales for the first nine months of fiscal 1998, as compared to $1,336,000 or 11.1% of net sales for the first nine months of 1997. The increase was due in part to increased costs resulting from the Company's status as a public company, and an increase in administrative salaries. Selling. For the quarter ended July 31, 1998, selling expenses were $635,000, or 14.5% of net sales, as compared to $679,000, or 20.3% of net sales for the third fiscal quarter of 1997. The decrease was due to the Company's ability to increase sales while maintaining selling expense levels. For the 2 first nine months of fiscal 1998 selling expenses were $2,083,000 or 13.3% of net sales as compared to $2,043,000 or 16.9% of net sales for the first nine months of 1997. Advertising and Marketing. For the quarter ended July 31, 1998, advertising and marketing expenses were $463,000 or 10.6% of net sales as compared to $156,000 or 4.7% of net sales in the third fiscal quarter of 1997. Advertising and marketing expenses were $1,404,000 or 8.9% of net sales for the first nine months of 1998 as compared to $625,000 or 5.2% of net sales for the same period of 1997. The increase in these expenses was a result of catalogue printing costs and service fees and rebates paid on national account sales programs. Net Income or Loss. For the quarter ended July 31, 1998, the Company had income before income taxes of $162,000 as compared to a loss before income taxes of $44,000 for the third fiscal quarter of 1997. The provision for income tax for the third quarter of fiscal 1998 was $47,000 resulting in net income of $115,000 as compared to no provision for the same quarter of 1997. For the third quarter of 1998, the entire income of $115,000 was allocable to Common Stock. In the third quarter 1997, $33,000 of dividends were allocated to then outstanding Convertible Preferred Stock, resulting in a loss applicable to Common Stock of $76,000. Convertible Preferred Stock was converted to Class B Common Stock in November of 1997. For the nine months ended July 31, 1998, net income was $679,000 (all attributed to Common Stock) as compared to $347,000 for the first nine months of fiscal 1997 (with $97,000 being allocable to Convertible Preferred Stock and $250,000 allocable to Common Stock). Financial Condition Liquidity and Capital Resources. Cash flow used in operations during the nine months ended July 31, 1998, was $2,477,000. This resulted primarily from increased sales and resulting increases in accounts receivable and inventory of over $3,928,000. During the first nine months of 1997, the Company had cash flows used in operations of $643,000 mainly as a result of increases in accounts receivable and inventory of $968,000. At October 31, 1997, the Company maintained a cash balance of $237,000. In November of 1997, the Company sold 1,725,000 shares of its Common Stock at $4.00 per share in an initial public offering. The net proceeds from the offering to the Company were approximately $5,500,000. The Company's cash balance at July 31, 1998 was $764,000. Investment Activities. During the nine months ended July 31, 1998 and July 31, 1997, the Company invested $1,999,000 and $471,000, respectively, in machinery and equipment and merchandise displays at customer locations. The Company also invested in and advanced to its Mexican supplier of latex balloons $1,350,000 in the first nine months of 1998. Financing Activities. For the nine months ended July 31, 1998, the Company generated $6,389,000 in financing activities, primarily as a result of the proceeds of the Company's initial public offering of its Common Stock in November of 1997 and the proceeds of long-term debt. Cash flow provided by financing activities for the nine months ended July 31, 1997, was $1,303,000 resulting primarily from the proceeds of a private placement of notes to related 3 parties and advances on lines of credit. In May, 1998, the Company restructured its bank debt, consolidating certain term loans at reduced interest rates and increasing its line of credit. The Company believes that existing capital resources and cash generated from operations, will be sufficient to meet the Company's requirements for at least 12 months. Seasonality. In the mylar product line, sales have historically been seasonal with approximately 20% to 27% of annual sales of mylar being generated in December and January and 11% to 13% of annual mylar sales being generated in June and July in recent years. The sale of latex balloons and laminated film products have not historically been seasonal. Forward Looking Statements. Forward looking statements made in this filing involve material risks and uncertainties that could cause actual results and events to differ materially from those set forth, or implied, including (i) the Company's ability to enter into contracts with licensors, suppliers, distributors, and strategic partners, (ii) the Company's growth strategy and (iii) anticipated trends in the Company's business, as well as other risks and uncertainties reported in the Company's other SEC filings. Part II. OTHER INFORMATION Item 1. Legal Proceedings Not applicable. Item 2. Changes in Securities In March and May of 1996, a group of investors made an equity investment of $1,000,000 in the Company in return for 1,098,901 shares of Preferred Stock, $.91 par value. Each share of Preferred Stock was entitled to an annual cumulative dividend of 13% of the purchase price, and was convertible into one share of Common Stock. The shares of Preferred Stock, voting separately as a class, were entitled to elect four of the Company's directors. In July, 1997, the Company effected a recapitalization (the "Recapitalization") without a formal reorganization. As part of the Recapitalization, the Board of Directors approved the creation of Class B Common Stock, approved a 1 for 2.6 reverse stock split on both the Common Stock and Preferred Stock, and negotiated a conversion of all then outstanding shares of the Company's Convertible Preferred Stock into an aggregate of 1,098,901 shares of Class B Common Stock. The conversion was effective upon the closing of the initial public offering of the Company's Common Stock in November of 1997. The shares of Class B Common Stock contain rights identical to shares of Common Stock, except that shares of Class B Common Stock, voting separately as a class, have the right to elect four of the Company's seven directors. Shares of Common Stock and Class B Common Stock, voting together as a class, vote on all other matters, including the election of the remaining directors. The recapitalization, initial public offering and related transactions were approved by written consent of the shareholders. 4 Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Submission of Matters to a Vote of Security Holders Not applicable. Item 5. Other Information On August 24, 1998, the Company purchased an additional office and warehouse facility adjacent to the current Company headquarters in Barrington, Illinois for $1,585,000. The building contains 28,700 square feet of office and warehouse space, set on 5 acres of land. The purchase was bank financed. The Company has assessed its readiness for year 2000 in terms of its current computer hardware and software and the capabilities of its major suppliers. Based on this assessment the Company does not believe that year 2000, and the Company's preparation for year 2000, will have a material effect on its operations. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits* (b) The Company has not filed a Current Report during the quarter covered by this report. * Also incorporated by reference the Exhibits filed as part of the SB-2 Registration Statement of the Registrant, effective November 5, 1997, and subsequent periodic filings. 5 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: September 10, 1998 CTI INDUSTRIES CORPORATION By: /s/ Stephen M. Merrick --------------------------------------- Stephen M. Merrick, Chief Executive Officer and Principal Financial Officer 6 CTI Industries Corporation and Subsidiary Consolidated Balance Sheet
July 31, 1998 October 31, 1997 (Unaudited) (See note) ------------ ------------ ASSETS Current assets: Cash $ 764,332 $ 237,230 Accounts Receivable (less allowance for doubtful accounts of $169,915 and $136,050 at July 31, 1998 and October 31, 1997) 3,081,669 3,045,696 Inventories 8,758,765 5,073,861 Deferred tax assets 327,035 327,035 Other 896,320 483,652 ------------ ------------ Total current assets 13,828,121 9,167,474 Property and equipment: Machinery and equipment 7,864,687 6,711,978 Building 2,196,442 2,175,713 Office furniture and equipment 1,482,638 1,058,150 Land 250,000 250,000 Leasehold improvements 161,885 147,128 Projects under construction 789,251 402,714 ------------ ------------ 12,744,903 10,745,683 Less : accumulated depreciation (7,531,455) (6,851,148) ------------ ------------ Total property and equipment, net 5,213,448 3,894,535 Other assets: Deferred IPO costs -- 445,067 Deferred financing costs, net 48,187 56,671 Invesment in subsidiaries 884,375 81,816 Note receivable 715,422 300,000 Deferred tax assets 272,063 272,063 ------------ ------------ Total other assets 1,920,047 1,155,617 ------------ ------------ TOTAL ASSETS $ 20,961,616 $ 14,217,626 ============ ============ See accompanying notes
7 CTI Industries Corporation and Subsidiary Consolidated Balance Sheet
July 31, 1998 October 31, 1997 (Unaudited) (See note) ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,741,473 $ 3,725,500 Line of credit 3,184,094 3,017,940 Stock redemption contract payable - current portion -- 30,533 Notes payable - current portion 445,318 580,097 Accrued liabilities 1,558,755 871,182 ------------ ------------ Total current liabiliites 7,929,640 8,225,252 Long-term liabilities: Notes payable 3,951,025 2,885,151 Subordinated debt 865,000 865,000 ------------ ------------ Total long-term liabilities 4,816,025 3,750,151 Redeemable common stock 416,651 450,000 Stockholders' equity: Convertible preferred stock - $.91 par value, 2,000,000 shares authorized, 1,098,901 shares issued and outstanding, including accumulated dividends of $63,917 at October 31, 1997 -- 1,063,917 Common stock - $.065 par value, 11,000,000 shares authorized, 2,898,980 (July 31, 1998) and 1,154,584 (October 31, 1997) shares issued, 2,737,495 (July 31, 1998) and 1,010,202 (October 31, 1997) shares outstanding 188,434 75,048 Class B common stock - $.91 par value, 1,100,000 shares authorized, 1,098,901 shares outstanding at July 31, 1998 1,000,000 -- Paid-in-capital 5,554,332 248,348 Retained earnings 1,857,940 1,179,274 Foreign currency translation adjustment 23,994 51,036 Less: Treasury stock - 161,485 (July 31, 1998) and (404,049) (370,700) 144,382 (October 31, 1997) shares at cost Redeemable common stock (416,651) (450,000) Stock subscription receivable (4,700) (4,700) ------------ ------------ Total stockholders' equity 7,799,300 1,792,223 ------------ ------------ TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 20,961,616 $ 14,217,626 ============ ============ Note: The balance sheet at October 31, 1997 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete statements. See accompanying notes
8 CTI Industries Corporation and Subsidiary Consolidated Statement of Operations
Quarter Ended July 31 Year to Date July 31 1998 1997 1998 1997 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ------------ ------------ ------------ ------------ Net Sales $ 4,382,322 $ 3,345,970 $ 15,713,903 $ 12,082,091 Cost of Sales 2,306,868 1,962,088 9,001,445 7,346,119 ------------ ------------ ------------ ------------ Gross profit on sales 2,075,454 1,383,882 6,712,458 4,735,972 Operating expenses: Administrative 654,174 435,133 1,877,480 1,335,518 Selling 634,743 678,987 2,083,467 2,042,852 Advertising and marketing 462,716 156,235 1,403,864 624,579 ------------ ------------ ------------ ------------ Total operating expenses 1,751,633 1,270,355 5,364,811 4,002,949 ------------ ------------ ------------ ------------ Income from operations 323,821 113,527 1,347,648 733,023 Other income (expense): Interest income 32,924 -- 124,501 -- Interest expense (193,561) (167,276) (561,897) (471,218) Lease income 32,573 -- 54,742 -- Income from investments (56,644) -- (6,188) -- Other 23,119 10,191 70,863 85,328 ------------ ------------ ------------ ------------ Total other expense (161,589) (157,085) (317,979) (385,890) ------------ ------------ ------------ ------------ Income before income taxes 162,232 (43,558) 1,029,669 347,133 Income tax expense (benefit) 46,800 -- 351,000 -- ------------ ------------ ------------ ------------ Net income 115,432 (43,558) 678,669 347,133 Dividends applicable to convertible preferred stock -- (32,500) -- (97,500) ------------ ------------ ------------ ------------ Income applicable to common shares $ 115,432 $ (76,058) $ 678,669 $ 249,633 ============ ============ ============ ============ Basic income per common and common equivalent shares $ 0.03 $ (0.08) $ 0.18 $ 0.25 ============ ============ ============ ============ Diluted income per common and common equivalent shares $ 0.03 $ (0.08) $ 0.16 $ 0.16 ============ ============ ============ ============ Weighted average number of shares and equivalent shares of common stock outstanding Basic 3,825,954 1,010,202 3,785,523 996,099 ============ ============ ============ ============ Diluted 4,110,965 1,010,202 4,124,527 2,221,809 ============ ============ ============ ============ See accompanying notes
9 CTI Industries Corporation and Subsidiary Consolidated Statement of Cash Flows
Nine Months Ended July 31 1998 1997 (Unaudited) (Unaudited) ------------ ------------ Cash Flow Provided by Operations: Net income $ 678,669 $ 347,133 Adjustment to reconcile net income: Depreciation and amortization 688,790 383,936 Equity in earnings of P&TF and CTF 6,188 -- Gain on sale of property and equipment -- (42,942) Provision for losses on A/R & inventory 207,500 89,554 Change in assets and liabilities: Change in accounts receivable (81,610) (478,945) Change in inventory (3,846,766) (489,234) Change in other assets 166,978 (312,575) Change in accounts payable & accrued expenses (296,620) (139,492) ------------ ------------ Total Cash Flow Used by Operations (2,476,871) (642,565) Cash Flow Provided by Investing Activities: Proceeds from sale of property and equipment -- 2,942 Purchases of property and equipment (1,999,220) (471,312) Investment in and advances to P&TF (1,350,000) -- Investment in joint venture (8,747) (60,260) ------------ ------------ Total Cash Flow Used by Investing Activities (3,357,967) (528,630) Cash Flow Provided by Financing Activities: Stock redemption contract payments (30,533) (60,709) Advances on line of credit 14,380,000 4,813,520 Repayments on line of credit (14,213,846) (4,312,855) Proceeds from issuance of long term debt 2,344,959 218,000 Proceeds from issuance of short term debt 850,000 -- Repayment of long term debt (1,413,866) (318,847) Repayment of short term debt (850,000) -- Proceeds from debt issued to related parties -- 865,000 Proceeds from issuance of preferred stock -- 160,000 Proceeds from issuance of common stock 5,401,883 -- Proceeds from warrants exercised 17,650 -- Conversion of preferred stock (1,000,000) -- Proceeds from conversion of preferred stock 1,000,000 -- Purchase treasury stock (33,349) -- Dividends paid (63,917) (61,210) ------------ ------------ Total Cash Flow Provided by Financing Activities 6,388,981 1,302,899 Effect of exchange rate changes on cash (27,041) -- ------------ ------------ Increase (Decrease) in Cash and Equivalents 527,102 131,704 Cash and Equivalents at Beginning of Period 237,230 130,818 ------------ ------------ Cash and Equivalents at End of Period $ 764,332 $ 262,522 ============ ============ Supplemental disclosures: Cash paid for interest $ 553,123 $ 432,272 Cash paid for income taxes $ 180,000 $ -- Non-cash financing activities: Assets exchanged for settlement of debt -- $ 40,000 Common stock warrants exercised in exchange for contractual services received -- $ 19,500 See accompanying notes
10 July 31, 1998 Note 1 - Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended July 31, 1998 are not necessarily indicative of the results that may be expected for the year ended October 31, 1998. For further information, refer to the consolidated financial statements and footnotes thereto included in the Registrant Company and Subsidiaries' annual report on Form 10-KSB for the year ended October 31, 1997. Note 2 - P&TF Transaction On January 26, 1998, the Company and Pulidos et Terminados Finos S.A. de C.V. ("P&TF") entered into an agreement under which (i) the Company subscribed for 45% of the outstanding capital stock of P&TF for $800,000, (ii) the Company loaned to P&TF $850,000 secured by certain latex balloon manufacturing equipment, and (iii) the 1995 equipment purchase agreement between the parties was cancelled with respect to 2 pieces of latex balloon manufacturing equipment, which equipment is now owned by CTI and leased to P&TF. The purchase of the capital stock was effective February 1, 1998, and the purchase price for the capital stock was paid by (i) applying $400,000 of advances made to P&TF prior to closing and (ii) a cash payment for the balance. The $400,000 debt owing to the Company from the 1995 acquisition was extinguished as a result of the cancellation of the sales of the two pieces of equipment to P&TF. Funding for the purchase of the P&TF stock was provided from general operating funds of the Company and, for the loan to P&TF, by a loan to the Company from First American Bank. At the time of the transaction, the suspension of payments proceeding relating to P&TF (in the nature of a Chapter XI bankruptcy reorganization proceeding) was terminated. Note 3 - Commitments In April 1998, the Company entered into an agreement to purchase new extrusion equipment. The equipment is anticipated to cost approximately $1,941,000, and will be financed by a new loan to the Company from First American Bank. In August 1998, the Company entered into an agreement to purchase the building located next to its current facility. The purchase price of the building is $1,585,000, and will be financed by a new mortgage loan to the Company from First American Bank. Note 4 - Debt Restructuring In May 1998, the Company restructured its debt with First American Bank. The new credit arrangements provide for consolidation of certain term loans at reduced interest rates, and an increase in the revolving line of credit from $3,250,000 to $4,000,000. Note 5 - Earnings Per Share In November 1997, the Company adopted the provisions of SFAS No. 128, "Earnings per Share". Adoption of this pronouncement did not have a material impact on the Company's financial statements. The provisions of SFAS No. 128 were applied to the prior period presented. Basic income per common share is computed by dividing income available to common shareholders, net income less preferred stock dividends, if applicable, by the weighted average number of shares of common stock outstanding during each period. 11 July 31, 1998 Diluted income per common share for the quarter ended July 31, 1998 and year to date July 31, 1998 is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents (stock options and warrants), unless anti-dilutive, during the period. Diluted income per common share for the quarter ended July 31, 1997 and year to date July 31, 1997 is computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents (stock options, warrants and convertible preferred stock), unless anti-dilutive, during the period. The weighted average number of shares and equivalent shares of common stock outstanding during the period ended July 31, 1997 reflects conversion of all convertible preferred stock into 1,098,901 shares of common stock as of the beginning of the period. Income per common share for the periods ended July 31, 1998 and 1997 was computed as follows (in thousands, except per share amounts): CTI Industries Corporation and Subsidiary
Quarter Ended Juy 31 Year to Date July 31 1998 1997 1998 1997 ------------------------- ------------------------- Basic Average shares outstanding: Weighted average number of shares of common stock outstanding during the period 3,825,954 1,010,202 3,785,523 996,099 =========== =========== =========== =========== Net income: Net income $ 115,432 $ (43,558) $ 678,669 $ 347,133 Less preferred stock dividends -- (32,500) -- (97,500) ----------- ----------- ----------- ----------- Amount for per share computation $ 115,432 $ (76,058) $ 678,669 $ 249,633 =========== =========== =========== =========== Per share amount $ 0.03 $ (0.08) $ 0.18 $ 0.25 =========== =========== =========== =========== Diluted Average shares outstanding: Weighted average number of shares of common stock outstanding during the period 3,825,954 1,010,202 3,785,523 996,099 Net additional shares assuming stock options and warrants exercised and proceeds used to purchase treasury stock 285,011 -- 339,004 126,809 Additional shares assuming conversion of convertible preferred stock -- -- -- 1,098,901 ----------- ----------- ----------- ----------- Weighted average number of shares and equivalent shares of common stock outstanding during the period 4,110,965 1,010,202 4,124,527 2,221,809 =========== =========== =========== =========== Net income: Net income $ 115,432 $ (43,558) $ 678,669 $ 347,133 Less preferred stock dividends -- (32,500) -- (97,500) ----------- ----------- ----------- ----------- Income applicable to common shares $ 115,432 $ (76,058) $ 678,669 $ 249,633 Add dividends on preferred stock assumed converted into common shares -- -- -- 97,500 ----------- ----------- ----------- ----------- Amount for per share computation $ 115,432 $ (76,058) $ 678,669 $ 347,133 =========== =========== =========== =========== Per share amount $ 0.03 $ (0.08) $ 0.16 $ 0.16 =========== =========== =========== ===========
12 EX-27 2 FDS -- FORM 10-QSB
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM FORM 10-QSB FOR THE QUARTERLY PERIOD ENDED JULY 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB. 0001042187 CTI Industries Corporation 1,000 dollars 9-mos OCT-31-1998 NOV-01-1997 JUL-31-1998 1.000 764 0 3,252 170 8,759 13,828 12,745 7,531 20,962 7,930 0 0 0 1,188 6,611 20,962 15,714 15,714 9,001 9,001 5,121 0 562 1,030 351 679 0 0 0 679 .18 .16
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