-----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, IOUZUoaoTvtI/l/EJjBZ9Cp30Mj9P1C/OTuGQQg5Rdt7aPxwN+IFusOonQLJ7rev rfJktY5sji9peCg3E+9/+A== 0001144204-05-037409.txt : 20051122 0001144204-05-037409.hdr.sgml : 20051122 20051122160014 ACCESSION NUMBER: 0001144204-05-037409 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051121 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051122 DATE AS OF CHANGE: 20051122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CTI INDUSTRIES CORP CENTRAL INDEX KEY: 0001042187 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED RUBBER PRODUCTS, NEC [3060] IRS NUMBER: 362848943 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23115 FILM NUMBER: 051221414 BUSINESS ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 MAIL ADDRESS: STREET 1: 22160 N PEPPER RD CITY: BARRINGTON STATE: IL ZIP: 60010 8-K 1 v030257_8k.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 21, 2005

CTI INDUSTRIES CORPORATION
(Exact name of registrant as specified in its charter)
 
Illinois
0-23115
36-2848943
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
 
22160 North Pepper Road, Barrington, IL
60010
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code (847) 382-1000

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Item No. 2.02 – Results of Operations and Financial Condition

On November 21, 2005, CTI Industries Corporation issued a press release reporting earnings and other financial results for its third quarter and nine months ended September 30, 2005. A copy of the Press Release is attached as Exhibit 99.1.

The information disclosed under this Item 2.02 (including Exhibit 99.1) shall not be deemed to be “filed” for the purposes of Section 18, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, (“the Exchange Act”), or otherwise subject to the liabilities of that section.

Item No. 9.01 – Financial Statements and Exhibits

(a)
Financial Statements or Business Acquired.
None.

(b)
Pro Forma Financial Information.
None.

(c)
Exhibits.

Exhibit No.
Exhibit

99.1*
Press Release dated November 21, captioned: “CTI Industries Releases Financial Results for The Third Quarter and Nine Months Ended September 30, 2005”

_________
*Filed herewith

[SIGNATURE PAGE TO FOLLOW]
 
2

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 hereunto duly authorized.
 
     
 
CTI Industries Corporation
(Registrant)
 
 		  
 		  
 
Date: November 22, 2005 By:   /s/ Howard W. Schwan
 
Howard W. Schwan, President
 
3

EXHIBIT INDEX

Exhibit Number
Exhibit
 
99.1*
Press release dated November 21, 2005 entitled, “CTI Industries Corporation Releases Financial Results for The Third Quarter and Nine Months Ended September 30, 2005”
 
_________
*Filed herewith
 
4
 
 EX-99.1 2 v030257_ex99-1.htm
 
EXHIBIT 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick
Mary Ellen Dammyer
Executive Vice President
Investor Relations
(847) 382-1000
(847) 382-1000
 
CTI Industries Corporation
Releases Financial Results for
The Third Quarter and Nine Months
Ended September 30, 2005

FOR IMMEDIATE RELEASE
Friday, November 21, 2005

BARRINGTON, IL, November 21, 2005 – CTI Industries Corporation (NASDAQ Small Cap – CTIB), a manufacturer and marketer of metalized balloons, latex balloons, novelty items and printed and laminated films, today released financial results for its third quarter and for the nine months ending September 30, 2005. For the quarter, net sales were $6,033,831 compared to net sales for the third quarter of 2004 of $8,125,521, a decrease of 26%. The Company incurred a net loss for the quarter of ($416,267), compared to a net loss of $(150,370) for the third quarter of 2004.

Net loss per share basic and diluted was ($0.21) for the three months ending September 30, 2005, compared to a net loss per share basic and diluted of ($0.08) for the third quarter of 2004.

For the nine month period ending September 30, 2005, net sales were $22,709,785 compared to net sales for the same period in 2004 of $28,611,290, a decrease of 21%. For the nine month period, the Company had a net loss of ($385,395) compared to net income of $85,850 for the same period in 2004. For the nine month period, the Company had a net loss per share (basic and diluted) of ($0.20), compared to income per share of ($0.04) (basic and diluted) for the same period last year.

“The decline in revenues we have experienced this year, in the third quarter and year to date, are a reflection significantly of the termination of our relationship with, and sales of foil balloons to, Hallmark Cards,” said Howard Schwan, President. “During this year to date, we have also experienced modest declines in sales of other products, including latex balloons, helium and sales of consumer pouches to one customer.” he said.

“Despite these declines in revenues,” he said, “we have slightly improved product margins over the first nine months of this year, and we have begun to replace the lost revenues with expanded sales of foil and latex balloons to other customers, the introduction of a new line of consumer food storage bags and the addition of a new customer for our commercial films.”
 
 
 
 
 
CTI Industries is one of the leading manufacturers and marketers of metalized and latex balloons, produces laminated and printed films for commercial uses and produces flexible containers including consumer storage pouches. 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 –
 
 
 
 
 
CTI INDUSTRIES AND SUBSIDIARIES
SUMMARY FINANCIAL INFORMATION
Quarter Ended September 2005 and 2004
 
(Unaudited)
                          
                           
Consoldated condensed Balance Sheet
                          
 
  
 September 30, 2005
  
 December 31, 2004
              
Assets
                          
Current Assets:
                          
Cash and cash equivalents
  
$
202,603
  
$
526,470
              
Accounts receivable, net
    
4,016,112
   
6,123,137
             
Inventories
    
7,016,758
   
8,348,494
             
Other current assets
    
509,572
   
646,805
             
Total current assets
    
11,745,045
   
15,644,906
             
                           
Property and equipment, net
    
9,857,108
   
10,588,511
             
Other assets
    
1,370,495
   
1,654,147
             
                           
Total Assets
  
$
22,972,648
  
$
27,887,564
              
                           
Liabilities & Stockholders' Equity
                          
Total current liabilities
  
$
13,615,068
  
$
18,435,055
              
Long term debt, less current maturities
    
5,019,355
   
5,119,745
             
Other liabilities
    
1,608,898
   
1,371,364
             
Minority interest
    
11,368
   
10,230
             
Stockholders' equity
    
2,717,959
   
2,951,170
             
                           
Total Liabilities & Stockholders' Equity
  
$
22,972,648
  
$
27,887,564
              
                           
Consolidated Statements of Operations
                          
   
 Three Months Ended September 30
  
 Nine Months Ended September 30
  
   
 2005
  
 2004
  
 2005
  
 2004
  
Net sales
  
$
6,033,831
  
$
8,125,521
  
$
22,709,784
  
$
28,611,290
  
Cost of sales
    
4,791,645
   
6,455,743
   
18,010,651
   
22,762,114
 
                           
Gross profit on sales
    
1,242,186
   
1,669,778
   
4,699,133
   
5,849,176
 
                           
Operating expenses
    
1,399,430
   
1,700,292
   
4,425,260
   
5,286,858
 
                           
Income from operations
    
(157,244
)
  
(30,514
)
  
273,871
   
562,318
 
                           
Other income (expense):
                          
Interest expense
    
(281,047
)
  
(339,953
)
  
(868,154
)
  
(1,009,917
)
Other
    
(3,798
)
  
129,124
   
216,853
   
618,792
 
                           
Income (loss) before income taxes and minority interest
    
(442,089
)
  
(241,343
)
  
(377,430
)
  
171,193
 
                           
Income tax expense
    
(25,544
)
  
(90,850
)
  
8,168
   
84,279
 
                           
Income (loss) before minority interest
    
(416,545
)
  
(150,493
)
  
(385,598
)
  
86,914
 
                           
Minority interest in (loss) of subsidiary
    
(278
)
  
(123
)
  
(203
)
  
1,064
 
                           
Net income (loss)
  
$
(416,267
)
$
(150,370
)
$
(385,395
)
$
85,850
  
                           
Income (loss) applicable to common shares
  
$
(416,267
)
$
(150,370
)
$
(385,395
)
$
85,850
  
                           
Basic income (loss) per common and common equivalent shares
  
$
(0.21
)
$
(0.08
)
$
(0.20
)
$
0.04
  
                           
Diluted income (loss) per common and common equivalent shares
  
$
(0.21
)
$
(0.08
)
$
(0.20
)
$
0.04
  
                           
Weighted average number of shares and equivalent shares of common stock outstanding:
                          
Basic
    
1,963,615
   
1,932,692
   
1,957,283
   
1,923,212
 
                           
Diluted
    
1,963,615
   
1,932,692
   
1,957,283
   
1,991,766
 

 
 
 
 
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