EX-99.1 2 v144668_ex99-1.htm Unassociated Document
Exhibit 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick
  
Catherine E. Lawler
Executive Vice President
  
Investor Relations
(847) 382-1000
  
(847) 671-1177
 
CTI Industries Corporation Reports
Record Sales and Substantial Profit Increase for 2009

FOR IMMEDIATE RELEASE
March 31, 2009

BARRINGTON, IL, March 31, 2009 -- CTI Industries Corporation (NASDAQ Capital Market), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its full-year results of operations for 2008, as well as for the three months ended December 31, 2008.

Year End Results

For the year ended December 31, 2008, consolidated net sales totaled $44,981,000 compared to consolidated net sales of $36,510,000 for the year ended December 31, 2007, an increase of 23.2%.  For the year, CTI achieved net income of $1,154,000 or $0.42 per share (basic) and $0.40 per share (diluted).  During the year ended December 31, 2007, CTI had a net income of $82,000, representing $0.03 per share (basic and diluted).

Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2008 were $9,832,000 compared to consolidated net sales of $10,299,000 for the fourth quarter of 2007.  CTI had net income of $121,000 or $0.04 per share (basic and diluted) for the fourth quarter of 2008 compared to net income of $125,000 or $0.05 per share (basic and diluted) for the fourth quarter of 2007.

Key Factors

During 2008, CTI experienced an increase in revenues of more than 23.2% over 2007 revenues.  The largest component of that increase was the increase in sales of pouches for consumer applications.  For the year, sales of pouches totaled $10,893,000 compared to $4,938,000 in 2007.  Most of this increase resulted from sales of a vacuumable pouch product marketed by S.C. Johnson & Son, Inc. under their brand ZipLoc.

 
 
 
Sales of CTI’s other product lines also increased during 2008:

 
·
Metalized balloons increased by 10.2% from $15,998,000 in 2007 to $17,629,000 in 2008;
 
·
Latex balloon sales increased by 10.9% from $6,853,000 in 2007 to $7,597,000 in 2008;
 
·
Sales of commercial films increased by 4.7% from $7,846,000 in 2007 to $8,212,000 in 2008.

Gross margin levels declined in 2008 to 22.95% from 23.79% in 2007.  This decline came principally as a result of increased costs of raw materials, including plastic sheeting, resin and latex.  Toward the end of 2008 and into 2009, the cost of these raw materials has reduced significantly from the highest levels they reached during mid-2008.

CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.

Statements made in this release that are not historical facts are “forward-looking” statement (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.  Factors that could cause results to differ are 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 made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
 
– FINANCIAL HIGHLIGHTS FOLLOW –
 
 
 
 
 
           
Consolidated Balance Sheets
            
             
   
December 31, 2008
    
December 31, 2007
  
ASSETS
            
Current assets:
            
Cash
   $ 180,578     $ 483,112  
Accounts receivable, (less allowance for doubtful
     5,821,593       5,950,551  
accounts of $39,000 and $312,000 respectively)
                
Inventories, net
     10,504,769       9,700,618  
Net deferred income tax asset
     674,872       1,014,451  
Prepaid expenses and other current assets
     506,225       651,969  
                 
Total current assets
     17,688,037       17,800,701  
                 
Total property, plant and equipment, net
     10,575,982       10,096,155  
                 
Total other assets
     1,724,172       1,427,279  
                 
TOTAL ASSETS
   $ 29,988,191     $ 29,324,135  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
Total current liabilities
     16,222,180       16,483,109  
Total long-term liabilities, less current maturities
     6,018,655       6,237,190  
                 
Minority interest
     12,756       12,534  
                 
Total stockholders' equity
     7,734,600       6,591,302  
                 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
   $ 29,988,191     $ 29,324,135  

 
 
 

CTI Industries Corporation and Subsidiaries
                        
Consolidated Statements of Operations
                        
                         
   
Year ended December 31,
    
Three months ended December 31,
  
   
2008
    
2007
    
2008
    
2007
  
Net sales
   $ 44,980,674     $ 36,509,710     $ 9,832,048     $ 10,299,283  
Cost of sales
     34,658,271       27,825,493       7,496,480       7,879,631  
Gross profit
     10,322,403       8,684,217       2,335,568       2,419,652  
                                 
Operating expenses:
                                
General and administrative
     5,375,526       5,211,470       1,311,912       1,288,897  
Selling
     886,391       753,571       176,195       161,277  
Advertising and marketing
     1,677,900       1,474,289       413,016       461,428  
                                 
Total operating expenses
     7,939,817       7,439,330       1,901,123       1,911,602  
                                 
Income  from operations
     2,382,586       1,244,887       434,445       508,050  
                                 
Other income (expense):
                                
Interest expense
     (1,031,457 )     (1,285,964 )     (232,146 )     (309,637 )
Other
     50,003       173,510       (17,118 )     8,028  
                                 
Total other expense
     (981,454 )     (1,112,454 )     (249,264 )     (301,609 )
                                 
Income before income taxes and minority interest
     1,401,132       132,433       185,181       206,441  
                                 
Income tax expense
     246,779       50,673       64,454       81,726  
                                 
Income before minority interest
     1,154,353       81,760       120,727       124,715  
                                 
Minority interest in loss (income) of subsidiary
     222       (138 )     (18 )     (35 )
                                 
Net income
   $ 1,154,131     $ 81,898     $ 120,745     $ 124,750  
                                 
Income applicable to common shares
   $ 1,154,131     $ 81,898     $ 120,745     $ 124,750  
                                 
Basic income per common share
   $ 0.42     $ 0.03     $ 0.04     $ 0.05  
                                 
Diluted income per common share
   $ 0.40     $ 0.03     $ 0.04     $ 0.05  
                                 
Weighted average number of shares and equivalent shares of common stock outstanding:
                                
Basic
     2,763,017       2,346,126       2,808,720       2,555,580  
                                 
Diluted
     2,898,681       2,589,960       2,843,196       2,648,434