8-K

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): March 22, 2010

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, Lake 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:

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

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

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

¨ 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 March 22, 2010, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three and twelve month periods ended December 31, 2009.  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 “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, or otherwise subject to the liabilities of that section.

Item No. 9.01 – Financial Statements and Exhibits

(c)           Exhibits:

Exhibit No.	Exhibit
99.1*	Press Release dated March 22, 2010, captioned: “CTI Industries Corporation Reports 2009 Results, Including Strong Sales And Profits for the Fourth Quarter and Year End 2009.”

*Filed herewith

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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:	March 24, 2010	By:	/s/ Howard W. Schwan
			Howard W. Schwan, President

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EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick	Catherine E. Lawler
Executive Vice President	Investor Relations
(847) 382-1000	(773) 478-0631

CTI Industries Corporation Reports

2009 Results, Including Strong Sales

And Profits for the Fourth Quarter and Year End 2009

FOR IMMEDIATE RELEASE

March 22, 2010

BARRINGTON, IL, March 22, 2010 — 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 2009, as well as for the three months ended December 31, 2009.

Fourth Quarter Results

Consolidated net sales for the fourth quarter 2009 were $10,738,000 compared to consolidated net sales of $9,832,000 for the fourth quarter of 2008, an increase of 9.2%.  For the quarter, CTI had net income of $296,000, or $0.11 per share (basic and diluted), compared to net income of $121,000, or $0.04 per share (basic and diluted), for the fourth quarter of 2008, an increase of 145%.

Year-End Results

For the year ended December 31, 2009, consolidated net sales totaled $41,295,000, compared to consolidated net sales of $44,981,000 for the year ended December 31, 2008.  For the year, CTI achieved net income of $1,003,000, or $0.36 per share (basic and diluted).  For the year ended December 31, 2008, CTI had a net profit of $1,154,000, representing $0.42 per share (basic) and $0.40 per share (diluted).

Key Factors and Trends

During 2009, CTI experienced a modest decline in revenues of 8.2% compared to 2008 revenues.  However, fourth quarter revenues increased by 9.2% over the same period of 2008, reflecting improved prospects toward the end of the year.  For the year, revenues from the sale of foil balloon products increased by 12.5%, from $17,629,000 in 2008 to $19,824,000 in 2009.  Revenues from the sale of pouch products declined in 2009 to $6,895,000 from $10,893,000 in 2008.  However, 2008 pouch revenues included significant sales in the first half of the year due to the initial purchases arising from the introduction of a vacuumable pouch product line for S.C. Johnson & Son.  In the second half of 2009, revenues from pouch sales were up substantially over the same period of 2008, reflecting CTI’s strong pouch sales in that period.

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Gross margin levels declined modestly in 2009 to 22.3% from 22.9% in 2008.  This decline resulted principally from an increase in sales of certain novelty items that have higher costs in relation to their selling price.

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, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

– FINANCIAL HIGHLIGHTS FOLLOW –

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CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	December 31, 2009		December 31, 2008
ASSETS
Current assets:
Cash	$	870,446	$	180,578
Accounts receivable, (less allowance for doubtful accounts of $57,000 and $39,000 respectively)		7,320,181		5,821,593
Inventories, net		9,643,914		10,504,769
Net deferred income tax asset		706,754		674,872
Prepaid expenses and other current assets		607,127		506,225
Total current assets		19,148,422		17,688,037
Total property, plant and equipment, net		9,533,411		10,575,982
Total other assets		1,713,476		1,724,172
TOTAL ASSETS	$	30,395,309	$	29,988,191
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities		16,734,520		16,222,180
Total long-term liabilities, less current maturities		4,881,568		6,018,655
Total Liabilities		21,616,088		22,240,835
Total CTI Industries Corporation stockholders' equity		8,762,663		7,734,600
Noncontrolling Interest		16,558		12,756
Total Equity		8,779,221		7,747,356
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	30,395,309	$	29,988,191

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CTI Industries Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

	Year ended December 31,						Three months ended December 31,
	2009			2008			2009			2008
Net sales	$	41,295,152		$	44,980,674		$	10,737,583		$	9,832,048
Cost of sales		32,081,779			34,658,271			8,369,364			7,496,480
Gross profit		9,213,373			10,322,403			2,368,219			2,335,568
Operating expenses:
General and administrative		4,539,494			5,375,526			1,151,999			1,311,912
Selling		871,258			886,391			269,438			176,195
Advertising and marketing		1,576,225			1,677,900			363,059			413,016
Total operating expenses		6,986,977			7,939,817			1,784,496			1,901,123
Income  from operations		2,226,396			2,382,586			583,723			434,445
Other (expense) income:
Interest expense		(1,085,107	)		(1,031,457	)		(260,355	)		(232,146	)
Other		(19,956	)		50,003			(13,509	)		(17,118	)
Total other expense		(1,105,063	)		(981,454	)		(273,864	)		(249,264	)
Income before taxes		1,121,333			1,401,132			309,859			185,181
Income tax expense		114,391			246,779			12,604			64,454
Net Income		1,006,942			1,154,353			297,255			120,727
Less: Net income (loss) attributable to noncontrolling interest		3,802			222			779			(18	)
Net income attributable to CTI Industries Corporation	$	1,003,140		$	1,154,131		$	296,476		$	120,745
Income applicable to common shares	$	1,003,140		$	1,154,131		$	296,476		$	120,745
Basic income per common share	$	0.36		$	0.42		$	0.11		$	0.04
Diluted income per common share	$	0.36		$	0.40		$	0.11		$	0.04
Weighted average number of shares and
equivalent shares of common stock outstanding:
Basic		2,765,277			2,763,017			2,738,063			2,808,720
Diluted		2,775,062			2,898,681			2,757,058			2,843,196

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