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): April 30, 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:

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 April 30, 2010, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three-month period ended March 31, 2010.  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 April 30, 2010, captioned: “CTI Industries Corporation First Quarter 2010 Financial Results.”

*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:   May 3, 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

First Quarter 2010 Financial Results

CTI Reports Substantial Increases in

Sales and Profits

FOR IMMEDIATE RELEASE

Friday, April 30, 2010

BARRINGTON, IL, April 30, 2010 -- CTI Industries Corporation (CTIB; NASDAQ Capital Market), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the first quarter of 2010.

Consolidated net sales for the first quarter of 2010 were $12,411,000 compared to consolidated net sales of $9,603,000 for the first quarter of 2009, representing an increase of over 29%.  The Company earned net income of $599,000 or $0.22 per share (basic) and $0.21 per share (diluted) for the first quarter of 2010 which is more than six times net income of $93,000 or $0.03 per share (basic and diluted) for the first quarter of 2009.

The Company will host a conference call to discuss first quarter results with investors.  The conference call will be held on April 30, 2010 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).  The dial-in telephone number for the call is 800-829-2707.  The participant passcode is 5469991.  A replay of the call will be available from April 30, 2010 through May 30, 2010 by dialing 888-203-1112.  The replay passcode is 5469991.

Key Factors and Trends

First quarter 2010 results reflected strong sales in both the novelty balloon and pouch product lines.

Sales of pouch products were up 208% from $986,000 in the first quarter 2009 to $3,041,000 in the first quarter of 2010.  Most of this increase was a reflection of strong continuing sales of zippered vacuumable pouches to a principal customer.  Sales of CTI’s proprietary ZipVac™ line of vacuumable pouches also increased.

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Novelty product revenues were up 18.6%, from $6,580,000 in the first quarter of 2009 to $7,804,000 in the first quarter of 2010.  Sales of laminated films showed a modest decline from $1,876,000 in the first quarter of 2009 to $1,367,000 in the first quarter of 2010.

Gross margins increased to 24.5% in the first quarter of 2010 compared to 21.5% for the first quarter of 2009.  This increase is the result of (i) increased production and sales volume during the first quarter of 2010 resulting in lower unit cost than in the same period of 2009 and (ii) a change in the mix of products sold to certain novelty and pouch products having a higher margin.

Bank Financing

On April 29, 2010, the Company entered into a Credit Agreement with Harris N.A. (the “Bank”) under which the Bank agreed to extend to the Company a credit facility in the aggregate amount of $14,417,000.  The facility includes a Revolving Credit of up to $9,000,000, an Equipment Loan of up to $2,500,000, a Mortgage Loan of $2,333,350 and a Term Loan of $583,333.  The maturity date on the loans is April 29, 2013.  Closing of the Agreement and the loan transactions provided for in the Agreement is anticipated to be concluded on April 30, 2010.  Proceeds of the loans will be utilized for the repayment of all outstanding loan and capital lease obligations of the Company to RBS Citizens N.A. and RBS Asset Finance in the aggregate amount of approximately $11,000,000, and for working capital purposes and for the purchase of capital equipment.  

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 –

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CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	March 31, 2010		December 31, 2009
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents	$	678,517	$	870,446
Accounts receivable, net		8,694,793		7,320,181
Inventories, net		10,124,880		9,643,914
Other current assets		1,304,642		1,313,881
Total current assets		20,802,832		19,148,422
Property, plant and equipment, net		9,231,630		9,533,411
Other assets		1,790,315		1,713,476
Total Assets	$	31,824,777	$	30,395,309
Liabilities & Equity
Total current liabilities	$	18,414,732	$	16,734,520
Long term debt, less current maturities		3,641,674		4,881,568
Stockholders' equity		9,711,245		8,762,663
Noncontrolling interest		57,126		16,558
Total Liabilities & Equity	$	31,824,777	$	30,395,309

Consolidated Statements of Operations

	Three Months Ended March 31
	2010			2009
	(Unaudited)			(Unaudited)
Net sales	$	12,410,766		$	9,603,422
Cost of sales		9,366,194			7,536,919
Gross profit		3,044,572			2,066,503
Operating expenses		2,084,516			1,604,755
Income from operations.		960,056			461,748
Other Expense:
Net Interest expense		(244,073	)		(295,551	)
Other		(13,223	)		(21,598	)
Income before taxes		702,760			144,599
Income tax expense		116,359			50,158
Net Income		586,401			94,441
Less: Net income (loss) attributable to noncontrolling interest		(12,443	)		1,234
Net income attributable to CTI Industries Corporation	$	598,844		$	93,207
Income applicable to common shares	$	598,844		$	93,207
Basic income per common share	$	0.22		$	0.03
Diluted income per common share	$	0.21		$	0.03
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		2,769,002			2,808,720
Diluted		2,793,863			2,825,482

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