-----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, NPlN4H4g60AKgh7KuzK8SrypG1EpVKNaWV+33fXpj6HhMCIzMLcFlfkpI571EufT qL3EpXQ+eYGaELUiHstG9Q== 0001144204-10-041220.txt : 20100804 0001144204-10-041220.hdr.sgml : 20100804 20100804163632 ACCESSION NUMBER: 0001144204-10-041220 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100804 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100804 DATE AS OF CHANGE: 20100804 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: 10991505 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 v192415_8k.htm Unassociated Document
 
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): August 4, 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 August 4, 2010, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three and six month periods ended June 30, 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 August 4, 2010, captioned: “CTI Industries Corporation Second Quarter 2010 Financial Results.”

*Filed herewith
 
 
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:   August 4, 2010
By:
/s/ Howard W. Schwan   
    Howard W. Schwan, President   
       
 
 
3
 
 EX-99.1 2 v192415_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
(773) 478-0631


CTI Industries Corporation Reports
Second Quarter 2010 Financial Results

FOR IMMEDIATE RELEASE
Wednesday, August 4, 2010

LAKE BARRINGTON, IL, August 4, 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 second quarter of 2010 and for the six month period ended June 30, 2010.

Consolidated net sales for the second quarter of 2010 were $12,964,000 compared to consolidated net sales of $10,779,000 for the second quarter of 2009, an increase of 20.3%.  The Company earned net income of $607,000 or $0.21 per share (basic) and $0.20 per share (diluted) for the second quarter of 2010 compared to net income of $409,000 or $0.15 per share (basic and diluted) for the second quarter of 2009.

For the six month period ended June 30, 2010, consolidated net sales were $25,375,000 compared to $20,382,000 for the same period in 2009, an increase of 24.5%.  For this six month period in 2010, net income was $1,206,000 or $0.43 per share (basic) and $0.42 per share (diluted) compared to net income of $502,000, or $0.18 per share (basic and diluted) for the same period of 2009.

Key Factors and Trends

Net sales of foil balloons increased by 9.0% in the second quarter compared to the same period of 2009, from $5,747,000 to $6,262,000.  Net sales of foil balloons increased by 12.8% from $10,786,000 in the six months ended June 30, 2009 to $12,167,000 for the same period of 2010.

For the second quarter of 2010, net sales of pouch products were up 41.1% from the second quarter of 2009, from $1,577,000 in the second quarter of 2009 to $2,225,000 in the second quarter of 2010.  For the six months ended June 30, 2010, pouch sales were $5,266,000 compared to $2,562,000 for the same period of 2009, an increase of 105.5%.  The increase reflected increased sales to a major customer as well as increases in the Company’s proprietary ZipVac line.
 
1

During the second quarter of 2010, sales of latex balloon products increased by 40.2% to $2,318,000 from sales of $1,653,000 in the second quarter of 2009.  For the six months ended June 30, 2010, sales of latex balloons were $4,145,000 compared to sales of $3,196,000 in the same period of 2009, an increase of 29.7%.

Operating expenses were up modestly in both the second quarter of 2010 and the six months ended June 30, 2010 over the same periods in the prior year.  However, as a percentage of revenues, operating expenses decline from 17.3% of sales in the six months ended June 30, 2009 to 16.0% of sales for the same period in 2010.

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 –

2
 
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
 
   
June 30,
2010
    
December 31,
2009
  
             
Assets
  
(Unaudited)
        
Current Assets:
            
Cash and cash equivalents
   $ 1,329,417     $ 870,446  
Accounts receivable, net
     8,032,601       7,320,181  
Inventories, net
     9,419,187       9,643,914  
Other current assets
     1,309,953       1,313,881  
Total current assets
     20,091,158       19,148,422  
                 
Property, plant and equipment, net
     8,992,452       9,533,411  
Other assets
     1,848,147       1,713,476  
                 
Total Assets
   $ 30,931,757     $ 30,395,309  
                 
Liabilities & Equity
                
Total current liabilities
   $ 16,553,684     $ 16,734,520  
Long term debt, less current maturities
     3,224,536       4,881,568  
Stockholders' equity
     11,110,339       8,762,663  
Noncontrolling interest
     43,198       16,558  
                 
Total Liabilities & Equity
   $ 30,931,757     $ 30,395,309  
 
 
Condensed Consolidated Statements of Operations
 
   
Three Months Ended June 30
    
Six Months Ended June 30
  
   
2010
    
2009
    
2010
    
2009
  
   
(Unaudited)
    
(Unaudited)
    
(Unaudited)
    
(Unaudited)
  
                         
Net sales
   $ 12,964,203     $ 10,778,903     $ 25,374,969     $ 20,382,324  
Cost of sales
     10,091,153       8,178,204       19,457,347       15,715,122  
                                 
Gross profit
     2,873,050       2,600,699       5,917,622       4,667,202  
                                 
Operating expenses
     1,983,390       1,925,768       4,067,906       3,530,523  
                                 
Income from operations.
     889,660       674,931       1,849,716       1,136,679  
                                 
Other (expense) income:
                                
Net Interest expense
     (296,395 )     (272,566 )     (540,468 )     (568,117 )
Other
     (21,463 )     2,599       (34,687 )     (18,998 )
                                 
Income before income taxes and noncontrolling interest
     571,802       404,964       1,274,561       549,564  
                                 
Income tax (benefit) expense
     (21,036 )     (4,037 )     95,324       46,121  
                                 
Net Income
     592,838       409,001       1,179,237       503,443  
                                 
Less: Net (loss) income attributable to noncontrolling interest
     (13,929 )     263       (26,373 )     1,497  
                                 
Net income attributable to CTI Industries Corporation
   $ 606,767     $ 408,738     $ 1,205,610     $ 501,946  
                                 
Income applicable to common shares
   $ 606,767     $ 408,738     $ 1,205,610     $ 501,946  
                                 
Basic income per common share
   $ 0.21     $ 0.15     $ 0.43     $ 0.18  
                                 
Diluted income per common share
   $ 0.20     $ 0.15     $ 0.42     $ 0.18  
                                 
Weighted average number of shares and equivalent shares of common stock outstanding:
                                
Basic
     2,898,811       2,775,902       2,834,265       2,792,220  
                                 
Diluted
     2,959,952       2,776,797       2,877,102       2,797,256  
 
3
 -----END PRIVACY-ENHANCED MESSAGE-----