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): May 13, 2013

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 May 13, 2013, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three month period ended March 31, 2013. 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 May 13, 2013, captioned: “CTI Industries Corporation Reports First Quarter 2013 Financial Results and Major Roll-Out of Vacuum Sealing Product Line.”

*Filed herewith

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 14, 2013	By:	/s/ Stephen M. Merrick
		Stephen M. Merrick, President

EX-99.1

Exhibit 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:

Stephen M. Merrick
President	Investor Relations
(847) 382-1000	(847) 620-1330

CTI Industries Corporation Reports

First Quarter 2013 Financial Results

and

Major Roll-Out of Vacuum Sealing

Product Line

FOR IMMEDIATE RELEASE

Monday, May 13, 2013

LAKE BARRINGTON, IL, May 13, 2013 -- CTI Industries Corporation (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 2013 and also announced that, in April 2013, the Company commenced a major roll-out of its vacuum sealer product line.

Product Roll-Out

The Company announced that in late March 2013, the Company received orders for a significant placement of its branded vacuum sealing product line. The roll-out of this placement commenced in early April. As of March 31, 2013, the Company’s branded line of vacuum sealing machines, pouches and rolls was being offered for sale in approximately 2,700 retail outlets. John Schwan, Chief Executive Officer of the Company, stated that: “We expect that our branded vacuum sealing line of sealing machines, pouches and rolls will be offered in approximately 6,000 retail outlets, including several major chains, by mid-year.”

First Quarter Results

Consolidated net sales for the first quarter of 2013 were $13,345,000 compared to consolidated net sales of $13,807,000 for the first quarter of 2012. The Company earned net income of $130,000 or $0.04 per share (basic and diluted) for the first quarter of 2013 compared to net income of $389,000 or $0.12 per share (basic and diluted) for the first quarter of 2012.

“Sales for the first quarter 2013 were essentially even with sales for the first quarter last year, which was one of our strongest quarters ever” said Stephen Merrick, President and Chief Financial Officer. “We achieved these strong sales results even though our major roll-out of the vacuum sealing product line did not commence until the second quarter. While sales and margins were good in the first quarter, our bottom line was affected by (i) continued expenses related to the development and introduction of the vacuum sealing product line and (ii) a significant increase in interest expense.”

Key Factors and Trends

Revenues from the sale of our vacuum sealing line increased by 19% from $1,033,000 in the first quarter last year to $1,231,000 in the first quarter this year, and did not include revenues from the major roll-out which commenced in April.

Gross margins remained positive at 22.3% compared to a rate of 22.4% in the first quarter 2012.

Revenues from the sale of latex balloons increased by 8.6% from $2,754,000 in the first quarter 2012 to $2,992,000 in the first quarter 2013.

Foil balloon revenues for the first quarter this year were $6,782,000 compared to $6,951,000 for the first quarter 2012.

Sales of laminated film products declined from $1,661,000 in the first quarter 2012 to $1,188,000 in the first quarter this year.

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 –

CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
	March 31, 2013			*December 31, 2012
Assets	(Unaudited)
Current Assets:
Cash and cash equivalents (VIE $23,000 and $22,000, respectively)	$	447,932		$	351,064
Accounts receivable, net		8,398,764			7,773,332
Inventories, net		15,823,912			15,813,276
Other current assets (VIE $114,000 and $108,000, respectively)		2,967,197			3,192,082
Total current assets		27,637,805			27,129,754
Property, plant and equipment, net		8,593,797			8,699,070
Other assets		1,909,996			1,918,319
Total Assets	$	38,141,598		$	37,747,143
Liabilities & Equity
Total current liabilities (VIE $140,000 and $198,000, respectively)	$	16,090,896		$	16,963,447
Long term debt, less current maturities		9,841,504			8,701,650
CTI Industries Corporation stockholders' equity		12,379,290			12,242,738
Noncontrolling interest		(170,092	)		(160,692	)
Total Liabilities & Equity	$	38,141,598		$	37,747,143
Condensed Consolidated Statements of Operations
		Three Months Ended March 31
		2013			2012
		(Unaudited)			(Unaudited)
Net sales	$	13,344,766		$	13,807,144
Cost of sales		10,370,749			10,712,073
Gross profit		2,974,017			3,095,071
Operating expenses		2,443,866			2,252,308
Income from operations.		530,151			842,763
Other (expense) income:
Net Interest expense		(467,975	)		(180,987	)
Other		144,524			2,225
Income before income taxes		206,700			664,001
Income tax expense		85,768			254,931
Net Income		120,932			409,070
Less: Net (loss) income attributable to noncontrolling interest		(9,400	)		20,442
Net income attributable to CTI Industries Corporation	$	130,332		$	388,628
Income applicable to common shares	$	130,332		$	388,628
Other Comprehensive Income
Foreign currency adjustment		(30,400	)		158,176
Comprehensive income	$	99,932		$	546,804
Basic income per common share	$	0.04		$	0.12
Diluted income per common share	$	0.04		$	0.12
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic		3,248,646			3,204,506
Diluted		3,415,911			3,244,976
*The condensed consolidated financial statements do not include all required disclosures, refer to the Form 10K for omitted disclosures.