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 26, 2015

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 26, 2015, CTI Industries Corporation issued a press release reporting earnings and other financial results for its three and twelve month periods ended December 31, 2014. 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 26, 2015, captioned: “CTI Industries Corporation Reports Results for Full Year and Fourth Quarter 2014.”

*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: March 26, 2015	By:	/s/ Stephen M. Merrick
		Stephen M. Merrick, President

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated March 26, 2015, captioned: “CTI Industries Corporation Reports Results for Full Year and Fourth Quarter 2014.”

EX-99.1

EXHIBIT 99.1

NEWS RELEASE

CTI Industries Corporation Reports

Results for Full Year and Fourth Quarter 2014

Record Sales; Profits Jump 37%

FOR IMMEDIATE RELEASE

March 26, 2015

LAKE BARRINGTON, IL, Thursday, March 26, 2015 -- CTI Industries Corporation (NASDAQ Capital Market), a manufacturer and marketer of novelty balloons, flexible packaging and storage products and printed and laminated films, today announced its full-year results of operations for 2014, as well as for the three months ended December 31, 2014.

· Record Sales at almost $58 million.

· Profits Jump 37% to $0.15 per share

· Fourth Quarter Profit Up 471%

· Gross Margins Up From 22.5% to 24.6%

Year-End Results

For the year ended December 31, 2014, consolidated net sales totaled $57,828,000, compared to consolidated net sales of $56,059,000 for the year ended December 31, 2013, an increase of 3.2%. Sales for 2014 were at an all-time record high for CTI. For the year, CTI achieved net income of $514,000 or $0.16 per share (basic) and $0.15 (diluted), compared to $376,000 or $0.12 per share (basic) and $0.11 (diluted) in 2013, an increase of over 36%.

Fourth Quarter Results

Consolidated net sales for the fourth quarter of 2014 were $15,180,000 compared to consolidated net sales of $15,200,000 for the fourth quarter of 2013. For the fourth quarter of 2014, CTI had net income of $382,000, $0.12 per share (basic) and $0.11 per share (diluted), compared to net income of $67,000 for the fourth quarter of 2013, $0.02 per share (basic and diluted).

Key Factors and Trends

In 2014, net sales rose to the highest level in CTI’s 39 year history, to almost $58 million as sales in both the vacuum sealer system and novelty lines continued to expand.

Net income increased both for the Year and the Fourth Quarter as margins increased and interest expense declined.

Gross margin levels increased from 22.5% in 2013 to 24.6% in 2014. This increase resulted from a decrease in our raw materials costs and increased sales of higher margin products.

About CTI: CTI Industries Corporation is one of the leading manufacturers and marketers of foil and latex balloons, develops, produces and markets vacuum sealing systems for household use and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in a number of other countries.

Statements made in this release that are not historical facts are “forward-looking” statements (within the meaning of Section 21E of the Securities Exchange Act of 1934) 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. We have based these forward-looking statements on our current expectations and projections about future results. Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from statements made herein. 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.

CONTACT:

Investor Relations

Stanley Brown, 847-620-1330

sbrown@ctiindustries.com

– FINANCIAL HIGHLIGHTS FOLLOW –

CTI Industries Corporation and Subsidiaries

Condensed Consolidated Balance Sheets      

	December 31, 2014			December 31, 2013
ASSETS
Current assets:
Cash and cash equivalents (VIE $14,000 and $54,000, respectively)	$	150,332		$	666,616
Accounts receivable, (less allowance for doubtful
accounts of $230,000 and $217,000 respectively)		11,286,797			8,883,106
Inventories, net (VIE $699,000 and $390,000, respectively)		17,755,300			15,428,413
Net deferred income tax asset		718,694			931,245
Prepaid expenses and other current assets (VIE $68,000 and $79,000, respectively)		2,562,803			2,261,298
Total current assets		32,473,926			28,170,678
Total property, plant and equipment, net (VIE $557,000 and $670,000, respectively)		7,755,527			8,681,771
Total other assets (VIE $440,000 and $440,000, respectively)		2,817,457			2,219,051
TOTAL ASSETS	$	43,046,910		$	39,071,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities  (VIE $742,000 and $493,000, respectively)	$	20,929,377		$	16,432,989
Total long-term liabilities, less current maturities (VIE $322,000 and $441,000, respectively)		9,310,164			9,874,386
Total Liabilities		30,239,541			26,307,375
Total CTI Industries Corporation stockholders' equity		12,880,171			12,655,890
Noncontrolling Interest		(72,802	)		108,235
Total Equity		12,807,369			12,764,125
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	43,046,910		$	39,071,500

CTI Industries Corporation and Subsidiaries

Condensed Consolidated Statements of Operations                

	Year ended December 31,						Three months ended December 31,
	2014			2013			2014			2013
Net sales	$	57,828,200		$	56,059,477		$	15,179,684		$	15,200,470
Cost of sales		43,623,666			43,446,618			11,243,139			11,341,234
Gross profit		14,204,534			12,612,859			3,936,545	#		3,859,236
Operating expenses:
General and administrative		7,231,243			6,564,355			1,732,408			2,002,032
Selling		3,041,937			2,224,551			708,414			775,654
Advertising and marketing		2,322,172			1,733,609			675,777			478,271
Total operating expenses		12,595,352			10,522,515			3,116,599			3,255,957
Income from operations		1,609,182			2,090,344			819,946			603,279
Other (expense) income:
Interest expense, net		(1,109,301	)		(1,439,712	)		(367,151	)		(467,662	)
Other		39,367			27,232			33,800			12,889
Total other expense		(1,069,934	)		(1,412,480	)		(333,351	)		(454,773	)
Income before income taxes and noncontrolling interest		539,248			677,864			486,595			148,507
Income tax expense		189,967			269,836			153,668			46,074
Net income		349,281			408,028			332,927			102,432
Less: Net (loss) income attributable to noncontrolling interest		(165,037	)		32,519			(48,940	)		35,601
Net income attributable to CTI Industries Corporation	$	514,318		$	375,509		$	381,867		$	66,831
Income applicable to common shares	$	514,318		$	375,509		$	381,867		$	66,831
Other Comprehensive (Loss) Income
Foreign currency adjustment		(647,711	)		(81,919	)		(95,697	)		(201,813	)
Comprehensive (loss) income attributable to CTI Industries Corporation	$	(133,393	)	$	293,590		$	286,170		$	(134,982	)
Basic income per common share	$	0.16		$	0.12		$	0.12		$	0.02
Diluted income per common share	$	0.15		$	0.11		$	0.11		$	0.02
Weighted average number of shares and
equivalent shares of common stock outstanding:
Basic		3,288,332			3,248,646			3,301,116			3,248,646
Diluted		3,439,427			3,404,804			3,448,406			3,407,288