-----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, ARBP0RWfn94UM+qGzmJ8Z61SagoXLDwZRYzQqStn6ZJ+yJB0pZ8zdAWjsjHPnYBl LDGZznXJb4qbUOCF+THORQ== 0001169232-03-004032.txt : 20030528 0001169232-03-004032.hdr.sgml : 20030528 20030528141109 ACCESSION NUMBER: 0001169232-03-004032 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030527 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030528 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: 03721339 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 d55967_8-k.txt CURRENT REPORT U.S. 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 27, 2003 CTI INDUSTRIES CORPORATION (Exact Name of Registrant as Specified in its Charter) Illinois 0-23115 36-2848943 (State or Other (Commission File Number) (IRS Employer Jurisdiction Identification No.) Incorporation) 22160 North Pepper Road, Barrington, IL 60010 (Address of Principal Executive Offices) (Zip Code) (847) 382-1000 (Registrant's Telephone Number, including Area Code) Item No. 7 - Exhibit (c) The following exhibit is attached hereto: Exhibit No. Exhibit 99 Press Release dated May 27, 2003 captioned: "CTI Industries Corporation Reports Financial Results for the First Quarter of 2003" Item No. 12 - Results of Operations and Financial Condition On May 27, 2003, CTI Industries Corporation issued a press release reporting earnings and other financial results for its first quarter ended March 31, 2003. A copy of the Press Release is attached as Exhibit 99. 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: May 28, 2003 By: /s/ Stephen M. Merrick ---------------------------------- Stephen M. Merrick, Executive Vice President and Secretary 3 EX-99 3 d55967_ex99.txt PRESS RELEASE DATED MAY 27, 2003 EXHIBIT 99 NEWS RELEASE FOR FURTHER INFORMATION CONTACT: Stephen M. Merrick Tim Dilsaver Executive Vice President Investor Relations (847) 382-1000 (847) 382-1000 CTI Industries Reports Financial Results For The First Quarter of 2003 FOR IMMEDIATE RELEASE Tuesday, May 27, 2003 BARRINGTON, IL, May 27,2003 -- CTI Industries Corporation (NASDAQ Small Cap - CTIB), a manufacturer and marketer of metalized balloons, latex balloons, novelty items and printed and laminated films, today released financial results for its first quarter ending March 31, 2003. For the quarter, net sales were $10,162,000 an increase of 4.4% over 2002 first quarter revenues of $9,738,000. The Company realized incurred a net loss of $690,000 for the quarter, compared to net income for the first quarter of 2002 of $370,000. The loss per share for the quarter was $0.36, compared to income per share of $0.33 ($0.30 fully diluted) for the first quarter of 2002. "We experienced modest gains in sales during the first quarter. However, our results for the quarter were affected by several factors including (i) reduced margins in sales of foil balloons, including sales to a significant customer and (ii) losses incurred in our Mexico operation arising from the move of operations to a new facility, reduced production and reduced sales during the quarter," said Stephen Merrick, Executive Vice President and Chief Financial Officer. On May 22, 2003, the Company received a notice from the Nasdaq Stock Market that it is not compliant with Nasdaq Marketplace Rules by reason of the failure of the Company to file its Form 10-Q on a timely basis (Rule 4310(c)(14)) and by reason of the failure of the Company to pay certain fees due to Nasdaq (Rule 4310(c)(13)). On May 27, 2003, the Company did file its Report on Form 10-Q with the Securities and Exchange Commission and has made payment of all fees due to Nasdaq. CTI Industries is one of the leading manufacturers and marketers of metalized and latex balloons and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in 30 other countries. This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly competitive market, (ii) the ability of the Company to enter into or maintain contracts or 1 relationships with customers, distributors, licensors and suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company in its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in the Company's most recent filing with the Securities and Exchange Commission on Form 10-K. - FINANCIAL HIGHLIGHTS FOLLOW - 2 CTI Industries Corporation and Subsidiaries Consolidated Balance Sheets
March 31, 2003 December 31, 2002 -------------- ----------------- (unaudited) Assets Current Assets: Cash and cash equivalents $ 718,198 $ 160,493 Accounts receivable, net 6,216,617 5,384,839 Inventories 10,350,737 10,033,593 Other current assets 1,220,631 558,775 ------------ ------------ Total current assets 18,506,183 16,137,700 Property and equipment, net 11,629,560 11,715,013 Other assets 1,666,445 2,419,145 ------------ ------------ Total Assets $ 31,802,188 $ 30,271,858 ============ ============ Liabilities & Stockholders' Equity Total current liabilities $ 22,093,738 $ 19,045,151 Long term debt, less current maturities 3,784,191 5,016,109 Other liabilities 670,807 710,257 Minority interest 23,447 25,865 Stockholders' equity 5,230,005 5,473,676 ------------ ------------ Total Liabilities & Stockholders' Equity $ 31,802,188 $ 30,271,858 ============ ============ Consolidated Statements of Operations Quarter Ended March 31, 2003 2002 (unaudited) (unaudited) ------------ ------------ Net sales $ 10,162,495 $ 9,738,097 Cost of sales 8,225,442 7,183,845 Gross profit on sales 1,937,053 2,554,252 Operating expenses 2,250,261 1,770,399 ------------ ------------ Income from operations (313,208) 783,853 Other income (expense): Interest expense (201,752) (179,990) Other (143,001) 37,568 ------------ ------------ Income (loss) before income taxes and minority interest (657,961) 641,431 ------------ ------------ Income tax expense 34,245 247,293 Income (loss) before minority interest (692,206) 394,138 ------------ ------------ Minority interest in (loss) of subsidiary (2,418) (23,707) Net income (loss) $ (689,788) $ 370,431 ============ ============ Basic income (loss) per common and common equivalent shares $ (0.36) $ 0.33 Diluted income (loss) per common and common equivalent shares $ (0.36) $ 0.30 Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,917,772 1,133,431 Diluted 1,917,772 1,221,351
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