EX-99 3 d56762_ex99.txt PRESS RELEASE 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 Corporation Releases Financial Results for The Second Quarter and Six Months Ended June 30, 2003 FOR IMMEDIATE RELEASE Tuesday, August 19, 2003 BARRINGTON, IL, August 19, 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 second quarter and for the six months ending June 30, 2003. For the quarter, net sales were $8,661,939, compared to net sales for the second quarter of 2002 of $10,905,748. Net income for the quarter was $133,178, compared to net income of $133,527 for the second quarter of 2002 (as restated). Basic earnings per share for the quarter were $0.07, compared to basic earnings per share of $0.11 for the second quarter of 2002. On a fully diluted basis, earnings per share for the second quarter of 2003 were $0.06, compared to $0.09 for the second quarter of 2002 (as restated). For the six month period ending June 30, 2003, net revenues were $18,824,434, compared to net revenues for the same period in 2002 (as restated) of $20,643,846. For the six month period, the Company incurred a net loss of ($556,611) compared to net income for the same period of 2002 in the amount of $503,958 (as restated). For the six month period, basic loss per share was ($0.29), compared to basic income per share of $0.42 for the first six months of 2002. On a fully diluted basis, the loss per share for the six month period was ($0.29) compared to earnings per share for the six month period ended June 30, 2002 of $0.38. "During the fourth quarter of 2002 and the first quarter of 2003, we incurred higher production and production overhead costs than previously for a variety of reasons including (i) installation and implementation of significant new equipment, (ii) development of new customers and projects and (iii) the need to respond to high demand from our customers. These increased costs impacted our profitability during those periods. Our earnings results improved in the second quarter of 2003, over the results in those two prior quarters, as the result of efforts to control costs, including production overhead costs as well as administrative, selling and marketing costs," reported Howard Schwan, President. CTI Industries is one of the leading manufacturers and marketers of metallized 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 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 -- CTI INDUSTRIES CORPORATION SUMMARY FINANCIAL INFORMATION Quarter Ended June 30, 2003 and 2002 Six months ended June 30, 2003 and 2002
Consolidated Balance Sheets June 30, December 31, 2003 2002 ------------------------------- Assets Current Assets: Cash and cash equivalents $ 187,249 $ 160,493 Accounts receivable, net 4,730,045 5,384,839 Inventories 10,196,054 10,033,593 Other current assets 1,175,995 558,775 ------------------------------- Total current assets 16,289,343 16,137,700 Property and equipment, net 12,391,671 11,715,013 Other assets 1,785,119 2,419,145 ------------------------------- Total Assets $ 30,466,133 $ 30,271,858 Liabilities & Stockholders' Equity Total current liabilities $ 18,641,747 $ 19,045,951 Long term debt, less current maturities 5,267,523 5,016,109 Other liabilities 971,449 710,257 Minority interest 9,425 25,865 Stockholders' equity 5,575,988 5,473,676 ------------------------------- Total Liabilities & Stockholders' Equity $ 30,466,133 $ 30,271,858 =============================== Consolidated Statements of Operations Quarter Ended June 30 Six months ended June 30 2003 2002 2003 2002 (as restated) (as restated) ------------------------------- ------------------------------- Net sales $ 8,661,939 $ 10,905,748 $ 18,824,434 $ 20,643,846 Cost of sales 6,755,910 8,299,517 14,981,352 15,483,362 ------------------------------- ------------------------------- Gross profit on sales 1,906,029 2,606,231 3,843,082 5,160,484 Operating expenses 1,928,759 2,003,056 4,090,402 3,773,455 ------------------------------- ------------------------------- Income from operations (22,730) 603,175 (247,320) 1,387,029 Other income (expense): Interest expense (273,691) (204,254) (475,443) (384,244) Other 302,025 (244,341) 70,406 (206,772) ------------------------------- ------------------------------- Income (loss) before income taxes and minority 5,604 154,581 (652,357) 793,013 interest Income tax expense (129,670) 50,917 (95,425) 298,210 ------------------------------- ------------------------------- Income (loss) before minority interest 135,275 103,664 (556,932) 497,803 Minority interest in (loss) of subsidiary 2,097 (29,863) (321) (6,155) ------------------------------- ------------------------------- Net income (loss) $ 133,178 $ 133,527 $ (556,611) $ 503,958 =============================== =============================== Income (loss) applicable to common shares $ 133,178 $ 133,527 $ (556,611) $ 503,958 Basic income (loss) per common and common equivalent shares $ 0.07 $ 0.11 $ (0.29) $ 0.42 =============================== =============================== Diluted income (loss) per common and common equivalent shares $ 0.06 $ 0.09 $ (0.29) $ 0.38 =============================== =============================== Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,918,420 1,263,763 1,918,098 1,198,597 =============================== =============================== Diluted 2,139,754 1,479,644 1,918,098 1,332,610 =============================== ===============================