-----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, Cvh3x2C1ciAdQZskXenNmr82sxJk3y/+TE+JcQHc3iYkpC/1v+JXlGD9u6QmgzkX qTCj3S96R1quqIuHOLMoUw== 0001169232-03-006779.txt : 20031120 0001169232-03-006779.hdr.sgml : 20031120 20031120114956 ACCESSION NUMBER: 0001169232-03-006779 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031119 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031120 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: 031014739 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 d57570_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): November 19, 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 November 19, 2003 captioned: "CTI Industries Corporation Releases Financial Results for the Third Quarter and Nine Months Ended September 30, 2003." Item No. 12 - Results of Operations and Financial Condition On November 19, 2003, CTI Industries Corporation issued a press release reporting earnings and other financial results for its third quarter ended September 30, 2003. A copy of the Press Release is attached as Exhibit 99. 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: November 20, 2003 By: /s/ Stephen M. Merrick ---------------------------------- Stephen M. Merrick, Executive Vice President and Secretary EX-99 3 d57570_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 Third Quarter and Nine Months Ended September 30, 2003 FOR IMMEDIATE RELEASE Wednesday, November 19, 2003 BARRINGTON, IL, November 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 third quarter and for the nine months ending September 30, 2003. For the quarter, net sales were $8,429,000, compared to net sales for the third quarter of 2002 of $10,873,000. Net income for the quarter was $129,000, compared to net income of $387,000 for the third quarter of 2002 (as restated). Basic earnings per share for the quarter were $0.07, compared to basic earnings per share of $0.25 for the third quarter of 2002. On a fully diluted basis, earnings per share for the third quarter of 2003 were $0.06, compared to $0.22 for the third quarter of 2002 (as restated). For the nine month period ending September 30, 2003, net revenues were $27,253,000, compared to net revenues for the same period in 2002 (as restated) of $31,517,000. For the nine month period ending September 30, 2003, the Company incurred a net loss of ($428,000), compared to net income for the same period of 2002 in the amount of $886,000 (as restated). For the nine month period ending September 30, 2003, basic loss per share was ($0.22), compared to basic income per share of $0.68 for the first nine months of 2002. On a fully diluted basis, the loss per share for the nine month period was ($0.22) compared to earnings per share for the nine month period ended September 30, 2002 of $0.60. "We have experienced some reduction in revenues during the third quarter and the nine months ended September 30, 2003, compared to the same period of 2002, due principally to a reduction in sales to three principal customers, one for a completed film product, one for a laminated film product and a third for foil balloons," reported Stephen Merrick, Chief Financial Officer. "All three remain customers of the Company," he said. "During the fourth quarter of 2002 and the first quarter of 2003, we experienced production and production overhead expenses higher than previously due to the costs of acquiring and installing new equipment, developing new customers and projects and responding to peak demands of customers, resulting in losses during those quarters." reported Howard Schwan, President. "Over the past two quarters, we have worked to control these costs, as well as administrative, selling and marketing costs, with the result that our operating results have improved during the second and third quarters of this year," he said. " Our plan and goal is to tailor our costs to the revenue levels we now have in order to achieve consistent profitability in our operations." CTI Industries is one of the leading manufacturers and marketers of metallized and latex balloons and produces laminated and printed films and film products for packaging, storage and other consumer and 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 and Subsidiaries Summary Financial Information Quarter ended September, 2003 and 2002 (Unaudited)
Assets September 30, 2003 December 31, 2002 ------------------ ----------------- Current Assets: Cash and cash equivalents $ 190,783 $ 160,493 Accounts receivable, net 4,962,966 5,384,839 Inventories 10,042,058 10,033,593 Other current assets 1,193,111 558,775 ------------------------------------- Total current assets 16,388,918 16,137,700 Property and equipment, net 12,230,632 11,715,013 Other assets 2,201,283 2,419,145 ------------------------------------- Total Assets $ 30,820,832 $ 30,271,858 ===================================== Liabilities & Stockholders' Equity Total current liabilities $ 19,357,491 $ 19,045,151 Long term debt, less current maturities 4,912,492 5,016,109 Other liabilities 1,070,589 710,257 Minority interest 10,046 25,865 Stockholders' equity 5,470,214 5,474,476 ------------------------------------- Total Liabilities & Stockholders' Equity $ 30,820,832 $ 30,271,858 ===================================== Consolidated Statements of Operations (Unaudited) Quarter Ended September 2003 2002 ------------------------------------- Net sales $ 8,428,784 $ 10,873,147 Cost of sales 6,653,397 8,187,960 ------------------------------------- Gross profit on sales 1,775,387 2,685,187 Operating expenses 1,553,795 2,035,576 ------------------------------------- Income from operations 221,592 649,611 Other income (expense): Interest expense (301,323) (220,446) Other (17,249) (14,388) ------------------------------------- (Loss) income before income taxes and minority interest (96,981) 414,779 Income tax (benefit) expense (226,341) 26,639 ------------------------------------- Income before minority interest 129,361 388,138 Minority interest in income (loss) of subsidiary 621 1,180 ------------------------------------- Net income $ 128,740 $ 386,958 ===================================== Income applicable to common shares $ 128,740 $ 386,958 ===================================== Basic income per common and common equivalent shares $ 0.07 $ 0.25 ===================================== Diluted income per common and common equivalent shares $ 0.06 $ 0.22 ===================================== Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,918,206 1,557,010 ===================================== Diluted 1,996,734 1,742,259 =====================================
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