EX-99 3 d59285_ex99.txt PRESS RELEASE EXHIBIT 99 CTI INDUSTRIES CORPORATION 22160 N. Pepper Road Barrington, Illinois 60010 847-382-1000 FOR IMMEDIATE RELEASE April 15, 2004 For More Information Contact: Tim Dilsaver Stephen M. Merrick Investor Relations Executive Vice President 847-382-1000 847-382-1000 CTI Industries Corporation Reports 2003 Financial Results CTI Industries Corporation (Nasdaq: CTIB), a leading provider of metalized balloons, latex balloons, novelty items and printed and laminated films, announces its financial results for the year ended December 31, 2003 and for the fourth quarter of 2003. Year End Results. For the year ended December 31, 2003, consolidated revenues totaled $36,259,638 compared to consolidated revenues of $41,236,476 for the year ended December 31, 2002, a decline of 12%. For the year, the Company incurred a net loss of ($566,047), or $(0.30) per share (basic and diluted), compared to net income of $302,512, or $0.18 per share ($.016 per share diluted). Fourth Quarter Results Consolidated revenues for the fourth quarter of 2003 totaled $9,006,420 compared to consolidated revenues of $9,719,483 for the fourth quarter of 2002, a decrease of 7.3%. The Company had a net loss for the fourth quarter of 2003 of ($138,177) compared to a net loss of ($588,403) for the fourth quarter of 2002. "Our decline in profitability during 2003 compared to 2002 was the result principally of a decline in margins, particularly with respect to foil balloons," reported Stephen Merrick, Executive Vice President and Chief Financial Officer. "The pressure on margins occurred both due to price competition and increases in production costs," he said. "Our goals for 2004 include improving margins by controlling and reducing production costs and expanding our revenues in higher margin products." 4 "We invested in new production equipment which was installed and set-up during the fourth quarter of 2002 and the first quarter of 2003. The costs related to this installation and set-up, which were not capitalized, affected our results in the first quarter of 2003," stated Howard Schwan, President. "Our financial condition, in terms of working capital, improved from 2002 to 2003. As of December 31, 2002, our working capital was a negative ($2,907,000). At December 31, 2003, working capital had improved to a negative ($706,000). We anticipate further improvement in our working capital during 2004," Mr. Merrick reported. About CTI CTI is one of the leading producers and marketers of balloon products, both foil (metalized) and latex, and distributes these products throughout the United States and in over 30 countries. It also develops, produces, prints and processes a variety of film products for commercial applications including packaging and flexible containers. 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 any results or events projected or implied 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 CTI 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 is its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in CTI's most recent filings with the Securities and Exchange Commission on Forms 10-K and 10-Q. -- FINANCIAL HIGHLIGHTS FOLLOW -- 5 CTI Industries Corporation and Subsidiaries Summary Financial Information Year and Quarter ended December 31, 2003 and 2002
December 31, 2003 December 31, 2002 Assets Current Assets: Cash and cash equivalents $ 329,742 $ 160,493 Accounts receivable, net 4,620,726 5,384,839 Inventories 9,263,160 10,033,593 Other current assets 859,185 558,775 ------------------------------ Total current assets 15,434,564 16,137,700 Property and equipment, net 12,207,245 11,715,013 Other assets 2,629,969 2,419,145 ------------------------------ Total Assets $ 30,270,182 $ 30,271,858 ============================== Liabilities & Stockholders' Equity Total current liabilities $ 16,140,080 $ 19,045,151 Long term debt, less current maturities 7,830,217 5,016,109 Other liabilities 1,079,041 710,257 Minority interest 9,263 25,865 Stockholders' equity 5,211,581 5,474,476 ------------------------------ Total Liabilities & Stockholders' Equity $ 30,270,182 $ 30,271,858 ==============================
Consolidated Statements of Operations
Year Ended December 31 Quarter Ended December 31 2003 2002 2003 2002 ------------------------------------------------------------------ Net sales $ 36,259,638 $ 41,236,476 $ 9,006,420 $ 9,719,483 Cost of sales 29,626,450 32,344,115 7,991,701 8,672,793 ------------------------------------------------------------------ Gross profit on sales 6,633,188 8,892,361 1,014,719 1,046,690 Operating expenses 7,312,410 7,447,421 1,666,213 1,956,904 ------------------------------------------------------------------ Income from operations (679,222) 1,444,940 (653,493) (910,214) Other income (expense): Interest expense (1,103395) (831,600) (326,628) (226,910) Other 433,619 (278,030) 380,460 261,646 ------------------------------------------------------------------ Income (loss) before income taxes and minority interest (1,348,998) 335,310 (599,662) (875,478) Income tax expense (782,468) 39,065 (460,702) (285,784) ------------------------------------------------------------------ Income (loss) before minority interest (566,530) 296,245 (138,960) (589,694) Minority interest in (loss) of subsidiary (483) (6,266) (783) (1,291) ------------------------------------------------------------------ Net income (loss) $ (566,047) $ 302,512 $ (138,177) $ (588,403) ================================================================== ================================================================== Basic income (loss) per common and common equivalent shares $ (0.30) $ 0.18 $ (0.07) $ (0.31) ================================================================== Diluted income (loss) per common and common equivalent shares $ (0.30) $ 0.16 $ (0.07) $ (0.28) ================================================================== Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,918,260 1,688,384 1,918,260 1,878,697 ================================================================== Diluted 1,918,260 1,884,405 1,918,260 2,130,009 ==================================================================