-----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, Te4ufLTav5B7lCfkFu93oYDciXBbttBOHyFcvwPsci/gEFdkDWxPwJGGUyrQx+bE PguUzzZeP+0x4/UZGgAWGw== 0001169232-04-004668.txt : 20040826 0001169232-04-004668.hdr.sgml : 20040826 20040826125235 ACCESSION NUMBER: 0001169232-04-004668 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040824 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20040826 DATE AS OF CHANGE: 20040826 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: 04998151 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 d60585_8-k.txt CURRENT REPORT 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): August 24, 2004 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, 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 August 24, 2004, CTI Industries Corporation issued a press release reporting earnings and other financial results for its second quarter ended June 30, 2004. A copy of the Press Release is attached as Exhibit 99. Item No. 9.01 - Exhibit (c) The following exhibit is attached hereto: Exhibit No. Exhibit 99 Press Release dated August 24, 2004, captioned: "CTI Industries Corporation Releases Financial Results for the Second Quarter and Six Months Ended June 30, 2004" 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: August 26, 2004 By: /s/ Howard W. Schwan ------------------------------ Howard W. Schwan, President 3 EX-99 2 d60585_ex99.txt PRESS RELEASE EXHIBIT 99 NEWS RELEASE FOR FURTHER INFORMATION CONTACT: Stephen M. Merrick Executive Vice President (847) 382-1000 CTI Industries Corporation Releases Financial Results for The Second Quarter and Six Months Ended June 30, 2004 FOR IMMEDIATE RELEASE Tuesday, August 24, 2004 BARRINGTON, IL, August 24, 2004 -- 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, 2004. For the quarter, net sales were $9,591,785, compared to net sales for the second quarter of 2003 of $8,661,939, an increase of 10.7%. The Company incurred a net loss for the quarter of ($135,681), compared to net income of $133,178 for the second quarter of 2003. Net loss per share basic and diluted was ($0.07) for the three months ending June 30, 2004, compared to net income per share for the three months ending June 30, 2003 of $0.07 basic and $0.06 diluted. For the six month period ending June 30, 2004, net sales were $20,485,769, compared to net sales for the same period in 2003 of $18,824,434, an increase of 8.8%. For the six month period, the Company had net income of $236,220 compared to a net loss of ($556,611) for the same period of 2003. For the six month period, the Company had net income per share of $0.12 (basic and diluted), compared to a loss per share of ($0.29) (basic and diluted) for the same period last year. "We have experienced healthy increases in revenues in all of our product lines this year, with the sole exception of our sales of consumer storage pouches which have declined." said Howard Schwan, President. "Sales of foil balloons have increased by 32.7% in the first six months of this year, compared to the same period last year. Sales of latex balloons have increased 13.2% during the period. "Margins have improved from 18.7% during the year ended 2003 to 20.4% during the first six months of 2004." reported Stephen Merrick, Executive Vice President and Chief Financial Officer. "This improvement comes as the result of our efforts to control production and other costs." 4 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 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 -- 5 CTI INDUSTRIES CORPORATION SUMMARY FINANCIAL INFORMATION Quarter Ended June 30, 2004 and 2003 Six months ended June 30, 2004 and 2003
Consolidated Balance Sheets December 31, June 30, 2004 2003 ----------------------------- Assets Current Assets: Cash and cash equivalents $ 421,430 $ 329,742 Accounts receivable, net 5,467,657 4,620,276 Inventories 9,388,535 9,263,160 Other current assets 1,394,740 1,221,386 ----------------------------- Total current assets 16,672,362 15,434,564 Property and equipment, net 11,272,925 12,207,649 Other assets 2,402,901 2,627,969 ----------------------------- Total Assets $30,348,188 $30,270,182 Liabilities & Stockholders' Equity Total current liabilities $16,650,928 $16,140,080 Long term debt, less current maturities 8,110,631 8,909,258 Minority interest 10,230 9,263 Stockholders' equity 5,576,399 5,211,581 ----------------------------- Total Liabilities & Stockholders' Equity $30,348,188 $30,270,182 ============================= Consolidated Statements of Operations Quarter Ended June 30 Six months ended June 30 2004 2003 2004 2003 ----------------------------- ---------------------------- Net sales $ 9,591,785 $ 8,661,939 20,485,769 $18,824,434 Cost of sales 7,559,756 6,755,910 16,306,371 14,981,352 ----------------------------- ---------------------------- Gross profit on sales 2,032,029 1,906,029 4,179,398 3,843,082 Operating expenses 1,814,013 1,928,759 3,586,565 4,090,402 ----------------------------- ---------------------------- Income from operations 218,016 (22,730) 592,833 (247,320) Other income (expense): Interest expense (338,828) (273,691) (669,964) (475,443) Other (73,984) 302,025 489,667 70,406 ----------------------------- ---------------------------- Income (loss) before income taxes and minority interest (194,797) 5,604 412,536 (652,357) Income tax expense (58,327) (129,671) 175,129 (95,425) ----------------------------- ---------------------------- Income (loss) before minority interest (136,470) 135,275 237,408 (556,932) Minority interest in (loss) of subsidiary (789) 2,097 1,187 (321) ----------------------------- ---------------------------- Net income (loss) $ (135,681) $ 133,178 236,220 $ (556,611) ============================= ============================ Income (loss) applicable to common shares $ (135,681) $ 133,178 236,220 $ (556,611) Basic income (loss) per common and common equivalent shares $ (0.07) $ 0.07 0.12 $ ( 0.29) ============================= ============================ Diluted income (loss) per common and common equivalent shares $ (0.07) $ 0.06 0.12 $ (0.29) ============================= ============================ Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,918,420 1,918,420 1,918,420 1,918,420 ============================= ============================ Diluted 1,918,420 2,139,754 2,032,665 1,918,098 ============================= ============================
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