CTI Industries Corporation Reports Third Quarter 2013 Financial Results

CTI Industries Corporation Reports Third Quarter 2013 Financial Results 
Sales and Profits Jump 
LAKE BARRINGTON, IL -- (Marketwired) -- 11/11/13 --  CTI Industries
Corporation (NASDAQ: CTIB), a manufacturer and marketer of flexible
packaging and storage products, laminated films and novelty balloons,
today announced its results of operations for the third quarter of
2013 and for the nine month period ended September 30, 2013. 
Quarter Highlights 


 
--  Sales Up 22.9% to $14.5 million
--  Profits Up from $6,000 to $234,000
--  Operating Income Up 147.6% from $269,000 to $666,000
--  Vacuum Sealer Line Sales Up 46.8% to $3.0 million
--  Foil Balloon Sales Up 14.3% to $4.7 million
--  Latex Balloon Sales Up 20.3% to $3.2 million

  
Nine Month Highlights 


 
--  Sales Up 9.2% to $40.9 million
--  Operating Income Up 32.3% to $1.5 million
--  Vacuum Sealer Line Sales Up 70.5% to $6.5 million
--  Foil Balloon Sales Up 2.8% to $17.0 million
--  Latex Balloon Sales Up 11.4% to $9.2 million

  
Financial Results 
Consolidated net sales for the third quarter of 2013 were $14,480,000
compared to consolidated net sales of $11,786,000 for the third
quarter of 2012, an increase of 22.9%. The Company earned net income
of $234,000 or $0.07 per share (basic and diluted) for the third
quarter of 2013 compared to net income of $6,000 for the third
quarter of 2012. 
For the nine month period ended September 30, 2013, consolidated net
sales were $40,859,000 compared to $37,410,000 for the same period in
2012, an increase of 9.2%. For this nine month period in 2013, net
income was $309,000 or $0.10 per share (basic) and $0.09 per share
(diluted) compared to net income of $317,000 or $0.10 per share
(basic and diluted) for the same period of 2012. 
Key Factors and Trends 
The pace of increase in sales revenue accelerated in the third
quarter of 2013 with sales increasing at a rate of 22.9% over the
third quarter last year. For the nine months ended September 30,
2013, net sales increased 9.2% compared to the same period of 2012. 
The increase was led by a 46.8% increase in the sales of the
Company's branded vacuum sealer line during the third quarter and a
70.5% increase in that line for the nine month period compared to the
same period of 2012. For the third quarter of 2013, sales in this
line were $2,957,000 and, for the nine months, $6,454,000. The
Company's branded vacuum sealer line is now being sold in more than
6,000 retail stores throughout the United States. During the third
quarter of 2013, the Company introduced an additional model of its
vacuum sealing machine into one of its high volume customers and
generated a strong initial response. The Company has also made
significant progress in developing new, more advanced models and look
forward to their introduction over the coming months. 
The pace of increase in foil balloon sales also accelerated during
the third quarter of 2013 as sales in this product line were up by
14.3% to $4,679,000 for the third quarter of 2013 over third quarter
2012 sales of $4,092,000. For the nine months ended September 30,
2013, sales of foil balloons were $17,021,000 up 2.8% over the same
period last year. Sales of latex balloons were up 20.3% in the
quarter ended September 30, 2013 compared to the third quarter last
year, from $2,641,000 to $3,178,000. For the nine months ended
September 30, 2013, sales of latex balloons were $9,174,000, up 11.4%
over the same period last year. 
Revenues from the sale of commercial films were also up to $1,919,000
in the third quarter of 2013 compared to $1,033,000 in the third
quarter last year and reached a level of $4.1 million for the nine
months ended September 30, 2013. 
Gross margins were strong in the third quarter of 2013 at a level of
22.8%. For the nine months ended September 30, 2013, the gross margin
rate was 21.4%. 
As a result of the increase in revenues and strong gross margin rate,
the Company reached income from operations of $666,000 in the third
quarter of 2013, compared to $269,000 for the third quarter last
year. For the nine months ended September 30, 2013, income from
operations was $1,487,000 compared to $1,124,000 for the same period
last year. 
About CTI 
CTI Industries Corporation, headquartered in Lake Barrington,
Illinois, designs, develops, produces, markets and sells a line of
foil balloons, vacuum sealing machines, pouches and related items for
the storage of food and other household items, latex balloons and
commercial film products. CTI markets its products throughout the
United States, Canada, Mexico, the United Kingdom and Europe and in
Latin America.  
Statements made in this release that are not historical facts are
"forward-looking" statements (as defined in the Private Securities
Litigation Reform Act of 1995) that involve risks and uncertainties
and are subject to change at any time. These "forward-looking"
statements may include, but are not limited to, statements containing
words such as "may," "should," "could," "would," "expect," "plan,"
"goal," "anticipate," "believe," "estimate," "predict," "potential,"
"continue," or similar expressions. The Company's actual results and
future developments could differ materially from the results or
developments expressed in, or implied by these forward-looking
statements. Factors that could cause results to differ from those
contemplated by such forward-looking statements, include, but are not
limited to, product demand and market acceptance, competition, cost
and availability of raw materials, new technology or product
developments and other risks identified in the public filings of the
Company with the Securities and Exchange Commission. More information
on factors that could affect CTI's business and financial results are
included in its public filings, including its Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. 


 
                                                                            
                CTI Industries Corporation and Subsidiaries                 
                   Condensed Consolidated Balance Sheets                    
                                                                            
                                            September 30,    *December 31,  
                                                 2013             2012      
                                                                            
                                           ---------------  --------------- 
                  Assets                     (Unaudited)                    
Current Assets:                                                             
  Cash and cash equivalents (VIE $29,000                                    
   and $22,000, respectively)              $       332,490  $       351,064 
  Accounts receivable, net                       9,424,104        7,773,332 
  Inventories, net                              15,269,890       15,813,276 
  Other current assets (VIE $76,000 and                                     
   $108,000, respectively)                       2,868,264        3,192,082 
                                           ---------------  --------------- 
Total current assets                            27,894,748       27,129,754 
                                                                            
Property, plant and equipment, net               8,581,684        8,699,070 
Other assets                                     1,943,753        1,918,319 
                                           ---------------  --------------- 
                                                                            
Total Assets                               $    38,420,185  $    37,747,143 
                                           ===============  =============== 
                                                                            
           Liabilities & Equity                                             
Total current liabilities (VIE $120,000                                     
 and $198,000, respectively)               $    16,178,185  $    16,963,447 
Long term debt, less current maturities          9,640,832        8,701,650 
CTI Industries Corporation stockholders'                                    
 equity                                         12,764,942       12,242,738 
Noncontrolling interest                           (163,774)        (160,692)
                                           ---------------  --------------- 
                                                                            
Total Liabilities & Equity                 $    38,420,185  $    37,747,143 
                                           ===============  =============== 
                                                                            
                                                                            
                                                                            
              Condensed Consolidated Statements of Operations               
                                                                            
                         Three Months Ended           Nine Months Ended     
                            September 30                September 30        
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                                                                            
Net sales            $ 14,479,934  $ 11,786,226  $ 40,859,007  $ 37,409,817 
Cost of sales          11,182,419     9,114,918    32,105,384    29,290,188 
                     ------------  ------------  ------------  ------------ 
                                                                            
Gross profit            3,297,515     2,671,308     8,753,623     8,119,629 
                                                                            
Operating expenses      2,631,736     2,402,505     7,266,558     6,995,319 
                     ------------  ------------  ------------  ------------ 
                                                                            
Income from                                                                 
 operations               665,779       268,803     1,487,065     1,124,310 
                                                                            
Other (expense)                                                             
 income:                                                                    
  Net Interest                                                              
   expense               (303,836)     (265,257)     (972,050)     (613,247)
  Other                    40,641         5,301        14,343        13,206 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net income before                                                           
 taxes                    402,584         8,847       529,358       524,269 
                                                                            
Income tax expense        162,362         1,451       223,762       203,726 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net income                240,222         7,396       305,596       320,543 
                                                                            
Less: Net income                                                            
 (loss) attributable                                                        
 to noncontrolling                                                          
 interest                   5,898         1,359        (3,082)        3,425 
                     ------------  ------------  ------------  ------------ 
                                                                            
  Net income                                                                
   attributable to                                                          
   CTI Industries                                                           
   Corporation       $    234,324  $      6,037  $    308,678  $    317,118 
                     ============  ============  ============  ============ 
                                                                            
Net income                                                                  
 applicable to                                                              
 common shares       $    234,324  $      6,037  $    308,678  $    317,118 
                     ============  ============  ============  ============ 
                                                                            
Other Comprehensive                                                         
 Income                                                                     
  Foreign currency                                                          
   adjustment             (50,338)      387,275       119,894        88,082 
                     ------------  ------------  ------------  ------------ 
    Comprehensive                                                           
     income          $    183,986  $    393,312  $    428,572  $    405,200 
                     ------------  ------------  ------------  ------------ 
                                                                            
Basic income per                                                            
 common share        $       0.07  $       0.00  $       0.10  $       0.10 
                     ============  ============  ============  ============ 
                                                                            
Diluted income per                                                          
 common share        $       0.07  $       0.00  $       0.09  $       0.10 
                     ============  ============  ============  ============ 
                                                                            
Weighted average                                                            
 number of shares                                                           
 and equivalent                                                             
 shares of common                                                           
 stock outstanding:                                                         
  Basic                 3,248,646     3,214,771     3,248,646     3,208,862 
                     ============  ============  ============  ============ 
                                                                            
  Diluted               3,401,294     3,353,267     3,404,109     3,269,941 
                     ============  ============  ============  ============ 
                                                                            
he condensed consolidated financial statements do not include all
required disclosures, refer to the Form 10K for omitted disclosures.
 
 
 
FOR FURTHER INFORMATION CONTACT:
 
Stephen M. Merrick 
President 
(847) 382-1000 
 
Investor Relations
(847) 620-1330 


 
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