CTI Industries Corporation Reports First Quarter 2014 Financial Results

CTI Industries Corporation Reports First Quarter 2014 Financial Results 
LAKE BARRINGTON, IL -- (Marketwired) -- 05/13/14 --  CTI Industries
Corporation (NASDAQ: CTIB), a manufacturer and marketer of consumer
vacuum sealing systems and products, novelty balloons, flexible
packaging and storage products and laminated films, today announced
its results of operations for the first quarter of 2014. 
Consolidated net sales for the first quarter of 2014 were $14,920,000
compared to consolidated net sales of $13,345,000 for the first
quarter of 2013, an increase of almost 12%. The increase in sales was
led by sales increases in the two principal product lines of the
Company -- vacuum sealing systems and foil balloons. Sales of vacuum
sealing systems and products continued their rapid rate of increase
growing by over 44% for the quarter to $2,781,000 from $1,929,000 in
the first quarter 2013. Sales of foil balloons continued their
consistent rise, reaching $7,273,000 in the quarter compared to
$6,782,000 same period of the prior year, a growth rate of 7.2%. 
For both of these product lines, sales growth was market by increased
in sales to existing customers as well as sales to new customers.
Foil balloons saw growth particularly in the Company's operations in
the United Kingdom, Europe and Mexico. 
For the quarter, the Company had net income of $45,000 or $0.01 per
share, compared to net income in the first quarter last year of
$130,000, or $0.04 per share. Income from operations for the quarter
was $326,000, which was affected principally by net interest expense
of $301,000 for the quarter. This interest expense reflects to
significant expense the interest expense arising from the $5 million
mezzanine loan the Company obtained in July, 2012 to finance its
investment in the vacuum sealing system product line and market. 
"Sales continue to advance at a strong rate, particularly for two of
our principal product lines -- consumer vacuum sealing systems and
foil balloons, and we anticipate further growth in both of those
lines as well as in our line of latex balloons," said John Schwan,
Chief Executive Officer. "As we continue this growth, we are focused
on controlling our operating expenses and structuring our debt in a
manner that will result in improved bottom line performance," he
said. 
Statements made in this release that are not historical facts are
"forward-looking" statement (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. Factors that could cause results
to differ are 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 made with the Securities and Exchange
Commission, including its Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q. 
- FINANCIAL HIGHLIGHTS FOLLOW -  


 
                                                                            
CTI Industries Corporation and                                              
 Subsidiaries                                                               
Condensed Consolidated Balance Sheets                                       
                                                             *December 31,  
                                            March 31, 2014        2013      
                                                                            
                                           ---------------  --------------- 
                  Assets                     (Unaudited)                    
Current Assets:                                                             
  Cash and cash equivalents (VIE $6,000                                     
   and $54,000, respectively)              $       427,601  $       666,616 
  Accounts receivable, net                       9,236,593        8,883,106 
  Inventories, net (VIE $543,000 and                                        
   $390,000, respectively)                      15,842,318       15,428,413 
  Other current assets (VIE $79,000 and                                     
   $79,000, respectively)                        2,733,102        3,192,543 
                                           ---------------  --------------- 
Total current assets                            28,239,614       28,170,678 
                                                                            
Property, plant and equipment, net (VIE                                     
 $763,000 and $762,000, respectively)            8,571,582        8,681,771 
Other assets                                     2,381,894        2,219,051 
                                           ---------------  --------------- 
                                                                            
Total Assets                               $    39,193,090  $    39,071,500 
                                           ===============  =============== 
                                                                            
           Liabilities & Equity                                             
Total current liabilities (VIE $925,000                                     
 and $493,000, respectively)               $    16,509,079  $    16,432,989 
Long term debt, less current maturities                                     
 (VIE $413,000 and $441,000, respectively)       9,779,823        9,874,386 
CTI Industries Corporation stockholders'                                    
 equity                                         12,835,916       12,655,890 
Noncontrolling interest                             68,272          108,235 
                                           ---------------  --------------- 
                                                                            
Total Liabilities & Equity                 $    39,193,090  $    39,071,500 
                                           ===============  =============== 
                                                                            
                                                                            
                                                                            
Condensed Consolidated Statements of                                        
Operations                                                                  
                                              Three Months Ended March 31   
                                                 2014             2013      
                                           ---------------  --------------- 
                                              (Unaudited)      (Unaudited)  
                                                                            
Net sales                                  $    14,920,330  $    13,344,766 
Cost of sales                                   11,422,921       10,370,749 
                                           ---------------  --------------- 
                                                                            
Gross profit                                     3,497,409        2,974,017 
                                                                            
Operating expenses                               3,171,459        2,443,866 
                                           ---------------  --------------- 
                                                                            
Income from operations.                            325,950          530,151 
                                                                            
Other (expense) income:                                                     
  Net Interest expense                            (301,487)        (467,975)
  Other                                             (5,179)         144,524 
                                           ---------------  --------------- 
                                                                            
Income before income taxes                          19,284          206,700 
                                                                            
Income tax (benefit) expense                        (2,177)          85,768 
                                           ---------------  --------------- 
                                                                            
Net Income                                          21,461          120,932 
                                                                            
Less: Net income attributable to                                            
 noncontrolling interest                           (23,962)          (9,400)
                                           ---------------  --------------- 
                                                                            
  Net income attributable to CTI                                            
   Industries Corporation                  $        45,423  $       130,332 
                                           ===============  =============== 
                                                                            
Income applicable to common shares         $        45,423  $       130,332 
                                           ===============  =============== 
                                                                            
Other Comprehensive (Loss) Income                                           
  Foreign currency adjustment                     (188,092)         (30,400)
                                           ---------------  --------------- 
  Comprehensive (loss) income              $      (142,669) $        99,932 
                                           ---------------  --------------- 
                                                                            
Basic income per common share              $          0.01  $          0.04 
                                           ===============  =============== 
                                                                            
Diluted income per common share            $          0.01  $          0.04 
                                           ===============  =============== 
                                                                            
Weighted average number of shares and                                       
 equivalent shares of common stock                                          
 outstanding:                                                               
  Basic                                          3,249,268        3,248,646 
                                           ===============  =============== 
                                                                            
  Diluted                                        3,413,800        3,415,911 
                                           ===============  =============== 
                                                                            
                                                                            
*The 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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