Exhibit 99
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
| Stephen M. Merrick | Catherine E. Lawler | |
| Executive Vice President | Investor Relations | |
| (847) 382-1000 | (847) 671-1177 | |
CTI Industries Corporation Reports
First Quarter 2007 Financial Results
FOR IMMEDIATE RELEASE
Friday, May 18, 2007
BARRINGTON, IL, May 18, 2007 -- CTI Industries Corporation (NASDAQ Capital Market - CTIB), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its results of operations for the first quarter of 2007.
Consolidated net sales for the first quarter of 2007 were $8,279,000, compared to consolidated net sales of $8,156,000 for the first quarter of 2006, an increase of 1.5%. The Company incurred a net loss of $52,000 or $0.02 per share (basic and diluted) for the first quarter of 2007 compared to net income of $220,000 or $0.11 per share (basic) and $0.10 per share (diluted) for the first quarter of 2006.
Key Factors and Trends
Revenues for the first quarter of 2007 were up slightly compared to the first quarter of 2006. Revenues by product line were essentially equivalent to those in the first quarter of 2006. Gross margins were down slightly from 24% in 2006 to 23% in the first quarter of 2007.
General, selling and administrative expenses were $297,000 greater in the first quarter of 2007 than the first quarter of 2006. These increased expenses included (i) expenses incurred in the development and introduction of the Company’s new line of resealable vacuum pouches, (ii) licensing costs, (iii) retail store servicing costs and (iv) personnel expenses.
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 Sheet | |||||||
| March 31, 2007 | December 31, 2006 | ||||||
| Assets | (Unaudited) | ||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 466,391 | $ | 384,565 | |||
| Accounts receivable, net | 5,998,119 | 6,442,765 | |||||
| Inventories, net | 8,233,462 | 7,974,113 | |||||
| Other current assets | 1,842,043 | 1,689,802 | |||||
| Total current assets | 16,540,015 | 16,491,245 | |||||
| Property, plant and equipment, net | 8,549,437 | 8,592,274 | |||||
| Other assets | 1,589,450 | 1,561,420 | |||||
| Total Assets | $ | 26,678,902 | $ | 26,644,939 | |||
| Liabilities & Stockholders' Equity | |||||||
| Total current liabilities | $ | 14,716,894 | $ | 14,643,374 | |||
| Long term debt, less current maturities | 5,417,640 | 5,592,696 | |||||
| Other liabilities | 1,228,460 | 1,294,272 | |||||
| Minority interest | 12,638 | 12,672 | |||||
| Stockholders' equity | 5,303,270 | 5,101,925 | |||||
| Total Liabilities & Stockholders' Equity | $ | 26,678,902 | $ | 26,644,939 | |||
Consolidated Statements of Operations | |||||||
| Three Months Ended March 31 | |||||||
| 2007 | 2006 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Net sales | $ | 8,278,874 | $ | 8,156,223 | |||
| Cost of sales | 6,376,187 | 6,202,908 | |||||
| Gross profit | 1,902,687 | 1,953,315 | |||||
| Operating expenses | 1,708,928 | 1,412,361 | |||||
| Income from operations | 193,759 | 540,954 | |||||
| Other income (expense): | |||||||
| Net Interest expense | (334,584 | ) | (330,623 | ) | |||
| Other | 52,172 | 47,545 | |||||
| (Loss) income before income taxes and minority interest | (88,653 | ) | 257,876 | ||||
| Income tax (benefit) expense | (36,407 | ) | 38,188 | ||||
| (Loss) income before minority interest | (52,246 | ) | 219,688 | ||||
| Minority interest in loss of subsidiary | (34 | ) | (80 | ) | |||
| Net (loss) income | $ | (52,212 | ) | $ | 219,768 | ||
| Basic (loss) income per common and common equivalent shares | $ | (0.02 | ) | $ | 0.11 | ||
| Diluted (loss) income per common and common equivalent shares | $ | (0.02 | ) | $ | 0.10 | ||
| Weighted average number of shares and equivalent shares | |||||||
| of common stock outstanding: | |||||||
| Basic | 2,156,783 | 2,036,474 | |||||
| Diluted | 2,156,783 | 2,166,892 | |||||