Exhibit 99.1
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick Executive Vice President (847) 382-1000 | Catherine E. Lawler Investor Relations (847) 671-1177 |
CTI Industries Corporation Reports
Second Quarter 2009 Financial Results
FOR IMMEDIATE RELEASE
Wednesday, August 12, 2009
BARRINGTON, IL, August 12, 2009 -- CTI Industries Corporation (CTIB - NASDAQ Capital Market), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the second quarter of 2009 and for the six month period ended June 30, 2009.
Consolidated net sales for the second quarter of 2009 were $10,779,000 compared to consolidated net sales of $12,461,00 for the second quarter of 2008, a decrease of 13.5%. The Company earned net income of $409,000 or $0.15 per share (basic and diluted) for the second quarter of 2009 compared to net income of $485,000 or $0.17 per share (basic and diluted) for the second quarter of 2008.
For the six month period ended June 30, 2009, consolidated net sales were $20,382,000 compared to $23,196,000 for the same period in 2008, a decrease of 12.1%. For this six month period in 2009, net income was $502,000 or $0.18 per share (basic and diluted) compared to net income of $764,000, or $0.28 per share (basic) and $0.26 per share (diluted) for the same period of 2008.
Key Factors and Trends
Net sales of foil balloons increased by 16.9% in the second quarter compared to the same period of 2008, from $4,918,000 to $5,747,000. For the six month period, net sales of foil balloons increased by 13.3% from $9,516,000 in the six months ended June 30, 2008 to $10,786,000 for the same period of 2009.
For the second quarter 2009, net sales of pouch products were $1,577,000 compared to $3,441,000 for the second quarter of 2008. For the six months ended June 30, 2009, pouch sales were $2,562,000 compared to $5,889,000 for the same period of 2008. In the first six months of 2008, the high level of net sales of pouches was attributable to the build-up of inventory by a principle customer for a July 2008 product launch. During the first six months of 2009, sales to that customer continue but at a lower level than during the product launch build-up in 2008.
During the second quarter 2009, the dollar value of latex balloon sales decreased by 16% compared to the second quarter of 2008 from $1,969,000 in the second quarter of 2008 to $1,653,000 for the same period of 2009. The unit volume of sales, however, was up slightly in 2009. The decline in the dollar value of the sales was due to the fact that a significant portion of the Company’s latex sales are in Mexico denominated in Mexican pesos and the value of the Mexican peso has declined compared to the second quarter of 2008.
Operating expenses declined by approximately $230,000 for the second quarter of 2009 compared to the same period of 2008, and they declined by about $320,000 for the six month period ended June 30, 2009 compared to the same period of 2008.
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 –
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CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, 2009 | December 31, 2008 | |||||||
Assets | (Unaudited) | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 202,656 | $ | 180,578 | ||||
Accounts receivable, net | 6,617,105 | 5,821,593 | ||||||
Inventories, net | 10,169,120 | 10,504,769 | ||||||
Other current assets | 1,365,456 | 1,181,097 | ||||||
Total current assets | 18,354,337 | 17,688,037 | ||||||
Property, plant and equipment, net | 10,125,682 | 10,575,982 | ||||||
Other assets | 1,698,968 | 1,724,172 | ||||||
Total Assets | $ | 30,178,987 | $ | 29,988,191 | ||||
Liabilities & Equity | ||||||||
Total current liabilities | $ | 16,299,152 | $ | 16,222,180 | ||||
Long term debt, less current maturities | 5,469,538 | 6,018,655 | ||||||
Stockholders' equity | 8,396,044 | 7,734,600 | ||||||
Noncontrolling interest | 14,253 | 12,756 | ||||||
Total Liabilities & Equity | $ | 30,178,987 | $ | 29,988,191 |
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Consolidated Statements of Operations
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Net sales | $ | 10,778,903 | $ | 12,460,945 | $ | 20,382,324 | $ | 23,195,646 | ||||||||
Cost of sales | 8,178,204 | 9,548,061 | 15,715,122 | 17,951,083 | ||||||||||||
Gross profit | 2,600,699 | 2,912,884 | 4,667,202 | 5,244,563 | ||||||||||||
Operating expenses | 1,925,768 | 2,158,074 | 3,530,523 | 3,850,048 | ||||||||||||
Income from operations | 674,931 | 754,810 | 1,136,679 | 1,394,515 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Net Interest expense | (272,566 | ) | (286,404 | ) | (568,117 | ) | (556,665 | ) | ||||||||
Other | 2,599 | 11,889 | (18,998 | ) | 42,211 | |||||||||||
Income before income taxes and noncontrolling interest | 404,964 | 480,295 | 549,564 | 880,061 | ||||||||||||
Income tax expense | (4,037 | ) | (4,818 | ) | 46,121 | 115,839 | ||||||||||
Income before noncontrolling interest | 409,001 | 485,113 | 503,443 | 764,222 | ||||||||||||
Noncontrolling interest income of subsidiary | 263 | (24 | ) | 1,497 | 264 | |||||||||||
Net income | $ | 408,738 | $ | 485,137 | $ | 501,946 | $ | 763,958 | ||||||||
Basic income per common and common equivalent shares | $ | 0.15 | $ | 0.17 | $ | 0.18 | $ | 0.28 | ||||||||
Diluted income per common and common equivalent shares | $ | 0.15 | $ | 0.17 | $ | 0.18 | $ | 0.26 | ||||||||
Weighted average number of shares and equivalent shares | ||||||||||||||||
of common stock outstanding: | ||||||||||||||||
Basic | 2,775,902 | 2,781,025 | 2,792,220 | 2,721,646 | ||||||||||||
Diluted | 2,776,797 | 2,929,548 | 2,797,256 | 2,885,783 |