Exhibit 99.1
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick | Catherine E. Lawler |
Executive Vice President | Investor Relations |
(847) 382-1000 | (773) 478-0631 |
CTI Industries Corporation Reports
2009 Results, Including Strong Sales
And Profits for the Fourth Quarter and Year End 2009
FOR IMMEDIATE RELEASE
March 22, 2010
BARRINGTON, IL, March 22, 2010 — CTI Industries Corporation (NASDAQ Capital Market), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its full-year results of operations for 2009, as well as for the three months ended December 31, 2009.
Fourth Quarter Results
Consolidated net sales for the fourth quarter 2009 were $10,738,000 compared to consolidated net sales of $9,832,000 for the fourth quarter of 2008, an increase of 9.2%. For the quarter, CTI had net income of $296,000, or $0.11 per share (basic and diluted), compared to net income of $121,000, or $0.04 per share (basic and diluted), for the fourth quarter of 2008, an increase of 145%.
Year-End Results
For the year ended December 31, 2009, consolidated net sales totaled $41,295,000, compared to consolidated net sales of $44,981,000 for the year ended December 31, 2008. For the year, CTI achieved net income of $1,003,000, or $0.36 per share (basic and diluted). For the year ended December 31, 2008, CTI had a net profit of $1,154,000, representing $0.42 per share (basic) and $0.40 per share (diluted).
Key Factors and Trends
During 2009, CTI experienced a modest decline in revenues of 8.2% compared to 2008 revenues. However, fourth quarter revenues increased by 9.2% over the same period of 2008, reflecting improved prospects toward the end of the year. For the year, revenues from the sale of foil balloon products increased by 12.5%, from $17,629,000 in 2008 to $19,824,000 in 2009. Revenues from the sale of pouch products declined in 2009 to $6,895,000 from $10,893,000 in 2008. However, 2008 pouch revenues included significant sales in the first half of the year due to the initial purchases arising from the introduction of a vacuumable pouch product line for S.C. Johnson & Son. In the second half of 2009, revenues from pouch sales were up substantially over the same period of 2008, reflecting CTI’s strong pouch sales in that period.
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Gross margin levels declined modestly in 2009 to 22.3% from 22.9% in 2008. This decline resulted principally from an increase in sales of certain novelty items that have higher costs in relation to their selling price.
CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.
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, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
– FINANCIAL HIGHLIGHTS FOLLOW –
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Condensed Consolidated Balance Sheets
December 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 870,446 | $ | 180,578 | ||||
Accounts receivable, (less allowance for doubtful accounts of $57,000 and $39,000 respectively) | 7,320,181 | 5,821,593 | ||||||
Inventories, net | 9,643,914 | 10,504,769 | ||||||
Net deferred income tax asset | 706,754 | 674,872 | ||||||
Prepaid expenses and other current assets | 607,127 | 506,225 | ||||||
Total current assets | 19,148,422 | 17,688,037 | ||||||
Total property, plant and equipment, net | 9,533,411 | 10,575,982 | ||||||
Total other assets | 1,713,476 | 1,724,172 | ||||||
TOTAL ASSETS | $ | 30,395,309 | $ | 29,988,191 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Total current liabilities | 16,734,520 | 16,222,180 | ||||||
Total long-term liabilities, less current maturities | 4,881,568 | 6,018,655 | ||||||
Total Liabilities | 21,616,088 | 22,240,835 | ||||||
Total CTI Industries Corporation stockholders' equity | 8,762,663 | 7,734,600 | ||||||
Noncontrolling Interest | 16,558 | 12,756 | ||||||
Total Equity | 8,779,221 | 7,747,356 | ||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 30,395,309 | $ | 29,988,191 |
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CTI Industries Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 41,295,152 | $ | 44,980,674 | $ | 10,737,583 | $ | 9,832,048 | ||||||||
Cost of sales | 32,081,779 | 34,658,271 | 8,369,364 | 7,496,480 | ||||||||||||
Gross profit | 9,213,373 | 10,322,403 | 2,368,219 | 2,335,568 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 4,539,494 | 5,375,526 | 1,151,999 | 1,311,912 | ||||||||||||
Selling | 871,258 | 886,391 | 269,438 | 176,195 | ||||||||||||
Advertising and marketing | 1,576,225 | 1,677,900 | 363,059 | 413,016 | ||||||||||||
Total operating expenses | 6,986,977 | 7,939,817 | 1,784,496 | 1,901,123 | ||||||||||||
Income from operations | 2,226,396 | 2,382,586 | 583,723 | 434,445 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest expense | (1,085,107 | ) | (1,031,457 | ) | (260,355 | ) | (232,146 | ) | ||||||||
Other | (19,956 | ) | 50,003 | (13,509 | ) | (17,118 | ) | |||||||||
Total other expense | (1,105,063 | ) | (981,454 | ) | (273,864 | ) | (249,264 | ) | ||||||||
Income before taxes | 1,121,333 | 1,401,132 | 309,859 | 185,181 | ||||||||||||
Income tax expense | 114,391 | 246,779 | 12,604 | 64,454 | ||||||||||||
Net Income | 1,006,942 | 1,154,353 | 297,255 | 120,727 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3,802 | 222 | 779 | (18 | ) | |||||||||||
Net income attributable to CTI Industries Corporation | $ | 1,003,140 | $ | 1,154,131 | $ | 296,476 | $ | 120,745 | ||||||||
Income applicable to common shares | $ | 1,003,140 | $ | 1,154,131 | $ | 296,476 | $ | 120,745 | ||||||||
Basic income per common share | $ | 0.36 | $ | 0.42 | $ | 0.11 | $ | 0.04 | ||||||||
Diluted income per common share | $ | 0.36 | $ | 0.40 | $ | 0.11 | $ | 0.04 | ||||||||
Weighted average number of shares and | ||||||||||||||||
equivalent shares of common stock outstanding: | ||||||||||||||||
Basic | 2,765,277 | 2,763,017 | 2,738,063 | 2,808,720 | ||||||||||||
Diluted | 2,775,062 | 2,898,681 | 2,757,058 | 2,843,196 |
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