EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT :
Stephen M. Merrick | Mary Ellen Dammyer | |||
Executive Vice President | Investor Relations |
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(847) 382-1000 | (847) 382-1000 |
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CTI Industries Corporation
Releases Financial Results for
The Third Quarter and Nine Months
Ended September 30, 2004
FOR IMMEDIATE RELEASE
Monday, November 22, 2004
BARRINGTON, IL, November 22, 2004 – CTI Industries Corporation (NASDAQ Small Cap - CTIB), a manufacturer and marketer of metalized balloons, latex balloons, novelty items and printed and laminated films, today released financial results for its third quarter and for the nine months ending September 30, 2004. For the quarter, net sales were $8,125,521 compared to net sales for the third quarter of 2003 of $8,428,784, a decrease of 3.6%. The Company incurred a net loss for the quarter of ($150,370), compared to net income of $128,740 for the second quarter of 2003.
Net loss per share basic and diluted was ($0.08) for the three months ending September 30, 2004, compared to net income per share for the three months ending September 30, 2003 of $0.07 basic and $0.06 diluted.
For the nine month period ending September 30, 2004, net sales were $28,611,290 compared to net sales for the same period in 2003 of $27,253,217, an increase of 5.0%. For the nine month period, the Company had net income of $85,850 compared to a net loss of ($427,871) for the same period of 2003. For the nine month period, the Company had net income per share of $0.04 (basic and diluted), compared to a loss per share of ($0.29) (basic and diluted) for the same period last year.
“Overall, sales for the fourth quarter and the nine months have kept pace with last year,” reported Howard Schwan, President, “although the product mix has changed during the year, with sales of balloons and novelty items increasing by 33% over sales for the nine month period of 2003 and sales of commercial film products declining by about 23% for that period. Most of the decline in commercial film products is the result of a decline in our sales of consumer pouches to one customer,” he said.
CTI Industries is one of the leading manufacturers and marketers of metalized and latex balloons and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in 30 other countries.
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This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly competitive market, (ii) the ability of the Company to enter into or maintain contracts or relationships with customers, distributors, licensors and suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company in its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K. – FINANCIAL HIGHLIGHTS FOLLOW – 5 CTI INDUSTRIES CORPORATION SUMMARY FINANCIAL INFORMATION Quarter Ended September 30, 2004 and 2003 Nine months ended September 30, 2004 and 2003 6Consolidated Balance Sheets
September 30,
2004December 31,
2003 Assets Current Assets: Cash and cash equivalents $ 421,430 $ 329,742 Accounts receivable, net 5,467,657 4,620,276 Inventories 9,388,535 9,263,160 Other current assets 1,394,740 1,221,386 Total current assets 16,672,362 15,434,564 Property and equipment, net 11,272,925 12,207,649 Other assets 2,402,901 2,627,969 Total Assets $ 30,348,188 $ 30,270,182 Liabilities & Stockholders’ Equity Total current liabilities $ 16,650,928 $ 16,140,080 Long term debt, less current maturities 8,110,631 8,909,258 Minority interest 10,230 9,263 Stockholders’ equity 5,576,399 5,211,581 Total Liabilities & Stockholders’ Equity $ 30,348,188 $ 30,270,182 Consolidated Statements of Operations Quarter Ended Sept 30 Nine months ended Sept 30 2004 2003 2004 2003 Net sales $ 8,125,521 $ 8,428,784 28,611,290 $ 27,253,217 Cost of sales 6,455,743 6,653,397 22,762,114 21,634,749 Gross profit on sales 1,669,778 1,775,387 5,849,176 5,618,469 Operating expenses 1,700,293 1,553,795 5,286,858 5,644,197 Income from operations (30,515 ) 221,592 562,318 (25,729 ) Other income (expense): Interest expense (339,953 ) (301,323 ) (1,009,917 ) (776,766 ) Other 129,124 (17,248 ) 618,792 53,157 Income (loss) before income taxes and minority interest (241,344 ) (96,979 ) (391,125 ) (723,609 ) Income tax expense (90,850 ) (226,341 ) 84,279 (321,766 ) Income (loss) before minority interest (150,494 ) 129,362 86,914 (427,571 ) Minority interest in (loss) of subsidiary (123 ) 621 1,064 300 Net income (loss) $ (150,370 ) $ 128,740 85,850 $ (427,871 ) Income (loss) applicable to common shares $ (150,370 ) $ 128,740 85,850 $ (427,871 ) Basic income (loss) per common and common equivalent shares $ (0.08 ) $ 0.07 0.04 $ ( 0.22) Diluted income (loss) per common and common equivalent shares $ (0.08 ) $ 0.06 0.04 $ (0.29 ) Weighted average number of shares and equivalent shares of common stock outstanding: Basic 1,932,692 1,918,420 1,918,420 1,918,420 Diluted 1,932,692 2,139,754 2,032,665 1,918,098