NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick Executive Vice President (847) 382-1000 | Mary Ellen Dammyer Investor Relations (847) 382-1000 |
CTI Industries Reports Major Gains in Income
for Its First Quarter 2005
FOR IMMEDIATE RELEASE
Friday, May 20, 2005
BARRINGTON, IL, May 20, 2005 — 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 first quarter ending March 31, 2005. For the quarter, net sales were $9,103,000 compared to 2004 first quarter revenues of $10,894,000. The Company realized net income of $84,000 for the quarter, compared to net income for the first quarter of 2004 of $372,000.
Income per share for the quarter was $0.04 (basic and diluted), compared to income per share if $0.19 ($0.18 diluted) for the first quarter of 2004.
“We are very pleased with our good results for the first quarter of this year,” said Stephen Merrick, Executive Vice President and Chief Financial Officer of the Company. “Although net income for the first quarter of 2004 was greater than for the current quarter, we believe the quality of our results has improved this current quarter. In the first quarter last year, much of our net income resulted from non-recurring items. In the first quarter of this year, our income from operations was $327,000 compared to $375,000 for the first quarter of last year, but on 16% lower net sales. Our cash flow from operations the first quarter this year was a positive $1,687,000 compared to negative cash flow of $1,240,000 in the first quarter last year, and we reduced debt in this quarter by $1,695,000,” he said.
“These improved results reflect our success in controlling our costs, both at the manufacturing level and in our selling, general and administrative costs,” said Howard Schwan, President. “We have focused much of our efforts on becoming efficient and profitable with our current level of revenues, as well as on growing sales in our several product lines.”
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 –
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CTI Industries Corporation and Subsidiaries Condensed Consolidated Balance Sheet | March 31, 2005 | December 31, 2004 | ||||
Assets | (Unaudited) | |||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 373,627 | $ | 526,470 | ||
Accounts receivable, net | 5,654,705 | 6,123,137 | ||||
Inventories | 7,329,794 | 8,348,494 | ||||
Other current assets | 598,559 | 646,805 | ||||
Total current assets | 13,956,685 | 15,644,906 | ||||
Property and equipment, net | 10,315,534 | 10,588,511 | ||||
Other assets | 1,471,444 | 1,631,157 | ||||
Total Assets | $ | 25,743,663 | $ | 27,864,574 | ||
Liabilities & Stockholders’ Equity | ||||||
Total current liabilities | $ | 16,227,822 | $ | 18,435,055 | ||
Long term debt, less current maturities | 5,090,054 | 5,119,745 | ||||
Other liabilities | 1,394,917 | 1,348,374 | ||||
Minority interest | 11,197 | 10,230 | ||||
Stockholders’ equity | 3,019,673 | 2,951,170 | ||||
Total Liabilities & Stockholders’ Equity | $ | 25,743,663 | $ | 27,864,574 | ||
Consolidated Statements of Operations | Quarter Ended March 31, | |||||
2005 (Unaudited) | 2004 (Unaudited) | |||||
Net sales | $ | 9,103,327 | $ | 10,893,984 | ||
Cost of sales | 7,229,334 | 8,746,614 | ||||
Gross profit on sales | 1,873,993 | 2,147,370 | ||||
Operating expenses | 1,547,281 | 1,772,553 | ||||
Income from operations | 326,712 | 374,817 | ||||
Other income (expense): | ||||||
Interest expense | (305,380 | ) | (331,136 | ) | ||
Other | 58,580 | 563,652 | ||||
Income (loss) before income taxes and minority interest | 79,912 | 607,333 | ||||
Income tax expense | (4,479 | ) | 233,456 | |||
Income (loss) before minority interest | 84,391 | 373,877 | ||||
Minority interest in (loss) of subsidiary | (95 | ) | 1,976 | |||
Net income (loss) | $ | 84,486 | $ | 371,901 | ||
Basic income (loss) per common and common equivalent shares | $ | 0.04 | $ | 0.19 | ||
Diluted income (loss) per common and common equivalent shares | $ | 0.04 | $ | 0.18 | ||
Weighted average number of shares and equivalent shares | ||||||
of common stock outstanding: | ||||||
Basic | 1,954,100 | 1,918,420 | ||||
Diluted | 1,970,360 | 2,044,501 | ||||
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