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) 620-1349 |
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CTI Industries Corporation
Releases Financial Results for
The Second Quarter and Six Months
Ended June 30, 2005
FOR IMMEDIATE RELEASE
Tuesday, August 22, 2005
BARRINGTON, IL, August 22, 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 second quarter and for the six months ending June 30, 2005. For the quarter, net sales were $7,572,626, compared to net sales for the second quarter of 2004 of $9,591,785, a decline of 21%. The Company incurred a net loss for the quarter of ($53,615), compared to net loss of ($135,680) for the second quarter of 2004.
Net loss per share (basic and diluted) was ($0.03) for the three months ending June 30, 2005, compared to a net loss per share for the three months ending June 30, 2004 of ($0.07) (basic and diluted).
For the six month period ending June 30, 2005, net revenues were $16,675,953, compared to net revenues for the same period in 2004 of $20,485,769, a decline of 19%. For the six month period, the Company had net income of $30,872 compared to net income of $236,219 for the same period of 2004. For the six month period, the Company had net income per share of $0.02 (basic and diluted), compared to net income per share of $0.12 (basic and diluted) for the same period last year.
“Revenues declined in the second quarter, and in the first half of 2005, compared to the same periods last year,” reported Howard Schwan, President. “The decline was attributable principally to the loss of sales to Hallmark Cards due the termination of our relationship with them as of March 31, 2005,” he said. “However, except for the decline in sales to Hallmark Cards, our sales of metalized balloons and in our other product lines remained essentially stable in the first half of the year.”
“We achieved significant reductions in operating expenses during the first six months of this year, compared to the same period last year, with a reduction of almost 16% in total operating expenses for the period” reported Stephen Merrick, Chief Financial Officer.
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“During the six month period, our margins improved slightly and we were also able to reduce our production overhead costs by about 29% compared to the same period of 2004,” he reported. “As a result, we were able to achieve profitability even with the decline in sales of metalized balloons.
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 a number of other countries.
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
SUMMARY FINANCIAL INFORMATION
Quarter Ended June 30, 2005 and 2004
Six months ended June 30, 2005 and 2004
Consolidated Balance Sheets |
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| June 30, 2005 | December 31, 2004 |
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Assets |
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Current Assets: |
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Cash and cash equivalents | $383,896 | $526,470 |
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Accounts receivable, net | 4,668,379 | 6,123,137 |
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Inventories |
| 6,982,497 | 8,348,494 |
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Other current assets | 520,023 | 646,805 |
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Total current assets | 12,554,795 | 15,644,906 |
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Property and equipment, net | 10,094,657 | 10,588,511 |
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Other assets |
| 1,394,301 | 1,654,147 |
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Total Assets |
| $24,043,753 | $27,887,564 |
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Liabilities & Stockholders' Equity |
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Total current liabilities | $14,651,736 | $18,435,055 |
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Long term debt, less current maturities | 5,060,025 | 5,119,745 |
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Other liabilities |
| 1,425,949 | 1,371,364 |
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Minority interest | 11,368 | 10,230 |
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Stockholders' equity | 2,894,675 | 2,951,170 |
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Total Liabilities & Stockholders' Equity | $24,043,753 | $27,887,564 |
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Consolidated Statements of Operations |
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| Quarter Ended June 30 |
| Six months ended June 30 | ||||||||||
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| 2005 | 2004 |
| 2005 | 2004 | ||||||||
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Net sales |
| $ 7,572,626 | $ 9,591,785 |
| 16,675,953 | $ 20,485,769 | ||||||||
Cost of sales |
| 5,989,672 | 7,559,756 |
| 13,219,006 | 16,306,371 | ||||||||
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Gross profit on sales | 1,582,954 | 2,032,029 |
| 3,456,947 | 4,179,398 | |||||||||
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Operating expenses | 1,478,552 | 1,814,013 |
| 3,025,832 | 3,586,566 | |||||||||
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Income from operations | 104,402 | 218,016 |
| 431,115 | 592,832 | |||||||||
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Other income (expense): |
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Interest expense | (281,727) | (338,828) |
| (587,107) | (669,964) | |||||||||
Other |
| 162,072 | (73,984) |
| 220,651 | 489,667 | ||||||||
(Loss) income before income taxes and minority interest | (15,253) | (194,796) |
| 64,659 | 412,535 | |||||||||
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Income tax expense | 38,191 | (58,327) |
| 33,712 | 175,129 | |||||||||
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Income (loss) before minority interest | (53,444) | (136,469) |
| 30,947 | 237,406 | |||||||||
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Minority interest in (loss) of subsidiary | 171 | (789) |
| 75 | 1,187 | |||||||||
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Net income (loss) | $ (53,615) | $ (135,680) |
| 30,872 | $ 236,219 | |||||||||
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Income (loss) applicable to common shares | $ (53,615) | $ (135,680) |
| 30,872 | $ 236,219 | |||||||||
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Basic income (loss) per common and common equivalent shares | $ (0.03) | $ (0.07) |
| 0.02 | $ 0.12 | |||||||||
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Diluted income (loss) per common and common equivalent shares | $ (0.03) | $ (0.07) |
| 0.02 | $ 0.12 | |||||||||
Weighted average number of shares and equivalent shares of common stock outstanding: | ||||||||||||||
Basic | 1,954,100 | 1,918,420 |
| 1,954,100 | 1,918,420 | |||||||||
Diluted | 1,954,100 | 1,918,420 |
| 1,974,222 | 2,032,665 | |||||||||
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