EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick Tim Dilsaver
Executive Vice President Investor Relations
(847) 382-1000 (847) 382-1000
CTI Industries Reports Financial Results
For The First Quarter of 2003
FOR IMMEDIATE RELEASE
Tuesday, May 27, 2003
BARRINGTON, IL, May 27,2003 -- 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, 2003. For the quarter, net sales were
$10,162,000 an increase of 4.4% over 2002 first quarter revenues of $9,738,000.
The Company realized incurred a net loss of $690,000 for the quarter, compared
to net income for the first quarter of 2002 of $370,000.
The loss per share for the quarter was $0.36, compared to income per share of
$0.33 ($0.30 fully diluted) for the first quarter of 2002.
"We experienced modest gains in sales during the first quarter. However, our
results for the quarter were affected by several factors including (i) reduced
margins in sales of foil balloons, including sales to a significant customer and
(ii) losses incurred in our Mexico operation arising from the move of operations
to a new facility, reduced production and reduced sales during the quarter,"
said Stephen Merrick, Executive Vice President and Chief Financial Officer.
On May 22, 2003, the Company received a notice from the Nasdaq Stock Market that
it is not compliant with Nasdaq Marketplace Rules by reason of the failure of
the Company to file its Form 10-Q on a timely basis (Rule 4310(c)(14)) and by
reason of the failure of the Company to pay certain fees due to Nasdaq (Rule
4310(c)(13)). On May 27, 2003, the Company did file its Report on Form 10-Q with
the Securities and Exchange Commission and has made payment of all fees due to
Nasdaq.
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.
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
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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
Consolidated Balance Sheets
March 31, 2003 December 31, 2002
-------------- -----------------
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 718,198 $ 160,493
Accounts receivable, net 6,216,617 5,384,839
Inventories 10,350,737 10,033,593
Other current assets 1,220,631 558,775
------------ ------------
Total current assets 18,506,183 16,137,700
Property and equipment, net 11,629,560 11,715,013
Other assets 1,666,445 2,419,145
------------ ------------
Total Assets $ 31,802,188 $ 30,271,858
============ ============
Liabilities & Stockholders' Equity
Total current liabilities $ 22,093,738 $ 19,045,151
Long term debt, less current maturities 3,784,191 5,016,109
Other liabilities 670,807 710,257
Minority interest 23,447 25,865
Stockholders' equity 5,230,005 5,473,676
------------ ------------
Total Liabilities & Stockholders' Equity $ 31,802,188 $ 30,271,858
============ ============
Consolidated Statements of Operations
Quarter Ended March 31,
2003 2002
(unaudited) (unaudited)
------------ ------------
Net sales $ 10,162,495 $ 9,738,097
Cost of sales 8,225,442 7,183,845
Gross profit on sales 1,937,053 2,554,252
Operating expenses 2,250,261 1,770,399
------------ ------------
Income from operations (313,208) 783,853
Other income (expense):
Interest expense (201,752) (179,990)
Other (143,001) 37,568
------------ ------------
Income (loss) before income taxes and minority interest (657,961) 641,431
------------ ------------
Income tax expense 34,245 247,293
Income (loss) before minority interest (692,206) 394,138
------------ ------------
Minority interest in (loss) of subsidiary (2,418) (23,707)
Net income (loss) $ (689,788) $ 370,431
============ ============
Basic income (loss) per common and common equivalent shares $ (0.36) $ 0.33
Diluted income (loss) per common and common equivalent shares $ (0.36) $ 0.30
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic 1,917,772 1,133,431
Diluted 1,917,772 1,221,351