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 Corporation
Releases Financial Results for
The Second Quarter and Six Months
Ended June 30, 2003
FOR IMMEDIATE RELEASE
Tuesday, August 19, 2003
BARRINGTON, IL, August 19, 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 second quarter and for the six months ending June 30, 2003. For the
quarter, net sales were $8,661,939, compared to net sales for the second quarter
of 2002 of $10,905,748. Net income for the quarter was $133,178, compared to net
income of $133,527 for the second quarter of 2002 (as restated).
Basic earnings per share for the quarter were $0.07, compared to basic earnings
per share of $0.11 for the second quarter of 2002. On a fully diluted basis,
earnings per share for the second quarter of 2003 were $0.06, compared to $0.09
for the second quarter of 2002 (as restated).
For the six month period ending June 30, 2003, net revenues were $18,824,434,
compared to net revenues for the same period in 2002 (as restated) of
$20,643,846. For the six month period, the Company incurred a net loss of
($556,611) compared to net income for the same period of 2002 in the amount of
$503,958 (as restated). For the six month period, basic loss per share was
($0.29), compared to basic income per share of $0.42 for the first six months of
2002. On a fully diluted basis, the loss per share for the six month period was
($0.29) compared to earnings per share for the six month period ended June 30,
2002 of $0.38.
"During the fourth quarter of 2002 and the first quarter of 2003, we incurred
higher production and production overhead costs than previously for a variety of
reasons including (i) installation and implementation of significant new
equipment, (ii) development of new customers and projects and (iii) the need to
respond to high demand from our customers. These increased costs impacted our
profitability during those periods. Our earnings results improved in the second
quarter of 2003, over the results in those two prior quarters, as the result of
efforts to control costs, including production overhead costs as well as
administrative, selling and marketing costs," reported Howard Schwan, President.
CTI Industries is one of the leading manufacturers and marketers of metallized
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 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 --
CTI INDUSTRIES CORPORATION
SUMMARY FINANCIAL INFORMATION
Quarter Ended June 30, 2003 and 2002
Six months ended June 30, 2003 and 2002
Consolidated Balance Sheets
June 30, December 31,
2003 2002
-------------------------------
Assets
Current Assets:
Cash and cash equivalents $ 187,249 $ 160,493
Accounts receivable, net 4,730,045 5,384,839
Inventories 10,196,054 10,033,593
Other current assets 1,175,995 558,775
-------------------------------
Total current assets 16,289,343 16,137,700
Property and equipment, net 12,391,671 11,715,013
Other assets 1,785,119 2,419,145
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Total Assets $ 30,466,133 $ 30,271,858
Liabilities & Stockholders' Equity
Total current liabilities $ 18,641,747 $ 19,045,951
Long term debt, less current maturities 5,267,523 5,016,109
Other liabilities 971,449 710,257
Minority interest 9,425 25,865
Stockholders' equity 5,575,988 5,473,676
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Total Liabilities & Stockholders' Equity $ 30,466,133 $ 30,271,858
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Consolidated Statements of Operations
Quarter Ended June 30 Six months ended June 30
2003 2002 2003 2002
(as restated) (as restated)
------------------------------- -------------------------------
Net sales $ 8,661,939 $ 10,905,748 $ 18,824,434 $ 20,643,846
Cost of sales 6,755,910 8,299,517 14,981,352 15,483,362
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Gross profit on sales 1,906,029 2,606,231 3,843,082 5,160,484
Operating expenses 1,928,759 2,003,056 4,090,402 3,773,455
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Income from operations (22,730) 603,175 (247,320) 1,387,029
Other income (expense):
Interest expense (273,691) (204,254) (475,443) (384,244)
Other 302,025 (244,341) 70,406 (206,772)
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Income (loss) before income taxes and minority 5,604 154,581 (652,357) 793,013
interest
Income tax expense (129,670) 50,917 (95,425) 298,210
------------------------------- -------------------------------
Income (loss) before minority interest 135,275 103,664 (556,932) 497,803
Minority interest in (loss) of subsidiary 2,097 (29,863) (321) (6,155)
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Net income (loss) $ 133,178 $ 133,527 $ (556,611) $ 503,958
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Income (loss) applicable to common shares $ 133,178 $ 133,527 $ (556,611) $ 503,958
Basic income (loss) per common and common
equivalent shares $ 0.07 $ 0.11 $ (0.29) $ 0.42
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Diluted income (loss) per common and common
equivalent shares $ 0.06 $ 0.09 $ (0.29) $ 0.38
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Weighted average number of shares and equivalent
shares of common stock outstanding:
Basic 1,918,420 1,263,763 1,918,098 1,198,597
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Diluted 2,139,754 1,479,644 1,918,098 1,332,610
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