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 Third Quarter and Nine Months
Ended September 30, 2003
FOR IMMEDIATE RELEASE
Wednesday, November 19, 2003
BARRINGTON, IL, November 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 third quarter and for the nine months ending September 30, 2003. For the
quarter, net sales were $8,429,000, compared to net sales for the third quarter
of 2002 of $10,873,000. Net income for the quarter was $129,000, compared to net
income of $387,000 for the third quarter of 2002 (as restated).
Basic earnings per share for the quarter were $0.07, compared to basic earnings
per share of $0.25 for the third quarter of 2002. On a fully diluted basis,
earnings per share for the third quarter of 2003 were $0.06, compared to $0.22
for the third quarter of 2002 (as restated).
For the nine month period ending September 30, 2003, net revenues were
$27,253,000, compared to net revenues for the same period in 2002 (as restated)
of $31,517,000. For the nine month period ending September 30, 2003, the Company
incurred a net loss of ($428,000), compared to net income for the same period of
2002 in the amount of $886,000 (as restated). For the nine month period ending
September 30, 2003, basic loss per share was ($0.22), compared to basic income
per share of $0.68 for the first nine months of 2002. On a fully diluted basis,
the loss per share for the nine month period was ($0.22) compared to earnings
per share for the nine month period ended September 30, 2002 of $0.60.
"We have experienced some reduction in revenues during the third quarter and the
nine months ended September 30, 2003, compared to the same period of 2002, due
principally to a reduction in sales to three principal customers, one for a
completed film product, one for a laminated film product and a third for foil
balloons," reported Stephen Merrick, Chief Financial Officer. "All three remain
customers of the Company," he said.
"During the fourth quarter of 2002 and the first quarter of 2003, we experienced
production and production overhead expenses higher than previously due to the
costs of acquiring and installing new equipment, developing new customers and
projects and responding to peak demands of customers, resulting in losses during
those quarters." reported Howard Schwan, President. "Over the past two quarters,
we have worked to control these costs, as well as administrative, selling and
marketing costs, with the result that our operating results have improved during
the second
and third quarters of this year," he said. " Our plan and goal is to tailor our
costs to the revenue levels we now have in order to achieve consistent
profitability in our operations."
CTI Industries is one of the leading manufacturers and marketers of metallized
and latex balloons and produces laminated and printed films and film products
for packaging, storage and other consumer and 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 and Subsidiaries
Summary Financial Information
Quarter ended September, 2003 and 2002 (Unaudited)
Assets September 30, 2003 December 31, 2002
------------------ -----------------
Current Assets:
Cash and cash equivalents $ 190,783 $ 160,493
Accounts receivable, net 4,962,966 5,384,839
Inventories 10,042,058 10,033,593
Other current assets 1,193,111 558,775
-------------------------------------
Total current assets 16,388,918 16,137,700
Property and equipment, net 12,230,632 11,715,013
Other assets 2,201,283 2,419,145
-------------------------------------
Total Assets $ 30,820,832 $ 30,271,858
=====================================
Liabilities & Stockholders' Equity
Total current liabilities $ 19,357,491 $ 19,045,151
Long term debt, less current maturities 4,912,492 5,016,109
Other liabilities 1,070,589 710,257
Minority interest 10,046 25,865
Stockholders' equity 5,470,214 5,474,476
-------------------------------------
Total Liabilities & Stockholders' Equity $ 30,820,832 $ 30,271,858
=====================================
Consolidated Statements of Operations
(Unaudited)
Quarter Ended September
2003 2002
-------------------------------------
Net sales $ 8,428,784 $ 10,873,147
Cost of sales 6,653,397 8,187,960
-------------------------------------
Gross profit on sales 1,775,387 2,685,187
Operating expenses 1,553,795 2,035,576
-------------------------------------
Income from operations 221,592 649,611
Other income (expense):
Interest expense (301,323) (220,446)
Other (17,249) (14,388)
-------------------------------------
(Loss) income before income taxes and minority interest (96,981) 414,779
Income tax (benefit) expense (226,341) 26,639
-------------------------------------
Income before minority interest 129,361 388,138
Minority interest in income (loss) of subsidiary 621 1,180
-------------------------------------
Net income $ 128,740 $ 386,958
=====================================
Income applicable to common shares $ 128,740 $ 386,958
=====================================
Basic income per common and common equivalent shares $ 0.07 $ 0.25
=====================================
Diluted income per common and common equivalent shares $ 0.06 $ 0.22
=====================================
Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic 1,918,206 1,557,010
=====================================
Diluted 1,996,734 1,742,259
=====================================