EXHIBIT 99
CTI INDUSTRIES CORPORATION
22160 N. Pepper Road
Barrington, Illinois 60010
847-382-1000
FOR IMMEDIATE RELEASE
April 15, 2004
For More Information Contact:
Tim Dilsaver Stephen M. Merrick
Investor Relations Executive Vice President
847-382-1000 847-382-1000
CTI Industries Corporation Reports 2003 Financial Results
CTI Industries Corporation (Nasdaq: CTIB), a leading provider of metalized
balloons, latex balloons, novelty items and printed and laminated films,
announces its financial results for the year ended December 31, 2003 and for the
fourth quarter of 2003.
Year End Results.
For the year ended December 31, 2003, consolidated revenues totaled
$36,259,638 compared to consolidated revenues of $41,236,476 for the year ended
December 31, 2002, a decline of 12%.
For the year, the Company incurred a net loss of ($566,047), or $(0.30)
per share (basic and diluted), compared to net income of $302,512, or $0.18 per
share ($.016 per share diluted).
Fourth Quarter Results
Consolidated revenues for the fourth quarter of 2003 totaled $9,006,420
compared to consolidated revenues of $9,719,483 for the fourth quarter of 2002,
a decrease of 7.3%. The Company had a net loss for the fourth quarter of 2003 of
($138,177) compared to a net loss of ($588,403) for the fourth quarter of 2002.
"Our decline in profitability during 2003 compared to 2002 was the result
principally of a decline in margins, particularly with respect to foil
balloons," reported Stephen Merrick, Executive Vice President and Chief
Financial Officer. "The pressure on margins occurred both due to price
competition and increases in production costs," he said. "Our goals for 2004
include improving margins by controlling and reducing production costs and
expanding our revenues in higher margin products."
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"We invested in new production equipment which was installed and set-up
during the fourth quarter of 2002 and the first quarter of 2003. The costs
related to this installation and set-up, which were not capitalized, affected
our results in the first quarter of 2003," stated Howard Schwan, President.
"Our financial condition, in terms of working capital, improved from 2002
to 2003. As of December 31, 2002, our working capital was a negative
($2,907,000). At December 31, 2003, working capital had improved to a negative
($706,000). We anticipate further improvement in our working capital during
2004," Mr. Merrick reported.
About CTI
CTI is one of the leading producers and marketers of balloon products, both foil
(metalized) and latex, and distributes these products throughout the United
States and in over 30 countries. It also develops, produces, prints and
processes a variety of film products for commercial applications including
packaging and flexible containers.
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 any results or events projected
or implied 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 CTI 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 is its SEC filings, and such statements should also be
considered in conjunction with cautionary statements contained in CTI's most
recent filings with the Securities and Exchange Commission on Forms 10-K and
10-Q.
-- FINANCIAL HIGHLIGHTS FOLLOW --
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CTI Industries Corporation and Subsidiaries
Summary Financial Information
Year and Quarter ended December 31, 2003 and 2002
December 31, 2003 December 31, 2002
Assets
Current Assets:
Cash and cash equivalents $ 329,742 $ 160,493
Accounts receivable, net 4,620,726 5,384,839
Inventories 9,263,160 10,033,593
Other current assets 859,185 558,775
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Total current assets 15,434,564 16,137,700
Property and equipment, net 12,207,245 11,715,013
Other assets 2,629,969 2,419,145
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Total Assets $ 30,270,182 $ 30,271,858
==============================
Liabilities & Stockholders' Equity
Total current liabilities $ 16,140,080 $ 19,045,151
Long term debt, less current maturities 7,830,217 5,016,109
Other liabilities 1,079,041 710,257
Minority interest 9,263 25,865
Stockholders' equity 5,211,581 5,474,476
------------------------------
Total Liabilities & Stockholders' Equity $ 30,270,182 $ 30,271,858
==============================
Consolidated Statements of Operations
Year Ended December 31 Quarter Ended December 31
2003 2002 2003 2002
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Net sales $ 36,259,638 $ 41,236,476 $ 9,006,420 $ 9,719,483
Cost of sales 29,626,450 32,344,115 7,991,701 8,672,793
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Gross profit on sales 6,633,188 8,892,361 1,014,719 1,046,690
Operating expenses 7,312,410 7,447,421 1,666,213 1,956,904
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Income from operations (679,222) 1,444,940 (653,493) (910,214)
Other income (expense):
Interest expense (1,103395) (831,600) (326,628) (226,910)
Other 433,619 (278,030) 380,460 261,646
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Income (loss) before income taxes and minority interest (1,348,998) 335,310 (599,662) (875,478)
Income tax expense (782,468) 39,065 (460,702) (285,784)
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Income (loss) before minority interest (566,530) 296,245 (138,960) (589,694)
Minority interest in (loss) of subsidiary (483) (6,266) (783) (1,291)
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Net income (loss) $ (566,047) $ 302,512 $ (138,177) $ (588,403)
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Basic income (loss) per common and common equivalent shares $ (0.30) $ 0.18 $ (0.07) $ (0.31)
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Diluted income (loss) per common and common equivalent shares $ (0.30) $ 0.16 $ (0.07) $ (0.28)
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Weighted average number of shares and equivalent shares
of common stock outstanding:
Basic 1,918,260 1,688,384 1,918,260 1,878,697
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Diluted 1,918,260 1,884,405 1,918,260 2,130,009
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