EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick
Executive Vice President
(847) 382-1000
CTI Industries Corporation
Releases Financial Results for
The Second Quarter and Six Months
Ended June 30, 2004
FOR IMMEDIATE RELEASE
Tuesday, August 24, 2004
BARRINGTON, IL, August 24, 2004 -- 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, 2004. For the
quarter, net sales were $9,591,785, compared to net sales for the second quarter
of 2003 of $8,661,939, an increase of 10.7%. The Company incurred a net loss for
the quarter of ($135,681), compared to net income of $133,178 for the second
quarter of 2003.
Net loss per share basic and diluted was ($0.07) for the three months ending
June 30, 2004, compared to net income per share for the three months ending June
30, 2003 of $0.07 basic and $0.06 diluted.
For the six month period ending June 30, 2004, net sales were $20,485,769,
compared to net sales for the same period in 2003 of $18,824,434, an increase of
8.8%. For the six month period, the Company had net income of $236,220 compared
to a net loss of ($556,611) for the same period of 2003. For the six month
period, the Company had net income per share of $0.12 (basic and diluted),
compared to a loss per share of ($0.29) (basic and diluted) for the same period
last year.
"We have experienced healthy increases in revenues in all of our product lines
this year, with the sole exception of our sales of consumer storage pouches
which have declined." said Howard Schwan, President. "Sales of foil balloons
have increased by 32.7% in the first six months of this year, compared to the
same period last year. Sales of latex balloons have increased 13.2% during the
period.
"Margins have improved from 18.7% during the year ended 2003 to 20.4% during the
first six months of 2004." reported Stephen Merrick, Executive Vice President
and Chief Financial Officer. "This improvement comes as the result of our
efforts to control production and other costs."
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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 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, 2004 and 2003
Six months ended June 30, 2004 and 2003
Consolidated Balance Sheets
December 31,
June 30, 2004 2003
-----------------------------
Assets
Current Assets:
Cash and cash equivalents $ 421,430 $ 329,742
Accounts receivable, net 5,467,657 4,620,276
Inventories 9,388,535 9,263,160
Other current assets 1,394,740 1,221,386
-----------------------------
Total current assets 16,672,362 15,434,564
Property and equipment, net 11,272,925 12,207,649
Other assets 2,402,901 2,627,969
-----------------------------
Total Assets $30,348,188 $30,270,182
Liabilities & Stockholders' Equity
Total current liabilities $16,650,928 $16,140,080
Long term debt, less current maturities 8,110,631 8,909,258
Minority interest 10,230 9,263
Stockholders' equity 5,576,399 5,211,581
-----------------------------
Total Liabilities & Stockholders' Equity $30,348,188 $30,270,182
=============================
Consolidated Statements of Operations
Quarter Ended June 30 Six months ended June 30
2004 2003 2004 2003
----------------------------- ----------------------------
Net sales $ 9,591,785 $ 8,661,939 20,485,769 $18,824,434
Cost of sales 7,559,756 6,755,910 16,306,371 14,981,352
----------------------------- ----------------------------
Gross profit on sales 2,032,029 1,906,029 4,179,398 3,843,082
Operating expenses 1,814,013 1,928,759 3,586,565 4,090,402
----------------------------- ----------------------------
Income from operations 218,016 (22,730) 592,833 (247,320)
Other income (expense):
Interest expense (338,828) (273,691) (669,964) (475,443)
Other (73,984) 302,025 489,667 70,406
----------------------------- ----------------------------
Income (loss) before income taxes and minority
interest (194,797) 5,604 412,536 (652,357)
Income tax expense (58,327) (129,671) 175,129 (95,425)
----------------------------- ----------------------------
Income (loss) before minority interest (136,470) 135,275 237,408 (556,932)
Minority interest in (loss) of subsidiary (789) 2,097 1,187 (321)
----------------------------- ----------------------------
Net income (loss) $ (135,681) $ 133,178 236,220 $ (556,611)
============================= ============================
Income (loss) applicable to common shares $ (135,681) $ 133,178 236,220 $ (556,611)
Basic income (loss) per common and common
equivalent shares $ (0.07) $ 0.07 0.12 $ ( 0.29)
============================= ============================
Diluted income (loss) per common and common
equivalent shares $ (0.07) $ 0.06 0.12 $ (0.29)
============================= ============================
Weighted average number of shares and equivalent
shares of common stock outstanding:
Basic 1,918,420 1,918,420 1,918,420 1,918,420
============================= ============================
Diluted 1,918,420 2,139,754 2,032,665 1,918,098
============================= ============================
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