LAKE BARRINGTON, IL--(Marketwired - May 13, 2013) - CTI Industries Corporation (
Product Roll-Out
The Company announced that in late March 2013, the Company received orders for a significant placement of its branded vacuum sealing product line. The roll-out of this placement commenced in early April. As of March 31, 2013, the Company's branded line of vacuum sealing machines, pouches and rolls was being offered for sale in approximately 2,700 retail outlets. John Schwan, Chief Executive Officer of the Company, stated that: "We expect that our branded vacuum sealing line of sealing machines, pouches and rolls will be offered in approximately 6,000 retail outlets, including several major chains, by mid-year."
First Quarter Results
Consolidated net sales for the first quarter of 2013 were $13,345,000 compared to consolidated net sales of $13,807,000 for the first quarter of 2012. The Company earned net income of $130,000 or $0.04 per share (basic and diluted) for the first quarter of 2013 compared to net income of $389,000 or $0.12 per share (basic and diluted) for the first quarter of 2012.
"Sales for the first quarter 2013 were essentially even with sales for the first quarter last year, which was one of our strongest quarters ever," said Stephen Merrick, President and Chief Financial Officer. "We achieved these strong sales results even though our major roll-out of the vacuum sealing product line did not commence until the second quarter. While sales and margins were good in the first quarter, our bottom line was affected by (i) continued expenses related to the development and introduction of the vacuum sealing product line and (ii) a significant increase in interest expense."
Key Factors and Trends
Revenues from the sale of our vacuum sealing line increased by 19% from $1,033,000 in the first quarter last year to $1,231,000 in the first quarter this year, and did not include revenues from the major roll-out which commenced in April.
Gross margins remained positive at 22.3% compared to a rate of 22.4% in the first quarter 2012.
Revenues from the sale of latex balloons increased by 8.6% from $2,754,000 in the first quarter 2012 to $2,992,000 in the first quarter 2013.
Foil balloon revenues for the first quarter this year were $6,782,000 compared to $6,951,000 for the first quarter 2012.
Sales of laminated film products declined from $1,661,000 in the first quarter 2012 to $1,188,000 in the first quarter this year.
Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These "forward-looking" statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "goal," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar expressions. Factors that could cause results to differ are identified in the public filings of the Company with the Securities and Exchange Commission. More information on factors that could affect CTI's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
| CTI Industries Corporation and Subsidiaries | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, 2013 | *December 31, 2012 | |||||||||
| Assets | (Unaudited) | |||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents (VIE $23,000 and $22,000, respectively) | $ | 447,932 | $ | 351,064 | ||||||
| Accounts receivable, net | 8,398,764 | 7,773,332 | ||||||||
| Inventories, net | 15,823,912 | 15,813,276 | ||||||||
| Other current assets (VIE $114,000 and $108,000, respectively) | 2,967,197 | 3,192,082 | ||||||||
| Total current assets | 27,637,805 | 27,129,754 | ||||||||
| Property, plant and equipment, net | 8,593,797 | 8,699,070 | ||||||||
| Other assets | 1,909,996 | 1,918,319 | ||||||||
| Total Assets | $ | 38,141,598 | $ | 37,747,143 | ||||||
| Liabilities & Equity | ||||||||||
| Total current liabilities (VIE $140,000 and $198,000, respectively) | $ | 16,090,896 | $ | 16,963,447 | ||||||
| Long term debt, less current maturities | 9,841,504 | 8,701,650 | ||||||||
| CTI Industries Corporation stockholders' equity | 12,379,290 | 12,242,738 | ||||||||
| Noncontrolling interest | (170,092 | ) | (160,692 | ) | ||||||
| Total Liabilities & Equity | $ | 38,141,598 | $ | 37,747,143 | ||||||
| Condensed Consolidated Statements of Operations | ||||||||||
| Three Months Ended March 31 | ||||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||
| Net sales | $ | 13,344,766 | $ | 13,807,144 | ||||||
| Cost of sales | 10,370,749 | 10,712,073 | ||||||||
| Gross profit | 2,974,017 | 3,095,071 | ||||||||
| Operating expenses | 2,443,866 | 2,252,308 | ||||||||
| Income from operations. | 530,151 | 842,763 | ||||||||
| Other (expense) income: | ||||||||||
| Net Interest expense | (467,975 | ) | (180,987 | ) | ||||||
| Other | 144,524 | 2,225 | ||||||||
| Income before income taxes | 206,700 | 664,001 | ||||||||
| Income tax expense | 85,768 | 254,931 | ||||||||
| Net Income | 120,932 | 409,070 | ||||||||
| Less: Net (loss) income attributable to noncontrolling interest | (9,400 | ) | 20,442 | |||||||
| Net income attributable to CTI Industries Corporation | $ | 130,332 | $ | 388,628 | ||||||
| Income applicable to common shares | $ | 130,332 | $ | 388,628 | ||||||
| Other Comprehensive Income | ||||||||||
| Foreign currency adjustment | (30,400 | ) | 158,176 | |||||||
| Comprehensive income | $ | 99,932 | $ | 546,804 | ||||||
| Basic income per common share | $ | 0.04 | $ | 0.12 | ||||||
| Diluted income per common share | $ | 0.04 | $ | 0.12 | ||||||
| Weighted average number of shares and equivalent shares of common stock outstanding: | ||||||||||
| Basic | 3,248,646 | 3,204,506 | ||||||||
| Diluted | 3,415,911 | 3,244,976 | ||||||||
| *The condensed consolidated financial statements do not include all required disclosures, refer to the Form 10K for omitted disclosures. | ||||||||||
