CTI Industries Corporation: CTI Industries Corporation Reports First Quarter 2009 Financial Results

BARRINGTON, IL--(Marketwire - May 14, 2009) - CTI Industries Corporation (NASDAQ: [ CTIB ]), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the first quarter of 2009.

Consolidated net sales for the first quarter of 2009 were $9,603,000 compared to consolidated net sales of $10,735,000 for the first quarter of 2008, representing a decrease of 10.5%. The Company earned net income of $93,000 or $0.03 per share (basic and diluted) for the first quarter of 2009 compared to net income of $279,000 or $0.10 per share (basic and diluted) for the first quarter of 2008.

Key Factors and Trends

Novelty product revenues were up 7.9%, from $6,101,000 in the first quarter of 2008 to $6,580,000 in the first quarter of 2009. Sales of pouch products were down 59.7% from $2,447,000 in the first quarter 2008 to $986,000 in the first quarter 2009. Most of this decrease is attributable to lower sales of vacuum pouch products to a principal customer. Sales of laminated films showed a modest decline from $1,943,000 in the first quarter of 2008 to $1,876,000 in the first quarter of 2009.

Gross profit declined from $2,332,000 in the first quarter of 2008 to $2,067,000 in the first quarter of 2009. Gross margins rates remained essentially constant.

Operating expenses were down slightly in the first quarter 2009, compared to the first quarter of 2008, by about $87,000 but increased as a percentage of sales from 15.8% in 2008 to 16.7% in 2009.

Statements made in this release that are not historical facts are "forward-looking" statement (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, 2009 December 31, 2008 ---------------- ----------------- Assets (Unaudited) Current Assets: Cash and cash equivalents $ 244,132 $ 180,578 Accounts receivable, net 6,491,221 5,821,593 Inventories, net 10,267,516 10,504,769 Other current assets 1,326,691 1,181,097 ---------------- ----------------- Total current assets 18,329,560 17,688,037 Property, plant and equipment, net 10,284,662 10,575,982 Other assets 1,663,971 1,724,172 ---------------- ----------------- Total Assets $ 30,278,193 $ 29,988,191 ================ ================= Liabilities & Equity Total current liabilities $ 16,735,655 $ 16,222,180 Long term debt, less current maturities 5,816,509 6,018,655 Stockholders' equity 7,712,039 7,734,600 Noncontrolling interest 13,990 12,756 ---------------- ----------------- Total Liabilities & Equity $ 30,278,193 $ 29,988,191 ================ ================= Consolidated Statements of Operations Three Months Ended March 31, 2009 2008 ---------------- ---------------- (Unaudited) (Unaudited) Net sales $ 9,603,422 $ 10,734,701 Cost of sales 7,536,919 8,403,022 ---------------- ---------------- Gross profit 2,066,503 2,331,679 Operating expenses 1,604,755 1,691,974 ---------------- ---------------- Income from operations 461,748 639,705 Other (expense) income: Net Interest expense (295,551) (270,261) Other (21,598) 30,322 ---------------- ---------------- Income before income taxes and noncontrolling interest 144,599 399,766 Income tax expense 50,158 120,657 ---------------- ---------------- Income before noncontrolling interest 94,441 279,109 Noncontrolling interest income of subsidiary 1,234 288 ---------------- ---------------- Net income $ 93,207 $ 278,821 ================ ================ Basic income per common and common equivalent shares $ 0.03 $ 0.10 ================ ================ Diluted income per common and common equivalent shares $ 0.03 $ 0.10 ================ ================ Weighted average number of shares and equivalent shares of common stock outstanding: Basic 2,808,720 2,662,267 ================ ================ Diluted 2,825,482 2,797,374 ================ ================

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