House & Home
House and Home
House and Home 
Mon, March 21, 2011
CTI Industries Corporation Reports Record Results for 2010, Strong Fourth Quarter
BARRINGTON, IL--(Marketwire - March 21, 2011) - CTI Industries Corporation (
Year-End Results
For the year ended December 31, 2010, consolidated net sales totaled $47,748,000, compared to consolidated net sales of $41,295,000 for the year ended December 31, 2009, an increase of 15%. For the year, CTI achieved net income of $1,827,000 or $0.61 per share (basic) and $0.60 per share (diluted), compared to $1,003,000 or $0.36 per share (basic and diluted) for 2009, an increase of over 80%.
Fourth Quarter Results
Consolidated net sales for the fourth quarter of 2010 were $11,701,000 compared to consolidated net sales of $10,738,000 for the fourth quarter of 2009, an increase of 9%. For the fourth quarter of 2010, CTI had net income of $379,000, compared to net income of $296,000 for the fourth quarter of 2009, an increase of 28%. Earnings per share for the fourth quarter of 2010 were $0.12 (basic and diluted), compared to $0.11 (basic and diluted) for the same period of 2009.
Key Factors and Trends
2010 was a record year for CTI. Sales were the highest in CTI's 34 year history. Sales grew in each of CTI's product lines:
Pouch sales were up 26% from $6,895,000 in 2009 to $8,676,000 in 2010
Foil balloon sales were up 10.5% from $19.8 million in 2009 to $21.9 million in 2010
Latex balloon sales were up 22% from $7,024,000 in 2009 to $8,589,000 in 2010
Film product sales were up 7.4% from $6,913,000 in 2009 to $7,428,000 in 2010.
Gross margin levels remained constant at 22.2% in 2010 compared to 22.3% in 2009. The cost of raw materials increased in 2010 to 45% of sales compared to 43.9% of sales in 2009. This increase in raw materials costs derived principally from increases in the price of petroleum and natural latex.
During 2010, CTI established an office and warehouse in Germany and has commenced sales of novelty products in mainland Europe. During the year, CTI also acquired and assembled new equipment for the production of latex balloons which is expected to increase latex balloon production capacity by 70%.
CTI generated over $3 million in cash flow from operations and reduced long term indebtedness by over $1.7 million. The Company's working capital balance increased to over $3 million and shareholders equity increased from $8.7 million at the end of 2009 to more than $11.8 million by year-end 2010.
CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.
Statements made in this release that are not historical facts are "forward-looking" statements (within the meaning of Section 21E of the Securities Exchange Act of 1934) 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. We have based these forward-looking statements on our current expectations and projections about future results. Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from statements made herein. 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.
- FINANCIAL HIGHLIGHTS FOLLOW -
CTI Industries Corporation and Subsidiaries Condensed Consolidated Balance Sheets December 31, December 31, 2010 2009 ------------ ------------- ASSETS Current assets: Cash $ 761,874 $ 870,446 Accounts receivable, (less allowance for doubtful accounts of $59,000 and $57,000 respectively) 8,533,626 7,320,181 Inventories, net 10,368,037 9,643,914 Net deferred income tax asset 750,485 706,754 Prepaid expenses and other current assets 1,012,067 607,127 ------------ ------------- Total current assets 21,426,089 19,148,422 Total property, plant and equipment, net 9,659,768 9,533,411 Total other assets 1,775,531 1,713,476 ------------ ------------- TOTAL ASSETS $ 32,861,388 $ 30,395,309 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY Total current liabilities $ 17,952,042 $ 16,734,520 Total long-term liabilities, less current maturities 3,129,685 4,881,568 ------------ ------------- Total Liabilities 21,081,727 21,616,088 Total CTI Industries Corporation stockholders' equity 11,784,340 8,762,663 Noncontrolling Interest (4,679) 16,558 ------------ ------------- Total Equity 11,779,661 8,779,221 ------------ ------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 32,861,388 $ 30,395,309 ============ ============= CTI Industries Corporation and Subsidiaries Condensed Consolidated Statements of Operations Three months ended Year ended December 31, December 31, 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Net sales $ 47,747,611 $ 41,295,152 $ 11,700,684 $ 10,737,583 Cost of sales 37,145,439 32,081,779 9,265,322 8,369,364 ------------ ------------ ------------ ------------ Gross profit 10,602,172 9,213,373 2,435,362 2,368,219 Operating expenses: General and administrative 4,921,457 4,539,494 1,113,939 1,151,999 Selling 914,698 871,258 243,369 269,438 Advertising and marketing 1,719,509 1,576,225 389,985 363,059 ------------ ------------ ------------ ------------ Total operating expenses 7,555,664 6,986,977 1,747,293 1,784,496 ------------ ------------ ------------ ------------ Income from operations 3,046,508 2,226,396 688,069 583,723 Other (expense) income: Interest expense (919,170) (1,085,107) (219,363) (260,355) Other (31,382) (19,956) 5,966 (13,509) ------------ ------------ ------------ ------------ Total other expense (950,552) (1,105,063) (213,397) (273,864) ------------ ------------ ------------ ------------ Income before income taxes and noncontrolling interest 2,095,956 1,121,333 474,672 309,859 Income tax expense 342,688 114,391 134,426 12,604 ------------ ------------ ------------ ------------ Net Income 1,753,268 1,006,942 340,246 297,255 Less: Net (loss) income attributable to noncontrolling interest (74,250) 3,802 (38,334) 779 ------------ ------------ ------------ ------------ Net income attributable to CTI Industries Corporation $ 1,827,518 $ 1,003,140 $ 378,580 $ 296,476 ============ ============ ============ ============ Income applicable to common shares $ 1,827,518 $ 1,003,140 $ 378,580 $ 296,476 ============ ============ ============ ============ Basic income per common share $ 0.61 $ 0.36 $ 0.12 $ 0.11 ============ ============ ============ ============ Diluted income per common share $ 0.60 $ 0.36 $ 0.12 $ 0.11 ============ ============ ============ ============ Weighted average number of shares and equivalent shares of common stock outstanding: Basic 2,981,188 2,765,277 3,130,862 2,738,063 ============ ============ ============ ============ Diluted 3,039,442 2,775,062 3,205,154 2,757,058 ============ ============ ============ ============