LAKE BARRINGTON, IL, Aug. 4, 2010 (Marketwire) --
LAKE BARRINGTON, IL -- (Marketwire) -- 08/04/10 -- 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 second quarter of 2010 and for the six month period ended June 30, 2010.
Consolidated net sales for the second quarter of 2010 were $12,964,000 compared to consolidated net sales of $10,779,000 for the second quarter of 2009, an increase of 20.3%. The Company earned net income of $607,000 or $0.21 per share (basic) and $0.20 per share (diluted) for the second quarter of 2010 compared to net income of $409,000 or $0.15 per share (basic and diluted) for the second quarter of 2009.
For the six month period ended June 30, 2010, consolidated net sales were $25,375,000 compared to $20,382,000 for the same period in 2009, an increase of 24.5%. For this six month period in 2010, net income was $1,206,000 or $0.43 per share (basic) and $0.42 per share (diluted) compared to net income of $502,000, or $0.18 per share (basic and diluted) for the same period of 2009.
Key Factors and Trends
Net sales of foil balloons increased by 9.0% in the second quarter compared to the same period of 2009, from $5,747,000 to $6,262,000. Net sales of foil balloons increased by 12.8% from $10,786,000 in the six months ended June 30, 2009 to $12,167,000 for the same period of 2010.
For the second quarter of 2010, net sales of pouch products were up 41.1% from the second quarter of 2009, from $1,577,000 in the second quarter of 2009 to $2,225,000 in the second quarter of 2010. For the six months ended June 30, 2010, pouch sales were $5,266,000 compared to $2,562,000 for the same period of 2009, an increase of 105.5%. The increase reflected increased sales to a major customer as well as increases in the Company's proprietary ZipVac line.
During the second quarter of 2010, sales of latex balloon products increased by 40.2% to $2,318,000 from sales of $1,653,000 in the second quarter of 2009. For the six months ended June 30, 2010, sales of latex balloons were $4,145,000 compared to sales of $3,196,000 in the same period of 2009, an increase of 29.7%.
Operating expenses were up modestly in both the second quarter of 2010 and the six months ended June 30, 2010 over the same periods in the prior year. However, as a percentage of revenues, operating expenses decline from 17.3% of sales in the six months ended June 30, 2009 to 16.0% of sales for the same period in 2010.
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.
- FINANCIAL HIGHLIGHTS FOLLOW -
CTI Industries Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, December 31,
2010 2009
------------ ------------
Assets (Unaudited)
Current Assets:
Cash and cash
equivalents $ 1,329,417 $ 870,446
Accounts
receivable, net 8,032,601 7,320,181
Inventories, net 9,419,187 9,643,914
Other current
assets 1,309,953 1,313,881
------------ ------------
Total current assets 20,091,158 19,148,422
Property, plant and
equipment, net 8,992,452 9,533,411
Other assets 1,848,147 1,713,476
------------ ------------
Total Assets $ 30,931,757 $ 30,395,309
============ ============
Liabilities &
Equity
Total current
liabilities $ 16,553,684 $ 16,734,520
Long term debt, less
current maturities 3,224,536 4,881,568
Stockholders' equity 11,110,339 8,762,663
Noncontrolling
interest 43,198 16,558
------------ ------------
Total Liabilities &
Equity $ 30,931,757 $ 30,395,309
============ ============
Condensed Consolidated Statements of Operations
Three Months Ended June 30 Six Months Ended June 30
2010 2009 2010 2009
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $ 12,964,203 $ 10,778,903 $ 25,374,969 $ 20,382,324
Cost of sales 10,091,153 8,178,204 19,457,347 15,715,122
------------ ------------ ------------ ------------
Gross profit 2,873,050 2,600,699 5,917,622 4,667,202
Operating expenses 1,983,390 1,925,768 4,067,906 3,530,523
------------ ------------ ------------ ------------
Income from
operations 889,660 674,931 1,849,716 1,136,679
Other (expense)
income:
Net Interest
expense (296,395) (272,566) (540,468) (568,117)
Other (21,463) 2,599 (34,687) (18,998)
------------ ------------ ------------ ------------
Income before income
taxes and
noncontrolling
interest 571,802 404,964 1,274,561 549,564
Income tax (benefit)
expense (21,036) (4,037) 95,324 46,121
------------ ------------ ------------ ------------
Net Income 592,838 409,001 1,179,237 503,443
Less: Net (loss)
income attributable
to noncontrolling
interest (13,929) 263 (26,373) 1,497
------------ ------------ ------------ ------------
Net income
attributable to
CTI Industries
Corporation $ 606,767 $ 408,738 $ 1,205,610 $ 501,946
============ ============ ============ ============
Income applicable to
common shares $ 606,767 $ 408,738 $ 1,205,610 $ 501,946
============ ============ ============ ============
Basic income per
common share $ 0.21 $ 0.15 $ 0.43 $ 0.18
============ ============ ============ ============
Diluted income per
common share $ 0.20 $ 0.15 $ 0.42 $ 0.18
============ ============ ============ ============
Weighted average
number of shares
and equivalent
shares of common
stock outstanding:
Basic 2,898,811 2,775,902 2,834,265 2,792,220
============ ============ ============ ============
Diluted 2,959,952 2,776,797 2,877,102 2,797,256
============ ============ ============ ============
