EX-99.1 2 v030257_ex99-1.htm
 
EXHIBIT 99.1

NEWS RELEASE

FOR FURTHER INFORMATION CONTACT:
Stephen M. Merrick
Mary Ellen Dammyer
Executive Vice President
Investor Relations
(847) 382-1000
(847) 382-1000
 
CTI Industries Corporation
Releases Financial Results for
The Third Quarter and Nine Months
Ended September 30, 2005

FOR IMMEDIATE RELEASE
Friday, November 21, 2005

BARRINGTON, IL, November 21, 2005 – 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 third quarter and for the nine months ending September 30, 2005. For the quarter, net sales were $6,033,831 compared to net sales for the third quarter of 2004 of $8,125,521, a decrease of 26%. The Company incurred a net loss for the quarter of ($416,267), compared to a net loss of $(150,370) for the third quarter of 2004.

Net loss per share basic and diluted was ($0.21) for the three months ending September 30, 2005, compared to a net loss per share basic and diluted of ($0.08) for the third quarter of 2004.

For the nine month period ending September 30, 2005, net sales were $22,709,785 compared to net sales for the same period in 2004 of $28,611,290, a decrease of 21%. For the nine month period, the Company had a net loss of ($385,395) compared to net income of $85,850 for the same period in 2004. For the nine month period, the Company had a net loss per share (basic and diluted) of ($0.20), compared to income per share of ($0.04) (basic and diluted) for the same period last year.

“The decline in revenues we have experienced this year, in the third quarter and year to date, are a reflection significantly of the termination of our relationship with, and sales of foil balloons to, Hallmark Cards,” said Howard Schwan, President. “During this year to date, we have also experienced modest declines in sales of other products, including latex balloons, helium and sales of consumer pouches to one customer.” he said.

“Despite these declines in revenues,” he said, “we have slightly improved product margins over the first nine months of this year, and we have begun to replace the lost revenues with expanded sales of foil and latex balloons to other customers, the introduction of a new line of consumer food storage bags and the addition of a new customer for our commercial films.”
 
 
 
 
 
CTI Industries is one of the leading manufacturers and marketers of metalized and latex balloons, produces laminated and printed films for commercial uses and produces flexible containers including consumer storage pouches. CTI markets its products throughout the United States and in a number of 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 –
 
 
 
 
 
CTI INDUSTRIES AND SUBSIDIARIES
SUMMARY FINANCIAL INFORMATION
Quarter Ended September 2005 and 2004
 
(Unaudited)
                          
                           
Consoldated condensed Balance Sheet
                          
 
  
 September 30, 2005
  
 December 31, 2004
              
Assets
                          
Current Assets:
                          
Cash and cash equivalents
  
$
202,603
  
$
526,470
              
Accounts receivable, net
    
4,016,112
   
6,123,137
             
Inventories
    
7,016,758
   
8,348,494
             
Other current assets
    
509,572
   
646,805
             
Total current assets
    
11,745,045
   
15,644,906
             
                           
Property and equipment, net
    
9,857,108
   
10,588,511
             
Other assets
    
1,370,495
   
1,654,147
             
                           
Total Assets
  
$
22,972,648
  
$
27,887,564
              
                           
Liabilities & Stockholders' Equity
                          
Total current liabilities
  
$
13,615,068
  
$
18,435,055
              
Long term debt, less current maturities
    
5,019,355
   
5,119,745
             
Other liabilities
    
1,608,898
   
1,371,364
             
Minority interest
    
11,368
   
10,230
             
Stockholders' equity
    
2,717,959
   
2,951,170
             
                           
Total Liabilities & Stockholders' Equity
  
$
22,972,648
  
$
27,887,564
              
                           
Consolidated Statements of Operations
                          
   
 Three Months Ended September 30
  
 Nine Months Ended September 30
  
   
 2005
  
 2004
  
 2005
  
 2004
  
Net sales
  
$
6,033,831
  
$
8,125,521
  
$
22,709,784
  
$
28,611,290
  
Cost of sales
    
4,791,645
   
6,455,743
   
18,010,651
   
22,762,114
 
                           
Gross profit on sales
    
1,242,186
   
1,669,778
   
4,699,133
   
5,849,176
 
                           
Operating expenses
    
1,399,430
   
1,700,292
   
4,425,260
   
5,286,858
 
                           
Income from operations
    
(157,244
)
  
(30,514
)
  
273,871
   
562,318
 
                           
Other income (expense):
                          
Interest expense
    
(281,047
)
  
(339,953
)
  
(868,154
)
  
(1,009,917
)
Other
    
(3,798
)
  
129,124
   
216,853
   
618,792
 
                           
Income (loss) before income taxes and minority interest
    
(442,089
)
  
(241,343
)
  
(377,430
)
  
171,193
 
                           
Income tax expense
    
(25,544
)
  
(90,850
)
  
8,168
   
84,279
 
                           
Income (loss) before minority interest
    
(416,545
)
  
(150,493
)
  
(385,598
)
  
86,914
 
                           
Minority interest in (loss) of subsidiary
    
(278
)
  
(123
)
  
(203
)
  
1,064
 
                           
Net income (loss)
  
$
(416,267
)
$
(150,370
)
$
(385,395
)
$
85,850
  
                           
Income (loss) applicable to common shares
  
$
(416,267
)
$
(150,370
)
$
(385,395
)
$
85,850
  
                           
Basic income (loss) per common and common equivalent shares
  
$
(0.21
)
$
(0.08
)
$
(0.20
)
$
0.04
  
                           
Diluted income (loss) per common and common equivalent shares
  
$
(0.21
)
$
(0.08
)
$
(0.20
)
$
0.04
  
                           
Weighted average number of shares and equivalent shares of common stock outstanding:
                          
Basic
    
1,963,615
   
1,932,692
   
1,957,283
   
1,923,212
 
                           
Diluted
    
1,963,615
   
1,932,692
   
1,957,283
   
1,991,766