Welcome!

News Feed Item

CTI Industries Corporation Reports Second Quarter 2014 Financial Results

LAKE BARRINGTON, IL -- (Marketwired) -- 08/13/14 -- 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 2014 and for the six month period ended June 30, 2014.

Consolidated net sales for the second quarter of 2014 were $13,159,000 compared to consolidated net sales of $13,034,000 for the second quarter of 2013, an increase of about 1%. The Company had a net loss of $122,000 or ($0.04) per share (basic and diluted) for the second quarter of 2014 compared to a net loss $56,000 or ($0.02) per share (basic and diluted) for the second quarter of 2013.

For the six month period ended June 30, 2014, consolidated net sales were $28,079,000 compared to $26,379,000 for the same period in 2013, an increase of 6.4%. For this six month period in 2014, the Company had a net loss of $77,000 or ($0.02) per share (basic and diluted) compared to net income of $74,000, or $0.02 per share (basic and diluted) for the same period of 2013.

Key Factors and Trends

Interest expense remains a significant factor affecting profitability. In the second quarter 2014, the Company incurred net interest costs of $205,000 and for the six months incurred net interest charges of $506,000. Much of this interest cost relates to the outstanding mezzanine loan in the principal amount of $5 million. In the second quarter 2013, the Company incurred net interest cost of $200,000 and, for the six months last year, incurred a net interest cost of $668,000.

Gross margin rates improved substantially in both the second quarter and the six months of 2014 to 23% and 23.2%, respectively. In the second quarter and six months of 2013, the gross margin rates were 19% and 20.7% respectively. This increase is attributable to (i) an increase in the gross margin rates of our Mexico subsidiary, Flexo and (ii) generally higher gross margin rates of a direct sales company which has been consolidated as a variable interest entity.

Net sales of foil balloons increased by 10% in the second quarter compared to the same period of 2013, from $5,560,000 in the second quarter last year to $6,115,000 this year. For the six month period ended June 30, 2014, revenue from foil balloons increased by 8.5% over the same period last year, from $12,342,000 to $13,388,000.

Net sales of latex balloons increased in the second quarter this year compared to the same period last year by 3.5% from $3,005,000 to $3,109,000

Sales of our vacuum sealing system products were down in the second quarter this year compared to the same period of last year. However, we believe the decline was temporary and that sales of vacuum sealing system product will increase in the third and fourth quarters.

Operating expenses rose during the quarter. However, much of that increase is attributable to the inclusion of the operating expenses of the direct sales company we are now consolidating with the results of the Company and that company contributed $1.1 million in revenues to the consolidated revenues of the Company in the first six months of this year.

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
                                                    June 30,   *December 31,
                                                      2014          2013
                                                 ------------- -------------
                     Assets                       (Unaudited)
Current Assets:
  Cash and cash equivalents (VIE $28,000 and
   $54,000, respectively)                        $     277,562 $     666,616
  Accounts receivable, net (VIE $4,000 and $0,
   respectively)                                    10,069,378     8,883,106
  Inventories, net (VIE $542,000 and $390,000,
   respectively)                                    16,651,235    15,428,413
  Other current assets (VIE $80,000 and $79,000,
   respectively)                                     3,206,994     3,192,543
                                                 ------------- -------------
Total current assets                                30,205,169    28,170,678

Property, plant and equipment, net (VIE $652,000
 and $670,000, respectively)                         8,308,365     8,681,771
Other assets                                         2,743,771     2,219,051
                                                 ------------- -------------

Total Assets                                     $  41,257,305 $  39,071,500
                                                 ============= =============

              Liabilities & Equity
Total current liabilities (VIE $789,000 and
 $493,000, respectively)                         $  18,781,298 $  16,432,989
Long term debt, less current maturities (VIE
 $380,000 and $441,000, respectively)                9,555,568     9,874,386
CTI Industries Corporation stockholders' equity     12,903,934    12,655,890
Noncontrolling interest                                 16,505       108,235
                                                 ------------- -------------

Total Liabilities & Equity                       $  41,257,305 $  39,071,500
                                                 ============= =============




Condensed Consolidated Statements of Operations

                     Three Months Ended June 30   Six Months Ended June 30
                         2014          2013          2014          2013
                     ------------  ------------  ------------  ------------
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Net sales            $ 13,158,876  $ 13,034,306  $ 28,079,207  $ 26,379,072
Cost of sales          10,132,840    10,552,216    21,555,762    20,922,965
                     ------------  ------------  ------------  ------------

Gross profit            3,026,036     2,482,090     6,523,445     5,456,107

Operating expenses      3,081,735     2,190,957     6,253,194     4,634,823
                     ------------  ------------  ------------  ------------

(Loss) income from
 operations.              (55,699)      291,133       270,251       821,284

Other (expense)
 income:
  Net Interest
   expense               (204,980)     (200,239)     (506,469)     (668,213)
  Other                     2,696      (170,821)       (2,481)      (26,297)
                     ------------  ------------  ------------  ------------

Net (loss) income
 before taxes            (257,983)      (79,927)     (238,699)      126,774

Income tax (benefit)
 expense                  (83,726)      (24,369)      (85,903)       61,400
                     ------------  ------------  ------------  ------------

Net (loss) income        (174,257)      (55,558)     (152,796)       65,374

Less: Net (loss)
 income attributable
 to noncontrolling
 interest                 (51,768)          420       (75,730)       (8,980)
                     ------------  ------------  ------------  ------------

    Net (loss)
     income
     attributable to
     CTI Industries
     Corporation     $   (122,489) $    (55,978) $    (77,066) $     74,354
                     ============  ============  ============  ============

Net (loss) income
 applicable to
 common shares       $   (122,489) $    (55,978) $    (77,066) $     74,354
                     ============  ============  ============  ============

Other Comprehensive
 Income (Loss)
  Foreign currency
   adjustment             189,488       200,632         1,396       170,232
                     ------------  ------------  ------------  ------------
    Comprehensive
     income (loss)   $     66,999  $    144,654  $    (75,670) $    244,586
                     ------------  ------------  ------------  ------------

Basic (loss) income
 per common share    $      (0.04) $      (0.02) $      (0.02) $       0.02
                     ============  ============  ============  ============

Diluted (loss)
 income per common
 share               $      (0.04) $      (0.02) $      (0.02) $       0.02
                     ============  ============  ============  ============

Weighted average
 number of shares
 and equivalent
 sharesof common
 stock outstanding:
  Basic                 3,301,116     3,248,646     3,275,335     3,248,646
                     ============  ============  ============  ============

  Diluted               3,453,217     3,400,641     3,413,723     3,405,946
                     ============  ============  ============  ============



*The condensed consolidated financial statements do not include all
 required disclosures, refer to the Form 10K for omitted disclosures.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...