SYS-CON MEDIA Authors: Pat Romanski, Ian Khan, Liz McMillan, AppDynamics Blog, Harry Trott

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
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
Shipping daily, injecting faults, and keeping an extremely high availability "without Ops"? Understand why NoOps does not mean no operations. Agile development methodologies require evolved operations to be successful. In his keynote at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how Microsoft teams who have made huge progress with a DevOps transformation effectively utilize operations staff and how challenges were overcome. Regardless ...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
SYS-CON Events announced today that Plutora, Inc., the leading global provider of enterprise release management and test environment management SaaS solutions, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Headquartered in Mountain View, California, Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies ...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures...
This builds on Puppet Labs' first class Windows support, including native .MSI packages for x32 and x64 operating systems, modules to extend common Windows server management tools, including Powershell, and integrations with Microsoft Azure and Visual Studio. By automating common Windows administration tasks, Puppet Labs is enabling users to adopt DevOps practices, thereby reducing the time needed to deploy applications from weeks to hours.
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
BlueBox bridge the chasm between development and infrastructure. Hosting providers are taking standardization and automation too far. For many app developers it does nothing but spawn mayhem and more work. They have to figure out how their creations live on a pre-fab infrastructure solution full of constraints. Operations-as-a-Service is what BlueBox does. BlueBox utilizes development tools such as OpenStack, EMC Razor, Opscode’s Chef and BlueBox's proprietary tools give the power to do the unor...
What’s inside the cloud? Hard work. Cloud operators know the world inside the datacenter is gritty. Vendor marketing speak and cloudwashing quickly melt in the heat of SLAs, uptime guarantees, and users who want it now. In his session at DevOps Summit, Hernan Alvarez, Chief Product Officer at Blue Box Group, will deliver an unvarnished look inside the world of cloud operators, from the perspective of someone who lives it. Attendees get a front-row look into the toolkits and processes that enabl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...