Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Kevin Jackson, Peter Silva, Greg Wind, Glenn Rossman

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
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Countless business models have spawned from the IaaS industry. Resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his General Session at 16th Cloud Expo, Phil Jackson, Lead Developer Advocate at SoftLayer, will break down what we've got to work with and discuss the benefits and pitfalls to discover how we can best use them t...
DevOps is all the rage these days and with good reason as it promises to reduce the time-to-market for new applications. It also promises to improve change management, allowing teams to deploy changes to their applications quickly and efficiently. However, DevOps isn’t something you buy, install, or implement; rather it is the symptom of an appropriate organizational system. In his session at DevOps Summit, Mark Thiele, EVP, Data Center Technologies at SUPERNAP International, will discuss how ...
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
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 the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
When it comes to building applications, one database definitely does not fit all. Traditional SQL databases are great for storing highly structured, normalized data and performing analytics and reporting. NoSQL has attracted developers with its awesome flexibility, and JSON-centric document stores like Cloudant make web developers incredibly productive by offering a JavaScript environment from end-to-end. Recent Big Data challenges have driven the need for a distributed approach to analytics e...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...