Attached files
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| 8-K - Yunhong CTI Ltd. | v221741_8k.htm |
Exhibit 99.1
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
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Stephen M. Merrick
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Executive Vice President
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Investor Relations
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(847) 382-1000
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(847) 620-1330
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CTI Industries Corporation
First Quarter 2011 Financial Results
FOR IMMEDIATE RELEASE
Tuesday, May 10, 2011
LAKE BARRINGTON, IL, May 10, 2011 -- CTI Industries Corporation (CTIB - NASDAQ Capital Market), a manufacturer and marketer of flexible packaging and storage products, laminated films and novelty balloons, today announced its results of operations for the first quarter of 2011.
Consolidated net sales for the first quarter of 2011 were $12,698,000 compared to consolidated net sales of $12,411,000 for the first quarter of 2010, representing an increase of 2.3%. The Company earned net income of $297,000 or $0.09 per share (basic and diluted) for the first quarter of 2011 compared to net income of $599,000 or $0.22 per share (basic) and $0.21 per share (diluted) for the first quarter of 2010.
Key Factors and Trends
Sales in each of the foil balloon, latex balloon and film product lines continued to increase, while sales of pouch products were down compared to the first quarter 2010. Despite an increase in sales, profits were down due to (i) increased raw materials costs and (ii) a shift in the mix of product sales to lower margin items and (iii) an increase in the book amount of U.S. income tax reported in the first quarter of this year.
Novelty product revenues were up 8.9%, from $7,804,000 in the first quarter of 2010 to $8,495,000 in the first quarter of 2011. Sales of laminated films also increased from $1,367,000 in the first quarter of 2010 to $1,745,000 in the first quarter of this year.
In the first quarter of this year, pouch sales declined to $2,154,000 from $3,041,000 in the first quarter of 2010.
Gross margins declined to 19.5% in the first quarter of 2011 compared to 24.5% for the first quarter of 2010. The decline in this quarter is the result of (i) significant increases in the cost of raw materials, particularly latex and films and (ii) a change in the mix of products sold to products having a lower margin. Profit was also affected by the fact that the Company recorded U.S. income tax in the amount of $140,000 in the first quarter of this year compared to no income tax expense in the first quarter of 2010 due to a reduction in the valuation reserve against deferred tax assets that offset income tax expense.
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Statements made in this release that are not historical facts are “forward-looking” statement (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These “forward-looking” statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “goal,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or similar expressions. Factors that could cause results to differ are identified in the public filings of the Company with the Securities and Exchange Commission. More information on factors that could affect CTI’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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FINANCIAL HIGHLIGHTS FOLLOW –
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CTI Industries Corporation and Subsidiaries
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Condensed Consolidated Balance Sheets
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March 31, 2011
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December 31, 2010
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Assets
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(Unaudited)
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Current Assets:
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Cash and cash equivalents
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$ | 400,914 | $ | 761,874 | ||||
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Accounts receivable, net
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10,052,699 | 8,533,626 | ||||||
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Inventories, net
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11,033,046 | 10,368,037 | ||||||
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Other current assets
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2,345,493 | 1,762,552 | ||||||
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Total current assets
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23,832,152 | 21,426,089 | ||||||
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Property, plant and equipment, net
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9,520,566 | 9,659,768 | ||||||
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Other assets
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1,603,832 | 1,775,531 | ||||||
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Total Assets
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$ | 34,956,550 | $ | 32,861,388 | ||||
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Liabilities & Equity
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Total current liabilities
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$ | 19,004,908 | $ | 17,952,042 | ||||
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Long term debt, less current maturities
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3,417,099 | 3,129,685 | ||||||
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CTI Industries Corporation stockholders' equity
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12,571,417 | 11,784,340 | ||||||
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Noncontrolling interest
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(36,874 | ) | (4,679 | ) | ||||
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Total Liabilities & Equity
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$ | 34,956,550 | $ | 32,861,388 | ||||
Condensed Consolidated Statements of Operations
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Three Months Ended March 31
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(Unaudited)
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(Unaudited)
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Net sales
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$ | 12,697,655 | $ | 12,410,766 | ||||
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Cost of sales
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10,226,883 | 9,366,194 | ||||||
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Gross profit
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2,470,772 | 3,044,572 | ||||||
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Operating expenses
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1,872,341 | 2,084,516 | ||||||
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Income from operations.
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598,431 | 960,056 | ||||||
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Other (expense) income:
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Net Interest expense
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(139,206 | ) | (244,073 | ) | ||||
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Other
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11,117 | (13,223 | ) | |||||
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Income before income taxes
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470,342 | 702,760 | ||||||
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Income tax expense
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205,429 | 116,359 | ||||||
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Net Income
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264,913 | 586,401 | ||||||
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Less: Net loss attributable to noncontrolling interest
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(32,195 | ) | (12,443 | ) | ||||
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Net income attributable to CTI Industries Corporation
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$ | 297,108 | $ | 598,844 | ||||
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Income applicable to common shares
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$ | 297,108 | $ | 598,844 | ||||
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Basic income per common share
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$ | 0.09 | $ | 0.22 | ||||
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Diluted income per common share
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$ | 0.09 | $ | 0.21 | ||||
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Weighted average number of shares and equivalent shares of common stock outstanding:
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Basic
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3,137,837 | 2,769,002 | ||||||
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Diluted
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3,198,742 | 2,793,863 | ||||||
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