CTI Industries, a manufacturer and marketer of novelty balloons, vacuum and flexible packaging and storage products and printed and laminated films, announced its full-year results of operations for 2016, as well as for the three months ended 31 December 2016.
Highlights of year-end and fourth quarter include:
The Company had record sales both for the year and fourth quarter. For the year, net sales were$64,268,000 and for the fourth quarter net sales were $21,437,000, both the highest on record for those periods.
Fourth quarter profits were the highest for any quarter in CTI's history, reaching $909,000 or Twenty-five cents per share.
Income from operations for the year were $2,840,000.
EBITDA reached $4.5 million for the year.
Fourth Quarter Results
Consolidated net sales for the fourth quarter of 2016 were $21,437,000 compared to consolidated net sales of$15,888,000 for the fourth quarter of 2015, an increase of almost 35%. For the fourth quarter of 2016, CTI had net income of $909,000, $0.25 per share (basic) and $0.24 (diluted), compared to net income of $502,000 for the fourth quarter of 2015, $0.15 per share (basic and diluted).
For the year, CTI had consolidated net sales of $64,268,000 compared to consolidated net sales in 2015 of$59,365,000, an increase of 8.3%. Income from operations for the year was $2,840,000 compared to income from operations in 2015 of $2,817,000. Net income for the year was $653,000 or $0.18 per share (basic and diluted) compared to $1,047,000 for 2015 which represented $0.32 per share (basic) and $0.30 per share (diluted). Net income for the year was affected by an income tax provision of $703,000 in 2016 compared to an income tax provision of $370,000 in 2015.
Key Factors and Trends
Revenues from the sale of vacuum sealing products increased substantially during 2016. Total net revenues from the sale of those products reached $17,455,000 in 2016 compared to 13,206,000 in 2015, a 32.2% increase. Of this total, $7.85 million represented sales to one retail chain for a promotional program in November, 2016.
Revenues from the sale of foil balloons increased to $26,530,000 in 2016 compared to $25,187,000 in 2015, a 5.3% increase. The increase in sales was distributed throughout our markets in the U.S., Canada, Mexico, theUnited Kingdom, Europe and Latin America.
Sales of film products increased by 7.4% from $4,523,000 in 2015 to $4,856,000 in 2016.
Sales of latex balloons were down for the year from $9,739,000 to $8,250,000. However, our Mexico operation installed a new production machine in the third quarter which will increase capacity by approximately 30%.
Revenues from the sale of a mix of other products increased from $6,710,000 in 2015 to $7,177,000 in 2016. These other products include sales of home container and organization products through a network of independent distributors, sales of "Candy Blossoms" and "Candy Loons and sales of party goods in Mexico.