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CTI Industries Q3 net sales decreased $1.7 million

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Staff Writer |
CTI Industries
CTI Industries   Gross profit decreased to $2.2 million

CTI Industries Corporation reported financial results for the third quarter and nine months ended September 30, 2018.

Net sales decreased by $1.7 million, or 13%, to $11.5 million from $13.2 million in Q3 2017, reflecting seasonally-driven declines in sales of balloons and Candy Blossoms and lower film sales, partially offset by higher sales of vacuum sealing products.

With respect to film sales, we are currently engaged in a customer trial designed to take advantage of underutilized capacity in this segment.

Gross profit decreased to $2.2 million, or 19% of net sales, as compared to gross profit of $3.2 million, or 24% of net sales, in Q3 2017. This decline was driven primarily by lower net sales.

Operating expenses, which include general and administrative, selling, and advertising and marketing costs, as well as gains and losses on asset sales, declined to $2.5 million, or 22% of net sales, in Q3 2018 from $3.2 million, or 24% of net sales, in Q3 2017. This decline was the direct result of profit improvement actions implemented during 2017 and 2018, offset by cost increases in specific items.

Operating loss for Q3 2018 was $0.3 million as compared to an operating loss of $26,000 in Q3 2017.

Interest expense, net, rose to $0.5 million in Q3 2018 from $0.4 million in Q3 2017. Higher interest rates and a larger overall debt position are the primary elements for that increase.

Net loss attributable to CTI was $0.6 million, or $0.16 per diluted share, as compared to a net loss attributable to CTI of $0.3 million, or $0.08 per diluted share, in Q2 2017.

EBITDA for Q3 2018 was $0.0 million as compared to an EBITDA of $0.3 million in Q3 2017.

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