Business
CTI Industries Announces 2018 Fourth Quarter And Year End Financial Results
BARRINGTON, Ill., May 3, 2019 /PRNewswire/ -- CTI Industries Corporation (NASDAQ: CTIB) ("CTI"), a manufacturer and global marketer of novelty balloons,
About this update from Yunhong Green Cti Ltd.
[{"type":"text","content":"BARRINGTON, Ill., May 3, 2019 /PRNewswire/ -- CTI Industries Corporation (NASDAQ: CTIB) (\"CTI\"), a manufacturer and global marketer of novelty balloons, vacuum and flexible packaging and storage products, printed and laminated films, party goods, Candy Blossoms and home container products, discusses results for the fourth quarter (\"Q4 2018\"), full year 2018, and material subsequent events. The financial statements are attached to this press release for reference purposes. Please refer to the filed financial statements for the accompanying notes and other information. \n\n \nMajor Capital Event\nAs we have previously discussed, one of our primary objectives is to implement a major capital event. While we cannot yet be specific, we are making tangible progress in this area, and look forward to sharing the details in future quarters as more specific milestones are achieved. \n2018 In Review\n2018 was a turnaround year for CTI. As stated previously, we took numerous actions to improve our business which we believe puts us in a much stronger position in 2019. With new management in place, and fully transitioned by December 1, 2018, we implemented changes in 2018 and have significant additional changes in-process for 2019. After reducing expense, primarily SG&A, by an annualized $3 million we enter 2019 with even larger plans. Operationally, we installed two new foil balloon converting machines during 2018 that increased our operating capacity by 35% and implemented a quality improvement initiative that reduced defective rates by 50%. Regarding products, we introduced a new small-format vacuum sealing machine with strong retailer sell-through and redesigned our Candy Blossom products resulting in significant volume increases. Financially, we continue to focus on reducing our leverage through a major capital event. We registered a rights offering in late 2018 to raise equity but terminated the offering due to market conditions. We missed bank covenants twice during 2018 and currently operate under a forbearance agreement as we look to implement that major capital event. Strategically, we analyzed and passed on two acquisitions and demonstrated our willingness to change our group as we determined to divest our interest in Clever Container to focus our business solely on the flexible films industry segment.\nNet sales in 2018 dec...