LAKE BARRINGTON, Ill., Nov. 29,
2018 /PRNewswire/ -- CTI Industries Corporation
(NASDAQ: CTIB) ("CTI" or "the Company"), 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, today announced the
next step in its executive leadership transition that commenced on
December 1, 2017.
Stephen M. Merrick will retire as
CTI's Chief Executive Officer effective November 30, 2018. He will remain
with CTI as General Counsel, Secretary, and a member of the Board
of Directors. Mr. Merrick has been an officer of CTI since
January 1996.
Concurrently, Jeffrey S. Hyland,
President and a Director of CTI since December 1, 2017, will succeed Mr. Merrick as
Chief Executive Officer.
"Steve Merrick has been one of
CTI's senior leaders for over 20 years, and we appreciate his
commitment and guidance," said Mr. Hyland. "We are grateful
that Steve has agreed to transition to General Counsel and remain a
director of CTI post-retirement, preserving the benefit of his
wisdom and experience. I am honored to succeed Steve as CEO
and enthusiastic at the opportunity to lead CTI's continuing
evolution. My commitment to this expanded role is fully
aligned with the vision, mission and values of CTI, and I look
forward to continuing to collaborate with the talented, dedicated
group of professionals whom I have come to know and
respect."
Mr. Hyland continued, "For full year 2018, we continue to expect
higher net sales, lower total operating expenses, and higher
operating profitability when compared to 2017. We have
removed $1.4 million of expenses from CTI's cost
structure through the first nine months of 2018 and are on track to
remove approximately $3.0 million of annualized
operating costs by the end of 2018. We are benefitting from
improved manufacturing efficiencies, increased capacity, and a
robust business development program."
On November 13, 2018, CTI
announced that it had deferred a proposed subscription rights
offering due to unfavorable market conditions. Due to
continuing unfavorable market conditions, CTI and its underwriter
have mutually agreed to terminate the proposed subscription rights
offering. The termination of the proposed subscription rights
offering will not materially affect CTI's existing operations or
outlook. CTI and its lender revised the terms of its credit
facility based on the expectation of this funding event, and now
are engaged in discussions to further modify that arrangement
assuming no additional capital is raised. CTI believes that
an agreement will be reached. CTI will continue to monitor
market conditions.
About CTI
CTI Industries Corporation is one of the leading manufacturers
and marketers of foil and latex balloons, develops, produces and
markets vacuum sealing systems for household use, and produces
laminated and printed films for commercial uses. CTI also
distributes products for home organization and storage, Candy
Blossoms and other gift items, and, in Mexico, party
goods. CTI markets its products throughout the United
States and in a number of other countries.
Forward Looking Statements
Statements made in this release that are not historical facts
are "forward-looking" statements (within the meaning of Section 21E
of the Securities Exchange Act of 1934) 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. We have based these forward-looking statements on our
current expectations and projections about future results.
Although we believe that our opinions and expectations reflected in
the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements,
and our actual results may differ substantially from statements
made herein. 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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SOURCE CTI Industries Corporation