Yunhong Green Cti Ltd. · NASDAQ:YHGJ
Yunhong Green Cti — CTI Industries — Investor Presentation (January 2013)
40 slides from Yunhong Green Cti's investor presentation, Jan 7, 2013
Slide 1: Slide 1
Slide 2: CTI Industries Corporation
CTI Industries Corporation NASDAQ Capital Market: CTIB
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, and investors are cautioned that outcomes and results may vary from those
Slide 4: Who We Are
Who We Are • WE MAKE AND SELL UNIQUE FILM PRODUCTS FOR BOTH CONSUMER AND COMMERCIAL MARKETS • WE – DEVELOP AND DESIGN – PRODUCE – MARKET AND SELL
Slide 5: CTI Manufactures
CTI Manufactures Home Storage Foil Balloons Products s Latex Balloons Commercial Films
Slide 6: Strong Technology Base
Strong Technology Base • Products Incorporate Patent Rights and Proprietary Features • CTI Holds 27 Patents, with several pending, covering pouch, film and novelty products • Vacuum Pouches – 13 patents on pouch closures and film methods • Hundreds of proprietary balloon designs
Slide 7: Presence in Consumer and Commercial Markets
Presence in Consumer and Commercial Markets • Significant and growing business in household storage products • Leading position worldwide in novelty film products – foil and latex balloons • Value added producer of laminated and printed films for packaging applications • Develop and produce specialt
Slide 8: Long-Term Growth
Long-Term Growth Revenues CAGR 7.7% 60,000 3,000 50,000 2,000 40,000 1,000 30,000 - Revenues 20,000 (1,000) Income 10,000 (2,000) - (3,000) *indicates annualized values
Slide 9: Positioned for Growth
POSITIONED FOR GROWTH • Major Brand License and Product Introduction • International Growth • Market Development • Margin Expansion
Slide 10: Home Storage Products
Home Storage Products
Slide 11: ZipVac
• ZipVac ® • Food and household storage system developed by CTI • Patented zipper closure, film and valve • Rechargeable pump • Use in refrigerator, freezer, or countertop • Maintains freshness • Helps prevent freezer burn • Marketed through sporting goods stores & direct sales
Slide 12: ZipVac Universal Vacuum Sealer Bags and Rolls
ZipVac® Universal Vacuum Sealer Bags and Rolls • Works with other leading brand vacuum sealers • Uses CTI film technology • “Industrial strength”
Slide 13: Ziploc Brand Trademark License
Ziploc® Brand Trademark License December 2011 Trademark License from SC Johnson To Manufacture and Sell Vacuum Sealer Machines and Pouches
Slide 14: Ziploc Brand Vacuum Sealer System Introduction
Ziploc Brand Vacuum Sealer TM System Introduction
Slide 15: Slide 15
Slide 16: Ziploc Brand Vacuum Sealer System
Ziploc Brand Vacuum TM Sealer System • Introduced in Spring 2012 • Successful introduction to major chains during 2012; now sold in over 2,600 stores in the U.S. • Anticipate expansion to total of about 6,000 stores during 2013 • Will market to grocery chains in 2013 • U.S. market for vacuum sealing
Slide 17: Also marketing to retail grocery chains
Also marketing to retail grocery chains
Slide 18: Novelty Balloons
Novelty Balloons
Slide 19: Foil Balloons
Foil Balloons • Leading producer of foil balloons for over 30 years • Marketed throughout U.S., Latin America, and Europe • Sold in thousands of retail outlets
Slide 20: Proprietary Shapes
Proprietary Shapes
Slide 21: Latex Balloons
Latex Balloons • Manufactured in Guadalajara, Mexico • Marketed in U.S., Canada, Mexico, and Europe
Slide 22: Novelty Balloons–A Significant Industry
Novelty Balloons–A Significant Industry • Foil and Latex Balloons Sold In Virtually Every Country Worldwide • Literally Millions of Retail Outlets, Fairs, Markets and Street Vendors • Foil Balloon Market, at Wholesale, in the U.S., Europe and Latin America Estimated at More than $250,000,000 • Latex
Slide 23: CTI Market Presence
CTI Market Presence • Market and Sell Throughout the U.S., Europe and Latin America • Presence in Over 10,000 Outlets • Major Chains – Wal-Mart, Dollar Tree, Food Lion, K-Mart, Rite Aid, EuroShop, and Many Others • Foil Sales Over $22 million • Latex Sales Over $11 million • Consistent Pattern of Gr
Slide 24: Commercial Films
Commercial Films
Slide 25: Packaging and Specialty Film Products
Packaging and Specialty Film Products • Commercial, industrial and medical uses • Laminated and coated films • Up to 8-color printing – environmentally friendly
Slide 26: Internal Product Development
Internal Product Development • Over 900 novelty balloon graphic designs – New designs each year – New balloon shapes – Just under $1 million invested in new designs • Zippered pouch vacuum storage system – a unique, effective food storage system – Patented zipper seal features – Patented valve – Pat
Slide 27: Production Facilities
Production Facilities • Principal plant and offices in suburban Chicago (Lake Barrington) – Production of pouches, foil balloons and specialty film products • Plant and offices in Guadalajara, Mexico – Production of latex balloons
Slide 28: Distribution Facilities
Distribution Facilities • Chicago – principal warehouse and distribution; sales and customer service • Mexico – warehouse, sales, customer service for Mexico and Latin America • U.K. – warehouse, sales and customer service for U.K. • Frankfurt, Germany – warehouse, sales and customer service for Eur
Slide 29: Supplier to Major Companies
Supplier to Major Companies • Rapak (D.S. Smith) • Dollar Tree Stores • Wal-Mart (U.S., Mexico and UK) • Target • Menards • Food Lion • K Mart • Stryker Medical • 99 Cents Only Stores
Slide 30: Other Distribution Channels
Other Distribution Channels • Independent balloon distributors (U.S., Canada, Mexico, and Europe) • Retailers – Balloon Products – Pouch Products • Direct sales company • Industrial companies – films and custom film products • Independent sales reps – pouch products
Slide 31: Growth Initiatives
Growth Initiatives • Ziploc Brand Vacuum Sealer System TM – Introduced in March 2011 – In over 2,600 Stores in 2012 – Expect Over 6,000 Stores by end of 2013 • Novelty Balloons – Programs for Growth in Europe and Latin America – Major retail chain programs • Margin Expansion – Increased Sales of Hig
Slide 32: Financial Review
Financial Review
Slide 33: Income Statement Overview
Income Statement Overview (In Thousands) 2007 2008 2009 2010 2011 Net Sales 36,510 44,981 41,295 47,748 47,171 Cost of Sales 27,826 34,658 32,082 37,145 37,965 Operating Expenses 7,439 7,940 6,987 7,556 7,769 Income from Operations 1,245 2,383 2,226 3,047 1,438 Interest Expense 1,295 1,037 1,085 919
Slide 34: Income Statement Overview
Income Statement Overview Nine Months Ended Nine Months Ended 9/30/2011 9/30/2012 In In % of thousands % of sales thousands sales Net Sales 36,393 100.00% 37,410 100.00% Cost of Sales 29,583 81.29% 29,290 78.29% Gross Margin 6,810 18.71% 8,120 21.71% Operating Expenses 5,738 15.77% 6,995 18.70% Inco
Slide 35: Income Statement Ratios
Income Statement Ratios (As a Percentage of Sales) Nine Months Ended 2008 2009 2010 2011 9/30/2012 Cost of Sales 77.05% 77.69% 77.79% 80.48% 78.29% Operating Expenses 17.65% 16.92% 15.82% 16.47% 18.70% Income from Operations 5.30% 5.39% 6.38% 3.05% 3.00% Net Profit 2.57% 2.43% 3.83% 1.03% 0.85% Gros
Slide 36: Sales by Product
Sales by Product (In Thousands) Nine Months Ended Product Category 2010 2011 9/30/2012 Foil Balloons 21,915 46% 21,443 45% 16,557 44% Films 7,428 16% 6,259 13% 3,876 11% Pouches 8,676 18% 8,311 18% 7,237 19% Latex Balloons 8,589 18% 10,202 22% 8,232 22% Other 1,140 2% 956 2% 1,508 4% Total 47,748 47
Slide 37: Balance Sheet Highlights
Balance Sheet Highlights (In Thousands) Nine Months Ended 2007 2008 2009 2010 2011 9/30/2012 Current Assets 17,801 17,688 19,149 21,426 23,301 25,531 Current Liabilities 16,483 16,222 16,735 17,952 17,689 14,571 Working Capital 1,318 1,466 2,414 3,474 5,612 10,960 Long Term Debt 6,237 6,019 4,875 3,
Slide 38: New Financing
New Financing • Financing secured in July for working capital to support sales growth and capital investment • $8 million total financing including – $3 million increase in line of credit to $12 million – $5 million mezzanine loan; 5.5 year term, interest only at 11.5% and 4% warrant coverage
Slide 39: Contacts
1/2013 A Contacts John Schwan CTI Industries Corporation Chief Executive Officer 22160 N. Pepper Road Phone: (847) 620 - 1320 Lake Barrington, IL 60010 Phone: (847) 382 – 1000 Stephen Merrick Fax: (847) 382 – 1219 President and CFO www.ctiindustries.com Phone: (847) 620 – 1308 Stanley Brown Timothy
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CTI Industries — Investor Presentation (January 2013) on 6ix