Financial Results (Unaudited)
- Net sales increased 14% to $24.1 million as compared to $21.1 in the previous year
- Gross profit increased to $3.8 million, or 22.6% as compared to $3.1 million in the previous year
- Net loss per share includes the net disposition cost of our Flexo subsidiary
- Completed realignment of operations to position the Company for improved performance and growth
- Successfully refinanced term loan obligations and entered into a new Revolving Credit and Security Agreement
- Appointed Frank Cesario as Chief Executive Officer and Added Three New Independent Board Members
LAKE BARRINGTON, IL / ACCESSWIRE / April 13, 2022 / Yunhong CTI Ltd. (NASDAQ:CTIB) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, today announced its 2021 financial results. Management will host a conference call to discuss 2021 results and other matters on Tuesday, April 13, 2022 at 9:00 a.m. Central Time / 10:00 a.m. Eastern Time.
"We have been working for the last three years to streamline our operations to create a leaner organization with greater financial flexibility that is highly focused on growing our core business here in the U.S. and bringing the best value to our customers," said Frank Cesario, Chief Executive Officer, Yunhong CTI. "The successful completion of our recently announced sale of our largest subsidiary, Flexo Universal, marked the conclusion of our restructuring efforts. Maintaining our prior footprint of operations outside the U.S. proved too costly, overwhelming the solid core domestic business centered around foil balloons, commercial film sales and novelty products. While difficult, these changes were necessary to enable the Company to be in a position to deliver sustainable long-term performance. Our financial statements through 2021 show the outsized impact of unwinding many of these now legacy businesses. As we move through 2022, we expect our performance should be much easier for shareholders to see and to understand. Our goals were to focus on the most attractive long-term opportunities, while ensuring we have the operating model and capabilities needed to consistently deliver profitable growth. The actions completed in 2021 are expected to better align our organization and cost structure to achieve these objectives."
Cesario continued, "Beyond our existing business, we are actively evaluating ways to grow with our sister companies in the Yunhong Group. The continued support and critical investments by our chairman and largest shareholder, Mr. Li and the Yunhong Group enabled us to manage through the realignment of our operations and reduce our debt to an appropriate level. We are excited about pursuing mutually beneficial new business opportunities that may have the ability to grow faster than our core business and provide value to both entities."
The Company expects to provide audited financial results in its annual report on Form 10-K on or about April 14, 2022.
Full Year 2021 Results (Unaudited)
Yunhong CTI's net sales were $24.1 million, an increase of 14% compared with $21.1 million in 2020. This increase was primarily attributable to growth in foil balloon sales and sales of commercial films.
|Twelve Months Ended|
|December 31, 2021||December 31, 2020|
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|(000) Omitted||Net Sales||(000) Omitted||Net Sales|
Gross profit increased to $3.8 million, or 22.6% as compared to $3.1 million in the previous year. This increase was primarily attributable to the increase in sales.
Net loss applicable to common shareholders was ($11.8) million, compared with net loss of ($8.8) million for 2020. The net loss includes approximately $10 million in charges related to the disposition of our Flexo Universal subsidiary. Please see the Non-GAAP measure below for additional discussion.
Adjusted EBITDA, including group composition changes not expected to continue after 2021, is described below as a Non-GAAP measure for supplemental information.
To provide additional information regarding the Company's results, we have disclosed in this press release a Non-GAAP measure that combines EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) as well as results excluding deconsolidation charges and certain non-recurring charges and benefits. The Company defines EBITDA as earnings (loss) before net interest, other expense, taxes, depreciation and amortization expense. The Company has included EBITDA as a supplemental financial measure in this press release because it is a key measure used by management and the board of directors to understand and evaluate the core operating performance of the Company, to prepare budgets and operating plans, and because management believes such measure provides useful information in understanding and evaluating the Company's operating results. However, use of EBITDA as an analytic tool has its limitations and you should not consider this measure in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP. A reconciliation to the closest GAAP statement of this non-GAAP measure is contained in the accompanying table. Similarly, management and the board of directors look at the results of the entity going forward, without the impact of deconsolidation costs related to the disposal of subsidiaries and related non-cash charges, which can be significant. Again, this pro forma result is not a replacement for the Company's financial results as reported under GAAP. It simply provides another viewpoint that may otherwise be obscured by a comprehensive presentation. A reconciliation between this pro forma result and our financial results as reported under GAAP is also presented.
FY 21 Summary Results (GAAP; unaudited) - $ millions
Adjustments to Non-GAAP measure:
Loss on Disposal of Flexo Universal
Refinancing and related costs not capitalized
Gain recognized on Sale / Leaseback transaction
FY 21 Summary Results (Non-GAAP)
Conference Call / Webcast Information
The live webcast will be available at https://www.webcaster4.com/Webcast/Page/2863/45069. For those planning to participate on the call, please dial +1-888-506-0062 for domestic calls, or +1-973-528-0011 for international calls. The Conference ID # is714177. Participants are advised to dial into the call five to ten minutes prior to the starting time to register.
A replay of the conference call will be available for two weeks following the call at +1- 877-481-4010 (for domestic calls) or +1-919-882-2331 (for international calls), replay conference ID #45069.
About Yunhong CTI Ltd.
Yunhong CTI Ltd. is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong CTI also distributes Candy Blossoms and other gift items and markets its products throughout the United States and in several other countries. For more information about our business, visit our corporate website at www.ctiindustries.com.
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. We cannot anticipate the duration of increased tariffs between the United States and other countries, particularly China. We do not know whether we will be successful in passing such additional costs through to customers. The COVID-19 pandemic has had a negative impact on our operations, and we do not yet know the depth or duration of that disruption. The ultimate impact of inflation and supply chain pressures, as well as potential material limitations related to responses to Russia's invasion of Ukraine, are unknown at this time and might have a material impact on our business and financial performance. 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.
SOURCE: Yunhong CTI Ltd.
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