Yunhong Green CTI Ltd. Reports Fourth Quarter and Full Year 2023 Financial Results

Double digit fourth quarter revenue growth on broad-based strength across the company's product lines

• Revenue of $6.8 million for the fourth quarter, up 21.4% from the prior year period
• Net income of $0.5 million for the fourth quarter, compared to a net loss of $0.1 million for the prior year period
• Revenue for the full year ended December 31 of $17.8 million compared to $18 million in 2022
• Net loss improved to $0.2 million for 2023 as compared to a net loss of $1.5 million in 2022
• Diluted earnings per share improved to ($0.01) from ($0.22) for the same periods

LAKE BARRINGTON, IL / ACCESSWIRE / February 21, 2024 / Yunhong Green CTI Ltd. (Nasdaq:YHGJ) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film packaging products, novelty balloons, candy and balloon-inspired gift solutions, and continued development of compostable material solutions, today announced its financial results for the fourth quarter and full year ended December 31, 2023. Management will host a conference call to discuss these results and other matters on Thursday, February 22, 2024, at 9:00 a.m. Central Time / 10:00 a.m. Eastern Time.

Select Financial Highlights (unaudited) - Fourth Quarter 2023 and 2022

• Net sales were $6.8 million in the fourth quarter 2023, compared with $5.6 million in the fourth quarter 2022
  • All product areas exceeded prior year sales
  • Gross margin 24% compared to 19% in the prior year quarter
• Net income for the fourth quarter of 2023 was $0.5 million, as compared to a loss in 2022 of $0.1 million, respectively
• Diluted Earnings Per Share (EPS) improved to $0.02 from a loss of ($0.01) in 2022
• Adjusted EBITDA (a non-GAAP measure) was $0.8 million, compared to $0.3 million in the fourth quarter of 2022. Please refer to the table accompanying this press release for a reconciliation of the Company's GAAP and non-GAAP results.

Select Financial Highlights (unaudited) - full year ended December 31, 2023 and 2022

• Net sales were $17.8 million in 2023, compared with $18.0 million in the same period of 2022
  • Increase in balloon sales offset by reduction of film products revenue
  • Gross margin 18% compared to 17% in the prior year period.
• Net loss improved to ($0.2) million in 2023, compared to net loss of ($1.5) million in 2022
• Diluted Earnings Per Share (EPS) improved to a loss of ($0.01) from a loss of ($0.22) in 2022
• Adjusted EBITDA (a non-GAAP measure) was $1.1 million in 2023, compared to $0.1 million in 2022. Please refer to the table accompanying this press release for a reconciliation of the Company's GAAP and non-GAAP results.

Business Highlights 2023

• Sales of balloons rebounded, as helium pricing continues to moderate
• Sales from our commercial films, which typically can fluctuate year-over-year, were below the prior year
• Orders for balloon-inspired gift items have been growing, a trend we expect to continue
• Impact of seasonality increasing, with challenges in everyday sales vs. strengthening order flow for holidays and events
• Ongoing investment in robotic technology to enhance operational efficiencies with two manufacturing lines installed and a third line installation expected to be completed during the first half of 2024
• Ongoing prototype development of Yunhong Biotech's compostable material solutions

Management Commentary

"We had a strong finish to our year, with our fourth quarter top- and bottom-line results significantly exceeding our fourth quarter 2022 financial results," said Frank Cesario, Chief Executive Officer, Yunhong Green CTI. "Our accelerating revenue growth was broad-based, driven by increased sales in all three product areas - foil balloons, commercial films, and balloon-inspired gifts, were up from the prior year, yet we shipped that 20% increase in product flow more quickly. Our balance sheet is in better shape, our operations continue to improve, and we believe we are poised to deliver another solid performance in 2024."

Commenting further, Cesario stated, "We continue to be encouraged by the progress our team is making as we move through the development phases required to advance our compostable material solutions toward a commercially viable solution. Last year our stockholders authorized more shares of stock to be available for opportunistic acquisitions, and I'm pleased that we have identified the first of what I hope to be many good options for our company. As you have seen, we are in the process of acquiring a facility in Hubei, China, from which we plan to manufacture compostable products in the future. This facility, serving as our headquarters in China, also allows us greater connectivity to the broader Yunhong organization, something that I believe will pay dividends in many areas moving forward."

Cesario concluded, "We are committed to finding effective marketing strategies for our foil balloons and balloon-inspired gifts while at the same time developing potential new, complementary revenue sources."

2023 Results (unaudited)

For the three-month periods ended December 31, 2023 and 2022, net sales by product category were as follows:

		Three Months Ended
		December 31, 2023								December 31, 2022
		$								$
		(000)				% of				(000)					% of
Product Category		Net Sales								Net Sales									Variance				% change
Foil Balloons		$	3,656				54	%			$	2,740				49	%		$	916				33	%
Film Products			182				3	%				136				3	%			46				34	%
Other		$	2,933				43	%			$	2,694				48	%		$	239				9	%
Total		$	6,771				100	%			$	5,570				100	%		$	1,201				22	%

		Twelve Months Ended
		December 31, 2023								December 31, 2022
		$								$
		(000)				% of				(000)						% of
Product Category		Net Sales								Net Sales										Variance				% change
Foil Balloons		$	11,769				66	%				$	10,858				60	%		$	911				8	%
Film Products			928				5	%					2,036				11	%			(1,108	)			(54	%)
Other		$	5,107				29	%				$	5,154				29	%		$	(47	)			(1	%)
Total		$	17,804				100	%				$	18,048				100	%		$	(244	)			(1	%)

Non-GAAP Results

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, the 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.

2023 Summary Results (Non-GAAP; unaudited)

										Twelve Months ended December 31,
			2023 Q4				2022 Q4				2023				2022
Net Income			485,000				(78,000	)			(235,000	)			(1,467,000	)
Addback: Interest			207,000				125,000				628,000				450,000
Addback: Taxes
Addback Lender fees			63,000				81,000				296,000				471,000
Addback: Equity comp			5,000				9,000				21,000				164,000
Addback: Depr/Amort			74,000				114,000				351,000				448,000
Adj EBITDA			834,000				251,000				1,061,000				66,000

2023 Results Conference Call / Webcast Information

Yunhong CTI will host its conference call on Thursday, February 22, at 9:00 a.m. Central Time / 10:00 a.m. Eastern Time.

The live webcast will be available at https://www.webcaster4.com/Webcast/Page/2863/49790.

For those planning to participate in the call, please dial [phone] (domestic) or 973-528-0011 (international). The Conference ID is 227768.

A replay of the conference call will be available for two weeks following the call at [phone] (domestic) or [phone] (international), using replay conference ID 49790.

About Yunhong Green CTI Ltd.

Yunhong Green CTI Ltd. is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong Green CTI also distributes balloon-inspired and other gift items, and continued development of compostable material solutions , 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.

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. 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, including helium availability and cost, are unknown at this time and might have a material impact on our business and financial performance. More information on factors that could affect the Company'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.

Investor Relations Contact:

Company Contact:

[e-mail]
+ 1-847-382-1000

Investor Relations Contact:

TraDigital IR
Kevin McGrath
[phone]
[e-mail]

Yunhong Green CTI LTD
Consolidated Condensed Balance Sheets

		unaudited
		December 31, 2023				December 31, 2022
Cash and equivalents			921,000				146,000
Accounts receivable			3,975,000				1,618,000
Inventories			7,791,000				8,325,000
Other current assets			332,000				389,000
Total current assets			13,019,000				10,478,000
Property, Plant and Equipment			21,477,000				21,256,000
Less: accumulated depreciation			(20,613,000	)			(20,334,000	)
Property, Plant and Equipment, net			864,000				922,000
Noncurrent assets			3,364,000				3,882,000
Total assets			17,247,000				15,282,000
Trade payables			917,000				1,313,000
Line of credit			4,991,000				2,878,000
Notes payable - current			140,000				289,000
Notes payable subordinated - current			1,344,000				-
Other current liabilities			2,748,000				2,998,000
Current liabilities			10,140,000				7,478,000
Notes payable - noncurrent			533,000				427,000
Notes payable - officer; subordinated			-				1,267,000
Operating lease liabilities			2,842,000				3,364,000
Noncurrent liabilities			3,375,000				5,058,000
Total liabilities			13,515,000				12,536,000
Shareholders equity			3,732,000				2,746,000
Total liabilities and equity			17,247,000				15,282,000

Yunhong Green CTI LTD
Summarized Condensed Consolidated Statement of Operations
(unaudited)

		Three months ended December 31,								Twelve months ended December 31,
		2023				2022				2023				2022
Net sales			6,771,000				5,570,000				17,804,000				18,048,000
Cost of sales			5,174,000				4,516,000				14,546,000				14,910,000
Gross profit			1,597,000				1,054,000				3,258,000				3,138,000
Operating expenses			889,000				1,092,000				3,657,000				4,258,000
Gain/(Loss) from operations			708,000				(38,000	)			(399,000	)			(1,120,000	)
Interest expense			207,000				125,000				628,000				450,000
Other (income)/expense			16,000				(85,000	)			(792,000	)			(103,000	)
Net income / (loss) before tax			485,000				(78,000	)			(235,000	)			(1,467,000	)
Income tax
Net income / (loss) - continuing ops			485,000				(78,000	)			(235,000	)			(1,467,000	)
Preferred stock deemed dividends			-				(34,000	)			(11,000	)			(584,000	)
Net income/(loss) attributable to
Yunhong CTI Shareholders			485,000				(112,000	)			(246,000	)			(2,051,000	)
Fully diluted earnings per share		$	0.02			$	(0.01	)		$	(0.01	)		$	(0.22	)

SOURCE: Yunhong Green CTI Ltd.

View the original press release on accesswire.com


The Yunhong CTI Stock at the time of publication of the news with a raise of +7,84 % to 1,650USD on Nasdaq stock exchange (21. Februar 2024, 22:00 Uhr).