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CTD Holdings, Inc. Reports Record Revenues for Fiscal 2011

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ALACHUA, Fla., March 19, 2012 (GLOBE NEWSWIRE) -- CTD Holdings, Inc. (OTCQB:CTDH) reported record annual revenues of $1,031,849 for the fiscal year ended December 31st, 2011, a 30% increase over 2010 products sales. This revenue growth was driven by sales of Trappsol products to existing and new customers. The Company has fostered a greater awareness of the uses of cyclodextrins in drug formulation and as a direct treatment for some rare diseases. It has also increased internet communications about its products during 2011.

CTD Holdings Video Channel: https://ir.stockpr.com/ctd-holdings/videos

Fiscal 2011 Highlights:

  • For the 12 months ended December 31, 2011, sales consisted of 86% Trappsol products and 14% Aquaplex products.
  • Sales of Trappsol HPB were $889,000 for the year as compared to $690,000 for 2010, representing an increase of $199,000, or 29%.
  • Sales of Aquaplex were $143,000 for the year as compared to $103,000 for 2010, representing an increase of $40,000, or 39%.
  • The Company's NanoSonic Products, Inc. manufacturing facility is in operation, including its proprietary pulse dryer technology and the solar electric renewable energy system. This facility received more than $99,000 in grants to support the renewable energy system installation. With the completion of the facility, the Company has consolidated its corporate headquarters for all divisions at the new site.
  • Cash flows from operations for 2011 were $186,000 compared to $210,000 for 2010.
  • In March 2011, the Company obtained a $100,000 line of credit.
  • In March 2011, the Company obtained a $325,000 equipment loan to partially finance the installation of the pulse dryer and building renovations.
  • The Company installed a solar electric renewable energy system on the rooftop of its pulse drying building, which was operational in November 2011.  The system is designed to generate 140 KWH of electric power and generate more electricity than it expects to consume under normal operations, giving its facility a zero-energy footprint.  The Company intends to sell electricity generated in excess of its needs, if any, to its local utility at prevailing rates.  The cost of the solar equipment and installation was $186,000, and the Company has received Federal and other grants that subsidized $99,000 of the cost.
  • At December 31, 2011, The Company had $815,000 in net operating loss carry forwards that can be used to offset its current and future taxable net income and reduce its income tax liabilities.

The Company reported Cost of Goods Sold of $274,000 for the year, an increase of $159,000 or 138% compared to $115,000 for 2010. CTD's cost of products sold as a percentage of sales was 26.5% and 14.5% for 2011 and 2010, respectively. This increase was due largely to a single high COGS transaction. Absent this sale, cost of products sold (excluding any allocation of direct and indirect overhead and handling costs) as a percentage of sales for 2011 was 15.7%.

The Company's personnel expenses decreased 4% to $344,000 for 2011, from $358,000 for 2010. Gross payroll also decreased 4% to $329,000 for 2011 from $374,000 for 2010. Beginning in April 2010, CTD self performed much of its pulse dryer installation and building renovations using its employees and capitalized its personnel costs directly related to these improvements, which reduced payroll expenses. The Company expects personnel costs to increase in 2012 as the result of reduced capitalized salaries into our construction projects and the addition of marketing and production personnel.

CTD reported net loss of ($98,000) for full year 2011 compared to a net loss of ($38,000) for 2010.  CTD's cash and short-term investments was $127,000 as of December 31, 2011, compared to $107,000 as of December 31, 2010.

"Even in a year of building and investment we have been able to consistently turn in record sales and end the year financially strong going into 2012," commented CTD Holdings' President Dr. Jeffrey Tate, "With our manufacturing facility in full operation and increasing visibility for the applications of cyclodextrin technology we expect continued strong growth as we shift our focus to sales and revenue in the coming year."

About the Company:

The CTD Holdings, Inc. Family of Companies manufacture and market Trappsol® and Aquaplex cyclodextrins and cyclodextrin complexes for food, nutrition and pharmaceutical markets. NanoSonic Products, Inc. operates the world's only cGMP pulse drying facility for the production of pharmaceutical grade Aquaplex cyclodextrin complexes. The companies offer a wide variety of cyclodextrin related manufacturing services to its worldwide customers; including custom formulation, manufacturing, and commercial scale supply of pharmaceutical grade cyclodextrin complexes.

CTD HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
 
ASSETS
  December 31,
  2011 2010
     
CURRENT ASSETS    
Cash and cash equivalents $ 127,077 $ 106,753
Accounts receivable, net 46,365 78,962
Inventory 142,017 175,364
Other current assets 820 5,132
Total current assets 316,279 366,211
     
PROPERTY AND EQUIPMENT, NET 1,722,116 1,330,973
     
OTHER ASSETS    
Property held for sale 512,319 -- 
Deferred tax asset 225,000 225,000
Deferred costs, net of accumulated amortization of    
$11,453 and $7,000, respectively 14,551 9,500
Total other assets 751,870 234,500
     
TOTAL ASSETS $ 2,790,265 $ 1,931,684
     
LIABILITIES AND STOCKHOLDERS' EQUITY
     
CURRENT LIABILITIES    
Accounts payable and accrued expenses $ 528,987 $ 90,015
Line of credit 96,251 -- 
Current portion of long-term debt 27,217 12,606
Total current liabilities 652,455 102,621
     
LONG-TERM LIABILITIES    
Long-term debt, less current portion 713,338 426,369
     
STOCKHOLDERS' EQUITY    
Common stock, par value $.0001 per share,    
100,000,000 shares authorized, 36,575,070 and    
35,408,822 shares issued and outstanding, respectively 3,657 3,540
Preferred stock, par value $.0001 per share,    
5,000,000 shares authorized;    
Series A, 1 share issued and outstanding --  -- 
Additional paid-in capital 3,831,636 3,712,208
Accumulated deficit  (2,410,821)  (2,313,054)
Total stockholders' equity 1,424,472 1,402,694
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,790,265 $ 1,931,684
 
CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 
  Year Ended
December 31,
  2011 2010
     
REVENUES    
Product sales $ 1,031,849 $ 793,404
Consulting income --  8,968
  1,031,849 802,372
     
EXPENSES    
Personnel 343,633 358,460
Cost of products sold    
(exclusive of depreciation and    
amortization, shown separately below) 273,756 114,660
Consulting 121,472 82,450
Professional fees 178,177 147,705
Office and other 145,369 74,832
Amortization and depreciation 32,747 20,940
Freight and shipping 10,953 15,191
  1,106,107 814,238
     
LOSS FROM OPERATIONS  (74,258)  (11,866)
     
OTHER INCOME (EXPENSE)    
Investment and other income 2,299 3,643
Interest expense  (25,808)  (4,305)
Total other income (expense)  (23,509)  (662)
     
LOSS BEFORE INCOME TAXES  (97,767)  (12,528)
     
PROVISION FOR INCOME TAXES  --   (25,000)
     
NET LOSS $ (97,767) $ (37,528)
     
NET LOSS PER COMMON SHARE $ (0.01) $ (0.01)
     
WEIGHTED AVERAGE NUMBER OF    
COMMON SHARES OUTSTANDING 35,807,497 33,710,809
 
CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
  Year Ended
December 31,
  2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (97,767) $ (37,528)
     
Adjustments to reconcile net loss to net    
cash provided by operating activities:    
     
Depreciation and amortization 32,747 20,940
Provision for doubtful accounts  (6,000) 6,000
Stock compensation to consultants 88,888 69,000
Stock compensation to employees 27,294 93,988
Deferred income taxes --  25,000
Other --  9,894
Increase or decrease in:    
Accounts receivable  38,597  (44,537)
Inventory 33,347 9,898
Other current assets  4,312  (5,132)
Accounts payable and accrued expenses 64,363 62,339
Total adjustments 283,548 247,390
     
NET CASH PROVIDED BY OPERATING ACTIVITIES 185,781 209,862
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment  (553,784)  (442,676)
Payment of deferred costs  --   (6,500)
     
NET CASH USED IN INVESTING ACTIVITIES  (553,784)  (449,176)
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from long-term debt 325,000 -- 
Proceeds from line of credit 96,251 -- 
Proceeds from sale of stock --  7,751
Payments on long-term debt  (23,420)  (1,025)
Loan costs (9,504) -- 
Payments received on stockholder loan --  469
     
NET CASH PROVIDED BY FINANCING ACTIVITIES 388,327 7,195
     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 20,324  (232,119)
     
CASH AND CASH EQUIVALENTS, beginning of period 106,753 338,872
     
CASH AND CASH EQUIVALENTS, end of period $ 127,077 $ 106,753
 
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES
   
Acquisition of land and building with debt $ --  $ 440,000
     
Common stock awards capitalized as equipment $ 3,363 $ -- 
     
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid for interest $ 39,215 $ 4,305
     
Cash paid for income taxes $ --  $ -- 

Safe Harbor Statement:

This news release contains "forward-looking statements" about the Company's anticipated growth. You are cautioned that such statements are subject to risks and uncertainties and that could cause actual results to differ materially from those projected in the forward-looking statements, such as the Company's ability to obtain additional capital to expand operations as planned. The above forward-looking statements are made as of the date above; CTD Holdings, Inc. accepts no specific responsibility for updating such statements.

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CONTACT: Investor Relations
         Sean Marconi
         or Gerald Kieft
         The WSR Group
         (772) 219-7525
         IR@thewsrgroup.com
         http://www.wallstreetresources.net/CTDHoldings.asp
         www.WSRcommunications.com
Source: CTD Holdings, Inc.