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CTD Holdings, Inc. Reports Revenue of $442,000, Representing Growth of 73.7% for the First Quarter 2012

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CTD Posts a Profit of $46,000 for the Quarter

ALACHUA, Fla., May 21, 2012 (GLOBE NEWSWIRE) -- CTD Holdings, Inc. (OTCQB:CTDH) reported record quarterly revenues of $442,000 for the first quarter ended March 31, 2012, a 73.7% increase over first quarter 2011. Of the $442,000 in total revenue, $57,000 was generated from drying services. Total product sales for the three month period ended March 31, 2012 increased 51% to $385,000 compared to $254,000 for the same period in 2011. The increase was due primarily to one customer's $75,000 order of Trappsol TRMB-P and one customer's order of $73,000 of Trappsol Cyclo for the quarter ended March 31, 2012.

First Quarter 2012 Highlights

  • Sales of Trappsol HPB increased 12% to $156,000 from $139,000 for the three months ended March 31, 2012 and 2011, respectively.
     
  • Sales of Trappsol Cyclo increased significantly to $84,000 from $19,000 for the three months ended March 31, 2012 and 2011, respectively. CTD's sales to a customer who exports Trappsol Cyclo to South America were $73,000 (87% of total) for the three months ended March 31, 2012. 
        
  • Sales of other Trappsol products increased significantly to $110,000 from $21,000 for the three months ended March 31, 2012 and 2011, respectively.
       
  • Operating income for the quarter was $76,000, compared to an operating loss of ($4,000) during the first quarter 2011. 
      
  • The Company reported net income after income taxes of $46,000 for the first quarter 2012, compared to a net loss of ($10,000) for the first quarter 2011.  

"We are pleased to report a stellar start to the year, recording record revenue growth during the first quarter of 2012. Given the high volume of indications of interest and deals currently in discussion, we expect to continue to report strong financial results over the next several quarters," commented Rick Strattan, company Chairman & CEO.

"Successful completion of our first manufacturing campaign using our proprietary pulsed drying technology is a major milestone that strengthens company credibility," added Dr. Jeffrey Tate, company President and Director. "It opens up the opportunity for many small companies to access commercial scale quantities of custom cyclodextrin complexes without making the prohibitively large investment in their own manufacturing equipment, thus broadening the market for the application of cyclodextrin technology."

The Company's cost of products sold (excluding any allocation of direct and indirect overhead and handling costs) for the three month period ended March 31, 2012 increased 135% to $110,000 from $47,000 for the same period in 2011. Personnel expenses increased 17% to $96,000 for the three months ended March 31, 2012 from $82,000 for the three months ended March 31, 2011. In 2011, CTD performed much of its building renovations using its employees and the Company capitalized its personnel costs directly related to these improvements. In January 2012, CTD's pulse dryer facility became operational and its employees are in operations and CTD is no longer capitalizing personnel costs.

CTD reported net income after income taxes of $46,000 for the three months ended March 31, 2012, compared to a net loss of ($10,000) for the three months ended March 31, 2011.

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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. For additional information, visit the Company's website at: www.ctd-holdings.com

Safe Harbor Statement:  

This press release contains "forward-looking statements" about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results in future periods to differ materially from what is expressed in, or implied by, these statements. The factors which may influence the Company's future performance include the Company's ability to obtain additional capital to expand operations as planned, success in attracting additional customers and profitable contracts, and regulatory risks associated with producing food and pharmaceutical grade products. These and other risk factors are described from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's reports on Forms 10-K and 10-Q. Unless required by law, the Company assumes no obligation to update or revise any forward-looking statements as a result of new information or future events.

     
     
CTD HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
     
  March 31,
2012
 December 31,
2011
     
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents  $ 25,564  $ 127,077
Accounts receivable, net 210,844 46,365
Inventory 159,310 142,017
Other current assets 899 820
Total current assets 396,617 316,279
     
PROPERTY AND EQUIPMENT, NET 1,694,396 1,722,116
     
OTHER ASSETS    
Property held for sale 512,319 512,319
Deferred tax asset 207,000 225,000
Deferred costs, net  13,258 14,551
Total other assets 732,577 751,870
     
TOTAL ASSETS  $ 2,823,590  $ 2,790,265
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
CURRENT LIABILITIES    
Accounts payable and accrued expense  $ 456,899  $ 528,987
Line of credit 96,000 96,251
Current portion of long-term debt 43,274 27,217
Total current liabilities 596,173 652,455
     
LONG-TERM LIABILITIES    
Long-term debt, less current portion 757,172 713,338
     
STOCKHOLDERS' EQUITY    
Common stock, par value $.0001 per share, 100,000,000 shares authorized, 36,575,070 and 36,575,070 shares issued and outstanding, respectively 3,657 3,657
 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 3,831,636
Accumulated deficit (2,365,048) (2,410,821)
Total stockholders' equity 1,470,245 1,424,472
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 2,823,590  $ 2,790,265
     
     
CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
     
  Three Months Ended
March 31,
  2012 2011
     
REVENUES    
Product sales  $ 384,979  $ 254,366
Drying services 56,930 --
  441,909 254,366
     
EXPENSES    
Personnel 95,591 81,623
Cost of products sold (exclusive of depreciation and amortization, shown separately below) 109,544 46,691
Repairs and maintenance 5,048 981
Consulting stock expense -- 240
Professional fees 77,370 104,540
Office and other 34,272 16,823
Amortization and depreciation 40,321 5,802
Freight and shipping 3,456 2,093
  365,602 258,793
     
OPERATING INCOME (LOSS) 76,307 (4,427)
     
OTHER INCOME (EXPENSES)    
Investment and other income 1,007  91 
Interest expense (13,541) (5,885)
  (12,534) (5,794)
     
INCOME (LOSS) BEFORE INCOME TAXES 63,773 (10,221)
     
Income taxes 18,000 --
     
NET INCOME (LOSS)  $ 45,773  $ (10,221)
     
NET INCOME (LOSS) PER COMMON SHARE $ .00 $ (.00)
     
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 36,575,070 35,412,405
     
     
CTD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
     
  Three Months Ended
March 31,
  2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
 Net income (loss)  $ 45,773  $ (10,221)
 Adjustments to reconcile net income (loss) to net cash used in operating activities:  
 Depreciation and amortization 40,321 5,802
 Deferred income taxes 18,000 --
 Loss on disposal of equipment -- 13
 Stock compensation to consultant -- 240
 Increase or decrease in:    
 Accounts receivable (164,479) (31,633)
 Inventory (17,293) 10,403
 Other current assets (79) 4,399
 Accounts payable and accrued expenses 71,563 18,541
 Total adjustments (51,967) 7,765
     
 NET CASH USED IN OPERATING ACTIVITIES (6,194) (2,456)
     
CASH FLOWS FROM INVESTING ACTIVITIES    
 Purchase of equipment and building improvements (47,159) (67,577)
 Increase in deferred costs -- (9,504)
     
NET CASH USED IN INVESTING ACTIVITIES (47,159) (77,081)
     
CASH FLOWS FROM FINANCING ACTIVITIES    
 Proceeds from notes payable -- 325,000
 Payments on notes payable (47,909) (3,102)
 Payments on line of credit (251) --
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (48,160) 321,898
     
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (101,513) 242,361
     
CASH AND CASH EQUIVALENTS, beginning of period 127,077 106,753
     
CASH AND CASH EQUIVALENTS, end of period  $ 25,564  $ 349,114
     
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
 Cash paid for interest  $ 13,541  $ 5,885
     
 Cash paid for income taxes -- --
CONTACT: Investor Relations
         Gerald Kieft
         The WSR Group
         (772) 219-7525
         IR@theWSRgroup.com
         www.wallstreetresources.net/CTDHoldings.asp
Source: CTD Holdings, Inc.