Financial Highlights (unaudited)

Net sales were $5.1 million in the first quarter, compared with $5.8 million in the first quarter of 2022
- While helium pricing continued to moderate after the significant 2022 spike, it continued to negatively impact foil-balloon sales
Net income was $0.4 million, compared to net loss of less than $0.1 million in the first quarter of 2022
Adjusted EBITDA (a non-GAAP measure) was $0.7 million, compared to $0.3 million in the first quarter of 2022. Please refer to the table accompanying this press release for a reconciliation of the Company's GAAP and non-GAAP results.

Business Highlights

Sales of candy and balloon gift items continued to climb, offsetting some of the weakness in commercial films
The reduction in helium pricing is expected to drive more normalized balloon sales during remainder of 2023
Continued investment in robotic technology to enhance operational efficiencies
Ongoing prototype development of Yunhong Biotech's compostable material solutions

LAKE BARRINGTON, IL / ACCESSWIRE / April 26, 2023 / Yunhong CTI Ltd. (NASDAQ:CTIB) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film packaging products, novelty balloons, and candy and balloon gift solutions, today announced its financial results for the first quarter ended March 31, 2023. Management will host a conference call to discuss these results and other matters on Thursday, April 27, 2023, at 9:00 a.m. Central Time / 10:00 a.m. Eastern Time.

Management Commentary

"While our revenue results were lower quarter-over-quarter, our overall improved financial results demonstrate the success of the transformation we undertook over the last 18 month to realign operations, increase operating efficiencies, and strengthen our balance sheet. Our profitability showed sequential improvement, despite lower revenue during the quarter and our team overcame carryover headwinds from lower sales of foil balloon products which are sensitive to helium pricing. With the continued moderation in helium pricing, we expect to see an improvement in foil balloon sales in 2023," said Frank Cesario, Chief Executive Officer, Yunhong CTI.

"Our first quarter balloon sales improved markedly from the third quarter 2022, and our candy and balloon gift solutions continue to grow," Cesario added. "While our commercial films sales disappointed, this product category has historically experienced significant fluctuation and we expect to see improved sequential results in the second quarter."

Commenting further, Cesario stated, "Helium prices remain highly correlated to our results, particularly as it relates to the sale of foil balloons to our customers. We welcome the trend towards a more reasonable pricing environment, which should result in an improvement in foil balloon sales. Our experience is that in uncertain economic times our products tend to have a counter-cyclical element, as we provide a low-cost form of enjoyment and celebration.

"As we have discussed previously, we continue to work on developing compostable material solutions in concert with the Yunhong group of companies and third-party partners. We will soon be visiting our partners in Asia in order to continue our cooperative efforts to bring commercially viable solutions to the market."

2023 First Quarter Results (unaudited)

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

	Three Months Ended
	March 31, 2023				March 31, 2022
	$				$
	(000)		% of		(000)		% of
Product Category	Omitted		Net Sales		Omitted		Net Sales		Variance		% change

Foil Balloons	$	3,474	69	%	$	3,832	66	%	$	(358)	(9	%)

Film Products		89	2	%		828	14	%		(739)	(89	%)

Other	$	1,488	29	%	$	1,112	19	%	$	376	34	%

Total	$	5,051	100	%	$	5,797	100	%	$	(746)	(13	%)

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 Q1 Summary Results (Non-GAAP; unaudited)

	2023 Q1	2022 Q1

Net Income	396,000	(21,000)
Addback: Interest	142,000	96,000
Addback: Taxes
Addback Lender fees	81,000	136,000
Addback: Equity comp	7,000	31,000
Addback: Depr/Amort	102,000	98,000
Addback: Gain on sale	-	-

Adj EBITDA	728,000	340,000

2023 First Quarter Results Conference Call / Webcast Information

Yunhong CTI will host its conference call on Thursday, April 27, 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/2863/46944. For those planning to participate in the call, please dial +1-888-506-0062 for domestic calls, or +1-973-528-0011 for international calls. The Conference ID # is 184864.

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 #46944.

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.

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 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.

Investor Relations Contact:

Company Contact:
info@ctiindustries.com
+ 1-847-382-1000

Investor Relations Contact:
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

Yunhong CTI LTD
Consolidated Condensed Balance Sheets

	Unaudited
	March 31, 2023	December 31, 2022

Cash and equivalents	130,000	146,000
Accounts receivable	3,344,000	1,618,000
Inventories	7,944,000	8,325,000
Other current assets	489,000	389,000
Total current assets	11,907,000	10,478,000

Property, Plant and Equipment	21,312,000	21,256,000
Less: accumulated depreciation	(20,414,000)	(20,334,000)
Property, Plant and Equipment, net	898,000	922,000

Noncurrent assets	3,757,000	3,882,000

Total assets	16,562,000	15,282,000


Trade payables	1,278,000	1,313,000
Line of credit	4,284,000	2,878,000
Notes payable - current	540,000	289,000
Notes payable subordinated - current	1,286,000	-
Other current liabilities	1,900,000	2,998,000
Current liabilities	9,288,000	7,478,000

Notes payable - noncurrent	-	427,000
Notes payable - officer; subordinated	-	1,267,000
Operating lease liabilities	3,239,000	3,364,000

Noncurrent liabilities	3,239,000	5,058,000


Total liabilities	12,527,000	12,536,000

Shareholders equity	4,035,000	2,746,000

Total liabilities and equity	16,562,000	15,282,000

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


	Three months ended December 31,

	2023		2022

Net sales		5,051,000		5,797,000
Cost of sales		3,924,000		4,758,000
Gross profit		1,127,000		1,039,000

Operating expenses		1,115,000		1,058,000
Gain/(Loss) from operations		12,000		(19,000)

Interest expense		142,000		96,000
Other (income)/expense		(526,000)		(94,000)
Net income / (loss) before tax		396,000		(21,000)

Income tax
Net income / (loss) - continuing ops		396,000		(21,000)

Preferred stock deemed dividends		(11,000)		(202,000)

Net income/(loss) attributable to
Yunhong CTI Shareholders		385,000		(223,000)

Fully diluted earnings per share	$	0.02	$	(0.04)

SOURCE: Yunhong CTI Ltd.

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Yunhong CTI Ltd. Reports First Quarter 2023 Revenue of $5.1 Million and Net Income of $0.4 Million