Yunhong Green CTI Reports Q1 2025 Financial Results with Decline in Net Sales

Yunhong Green CTI Ltd. reported its financial results for the first quarter of 2025, revealing a slight decline in net sales to $4.8 million, down from $4.9 million in the same period last year. The company experienced a decrease in net income, reporting a loss of $416,000 compared to a loss of $576,000 in the first quarter of 2024. The gross profit for the quarter was $866,000, with a consistent gross margin of 18% across both periods. The decrease in sales was attributed to the timing of product shipments, particularly in the balloon segment, where revenues from foil balloons increased significantly due to earlier shipments for Valentine's Day.

In terms of operational efficiency, Yunhong Green CTI managed to reduce its operating expenses to $1.04 million from $1.25 million year-over-year, primarily due to a decrease in general and administrative expenses, which fell by $201,000. The company reported a notable improvement in cash flow from operations, generating $970,000 in the first quarter of 2025, a significant turnaround from the $767,000 used in operations during the same period in 2024. This improvement was driven by a decrease in accounts receivable and an increase in trade payables.

The company’s balance sheet as of March 31, 2025, showed total assets of $24.6 million, down from $25.6 million at the end of 2024. Current liabilities decreased to $10.8 million from $11.4 million, reflecting a reduction in trade payables and other liabilities. However, the company’s cash and cash equivalents decreased to $172,000 from $220,000, indicating ongoing liquidity challenges. The company continues to rely on its revolving credit facility, which had a balance of $5.6 million as of the end of the quarter.

Yunhong Green CTI is also navigating strategic developments, including the establishment of a subsidiary in China and the acquisition of production assets aimed at expanding its operational capabilities. The company has faced challenges related to supply chain disruptions and inflationary pressures, which have impacted its cost structure and access to capital. Management has indicated that it may need to seek additional financing to support its operations in the coming year.

Looking ahead, Yunhong Green CTI is focused on regaining compliance with Nasdaq's minimum bid price rule, which requires its stock to maintain a closing bid price of at least $1.00. The company has been granted an extension until October 19, 2025, to meet this requirement. Management remains optimistic about future sales growth, particularly in the foil balloon segment, and is exploring options to enhance its product offerings and market presence.