Good morning, ladies and gentlemen. Welcome to the CTI Industries Corporation Announces Third Quarter and Year-to-Date 2015 Financial Results Call. This call is being recorded. This conference call may contain forward-looking statements, as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company’s business strategy and growth strategy. Expressions, which identify forward-looking statements, speak only as of the date the statement is made. These forward-looking statements are based largely on this company’s expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond their control. Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. I will now turn the call over to Stephen Merrick, President. Please go ahead, sir.

Good morning, everyone and thank you for participating in our call. My name is Stephen Merrick, I am the President of CTI and I will be presenting a report with Tim Patterson, our Chief Financial Officer and Stan Brown, a Director of the company and Director of Investor Relations. At the conclusion of our report, there will be an opportunity for you to ask any questions you may have. We had good results for the third quarter. net sales were $14,881,000 compared to net sales of $14,569,000 in the third quarter last year, an increase of 2.1%. Earnings for the quarter were $209,000 or $0.06 per share about even with our results for the third quarter last year. But the real story is our results for the nine months, which indicates that we have now reached the consistent level of sales and profitability. For the nine months we had net income of $546,000 or $0.17 per share, which is more than four times the level for the same period last year and includes contribution to income from each of the three quarters this year. In that same period last year, we had earnings of $132,000 or $0.04 a share. Net sales for the nine months were $$43,477,000 compared to net sales in the same period last year of $42,649,000. From a cash flow standpoint, our results have been strong as well. For the third quarter, EBITDA was $1,196,000 compared to $1,126,000 for the third quarter last year. For the nine-month period though, the comparison is particularly strong. EBITDA was $3,487,000 for the nine month period ended September 30, 2015, compared to $2,616,000 for the same period last year. That's a 33% increase. I do want to reiterate that EBITDA is not a GAAP accounting measure, but we do use it…

[Operator Instructions] And we'll take our first question from Michael Goodrich with C&G Capital

Good morning, gentlemen. Congratulations on a great quarter.

Thank you, Michael.

We appreciate.

The margin expansion, is that something that you think is going to maybe continue to inch up? You think this is something that you're going to continue to work with and you think it gets a little bit better?

Well, it's a product of things that we think are continuing, that is that it relates to a decline in the cost of our raw materials. I don't know that we can expect raw materials to continue to decline more than they have but I think that, that ratio is going to continue that is the raw material cost is going to be somewhat lower. Second, it relates to the sales of products, greater sales of products that have a higher margin and as those sales of those products continue to increase, the margin rate should continue to increase. So I think we have a good chance of certainly maintaining and potentially increasing our gross margin rate.

Excellent, and can you talk about the Europe opportunity a little? I understand there are some regulations over there and that you guys might be able to take advantage of that? Can you maybe elaborate a little bit about what this new machine is?

Sure, Europe they're we -- about regulations in the United States, but Europe manages to have surpassed that by leaps and bounds. There is a regulation in Europe that limits the level of what's called nitrosamines in latex balloons and latex products and so that has been a challenge for companies that are making latex products in Europe. What we're doing is we're constructing a new machine that will significantly increase our capacity, but also will assure that all of the latex products that we make completely comply with that regulation in Europe about the amount of the nitrosamine content you can have in latex. So we think that will give us a significant competitive advantage in Europe and we expect to be price competitive and have plenty of capacity and have a strong product there.

Very good. Well, thank you very much gentlemen.

Thank you.

Thank you, Mike.

[Operator Instructions] And it appears we have no further question. That concludes the Q&A session. I'll turn the conference back over to Stephen Merrick for any additional or closing remarks.

Thank you, everyone for participating in our call. We appreciate your interest in CTI and we're working hard to perform strongly and well for our shareholders and we've a optimistic view of where we're headed. Thanks much. Talk to you soon.

And that does conclude our conference for today. We thank you for your participation.