Good morning, ladies and gentlemen. Welcome to the CTI Industries Corporation’s First Quarter 2016 Financial Results Conference Call. Today’s 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 would now like to turn the call over to Stephen Merrick, President of CTI Industries. Please go ahead, sir.

Good morning, everyone and thank you for participating in the call. My name is Stephen Merrick, I am the President of CTI, and I will be presenting our report with John Schwan, our CEO; Tim Patterson, our CFO, and Stan Brown, Director of our 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. Overall, we had a good first quarter, sales were up over the first quarter last year which itself if one of the strongest quarters we’ve had. For the quarter, net sales reached $15,205,000 compared to net sales of $14,975,000 in the first quarter of last year. We had strong increases in sales in our foil balloon and home organizing product lines in the quarter. Foil balloon sales were up 13% from $7,094,000 in the first quarter of last year to over $8 million in the first quarter this year. Revenues in our home organizing line were up over 103% from $718,000 in the first quarter last year to $1,458,000 this year. Sales were strong with respect to our branded vacuum sealing line, although our sales of zippered vacuum bags were down for the quarter. Our expectations for our branded vacuum sealing line remained very strong for the balance of this year. Dollar amount of our revenues in our latex balloon line were down somewhat due to the continued decline in the value of the peso. But we anticipate much improved results in this line for the balance of the year as well. Our operating results for the first quarter were good, although a bit down from last year. For the first quarter we had income from operations of $647,000. Last year in the first quarter our income from operations was…

Thank you [Operator Instructions]. Our first question is from Todd Brady from Oppenheimer.

Question, you guys saw a nice jump in the film products part of your business. What should we be thinking about upcoming quarters in that particular business line? Secondly, you guys continue to see good healthy growth in the home organization or home organizing products. How should we be thinking about growth over the balance of this year in that segment? Thank you.

Well, with respect to the films business, I think it's difficult to predict where that business will go. It has been strong for us so far this year and I am hopeful that it will continue to be -- maybe I guess to some degree a pleasant surprise for us. And we hope that that will continue. On the home organization and container line, that has been -- that had steady growth, significant in terms of the percentage of the business over the last couple of years and that later growth is continuing. Just to reflect that we had our biggest month a year ago in history in bringing in new consultants and we triple that in February of this year. So, there is reason to believe that the growth in that business will continue, I don’t know that it will continue at a rate of 100% increase over each period of time but it is doing well and we expect it to continue to do well.

Steve, one quick follow up. It appears that you guys are now reaping the benefits of the investments that Company made years back in the vacuum -- sealing line. You’re seeing obviously very-very good growth here domestically. Is there something positive on the international side? Or is this just more of a domestic story right now?

It's principally domestic. We are -- as we reported, we are anticipating and expecting a very significant transaction at the end this year, which will result in a significant increase in our sales in that line. And we’re focused mostly on the U.S., although the product line is available in Canada and Mexico as well. And at some point we’ll probably look to expand the product line into other foreign markets. However, we have a significant market opportunity in the U.S. that we’re still in the process of capturing. We only -- the market size in the U.S. is probably in the range of $250 million and we are, at this point, even if we have a great year this year, we’ll be under 10% of that market that’s available to us.

And moving on, our next question comes from John Banks from BG Capital.

Steve, just a couple of quick questions. You keep bringing up, the first thing, you bring up a lot and I know you guys are conservative, significant order or significant thing coming with the vacuum saying, what you guys got a huge order coming from one of the top retailers? Can you elaborate, or can you describe significant with the vacuum coming up? And two, I know last year I think EBITDA was around $1 million. Can we expect that to be higher this year?

Well, we use a little caution John, and it would be nice to be able to be very explicit about specific transactions. But one of the issues that you have there is that identifying specific customers is often an issue for the customer, and which is the reason that we’re a little bit cautious about that. We do expect a significant trend -- in addition to growth in the line which is occurring anyway. We do anticipate a significant transaction and significant means that we’re talking about in terms of the percentage of our current level of sales, an amount which would not quite double our sales but would come close to doing that. And we anticipate that that will occur this year. We’re not all of the elements of the transaction have not been finalized yet. But where we are reasonably confident of things going forward and we’re expecting it and we thought it was appropriate to reflect it because it also involve significant investment on our part that we’re going to needing to make over the next several months to prepare ourselves to meet the obligations. So, it's really good positive news, we’re all very excited about it. It's going to take a significant effort in investment on our part to get it done. And you’ve asked another part of that question and I forget what the second part was, yes EBITDA. Yes, we do expect our EBITDA assuming that we complete the transactions that we’re talking about. We would expect that our EBITDA would increase pretty substantially over the EBITDA that we have last year which was $5 million.

Congratulations on that. On that one, is $10 million EBITDA, is that too aggressive?

Well, I would say from year miles to got here, but that probably -- my guess is that we probably won’t reach that level but we’re sure of working it.

And then my final question on this one. We guys say in the next six to nine months and the backend. Can you guys generate enough cash to pay down the mezzanine debt?

Again assuming things go as we expect then and trend, and the answer is yes.

And I have no further questions at this time [Operator Instructions]. It appears there are no further questions today. Speakers I’ll turn the conference back to you for additional or closing remarks.

Well, thank you everyone for participating in our call. We appreciate your interest and your involvement in our Company. And we want to you know that we are working very hard to generate good results for our shareholders and I think we’re getting there. So appreciate your interest and we look forward to speaking with you again at the end of the second quarter. Thank you. Have a good day.

And that does conclude our conference call today. Thank you all for your participation.