HAWTHORNE, N.J.--(BUSINESS WIRE)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2021.
Results for the quarter ended March 31, 2021 compared to results for the same period in 2020:
- Sales decreased 1.5% to $22,082,860 from $22,408,803
- Gross profit increased 2.5% to $6,059,854 from $5,914,511
- Selling, general and administrative expenses decreased 8.0% to $5,991,712 from $6,512,497
- Operating income of $68,142 compared to operating loss of $(597,986)
- Net income of $13,839 compared to a net loss of $(688,151)
- Net income per share on a fully diluted basis of $0.00 per share compared to a net loss per share on a fully diluted basis of $(0.07) per share
About CCOM Group, Inc.
CCOM Group, Inc. (“CCOM”) distributes heating, ventilating and air conditioning equipment (HVAC), parts and accessories, whole-house generators, climate control systems, and plumbing and electrical fixtures and supplies, primarily in New Jersey, New York, Massachusetts and portions of eastern Pennsylvania, Connecticut and Vermont through its subsidiaries: Universal Supply Group, Inc., www.usginc.com, The RAL Supply Group, Inc., www.ralsupply.com, and S&A Supply, Inc., www.sasupplyinc.com. CCOM is headquartered in New Jersey, and, with its affiliates, operates out of 15 locations in its geographic trading area. For more information on CCOM’s operations, products and/or services, please visit www.ccom-group.com.
For further information, please contact Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224.
(Financial Highlights Follow)
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||
Condensed Consolidated Balance Sheets | ||||||
March 31, | December 31, | |||||
|
2021 |
|
2020 |
|||
(Unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash | $ |
213,132 |
$ |
388,267 |
||
Accounts receivable, net of allowance for doubtful accounts | ||||||
of $688,433 and $766,459, respectively |
|
10,722,144 |
|
10,305,665 |
||
Inventory |
|
25,416,309 |
|
20,936,936 |
||
Prepaid expenses and other current assets |
|
548,682 |
|
749,053 |
||
Total current assets |
|
36,900,267 |
|
32,379,921 |
||
Property and equipment |
|
1,102,081 |
|
1,095,506 |
||
Goodwill |
|
1,416,928 |
|
1,416,929 |
||
Other assets - noncurrent |
|
320,113 |
|
188,824 |
||
Deferred tax asset - noncurrent |
|
2,548,575 |
|
2,548,575 |
||
$ |
42,287,964 |
$ |
37,629,755 |
|||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Borrowings under credit facility - revolving credit | $ |
12,067,906 |
$ |
9,151,368 |
||
Notes payable - current portion |
|
913,476 |
|
627,009 |
||
Trade payables |
|
7,805,141 |
|
5,892,126 |
||
Accrued liabilities |
|
2,303,510 |
|
2,450,810 |
||
Income taxes payable |
|
2,850 |
|
2,850 |
||
Total current liabilities |
|
23,092,883 |
|
18,124,163 |
||
Notes payable, excluding current portion |
|
1,923,392 |
|
2,247,742 |
||
Deferred tax liability - noncurrent |
|
354,000 |
|
354,000 |
||
Total liabilities |
|
25,370,275 |
|
20,725,905 |
||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Redeemable convertible preferred stock, $.05 par value, | ||||||
2,500,000 shares authorized, 284,612 shares issued and | ||||||
outstanding, liquidation preference of $1,423,060 |
|
14,231 |
|
14,231 |
||
Common stock, $.05 par value, 20,000,000 shares authorized, | ||||||
9,154,928 shares issued and outstanding |
|
457,746 |
|
457,746 |
||
Additional paid-in capital |
|
12,596,853 |
|
12,596,853 |
||
Retained Earnings |
|
3,848,859 |
|
3,835,020 |
||
Total stockholders' equity |
|
16,917,689 |
|
16,903,850 |
||
$ |
42,287,964 |
$ |
37,629,755 |
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended | |||||||
March 31, | |||||||
2021 |
2020 |
||||||
Sales | $ | 22,082,860 |
$ | 22,408,803 |
|||
Cost of sales | 16,023,006 |
16,494,292 |
|||||
Gross profit | 6,059,854 |
5,914,511 |
|||||
Selling, general and administrative expenses, net | 5,991,712 |
6,512,497 |
|||||
Operating income/(loss) | 68,142 |
(597,986) |
|||||
Other income | 41,197 |
56,454 |
|||||
Interest expense, net | (76,651) |
(131,553) |
|||||
Income/(loss) before income tax expense | 32,688 |
(673,085) |
|||||
Income tax expense | 18,849 |
15,066 |
|||||
Net Income/(loss) | $ | 13,839 |
$ | (688,151) |
|||
Income/(Loss) per common share: | |||||||
Basic | $ | 0.00 |
$ | (0.07) |
|||
Diluted | $ | 0.00 |
$ | (0.07) |
|||
Weighted average shares | |||||||
outstanding: | |||||||
Basic | 9,154,928 |
9,154,928 |
|||||
Diluted | 9,439,540 |
9,154,928 |
|||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||
For The Three Months Ended March 31, 2021 | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Number of shares | |||||||||||||||||||
Redeemable Convertible Preferred Stock |
Common Stock | Redeemable Convertible Preferred Stock |
Common Stock | Additional Paid-In Capital |
Retained Earnings / Accumulated Deficit |
Total Stockholders' Equity |
|||||||||||||
Balance at December 31, 2020 | 284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
3,835,020 |
$ |
16,903,850 |
|||||||
Net Income |
|
13,839 |
|
13,839 |
|||||||||||||||
Balance at March 31, 2021 | 284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
3,848,859 |
$ |
16,917,689 |
|||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
(Unaudited) | |||||||||
For The Three Months Ended | |||||||||
March 31, | |||||||||
2021 |
2020 |
||||||||
Cash flows from operating activities: | . | ||||||||
Net Income/(loss) | $ | 13,839 |
$ | (688,151) |
|||||
Adjustments to reconcile net income (loss) to net cash | |||||||||
used in operating activities: | |||||||||
Provision for doubtful accounts | (85,449) |
58,753 |
|||||||
Depreciation | 109,282 |
98,253 |
|||||||
Net gain on sale of fixed assets | (3,000) |
- |
|||||||
Changes in operating assets and liabilities | |||||||||
Accounts receivable | (331,030) |
(519,030) |
|||||||
Inventory | (4,479,373) |
(5,396,373) |
|||||||
Prepaid expenses and other current assets | 200,371 |
247,686 |
|||||||
Other assets - noncurrent | (131,289) |
6,225 |
|||||||
Trade payables | 1,913,015 |
6,276,597 |
|||||||
Accrued liabilities | (147,300) |
(473,826) |
|||||||
Net cash used in operating activities | (2,940,934) |
(389,866) |
|||||||
Cash flows from investing activities: | |||||||||
Additions to property and equipment | (115,856) |
(126,784) |
|||||||
Proceeds from disposal of property and equipment | 3,000 |
- |
|||||||
Net cash used in investing activities | (112,856) |
(126,784) |
|||||||
Cash flows from financing activities: | |||||||||
Repayments of notes payable | (37,883) |
(26,341) |
|||||||
Borrowings under credit facility - revolving credit, net | 2,916,538 |
692,964 |
|||||||
Net cash provided by financing activities | 2,878,655 |
666,623 |
|||||||
(Decrease)/Increase in cash | (175,135) |
149,973 |
|||||||
Cash - beginning of period | 388,267 |
193,448 |
|||||||
Cash - end of period | $ | 213,132 |
$ | 343,421 |
|||||