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 | |||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005044/en/
Contacts:
William Salek, Chief Financial Officer
(973) 427-8224