CCOM Group, Inc. Reports 2016 Results
CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2016.
Results for the year ended December 31, 2016 compared to results for the same period in 2015:
- Sales increased 7.6% to $87,283,700 from $81,110,848
- Gross profit increased 8.5% to $23,359,519 from $21,523,619
- Selling, general and administrative expenses increased 6.4% to $21,980,338 from $20,648,832
- Operating income increased 57.7% to $1,379,181 from $874,787
- Net income decreased 7.4% to $713,972 from $771,175; the 2016 amount includes a $150,000 non-cash income tax expense and the 2015 amount includes a $250,000 non-cash income tax benefit
- Net income per share on a fully diluted basis remained the same at $0.08 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 17 locations in its geographic trading area. For more information on CCOM’s operations, products and/or services, please visit www.ccomgrp.com.
(Financial Highlights Follow)
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
December 31, | December 31, | |||||||||||
2016 | 2015 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash | $ | 448,758 | $ | 577,303 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $1,078,613 and $1,086,213, respectively | 10,788,257 | 10,043,006 | ||||||||||
Inventory | 14,888,025 | 13,545,954 | ||||||||||
Prepaid expenses and other current assets | 680,039 | 605,463 | ||||||||||
Total current assets | 26,805,079 | 24,771,726 | ||||||||||
Property and equipment, net | 756,050 | 889,866 | ||||||||||
Goodwill | 1,416,929 | 1,416,929 | ||||||||||
Other assets - noncurrent | 171,144 | 179,275 | ||||||||||
Deferred income tax asset - noncurrent | 2,316,500 | 2,466,500 | ||||||||||
$ | 31,465,702 | $ | 29,724,296 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Borrowings under credit facility - revolving credit | $ | 13,417,855 | $ | 12,716,527 | ||||||||
Notes payable, current portion; includes related party notes of $176,283 and $162,773, respectively | 353,208 | 325,895 | ||||||||||
Trade payables | 3,852,007 | 3,833,579 | ||||||||||
Accrued liabilities | 1,995,083 | 1,373,073 | ||||||||||
Income taxes payable | 42,188 | 420 | ||||||||||
Total current liabilities | 19,660,341 | 18,249,494 | ||||||||||
Convertible notes payable; related parties | 100,000 | 200,000 | ||||||||||
Notes payable, non-current portion; includes related party notes of $795,879 and $972,161, respectively | 877,304 | 1,160,717 | ||||||||||
Deferred income tax liability - noncurrent | 567,000 | 567,000 | ||||||||||
Total liabilities | 21,204,645 | 20,177,211 | ||||||||||
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 | ||||||||||
Accumulated deficit | (2,807,773 | ) | (3,521,745 | ) | ||||||||
Total stockholders' equity | 10,261,057 | 9,547,085 | ||||||||||
$ | 31,465,702 | $ | 29,724,296 | |||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Statements of Income | |||||||||||
For the Years Ended December 31, | |||||||||||
2016 | 2015 | ||||||||||
Sales | $ | 87,283,700 | $ | 81,110,848 | |||||||
Cost of sales | 63,924,181 | 59,587,229 | |||||||||
Gross profit | 23,359,519 | 21,523,619 | |||||||||
Selling, general and administrative expenses, net | 21,980,338 | 20,648,832 | |||||||||
Operating income | 1,379,181 | 874,787 | |||||||||
Other income | 189,961 | 192,034 | |||||||||
Interest expense, net; includes related party interest expense of
$101,464 and |
(589,302 | ) | (538,054 | ) | |||||||
Income before income tax (expense) benefit | 979,840 | 528,767 | |||||||||
Income tax (expense) benefit | (265,868 | ) | 242,408 | ||||||||
Net income | $ | 713,972 | $ | 771,175 | |||||||
Income per common share: | |||||||||||
Basic | $ | 0.08 | $ | 0.08 | |||||||
Diluted | $ | 0.08 | $ | 0.08 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 9,154,928 | 9,154,945 | |||||||||
Diluted | 9,439,540 | 9,439,557 | |||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||||||
For the Years Ended December 31, 2016 and 2015 | ||||||||||||||||||||||||||||||||
Number of shares | ||||||||||||||||||||||||||||||||
Redeemable |
Common |
Redeemable |
Common |
Additional Paid- |
Accumulated |
Total |
||||||||||||||||||||||||||
Balance at December 31, 2014 | 284,612 | 9,154,953 | $ | 14,231 | $ | 457,747 | $ | 12,596,866 | $ | (4,292,920 | ) | $ | 8,775,924 | |||||||||||||||||||
Net Income | - | - | - | - | - | 771,175 | 771,175 | |||||||||||||||||||||||||
Common Stock purchased and retired | - | (25 | ) | - | (1 | ) | (13 | ) | - | (14 | ) | |||||||||||||||||||||
Balance at December 31, 2015 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | (3,521,745 | ) | $ | 9,547,085 | |||||||||||||||||||
Net Income | - | - | - | - | - | 713,972 | 713,972 | |||||||||||||||||||||||||
Balance at December 31, 2016 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | (2,807,773 | ) | $ | 10,261,057 | |||||||||||||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
For The Years Ended December 31, | |||||||||||
2016 | 2015 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 713,972 | $ | 771,175 | |||||||
Adjustments to reconcile net income to net cash (used in) | |||||||||||
provided by operating activities: | |||||||||||
Deferred income tax expense (benefit) | 150,000 | (250,000 | ) | ||||||||
Provision for doubtful accounts | 339,551 | 291,879 | |||||||||
Depreciation and amortization | 368,323 | 327,940 | |||||||||
Net gain on sale of property and equipment | (4,757 | ) | (6,040 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (1,084,802 | ) | (680,615 | ) | |||||||
Inventory | (1,342,071 | ) | 575,695 | ||||||||
Prepaid expenses and other current assets | (74,576 | ) | 124,836 | ||||||||
Other assets – noncurrent | 8,131 | (136,029 | ) | ||||||||
Trade payables | 18,428 | (926,712 | ) | ||||||||
Accrued liabilities | 622,010 | (15,165 | ) | ||||||||
Income taxes payable | 41,768 | (15,667 | ) | ||||||||
Net cash (used in) provided by operating activities | (244,023 | ) | 61,297 | ||||||||
Cash flows from investing activities: | |||||||||||
Additions to property and equipment | (160,991 | ) | (187,565 | ) | |||||||
Proceeds from disposal of property and equipment | 11,847 | 6,040 | |||||||||
Net cash used in investing activities | (149,144 | ) | (181,525 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Repurchase of common stock | - | (14 | ) | ||||||||
Repayments of notes payable; includes related party repayments of | |||||||||||
$4,012,773 and $3,150,298, respectively | (4,186,706 | ) | (3,317,259 | ) | |||||||
Issuance of notes payable, related party | 3,750,000 | 3,000,000 | |||||||||
Borrowings under credit facility - revolving credit, net | 701,328 | 776,108 | |||||||||
Net cash provided by financing activities | 264,622 | 458,835 | |||||||||
(Decrease) increase in cash | (128,545 | ) | 338,607 | ||||||||
Cash - beginning of year | 577,303 | 238,696 | |||||||||
Cash - end of year | $ | 448,758 | $ | 577,303 | |||||||
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