May 15, 2017   SOURCE: BusinessWire

CCOM Group, Inc. Reports 2017 First Quarter Results

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2017.

Results for the quarter ended March 31, 2017 compared to results for the same period in 2016:

  • Sales decreased 1.2% to $17,671,376 from $17,878,764
  • Gross profit increased 1.4% to $5,009,999 from $4,940,991
  • Selling, general and administrative expenses increased 1.7% to $5,551,336 from $5,461,201
  • Operating loss increased 4.1% to $541,337 from $520,210
  • Net loss increased 5.2% to $649,729 from $617,777
  • Net loss per share on a fully diluted basis remained the same at $(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 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
Condensed Consolidated Balance Sheets
       
March 31, December 31,
2017 2016
(Unaudited)
 
Assets
Current assets:
Cash $ 367,079 $ 448,758
Accounts receivable, net of allowance for doubtful accounts
of $1,149,911 and $1,078,613, respectively 9,753,577 10,788,257
Inventory 18,520,143 14,888,025
Prepaid expenses and other current assets   625,644     680,039  
Total current assets 29,266,443 26,805,079
Property and equipment 738,354 756,050
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 171,144 171,144
Deferred tax asset - noncurrent   2,316,500     2,316,500  
$ 33,909,370   $ 31,465,702  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 15,136,387 $ 13,417,855
Convertible notes payable, excluding current portion-related party 100,000 -
Notes payable - current portion; includes related party notes
of $679,399 and $176,283, respectively 852,646 353,208
Trade payables 5,040,018 3,852,007
Accrued liabilities 1,757,883 1,995,083
Income taxes payable   1,451     42,188  
Total current liabilities 22,888,385 19,660,341
Convertible notes payable, excluding current portion-related party - 100,000
Notes payable, excluding current portion; includes related party
notes of $750,000 and $795,879, respectively 842,657 877,304
Deferred tax liability - noncurrent   567,000     567,000  
Total liabilities   24,298,042     21,204,645  
 
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   (3,457,502 )   (2,807,773 )
Total stockholders' equity   9,611,328     10,261,057  
$ 33,909,370   $ 31,465,702  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
     
For the Three Months Ended
March 31,
2017 2016
Sales $ 17,671,376 $ 17,878,764
Cost of sales 12,661,377 12,937,773
Gross profit 5,009,999 4,940,991
 
Selling, general and administrative expenses, net 5,551,336 5,461,201
Operating loss (541,337) (520,210)
 
Other income 49,285 43,517
Interest expense, net; includes related party interest
of $19,183 and $29,666, respectively (147,891) (141,084)
 
Income tax expense 9,786 -
Net loss $ (649,729) $ (617,777)
 
 
Loss per common share:
Basic and diluted $ (0.07) $ (0.07)
 
Weighted average shares
outstanding:
Basic and diluted 9,154,928 9,154,928
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
        For The Three Months Ended
March 31,
2017 2016
Cash flows from operating activities:
Net loss $ (649,729) $ (617,777)
Adjustments to reconcile net loss to net cash
used in operating activities:
Provision for doubtful accounts 63,946 31,405
Depreciation 94,871 87,991
Net gain on sale of fixed assets - (957)
Changes in operating assets and liabilities
Accounts receivable 970,734 366,869
Inventory (3,632,118) (4,975,064)
Prepaid expenses and other current assets 54,395 (142,754)
Other assets - noncurrent - 2,618
Trade payables 1,188,011 2,410,298
Accrued liabilities (237,200) 177,370
Income taxes payable (40,737) -
Net cash used in operating activities (2,187,827) (2,660,001)
 
Cash flows from investing activities:
Additions to property and equipment (25,263) (37,760)
Proceeds from disposal of property and equipment - 8,047
Net cash used in investing activities (25,263) (29,713)
 
Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $42,762 and $789,485 respectively (87,121) (834,012)
Issuance of notes payable, related party 500,000 2,750,000
Repayments under credit facility - revolving credit, net 1,718,532 618,228
Net cash provided by financing activities 2,131,411 2,534,216
Decrease in cash (81,679) (155,498)
Cash - beginning of period 448,758 577,303
Cash - end of period $ 367,079 $ 421,805