Apr 30, 2018   SOURCE: BusinessWire

CCOM Group, Inc. Reports 2017 Results

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

Results for the year ended December 31, 2017 compared to results for the same period in 2016:

  • Sales increased 5.8% to $92,330,429 from $87,283,700
  • Gross profit increased 5.2% to $24,579,010 from $23,359,519
  • Selling, general and administrative expenses increased 4.6% to $23,000,348 from $21,980,338
  • Operating income increased 14.5% to $1,578,662 from $1,379,181
  • Net income decreased 28.0% to $514,407 from $713,972; the 2017 amounts includes a $517,899 non-cash income tax expense and the 2016 amount includes a $150,000 non-cash income tax expense
  • Net income per share on a fully diluted basis decreased to $0.05 per share from $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
Consolidated Balance Sheets
 

December 31,

December 31,

  2017     2016  
 
 
Assets
Current assets:
Cash $ 506,635 $ 448,758
Accounts receivable, net of allowance for doubtful accounts
of $1,052,963 and $1,078,613, respectively 11,522,688 10,788,257
Inventory 16,231,516 14,888,025
Prepaid expenses and other current assets   1,121,745     680,039  
Total current assets 29,382,584 26,805,079
Property and equipment 568,079 756,050
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 424,375 171,144
Deferred tax asset - noncurrent   1,682,000     2,316,500  
$ 33,473,967   $ 31,465,702  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 14,464,649 $ 13,417,855
Notes payable - current portion; includes related party notes
of $196,587 and $176,283, respectively 279,606 353,208
Trade payables 4,558,305 3,852,007
Accrued liabilities 2,165,224 1,995,083
Income taxes payable   18,488     42,188  
Total current liabilities 21,486,272 19,660,341
Convertible notes payable, excluding current portion-related party - 100,000
Notes payable, excluding current portion; includes related party
notes of $599,291 and $795,879, respectively 645,231 877,304
Deferred tax liability - noncurrent   567,000     567,000  
Total liabilities   22,698,503     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   (2,293,366 )   (2,807,773 )
Total stockholders' equity   10,775,464     10,261,057  
$ 33,473,967   $ 31,465,702  
 
       
CCOM Group, Inc.
Consolidated Statements of Operations
 
 
For the Years Ended
December 31,
  2017     2016  
Sales $ 92,330,429 $ 87,283,700
Cost of sales   67,751,419     63,924,181  
Gross profit 24,579,010 23,359,519
 
Selling, general and administrative expenses, net   23,000,348     21,980,338  
Operating income 1,578,662 1,379,181
 
Other income 205,456 189,961
Interest expense, net; includes related party interest of
$79,093 and $101,464, respectively   (646,523 )   (589,302 )
Income before income tax expense 1,137,595 979,840
 
Income tax expense   623,188     265,868  
Net income $ 514,407   $ 713,972  
 
Income per common share:
Basic $ 0.05   $ 0.08  
Diluted $ 0.05   $ 0.07  
 
Weighted average shares
outstanding:
Basic   9,154,928     9,154,928  
Diluted   9,439,540     9,439,540  
 
 
CCOM Group, Inc.
Consolidated Statements of Stockholders' Equity
For The Year Ended December 31, 2017 and 2016
                                           
 
Number of shares

Redeemable
Convertible
Preferred Stock

Common
Stock

Redeemable
Convertible
Preferred
Stock

Common
Stock

Additional Paid-
In Capital

Accumulated
Deficit

Total
Stockholders'
Equity

                                                 
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
 
 
Net income                                             514,407               514,407
Balance at December 31, 2017 284,612       9,154,928       $   14,231       $   457,746       $   12,596,853           (2,293,366)       $   10,775,464
 
         
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
 

For The Years Ended

December 31,
2017   2016  
Cash flows from operating activities:
Net income $ 514,407 $ 713,972
Adjustments to reconcile net income to net cash
used in operating activities:
Deferred income tax expense 517,899 150,000
Provision for doubtful accounts 585,168 339,551
Depreciation 359,184 368,323
Net gain on sale of fixed assets (200 ) (4,757 )
Changes in operating assets and liabilities
Accounts receivable (1,319,599 ) (1,084,802 )
Inventory (1,343,491 ) (1,342,071 )
Prepaid expenses and other current assets (441,706 ) (74,576 )
Other assets - noncurrent (136,630 ) 8,131
Trade payables 706,298 18,428
Accrued liabilities 170,141 622,010
Income taxes payable (23,700 ) 41,768  
Net cash used in operating activities (412,229 ) (244,023 )
 
Cash flows from investing activities:
Additions to property and equipment (119,301 ) (160,991 )
Proceeds from disposal of property and equipment 200   11,847  
Net cash used in investing activities (119,101 ) (149,144 )
 
Cash flows from financing activities:
Repayments of notes payable: includes related party - -
repayments of $276,283 and $262,773 respectively (457,587 ) (436,706 )
Repayments of short term financing, related party (2,000,000 ) (3,750,000 )
Issuance of short term financing, related party 2,000,000 3,750,000
Borrowings under credit facility - revolving credit, net 1,046,794   701,328  
Net cash provided by financing activities 589,207   264,622  
Increase (decrease) in cash 57,877 (128,545 )
Cash - beginning of period 448,758   577,303  
Cash - end of period $ 506,635   $ 448,758