May 1, 2020   SOURCE: BusinessWire

CCOM Group, Inc. Reports 2019 Results

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2019.

Results for the year ended December 31, 2019 compared to results for the same period in 2018:

  • Sales increased 8.6% to $113,701,032 from $104,657,935
  • Gross profit increased 6.4% to $29,016,775 from $27,277,147
  • Selling, general and administrative expenses increased 6.2% to $26,375,014 from $24,837,160
  • Operating income increased 8.3% to $2,641,761 from $2,439,987
  • Net income decreased 57.4% to $1,308,234 from $3,071,267; the 2019 amount includes a $596,000 non-cash income tax expense and the 2018 amount includes a $1,231,000 non-cash income tax benefit
  • Net income per share on a fully diluted basis decreased to $0.13 per share from $0.32 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 16 locations in its geographic trading area. For more information on CCOM’s operations, products and/or services, please visit www.ccom-group.com.

(Financial Highlights Follow)

 

CCOM GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

 

December 31,

 

December 31,

 

 

2019

 

2018

 

Assets

 

 

 

Current assets:

 

 

 

Cash

 

$

193,448

 

$

307,472

Accounts receivable, net of allowance for doubtful accounts of $557,532 and $497,526, respectively

 

11,260,382

 

 

11,384,957

Inventory

 

17,858,956

 

 

18,740,410

Prepaid expenses and other current assets

 

973,961

 

 

1,046,161

 

Total current assets

 

30,286,747

 

 

31,479,000

Property and equipment, net

 

1,009,524

 

 

612,600

Goodwill

 

 

1,416,929

 

 

1,416,929

Other assets - noncurrent

 

356,788

 

 

471,178

Deferred income tax asset - noncurrent

 

2,799,000

 

 

3,395,000

 

 

$

35,868,988

 

$

37,374,707

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Borrowings under credit facility - revolving credit

$

12,395,838

 

$

13,476,541

Notes payable, current portion; includes related party notes of $0 and $211,226, respectively

 

107,776

 

 

264,266

Trade payables

 

4,128,135

 

 

5,655,011

Accrued liabilities

 

2,657,118

 

 

2,479,556

Income taxes payable

 

24,625

 

 

715

 

Total current liabilities

 

19,313,492

 

 

21,876,089

Notes payable, non-current portion; includes related party notes of $0 and $389,109, respectively

 

351,531

 

 

602,887

Deferred income tax liability - noncurrent

 

354,000

 

 

354,000

 

Total liabilities

 

20,019,023

 

 

22,832,976

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

 

2,781,135

 

 

1,472,901

 

Total stockholders' equity

 

15,849,965

 

 

14,541,731

 

 

$

35,868,988

 

$

37,374,707

CCOM GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Income

 

 

 

 

 

For the Years Ended December 31,

 

2019

 

2018

Sales

$

113,701,032

 

$

104,657,935

Cost of sales

 

84,684,257

 

 

77,380,788

Gross profit

 

29,016,775

 

 

27,277,147

 

 

 

 

Selling, general and administrative expenses, net

 

26,375,014

 

 

24,837,160

Operating income

 

2,641,761

 

 

2,439,987

 

 

 

 

Other income

 

226,497

 

 

269,325

Interest expense, net; includes related party interest expense of $34,503 and $59,728, respectively

 

(748,440)

 

 

(745,019)

Income before income tax expense (benefit)

 

2,119,818

 

 

1,964,293

 

 

 

 

Income tax expense (benefit)

 

811,584

 

 

(1,106,974)

Net income

$

1,308,234

 

$

3,071,267

 

 

 

 

Income per common share:

 

 

 

Basic

$

0.14

 

$

0.33

Diluted

$

0.13

 

$

0.32

 

 

 

 

Weighted average common shares outstanding:

 

 

 

Basic

 

9,154,928

 

 

9,154,928

Diluted

 

9,439,540

 

 

9,439,540

 

 

 

 

 

CCOM GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders' Equity

For the Years Ended December 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2017, as reported

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

(2,293,366)

$

10,775,464

 

 

 

 

 

 

 

 

Impact of change to deferred taxes

 

 

 

 

 

 

 

(See Note 1(r))

 

 

 

 

 

 

695,000

 

695,000

Balance at December 31, 2017,

 

 

 

 

 

 

 

as restated

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

(1,598,366)

$

11,470,464

 

 

 

 

 

 

 

 

Net Income

-

-

 

-

 

-

 

-

 

3,071,267

 

3,071,267

Balance at December 31, 2018

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

1,472,901

$

14,541,731

 

 

 

 

 

 

 

 

Net Income

-

-

 

-

 

-

 

-

 

1,308,234

 

1,308,234

Balance at December 31, 2019

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

2,781,135

$

15,849,965

 

 

 

 

 

 

 

 

CCOM GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

 

 

 

For the Years Ended December 31,

 

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

Net income

$

1,308,234

$

3,071,267

Adjustments to reconcile net income to net cash provided

 

 

 

 

by operating activities:

 

 

 

 

Deferred income tax expense (benefit)

 

596,000

 

(1,231,000)

Provision for doubtful accounts

 

295,476

 

334,558

Depreciation and amortization

 

319,042

 

298,654

Net gain on sale of property and equipment

 

(13,279)

 

(24,756)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

(170,901)

 

(196,827)

Inventory

 

881,454

 

(2,508,894)

Prepaid expenses and other current assets

 

72,200

 

75,584

Other assets – noncurrent

 

114,390

 

(46,803)

Trade payables

 

(1,526,876)

 

1,096,706

Accrued liabilities

 

177,562

 

314,332

Income taxes payable

 

23,910

 

(17,773)

Net cash provided by operating activities

 

2,077,212

 

1,165,048

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Additions to property and equipment

 

(468,609)

 

(108,356)

Proceeds from disposal of property and equipment

 

37,000

 

43,027

Net cash used in investing activities

 

(431,609)

 

(65,329)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Repayments of notes payable; includes related party

 

 

 

 

repayments of $600,335 and $195,763, respectively

 

(678,924)

 

(310,774)

Repayments of short-term financing, related party

 

(500,000)

 

(1,500,000)

Issuance of short-term financing, related party

 

500,000

 

1,500,000

Repayments under credit facility - revolving

 

 

 

 

credit, net

 

(1,080,703)

 

(988,108)

Net cash used in financing activities

 

(1,759,627)

 

(1,298,882)

Decrease in cash

 

(114,024)

 

(199,163)

Cash - beginning of year

 

307,472

 

506,635

Cash - end of year

$

193,448

$

307,472