Apr 29, 2021   SOURCE: BusinessWire

CCOM Group, Inc. Reports 2020 Results

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2020.

Results for the year ended December 31, 2020 compared to results for the same period in 2019:

  • Sales decreased 10.3% to $101,936,300 from $113,701,032
  • Gross profit decreased 9.7% to $26,213,512 from $29,016,775
  • Selling, general and administrative expenses decreased 6.7% to $24,600,667 from $26,375,014
  • Operating income decreased 38.9% to $1,612,845 from $2,641,761
  • Net income decreased 19.4% to $1,053,885 from $1,308,234; the 2020 amount includes a $250,425 non-cash income tax expense and the 2019 amount includes a $596,000 non-cash income tax expense
  • Net income per share on a fully diluted basis decreased to $0.11 per share from $0.13 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
Consolidated Balance Sheets
 
December 31, December 31,

 

2020

 

2019

 
 

Assets

Current assets:
Cash

$

388,267

$

193,448

Accounts receivable, net of allowance for doubtful accounts of $766,459 and $557,532, respectively

 

10,305,665

 

11,260,382

Inventory

 

20,936,936

 

17,858,956

Prepaid expenses and other current assets

 

749,053

 

973,961

Total current assets

 

32,379,921

 

30,286,747

Property and equipment

 

1,095,506

 

1,009,524

Goodwill

 

1,416,929

 

1,416,929

Other assets - noncurrent

 

188,824

 

356,788

Deferred tax asset - noncurrent

 

2,548,575

 

2,799,000

$

37,629,755

$

35,868,988

Liabilities and Stockholders' Equity

Current liabilities:
Borrowings under credit facility - revolving credit

$

9,151,368

$

12,395,838

Notes payable - current portion

 

627,009

 

107,776

Trade payables

 

5,892,126

 

4,128,135

Accrued liabilities

 

2,450,810

 

2,657,118

Income taxes payable

 

2,850

 

24,625

Total current liabilities

 

18,124,163

 

19,313,492

Notes payable, excluding current portion

 

2,247,742

 

351,531

Deferred tax liability - noncurrent

 

354,000

 

354,000

Total liabilities

 

20,725,905

 

20,019,023

 
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

 

3,835,020

 

2,781,135

Total stockholders' equity

 

16,903,850

 

15,849,965

$

37,629,755

$

35,868,988

 
CCOM GROUP, INC. AND SUBSIDIARES
Consolidated Statements of Income
 
 
For the Years Ended
December 31,

2020

2019

Sales $

101,936,300

$

113,701,032

Cost of sales

75,722,788

84,684,257

Gross profit

26,213,512

29,016,775

 
Selling, general and administrative expenses, net

24,600,667

26,375,014

Operating income

1,612,845

 

2,641,761

 
Other income

219,067

226,497

Interest expense, net; includes related party interest of
$0 and $34,503, respectively

(370,455)

(748,440)

Income before income tax expense

1,461,457

2,119,818

 
Income tax expense

407,572

811,584

Net income $

1,053,885

$

1,308,234

 
Income per common share:
Basic

$ 0.11

$ 0.14

Diluted

$ 0.11

$ 0.13

 
Weighted average 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 Year Ended December 31, 2020 and 2019
           
           
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, 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

           
           
Net Income        

 

1,053,885

 

 

1,053,885

Balance at December 31, 2020

284,612

 

9,154,928

$

14,231

 

$

457,746

 

$

12,596,853

 

$

3,835,020

 

$

16,903,850

           
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
 
For The Years Ended
December 31,

2020

 

2019

Cash flows from operating activities:  
Net income $

1,053,885

  $

1,308,234

Adjustments to reconcile net income to net cash  
provided by operating activities:  
Deferred income tax expense

250,425

 

596,000

Provision for doubtful accounts

288,924

 

295,476

Depreciation and amortization

414,212

 

319,042

Net gain on sale of property and equipment

(12,851)

 

(13,279)

Changes in operating assets and liabilities  
Accounts receivable

665,793

 

(170,901)

Inventory

(3,077,980)

 

881,454

Prepaid expenses and other current assets

224,908

 

72,200

Other assets - noncurrent

167,964

 

114,390

Trade payables

1,763,991

 

(1,526,876)

Accrued liabilities

(206,308)

 

177,562

Income taxes payable

(21,775)

 

23,910

Net cash provided by operating activities

1,511,188

 

2,077,212

   
Cash flows from investing activities:  
Additions to property and equipment

(254,711)

 

(468,609)

Proceeds from disposal of property and equipment

21,600

 

37,000

Net cash used in investing activities

(233,111)

 

(431,609)

   
Cash flows from financing activities:  
Repayments of notes payable: includes related party  
repayments of $0 and $600,335 respectively

(124,044)

 

(678,924)

Proceeds from PPP loans

2,285,256

 
Repayments of short term financing, related party

-

 

(500,000)

Issuance of short term financing, related party

-

 

500,000

Repayments under credit facility - revolving credit, net

(3,244,470)

 

(1,080,703)

Net cash used in financing activities

(1,083,258)

 

(1,759,627)

Increase/(decrease) in cash

194,819

 

(114,024)

Cash - beginning of period

193,448

 

307,472

Cash - end of period $

388,267

 

193,448