May 13, 2021   SOURCE: BusinessWire

CCOM Group, Inc. Reports 2021 First Quarter Results

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2021.

Results for the quarter ended March 31, 2021 compared to results for the same period in 2020:

  • Sales decreased 1.5% to $22,082,860 from $22,408,803
  • Gross profit increased 2.5% to $6,059,854 from $5,914,511
  • Selling, general and administrative expenses decreased 8.0% to $5,991,712 from $6,512,497
  • Operating income of $68,142 compared to operating loss of $(597,986)
  • Net income of $13,839 compared to a net loss of $(688,151)
  • Net income per share on a fully diluted basis of $0.00 per share compared to a net loss per share on a fully diluted basis of $(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 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
Condensed Consolidated Balance Sheets
 
March 31, December 31,

 

2021

 

2020

(Unaudited)
 
Assets
Current assets:
Cash

$

213,132

$

388,267

Accounts receivable, net of allowance for doubtful accounts
of $688,433 and $766,459, respectively

 

10,722,144

 

10,305,665

Inventory

 

25,416,309

 

20,936,936

Prepaid expenses and other current assets

 

548,682

 

749,053

Total current assets

 

36,900,267

 

32,379,921

Property and equipment

 

1,102,081

 

1,095,506

Goodwill

 

1,416,928

 

1,416,929

Other assets - noncurrent

 

320,113

 

188,824

Deferred tax asset - noncurrent

 

2,548,575

 

2,548,575

$

42,287,964

$

37,629,755

Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit

$

12,067,906

$

9,151,368

Notes payable - current portion

 

913,476

 

627,009

Trade payables

 

7,805,141

 

5,892,126

Accrued liabilities

 

2,303,510

 

2,450,810

Income taxes payable

 

2,850

 

2,850

Total current liabilities

 

23,092,883

 

18,124,163

Notes payable, excluding current portion

 

1,923,392

 

2,247,742

Deferred tax liability - noncurrent

 

354,000

 

354,000

Total liabilities

 

25,370,275

 

20,725,905

 
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

 

3,848,859

 

3,835,020

Total stockholders' equity

 

16,917,689

 

16,903,850

$

42,287,964

$

37,629,755

CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
 
For the Three Months Ended
March 31,

2021

2020

Sales $

22,082,860

$

22,408,803

Cost of sales

16,023,006

16,494,292

Gross profit

6,059,854

5,914,511

 
Selling, general and administrative expenses, net

5,991,712

6,512,497

Operating income/(loss)

68,142

(597,986)

 
Other income

41,197

56,454

Interest expense, net

(76,651)

(131,553)

Income/(loss) before income tax expense

32,688

(673,085)

 
Income tax expense

18,849

15,066

Net Income/(loss) $

13,839

$

(688,151)

 
 
Income/(Loss) per common share:
Basic $

0.00

$

(0.07)

Diluted $

0.00

$

(0.07)

 
Weighted average shares
outstanding:
Basic

9,154,928

9,154,928

Diluted

9,439,540

9,154,928

 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
For The Three Months Ended March 31, 2021
(Unaudited)
             
             
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, 2020

284,612

 

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

3,835,020

 

$

16,903,850

             
             
Net Income          

 

13,839

 

 

13,839

Balance at March 31, 2021

284,612

 

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

3,848,859

 

$

16,917,689

             
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For The Three Months Ended
March 31,

2021

2020

Cash flows from operating activities: .
Net Income/(loss) $

13,839

$

(688,151)

Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Provision for doubtful accounts

(85,449)

58,753

Depreciation

109,282

98,253

Net gain on sale of fixed assets

(3,000)

-

Changes in operating assets and liabilities
Accounts receivable

(331,030)

(519,030)

Inventory

(4,479,373)

(5,396,373)

Prepaid expenses and other current assets

200,371

247,686

Other assets - noncurrent

(131,289)

6,225

Trade payables

1,913,015

6,276,597

Accrued liabilities

(147,300)

(473,826)

Net cash used in operating activities

(2,940,934)

(389,866)

 
Cash flows from investing activities:
Additions to property and equipment

(115,856)

(126,784)

Proceeds from disposal of property and equipment

3,000

-

Net cash used in investing activities

(112,856)

(126,784)

 
Cash flows from financing activities:
Repayments of notes payable

(37,883)

(26,341)

Borrowings under credit facility - revolving credit, net

2,916,538

692,964

Net cash provided by financing activities

2,878,655

666,623

(Decrease)/Increase in cash

(175,135)

149,973

Cash - beginning of period

388,267

193,448

Cash - end of period $

213,132

$

343,421