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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005044/en/