HAWTHORNE, N.J.–(BUSINESS WIRE)–CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its
financial results for the quarter ended March 31, 2019.
Results for the quarter ended March 31, 2019 compared to results for the
same period in 2018:
- Sales increased 9.9% to $21,803,610 from $19,846,307
- Gross profit increased 10.9% to $6,108,140 from $5,506,359
-
Selling, general and administrative expenses increased 5.4% to
$6,331,664 from $6,005,258 - Operating loss decreased 55.2% to $223,524 from $498,899
- Net loss decreased 36.9% to $371,572 from $588,871
-
Net loss per common share on a fully diluted basis decreased to
$(0.04) from $(0.06) 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 | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| March 31, | December 31, | |||||||||
| 2019 | 2018 | |||||||||
| (Unaudited) | ||||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 482,451 | $ | 307,472 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | ||||||||||
| of $521,787 and $497,526, respectively | 10,686,015 | 11,384,957 | ||||||||
| Inventory | 21,657,046 | 18,740,410 | ||||||||
| Prepaid expenses and other current assets | 1,092,831 | 1,046,161 | ||||||||
| Total current assets | 33,918,343 | 31,479,000 | ||||||||
| Property and equipment | 612,440 | 612,600 | ||||||||
| Goodwill | 1,416,929 | 1,416,929 | ||||||||
| Other assets – noncurrent | 465,001 | 471,178 | ||||||||
| Deferred tax asset – noncurrent | 2,700,000 | 2,700,000 | ||||||||
| $ | 39,112,713 | $ | 36,679,707 | |||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities: | ||||||||||
| Borrowings under credit facility – revolving credit | $ | 16,740,418 | $ | 13,476,541 | ||||||
| Notes payable – current portion; includes related party notes | ||||||||||
| of $215,212 and $211,226, respectively | 268,026 | 264,266 | ||||||||
| Trade payables | 5,481,148 | 5,655,011 | ||||||||
| Accrued liabilities | 2,259,159 | 2,479,556 | ||||||||
| Income taxes payable | 715 | 715 | ||||||||
| Total current liabilities | 24,749,466 | 21,876,089 | ||||||||
| Notes payable, excluding current portion; includes related party | ||||||||||
| notes of $333,788 and $389,109, respectively | 534,088 | 602,887 | ||||||||
| Deferred tax liability – noncurrent | 354,000 | 354,000 | ||||||||
| Total liabilities | 25,637,554 | 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 | 406,329 | 777,901 | ||||||||
| Total stockholders’ equity | 13,475,159 | 13,846,731 | ||||||||
| $ | 39,112,713 | $ | 36,679,707 | |||||||
| CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (Unaudited) | |||||||||||
| For the Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| Sales | $ | 21,803,610 | $ | 19,846,307 | |||||||
| Cost of sales | 15,695,470 | 14,339,948 | |||||||||
| Gross profit | 6,108,140 | 5,506,359 | |||||||||
| Selling, general and administrative expenses, net | 6,331,664 | 6,005,258 | |||||||||
| Operating loss | (223,524) | (498,899) | |||||||||
| Other income | 57,351 | 74,375 | |||||||||
| Interest expense, net; includes related party interest | |||||||||||
| of $10,937 and $14,506, respectively | (187,019) | (164,347) | |||||||||
| Loss before income tax expense | (353,192) | (588,871) | |||||||||
| Income tax expense | 18,380 | – | |||||||||
| Net loss | $ | (371,572) | $ | (588,871) | |||||||
| Loss per common share: | |||||||||||
| Basic and diluted | $ (0.04) | $ (0.06) | |||||||||
| Weighted average shares | |||||||||||
| outstanding: | |||||||||||
| Basic and diluted | 9,154,928 | 9,154,928 | |||||||||
| CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||
| (Unaudited) | |||||||||||||
| For The Three Months Ended | |||||||||||||
| March 31, | |||||||||||||
| 2019 | 2018 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||
| Net loss | $ | (371,572) | $ | (588,871) | |||||||||
| Adjustments to reconcile net loss to net cash | |||||||||||||
| used in operating activities: | |||||||||||||
| Provision for doubtful accounts | (7,708) | 44,415 | |||||||||||
| Depreciation | 65,080 | 82,504 | |||||||||||
| Net gain on sale of fixed assets | (2,225) | (11,187) | |||||||||||
| Changes in operating assets and liabilities | |||||||||||||
| Accounts receivable | 706,650 | 1,062,632 | |||||||||||
| Inventory | (2,916,636) | (6,041,949) | |||||||||||
| Prepaid expenses and other current assets | (46,670) | 109,854 | |||||||||||
| Other assets – noncurrent | 6,177 | 45,724 | |||||||||||
| Trade payables | (173,863) | 3,746,332 | |||||||||||
| Accrued liabilities | (220,397) | (368,166) | |||||||||||
| Income taxes payable | – | (12,583) | |||||||||||
| Net cash used in operating activities | (2,961,164) | (1,931,295) | |||||||||||
| Cash flows from investing activities: | |||||||||||||
| Additions to property and equipment | (69,695) | (13,384) | |||||||||||
| Proceeds from disposal of property and equipment | 7,000 | 25,027 | |||||||||||
| Net cash (used in) provided by investing activities | (62,695) | 11,643 | |||||||||||
| Cash flows from financing activities: | |||||||||||||
| Repayments of notes payable: includes related party | |||||||||||||
| repayments of $51,335 and $46,098 respectively | (65,039) | (96,661) | |||||||||||
| Issuance of short term financing, related party | – | 500,000 | |||||||||||
| Borrowings under credit facility – revolving credit, net | 3,263,877 | 1,573,584 | |||||||||||
| Net cash provided by financing activities | 3,198,838 | 1,976,923 | |||||||||||
| Increase in cash | 174,979 | 57,271 | |||||||||||
| Cash – beginning of period | 307,472 | 506,635 | |||||||||||
| Cash – end of period | $ | 482,451 | $ | 563,906 | |||||||||
Contacts
Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief
Financial Officer, at (973) 427-8224.
