HAWTHORNE, N.J.–(BUSINESS WIRE)–CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2020.
Results for the quarter ended March 31, 2020 compared to results for the same period in 2019:
- Sales increased 2.8% to $22,408,803 from $21,803,610
- Gross profit decreased 3.2% to $5,914,511 from $6,108,140
- Selling, general and administrative expenses increased 2.9% to $6,512,497 from $6,331,664
- Operating loss increased to $597,986 from $223,524
- Net loss increased 85.2% to $688,151 from $371,572
- Net loss per share on a fully diluted basis increased to $(0.07) per share from $(0.04) 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.
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, |
||||
|
2020 |
|
2019 |
||||
| (Unaudited) | ||||||
|
Assets |
||||||
| Current assets: | ||||||
| Cash |
$ |
343,421 |
$ |
193,448 |
||
| Accounts receivable, net of allowance for doubtful accounts of $608,479 and $557,532, respectively |
|
11,720,659 |
|
11,260,382 |
||
| Inventory |
|
23,255,329 |
|
17,858,956 |
||
| Prepaid expenses and other current assets |
|
726,275 |
|
973,961 |
||
| Total current assets |
|
36,045,684 |
|
30,286,747 |
||
| Property and equipment |
|
1,038,055 |
|
1,009,524 |
||
| Goodwill |
|
1,416,929 |
|
1,416,929 |
||
| Other assets – noncurrent |
|
350,563 |
|
356,788 |
||
| Deferred tax asset – noncurrent |
|
2,799,000 |
|
2,799,000 |
||
|
$ |
41,650,231 |
$ |
35,868,988 |
|||
|
Liabilities and Stockholders’ Equity |
||||||
| Current liabilities: | ||||||
| Borrowings under credit facility – revolving credit |
$ |
13,088,802 |
$ |
12,395,838 |
||
| Notes payable – current portion |
|
109,373 |
|
107,776 |
||
| Trade payables |
|
10,404,732 |
|
4,128,135 |
||
| Accrued liabilities |
|
2,183,292 |
|
2,657,118 |
||
| Income taxes payable |
|
24,625 |
|
24,625 |
||
| Total current liabilities |
|
25,810,824 |
|
19,313,492 |
||
| Notes payable, excluding current portion |
|
323,593 |
|
351,531 |
||
| Deferred tax liability – noncurrent |
|
354,000 |
|
354,000 |
||
| Total liabilities |
|
26,488,417 |
|
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 |
|
2,092,984 |
|
2,781,135 |
||
| Total stockholders’ equity |
|
15,161,814 |
|
15,849,965 |
||
|
$ |
41,650,231 |
$ |
35,868,988 |
|||
| CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
|
For the Three Months Ended |
||||||||
|
March 31, |
||||||||
|
|
2020 |
|
|
|
2019 |
|
||
| Sales |
$ |
22,408,803 |
|
$ |
21,803,610 |
|
||
| Cost of sales |
16,494,292 |
|
15,695,470 |
|
||||
| Gross profit |
5,914,511 |
|
6,108,140 |
|
||||
| Selling, general and administrative expenses, net |
6,512,497 |
|
6,331,664 |
|
||||
| Operating loss |
(597,986 |
) |
(223,524 |
) |
||||
| Other income |
56,454 |
|
57,351 |
|
||||
| Interest expense, net; includes related party interest of $0 and $10,937, respectively |
(131,553 |
) |
(187,019 |
) |
||||
| Loss before income tax expense |
(673,085 |
) |
(353,192 |
) |
||||
| Income tax expense |
15,066 |
|
18,380 |
|
||||
| Net loss |
$ |
(688,151 |
) |
$ |
(371,572 |
) |
||
| Loss per common share: | ||||||||
| Basic and diluted |
$ (0.07 |
) |
$ (0.04 |
) |
||||
| 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, |
||||||||
|
2020 |
|
|
|
2019 |
|
|||
| Cash flows from operating activities: | ||||||||
| Net loss |
$ |
(688,151 |
) |
$ |
(371,572 |
) |
||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Provision for doubtful accounts |
58,753 |
|
(7,708 |
) |
||||
| Depreciation |
98,253 |
|
65,080 |
|
||||
| Net gain on sale of fixed assets |
– |
|
(2,225 |
) |
||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable |
(519,030 |
) |
706,650 |
|
||||
| Inventory |
(5,396,373 |
) |
(2,916,636 |
) |
||||
| Prepaid expenses and other current assets |
247,686 |
|
(46,670 |
) |
||||
| Other assets – noncurrent |
6,225 |
|
6,177 |
|
||||
| Trade payables |
6,276,597 |
|
(173,863 |
) |
||||
| Accrued liabilities |
(473,826 |
) |
(220,397 |
) |
||||
| Net cash used in operating activities |
(389,866 |
) |
(2,961,164 |
) |
||||
| Cash flows from investing activities: | ||||||||
| Additions to property and equipment |
(126,784 |
) |
(69,695 |
) |
||||
| Proceeds from disposal of property and equipment |
– |
|
7,000 |
|
||||
| Net cash used in investing activities |
(126,784 |
) |
(62,695 |
) |
||||
| Cash flows from financing activities: | ||||||||
| Repayments of notes payable: includes related party repayments of $0 and $51,335 respectively |
(26,341 |
) |
(65,039 |
) |
||||
| Borrowings under credit facility – revolving credit, net |
692,964 |
|
3,263,877 |
|
||||
| Net cash provided by financing activities |
666,623 |
|
3,198,838 |
|
||||
| Increase in cash |
149,973 |
|
174,979 |
|
||||
| Cash – beginning of period |
193,448 |
|
307,472 |
|
||||
| Cash – end of period |
$ |
343,421 |
|
$ |
482,451 |
|
||
Contacts
Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224
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