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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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