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CCOM Group, Inc. Reports 2018 Results

HAWTHORNE, N.J.--(BUSINESS WIRE)--

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2018.

Results for the year ended December 31, 2018 compared to results for the same period in 2017:

  • Sales increased 13.4% to $104,657,935 from $92,330,429
  • Gross profit increased 11.0% to $27,277,147 from $24,579,010
  • Selling, general and administrative expenses increased 8.0% to $24,837,160 from $23,000,348
  • Operating income increased 54.6% to $2,439,987 from $1,578,662
  • Net income increased to $3,071,267 from $514,407; the 2018 amount includes a $1,231,000 non-cash income tax benefit and the 2017 amount includes a $517,899 non-cash income tax expense
  • Net income per share on a fully diluted basis increased to $0.32 per share from $0.05 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
Consolidated Balance Sheets
   
December 31, December 31,
  2018   2017  
 
 
Assets
Current assets:
Cash $ 307,472 $ 506,635
Accounts receivable, net of allowance for doubtful accounts
of $497,526 and $1,052,963, respectively 11,384,957 11,522,688
Inventory 18,740,410 16,231,516
Prepaid expenses and other current assets   1,046,161   1,121,745  
Total current assets 31,479,000 29,382,584
Property and equipment 612,600 568,079
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 471,178 424,375
Deferred tax asset - noncurrent   2,700,000   1,682,000  
$ 36,679,707 $ 33,473,967  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 13,476,541 $ 14,464,649
Notes payable - current portion; includes related party notes
of $211,226 and $196,587, respectively 264,266 279,606
Trade payables 5,655,011 4,558,305
Accrued liabilities 2,479,556 2,165,224
Income taxes payable   715   18,488  
Total current liabilities 21,876,089 21,486,272
Notes payable, excluding current portion; includes related party
notes of $389,109 and $599,291, respectively 602,887 645,231
Deferred tax liability - noncurrent   354,000   567,000  
Total liabilities   22,832,976   22,698,503  
 
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 (accumulated deficit)   777,901   (2,293,366 )
Total stockholders' equity   13,846,731   10,775,464  
$ 36,679,707 $ 33,473,967  
 
CCOM Group, Inc.
Consolidated Statements of Operations
   
 
For the Years Ended
December 31,
  2018     2017  
Sales $ 104,657,935 $ 92,330,429
Cost of sales   77,380,788     67,751,419  
Gross profit 27,277,147 24,579,010
 
Selling, general and administrative expenses, net   24,837,160     23,000,348  
Operating income 2,439,987

 

1,578,662
 
Other income 269,325 205,456
Interest expense, net; includes related party interest of
$59,728 and $79,093, respectively   (745,019 )   (646,523 )
Income before income tax (benefit) expense 1,964,293 1,137,595
 
Income tax (benefit) expense   (1,106,974 )   623,188  
Net income $ 3,071,267   $ 514,407  
 
Income per common share:
Basic $ 0.33   $ 0.05  
Diluted $ 0.32   $ 0.05  
 
Weighted average shares
outstanding:
Basic   9,154,928     9,154,928  
Diluted   9,439,540     9,439,540  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
CCOM Group, Inc.
Consolidated Statements of Stockholders' Equity
For The Years Ended December 31, 2018 and 2017
             
 
 
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, 2016 284,612   9,154,928   $ 14,231   $ 457,746   $ 12,596,853   $ (2,807,773 )   $ 10,261,057
 
 
Net income                       514,407       514,407
Balance at December 31, 2017 284,612   9,154,928   $ 14,231   $ 457,746   $ 12,596,853   $ (2,293,366 )   $ 10,775,464
 
 
Net income                       3,071,267       3,071,267
Balance at December 31, 2018 284,612   9,154,928   $ 14,231   $ 457,746   $ 12,596,853   $ 777,901     $ 13,846,731
 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
   
 
For the Years Ended
December 31,
2018   2017  
Cash flows from operating activities:
Net income $ 3,071,267 $ 514,407
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Deferred income tax (benefit) expense (1,231,000 ) 517,899
Provision for doubtful accounts 334,558 585,168
Depreciation and amortization 298,654 359,184
Net gain on sale of property and equipment (24,756 ) (200 )
Changes in operating assets and liabilities
Accounts receivable (196,827 ) (1,319,599 )
Inventory (2,508,894 ) (1,343,491 )
Prepaid expenses and other current assets 75,584 (441,706 )
Other assets - noncurrent (46,803 ) (136,630 )
Trade payables 1,096,706 706,298
Accrued liabilities 314,332 170,141
Income taxes payable (17,773 ) (23,700 )
Net cash provided by (used in) operating activities 1,165,048   # (412,229 )
 
Cash flows from investing activities:
Additions to property and equipment (108,356 ) (119,301 )
Proceeds from disposal of property and equipment 43,027   200  
Net cash used in investing activities (65,329 ) (119,101 )
 
Cash flows from financing activities:
Repayments of notes payable: includes related party - -
repayments of $195,763 and $276,283 respectively (310,774 ) (457,587 )
Repayments of short term financing, related party (1,500,000 ) (2,000,000 )
Issuance of short term financing, related party 1,500,000 2,000,000
Issuance of notes payable, related party - -
(Repayments) borrowings under credit facility - revolving credit, net (988,108 ) 1,046,794  
Net cash (used in) provided by financing activities (1,298,882 ) 589,207  
(Decrease) Increase in cash (199,163 ) 57,877
Cash - beginning of period 506,635   448,758  
Cash - end of period $ 307,472   $ 506,635  
 
The accompanying notes are an integral part of these consolidated financial statements.
 

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