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 |
| ||
View source version on businesswire.com: https://www.businesswire.com/news/home/20200515005068/en/
Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224
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