CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2020.
Results for the year ended December 31, 2020 compared to results for the same period in 2019:
- Sales decreased 10.3% to $101,936,300 from $113,701,032
- Gross profit decreased 9.7% to $26,213,512 from $29,016,775
- Selling, general and administrative expenses decreased 6.7% to $24,600,667 from $26,375,014
- Operating income decreased 38.9% to $1,612,845 from $2,641,761
- Net income decreased 19.4% to $1,053,885 from $1,308,234; the 2020 amount includes a $250,425 non-cash income tax expense and the 2019 amount includes a $596,000 non-cash income tax expense
- Net income per share on a fully diluted basis decreased to $0.11 per share from $0.13 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 15 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 | ||||||
Consolidated Balance Sheets | ||||||
December 31, | December 31, | |||||
| 2020 |
| 2019 | |||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 388,267 | $ | 193,448 | ||
Accounts receivable, net of allowance for doubtful accounts of $766,459 and $557,532, respectively |
| 10,305,665 |
| 11,260,382 | ||
Inventory |
| 20,936,936 |
| 17,858,956 | ||
Prepaid expenses and other current assets |
| 749,053 |
| 973,961 | ||
Total current assets |
| 32,379,921 |
| 30,286,747 | ||
Property and equipment |
| 1,095,506 |
| 1,009,524 | ||
Goodwill |
| 1,416,929 |
| 1,416,929 | ||
Other assets - noncurrent |
| 188,824 |
| 356,788 | ||
Deferred tax asset - noncurrent |
| 2,548,575 |
| 2,799,000 | ||
$ | 37,629,755 | $ | 35,868,988 | |||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Borrowings under credit facility - revolving credit | $ | 9,151,368 | $ | 12,395,838 | ||
Notes payable - current portion |
| 627,009 |
| 107,776 | ||
Trade payables |
| 5,892,126 |
| 4,128,135 | ||
Accrued liabilities |
| 2,450,810 |
| 2,657,118 | ||
Income taxes payable |
| 2,850 |
| 24,625 | ||
Total current liabilities |
| 18,124,163 |
| 19,313,492 | ||
Notes payable, excluding current portion |
| 2,247,742 |
| 351,531 | ||
Deferred tax liability - noncurrent |
| 354,000 |
| 354,000 | ||
Total liabilities |
| 20,725,905 |
| 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 |
| 3,835,020 |
| 2,781,135 | ||
Total stockholders' equity |
| 16,903,850 |
| 15,849,965 | ||
$ | 37,629,755 | $ | 35,868,988 | |||
CCOM GROUP, INC. AND SUBSIDIARES | ||||||||
Consolidated Statements of Income | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Sales | $ | 101,936,300 | $ | 113,701,032 | ||||
Cost of sales | 75,722,788 | 84,684,257 | ||||||
Gross profit | 26,213,512 | 29,016,775 | ||||||
Selling, general and administrative expenses, net | 24,600,667 | 26,375,014 | ||||||
Operating income | 1,612,845 |
| 2,641,761 | |||||
Other income | 219,067 | 226,497 | ||||||
Interest expense, net; includes related party interest of | ||||||||
$0 and $34,503, respectively | (370,455) | (748,440) | ||||||
Income before income tax expense | 1,461,457 | 2,119,818 | ||||||
Income tax expense | 407,572 | 811,584 | ||||||
Net income | $ | 1,053,885 | $ | 1,308,234 | ||||
Income per common share: | ||||||||
Basic | $ 0.11 | $ 0.14 | ||||||
Diluted | $ 0.11 | $ 0.13 | ||||||
Weighted average shares | ||||||||
outstanding: | ||||||||
Basic | 9,154,928 | 9,154,928 | ||||||
Diluted | 9,439,540 | 9,439,540 |
CCOM GROUP,INC. AND SUBSIDIARIES | |||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||
For The Year Ended December 31, 2020 and 2019 | |||||||||||||||||
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, 2018 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 1,472,901 | $ | 14,541,731 | |||||
Net Income |
| 1,308,234 |
| 1,308,234 | |||||||||||||
Balance at December 31, 2019 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 2,781,135 | $ | 15,849,965 | |||||
Net Income |
| 1,053,885 |
| 1,053,885 | |||||||||||||
Balance at December 31, 2020 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 3,835,020 | $ | 16,903,850 | |||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||
Consolidated Statements of Cash Flows | |||||||||
For The Years Ended | |||||||||
December 31, | |||||||||
2020 | 2019 | ||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 1,053,885 | $ | 1,308,234 | |||||
Adjustments to reconcile net income to net cash | |||||||||
provided by operating activities: | |||||||||
Deferred income tax expense | 250,425 | 596,000 | |||||||
Provision for doubtful accounts | 288,924 | 295,476 | |||||||
Depreciation and amortization | 414,212 | 319,042 | |||||||
Net gain on sale of property and equipment | (12,851) | (13,279) | |||||||
Changes in operating assets and liabilities | |||||||||
Accounts receivable | 665,793 | (170,901) | |||||||
Inventory | (3,077,980) | 881,454 | |||||||
Prepaid expenses and other current assets | 224,908 | 72,200 | |||||||
Other assets - noncurrent | 167,964 | 114,390 | |||||||
Trade payables | 1,763,991 | (1,526,876) | |||||||
Accrued liabilities | (206,308) | 177,562 | |||||||
Income taxes payable | (21,775) | 23,910 | |||||||
Net cash provided by operating activities | 1,511,188 | 2,077,212 | |||||||
Cash flows from investing activities: | |||||||||
Additions to property and equipment | (254,711) | (468,609) | |||||||
Proceeds from disposal of property and equipment | 21,600 | 37,000 | |||||||
Net cash used in investing activities | (233,111) | (431,609) | |||||||
Cash flows from financing activities: | |||||||||
Repayments of notes payable: includes related party | |||||||||
repayments of $0 and $600,335 respectively | (124,044) | (678,924) | |||||||
Proceeds from PPP loans | 2,285,256 | ||||||||
Repayments of short term financing, related party | - | (500,000) | |||||||
Issuance of short term financing, related party | - | 500,000 | |||||||
Repayments under credit facility - revolving credit, net | (3,244,470) | (1,080,703) | |||||||
Net cash used in financing activities | (1,083,258) | (1,759,627) | |||||||
Increase/(decrease) in cash | 194,819 | (114,024) | |||||||
Cash - beginning of period | 193,448 | 307,472 | |||||||
Cash - end of period | $ | 388,267 | 193,448 | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005068/en/
Peter D. Gasiewicz, Chief Executive Officer
William Salek, Chief Financial Officer
(973) 427-8224.