CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2021.
Results for the year ended December 31, 2021 compared to results for the same period in 2020:
- Sales increased 18.1% to $120,346,433 from $101,936,300
- Gross profit increased 28.5% to $33,683,440 from $26,213,512
- Selling, general and administrative expenses increased 12.4% to $27,640,471 from $24,600,667
- Operating income increased to $6,042,969 from $1,612,845
- Net income increased to $7,382,228 from $1,053,885; the 2021 amount includes a $147,897 non-cash income tax expense and the 2020 amount includes a $250,425 non-cash income tax expense
- Net income per share on a fully diluted basis increased to $0.76 per share from $0.11 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)
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CCOM GROUP, INC. AND SUBSIDIARIES | ||||||
Consolidated Balance Sheets | ||||||
December 31, |
| December 31, | ||||
2021 |
| 2020 | ||||
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Assets |
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Current assets: |
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Cash | $ | 281,889 | $ | 388,267 | ||
Accounts receivable, net of allowance for doubtful accounts of $674,491 and $766,459, respectively |
| 10,739,082 |
| 10,305,665 | ||
Inventory |
| 25,496,908 |
| 20,936,936 | ||
Prepaid expenses and other current assets |
| 751,647 |
| 749,053 | ||
Total current assets |
| 37,269,526 |
| 32,379,921 | ||
Property and equipment |
| 1,498,246 |
| 1,095,506 | ||
Goodwill |
| 1,416,929 |
| 1,416,929 | ||
Other assets - noncurrent |
| 564,720 |
| 188,824 | ||
Deferred tax asset - noncurrent |
| 2,400,678 |
| 2,548,575 | ||
$ | 43,150,099 | $ | 37,629,755 | |||
Liabilities and Stockholders' Equity |
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Current liabilities: |
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Borrowings under credit facility - revolving credit | $ | 8,705,539 | $ | 9,151,368 | ||
Notes payable - current portion |
| 157,561 |
| 627,009 | ||
Trade payables |
| 5,737,877 |
| 5,892,126 | ||
Accrued liabilities |
| 3,565,042 |
| 2,450,810 | ||
Income taxes payable |
| 2,557 |
| 2,850 | ||
Total current liabilities |
| 18,168,576 |
| 18,124,163 | ||
Notes payable, excluding current portion |
| 341,445 |
| 2,247,742 | ||
Deferred tax liability - noncurrent |
| 354,000 |
| 354,000 | ||
Total liabilities |
| 18,864,021 |
| 20,725,905 | ||
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Commitments and contingencies |
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Stockholders' equity: |
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Redeemable convertible preferred stock, $.05 par value, 2,500,000 shares authorized, 284,612 shares |
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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 |
| 11,217,248 |
| 3,835,020 | ||
Total stockholders' equity |
| 24,286,078 |
| 16,903,850 | ||
$ | 43,150,099 | $ | 37,629,755 |
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Income | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2021 |
| 2020 | ||||||
Sales | $ | 120,346,433 |
| $ | 101,936,300 |
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Cost of sales |
| 86,662,993 |
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| 75,722,788 |
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Gross profit |
| 33,683,440 |
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| 26,213,512 |
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Selling, general and administrative expenses, net |
| 27,640,471 |
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| 24,600,667 |
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Operating income |
| 6,042,969 |
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| 1,612,845 |
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Other income |
| 185,098 |
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| 219,067 |
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Gain on Early Extinguishment of debt |
| 2,285,256 |
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| - |
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Interest expense, net |
| (327,282 | ) |
| (370,455 | ) | ||
Income before income tax expense |
| 8,186,041 |
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| 1,461,457 |
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Income tax expense |
| 803,813 |
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| 407,572 |
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Net income | $ | 7,382,228 |
| $ | 1,053,885 |
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Income per common share: |
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Basic | $ | 0.81 |
| $ | 0.11 |
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Diluted | $ | 0.76 |
| $ | 0.11 |
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Weighted average shares outstanding: |
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Basic |
| 9,154,928 |
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| 9,154,928 |
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Diluted |
| 9,439,540 |
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| 9,439,540 |
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CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||
For The Year Ended December 31, 2021 and 2020 | |||||||||||||||||||
Number of shares |
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Redeemable |
| Common |
| Redeemable |
| Common |
| Additional Paid- |
| Retained |
| Total | |||||||
Balance at December 31, 2019 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 2,781,135 | $ | 15,849,965 | |||||||
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Net Income |
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| 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 | |||||||
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Net Income |
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| 7,382,228 |
| 7,382,228 | ||||||||||
Balance at December 31, 2021 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 11,217,248 | $ | 24,286,078 |
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Cash Flows | ||||||||
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For The Years Ended | ||||||||
December 31, | ||||||||
2021 |
| 2020 | ||||||
Cash flows from operating activities: |
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Net income | $ | 7,382,228 |
| $ | 1,053,885 |
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Adjustments to reconcile net income to net cash |
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provided by operating activities: |
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Deferred income tax expense |
| 147,897 |
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| 250,425 |
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Provision for doubtful accounts |
| 128,332 |
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| 288,924 |
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Depreciation and amortization |
| 542,527 |
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| 414,212 |
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Net gain on sale of property and equipment |
| (8,200 | ) |
| (12,851 | ) | ||
Forgiveness of financing |
| (2,285,256 | ) |
| - |
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Changes in operating assets and liabilities |
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Accounts receivable |
| (561,749 | ) |
| 665,793 |
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Inventory |
| (4,559,972 | ) |
| (3,077,980 | ) | ||
Prepaid expenses and other current assets |
| (2,594 | ) |
| 224,908 |
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Other assets - noncurrent |
| (375,896 | ) |
| 167,964 |
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Trade payables |
| (154,249 | ) |
| 1,763,991 |
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Accrued liabilities |
| 1,114,232 |
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| (206,308 | ) | ||
Income taxes payable |
| (293 | ) |
| (21,775 | ) | ||
Net cash provided by operating activities |
| 1,367,007 |
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| 1,511,188 |
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Cash flows from investing activities: |
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Additions to property and equipment |
| (876,240 | ) |
| (254,711 | ) | ||
Proceeds from disposal of property and equipment |
| 8,200 |
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| 21,600 |
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Net cash used in investing activities |
| (868,040 | ) |
| (233,111 | ) | ||
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Cash flows from financing activities: |
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Repayments of notes payable |
| (159,516 | ) |
| (124,044 | ) | ||
Issuance of financing |
| - |
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| 2,285,256 |
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Repayments under credit facility - revolving credit, net |
| (445,829 | ) |
| (3,244,470 | ) | ||
Net cash used in financing activities |
| (605,345 | ) |
| (1,083,258 | ) | ||
(Decrease) / Increase in cash |
| (106,378 | ) |
| 194,819 |
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Cash - beginning of year |
| 388,267 |
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| 193,448 |
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Cash - end of year | $ | 281,889 |
| $ | 388,267 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220331005922/en/
Peter D. Gasiewicz, Chief Executive Officer
William Salek, Chief Financial Officer
(973) 427-8224