CCOM Group, Inc. Reports 2015 First Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2015.

Results for the quarter ended March 31, 2015 compared to results for the same period in 2014:

  • Sales decreased 3.5% to $15,556,262 from $16,125,700
  • Gross profit increased 2.5% to $4,611,326 from $4,498,235
  • Selling, general and administrative expenses increased 0.5% to $5,201,329 from $5,173,268
  • Operating loss decreased 12.6% to $590,003 from $675,033
  • Net loss decreased 12.8% to $676,559 from $775,982
  • Net loss per share on a fully diluted basis decreased to $(0.07) from $(0.08) 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, appliances 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, American/Universal Supply Division, www.ausupplyinc.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.ccomgrp.com.

   
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
March 31, December 31,
2015 2014
 
 

Assets

Current assets:
Cash $ 328,533 $ 238,696
Accounts receivable, net of allowance for doubtful accounts
of $939,251 and $892,960, respectively 8,731,463 9,654,270
Inventory 16,770,116 14,121,649
Prepaid expenses and other current assets 836,261 730,299
Deferred tax asset   160,000     160,000  

Total current assets

26,826,373 24,904,914
Property and equipment 918,751 962,504
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 31,803 43,246
Deferred tax asset - noncurrent   2,056,500     2,056,500  
$ 31,250,356   $ 29,384,093  

Liabilities and Stockholders' Equity

Current liabilities:
Borrowings under credit facility - revolving credit $ 12,936,333 $ 11,940,419
Notes payable - current portion; includes related party notes
of $1,653,324 and $150,298, respectively 1,816,462 302,877
Convertible notes payable, related party 200,000 -
Trade payables 5,426,031 4,760,291
Accrued liabilities 1,579,795 1,388,238
Income taxes payable   -     16,087  

Total current liabilities

21,958,621 18,407,912
Convertible notes payable, excluding current portion-related party - 200,000
Notes payable, excluding current portion; includes related party
notes of $345,449 and $1,134,934, respectively 625,370 1,433,257
Deferred tax liability - noncurrent   567,000     567,000  

Total liabilities

  23,150,991     20,608,169  
 
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,
9,154,953 shares issued and outstanding 457,747 457,747
Additional paid-in capital 12,596,866 12,596,866
Accumulated deficit   (4,969,479 )   (4,292,920 )

Total stockholders' equity

  8,099,365     8,775,924  
$ 31,250,356   $ 29,384,093  
 
   
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
 

 

For the Three Months Ended

 

March 31,

2015 2014
Sales $ 15,556,262 $ 16,125,700
Cost of sales 10,944,936   11,627,465  
Gross profit 4,611,326 4,498,235
 
Selling, general and administrative expenses, net 5,201,329   5,173,268  
Operating loss (590,003 ) (675,033 )
 
Other income 44,872 47,957

Interest expense, net; includes related party interest of $29,598 and $31,888, respectively

(131,428 ) (138,406 )
Loss before income tax expense (676,559 ) (765,482 )
 
Income tax expense -   10,500  
Net loss $ (676,559 ) $ (775,982 )
 
 
Loss per common share:
Basic and diluted $ (0.07 ) $ (0.08 )
 
Weighted average shares outstanding:
Basic and diluted 9,154,953   9,154,953  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For The Three Months Ended
March 31,
2015 2014
Cash flows from operating activities:
Net loss $ (676,559 ) $ (775,982 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Deferred income taxes - 10,500
Provision for doubtful accounts 54,868 76,346
Depreciation 76,946 72,879
Net gain on sale of fixed assets - -
Changes in operating assets and liabilities
Accounts receivable 867,939 1,336,916
Inventory (2,648,467 ) (1,368,944 )
Prepaid expenses and other current assets (105,962 ) 172,782
Other assets - noncurrent 11,443 87,246
Trade payables 665,740 1,050,628
Accrued liabilities 191,557 38,234
Income taxes payable (16,087 ) (14,175 )
Net cash (used in) provided by operating activities (1,578,582 ) 686,430  
 
Cash flows from investing activities:
Additions to property and equipment (4,941 ) (164,068 )
Net cash used in investing activities (4,941 ) (164,068 )
 
Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $786,459 and $533,664 respectively (822,554 ) (546,593 )
Issuance of notes payable, related party 1,500,000 500,000
Repayments under credit facility - revolving credit, net 995,914   (594,056 )
Net cash provided by (used in) financing activities 1,673,360   (640,649 )
Increase (Decrease) in cash 89,837 (118,287 )
Cash - beginning of period 238,696   377,461  
Cash - end of period $ 328,533   $ 259,174  
 

Contacts

CCOM Group, Inc.
Peter D. Gasiewicz, 973-427-8224
Chief Executive Officer
or
William Salek, 973-427-8224
Chief Financial Officer

Contacts

CCOM Group, Inc.
Peter D. Gasiewicz, 973-427-8224
Chief Executive Officer
or
William Salek, 973-427-8224
Chief Financial Officer