CCOM Group, Inc. Reports 2015 Third Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended September 30, 2015.

Results for the quarter ended September 30, 2015 compared to results for the same period in 2014:

  • Sales increased 4.6% to $22,247,460 from $21,272,517
  • Gross profit decreased 0.5% to $5,467,414 from $5,493,090
  • Selling, general and administrative expenses decreased 0.6% to $5,069,673 from $5,098,644
  • Operating income increased 0.8% to $397,741 from $394,446
  • Net income increased 10.3% to $327,734 from $297,106
  • Net income per share on a fully diluted basis remained at $0.03 per share

Results for the nine months ended September 30, 2015 compared to results for the same period in 2014:

  • Sales decreased 1.8% to $60,128,029 from $61,256,638
  • Gross profit decreased 0.9% to $15,945,397 from $16,092,667
  • Selling, general and administrative expenses increased 1.1% to $15,317,576 from $15,150,344 (2014 selling, general and administrative expenses include a one-time real estate tax refund of $285,897)
  • Operating income decreased 33.4% to $627,821 from $942,323
  • Net income decreased 43.1% to $363,484 from $638,277 (2014 results include the one-time real estate tax refund of $285,897 referred to above)
  • Net income per share on a fully diluted basis decreased to $0.04 from $0.07 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.

(Financial Highlights Follow)

 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
       
September 30, December 31,
  2015     2014  
(Unaudited)
 
Assets
Current assets:
Cash $ 377,437 $ 238,696
Accounts receivable, net of allowance for doubtful accounts
of $1,044,410 and $892,960, respectively 11,239,865 9,654,270
Inventory 14,341,881 14,121,649
Prepaid expenses and other current assets 910,676 730,299
Deferred tax asset   160,000     160,000  
Total current assets 27,029,859 24,904,914
Property and equipment 900,696 962,504
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 9,599 43,246
Deferred tax asset - noncurrent   2,056,500     2,056,500  
$ 31,413,583   $ 29,384,093  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 12,863,314 $ 11,940,419
Notes payable - current portion; includes related party notes
of $909,560 and $150,298, respectively 1,076,064 302,877
Trade payables 4,543,118 4,760,291
Accrued liabilities 1,795,753 1,388,238
Income taxes payable   -     16,087  
Total current liabilities 20,278,249 18,407,912
Convertible notes payable, excluding current portion-related party 200,000 200,000
Notes payable, excluding current portion; includes related party
notes of $1,014,079 and $1,134,934, respectively 1,228,940 1,433,257
Deferred tax liability - noncurrent   567,000     567,000  
Total liabilities   22,274,189     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,
9,154,928 and 9,154,953 shares issued and outstanding, respectively 457,746 457,747
Additional paid-in capital 12,596,853 12,596,866
Accumulated deficit   (3,929,436 )   (4,292,920 )
Total stockholders' equity   9,139,394     8,775,924  
$ 31,413,583   $ 29,384,093  
 
       
CCOM Group, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
 
 
For The Three Months Ended For The Nine Months Ended
September 30, September 30,
2015 2014 2015 2014
Sales $ 22,247,460 $ 21,272,517 $ 60,128,029 $ 61,256,638
Cost of sales 16,780,046 15,779,427 44,182,632 45,163,971
Gross profit 5,467,414 5,493,090 15,945,397 16,092,667
 
Selling, general and administrative expenses, net 5,069,673 5,098,644 15,317,576 15,150,344
Operating income 397,741 394,446 # 627,821 # 942,323
 
Other income 66,703 45,518 143,206 147,208
Interest expense, net; includes related party interest of
$28,948 and $29,301 for three months ended September 30, 2015
and 2014, respectively, and $88,163 and $89,741 for the
nine months ended September 30, 2015 and 2014, respectively (136,710) (142,858) (407,543) (430,254)
Income before income tax expense 327,734 297,106 363,484 659,277
 
Income tax expense - - - 21,000
Net income $ 327,734 $ 297,106 $ 363,484 $ 638,277
 
Income per common share:
Basic $ 0.04 $ 0.03 $ 0.04 $ 0.07
Diluted $ 0.03 $ 0.03 $ 0.04 $ 0.07
 
Weighted average shares
outstanding:
Basic 9,154,945 9,154,953 9,154,950 9,154,953
Diluted 9,439,557 9,439,565 9,439,562 9,439,565
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
For The Nine Months Ended
September 30,
2015 2014
Cash flows from operating activities:
Net income $ 363,484 638,277
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Deferred income taxes - 21,000
Provision for doubtful accounts 187,565 300,327
Depreciation 239,377 223,336
Net gain on sale of fixed assets (6,040) (10,897)
Changes in operating assets and liabilities
Accounts receivable (1,773,160) (750,436)
Inventory (220,232) (584,810)
Prepaid expenses and other current assets (180,377) 117,523
Other assets - noncurrent 33,647 60,891
Trade payables (217,173) 784,239
Accrued liabilities 407,515 98,689
Income taxes payable (16,087) 4,825
Net cash (used in) provided by operating activities (1,181,481) 902,964
 
Cash flows from investing activities:
Additions to property and equipment (129,774) (315,644)
Proceeds from disposal of property and equipment 6,040   16,300
Net cash used in investing activities (123,734)

 

(299,344)
 
Cash flows from financing activities:
Repurchase of stock (14) -
Repayments of notes payable: includes related party
repayments of $2,361,593 and $1,603,040 respectively (2,478,925) (1,694,085)
Issuance of notes payable, related party 3,000,000 1,500,000
Borrowings (repayments) under credit facility - revolving credit, net 922,895 (359,000)
Net cash provided by (used in) financing activities 1,443,956 (553,085)
Increase in cash 138,741 50,535
Cash - beginning of period 238,696 377,461
Cash - end of period $ 377,437 427,996
 

Contacts

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

Contacts

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