CCOM Group, Inc. Reports 2016 Second Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended June 30, 2016.

Results for the quarter ended June 30, 2016 compared to results for the same period in 2015:

  • Sales increased 5.9% to $23,635,776 from $22,324,307
  • Gross profit increased 9.0% to $6,394,947 from $5,866,657
  • Selling, general and administrative expenses increased 6.3% to $5,364,632 from $5,046,574
  • Operating income increased 25.6% to $1,030,315 from $820,083
  • Net income increased 27.7% to $909,575 from $712,309
  • Net income per share on a fully diluted basis increased to $0.10 from $0.08 per share

Results for the six months ended June 30, 2016 compared to results for the same period in 2015:

  • Sales increased 9.6% to $41,514,540 from $37,880,569
  • Gross profit increased 8.2% to $11,335,938 from $10,477,983
  • Selling, general and administrative expenses increased 5.6% to $10,825,833 from $10,247,903
  • Operating income increased to $510,105 from $230,080
  • Net income increased to $291,798 from $35,750
  • Net income per share on a fully diluted basis increased to $0.03 from $0.00 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, 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 17 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
       
June 30, December 31,
2016 2015
(Unaudited)
 
Assets
Current assets:
Cash $   460,741 $   577,303
Accounts receivable, net of allowance for doubtful accounts
of $1,028,408 and $1,086,213, respectively 11,974,077 10,043,006
Inventory 15,651,995 13,545,954
Prepaid expenses and other current assets 841,942 777,757
Deferred tax asset     170,000       170,000  
Total current assets 29,098,755 25,114,020
Property and equipment 803,720 889,866
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 1,745 6,981
Deferred tax asset - noncurrent     2,296,500       2,296,500  
$   33,617,649   $   29,724,296  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 14,781,048 $ 12,716,527
Notes payable - current portion; includes related party notes
of $1,169,393 and $162,773, respectively 1,332,030 325,895
Trade payables 4,125,901 3,833,579
Accrued liabilities 1,763,299 1,373,073
Income taxes payable     420       420  
Total current liabilities 22,002,698 18,249,494
Convertible notes payable, excluding current portion-related party 200,000 200,000
Notes payable, excluding current portion; includes related party
notes of $885,777 and $972,161, respectively 1,009,068 1,160,717
Deferred tax liability - noncurrent     567,000       567,000  
Total liabilities     23,778,766       20,177,211  
 
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
Accumulated deficit     (3,229,947 )     (3,521,745 )
Total stockholders' equity     9,838,883       9,547,085  
$   33,617,649   $   29,724,296  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
         
 

 

For The Three Months Ended

For The Six Months Ended

 

June 30,

June 30,
  2016     2015     2016     2015  
Sales

 

$

23,635,776 $ 22,324,307 $ 41,514,540 $ 37,880,569
Cost of sales   17,240,829     16,457,650     30,178,602     27,402,586  
Gross profit 6,394,947 5,866,657 11,335,938 10,477,983
 
Selling, general and administrative expenses   5,364,632     5,046,574     10,825,833     10,247,903  
Operating income 1,030,315 820,083

 

510,105

 

230,080
 
Other income 45,988 31,631 89,505 76,503
Interest expense, net; includes related party interest of
$37,398 and $29,617 for three months ended June 30, 2016
and 2015, respectively, and $67,064 and $59,215 for the
six months ended June 30, 2016 and 2015, respectively   (166,728 )   (139,405 )   (307,812 )   (270,833 )
Net income

 

$

  909,575   $   712,309   $   291,798   $   35,750  
 
Income per common share:
Basic $ 0.10   $ 0.08   $ 0.03   $ 0.00  
Diluted $ 0.10   $ 0.08   $ 0.03   $ 0.00  
 
Weighted average shares
outstanding:
Basic   9,154,928     9,154,953     9,154,928     9,154,953  
Diluted   9,439,540     9,439,565     9,439,540     9,439,565  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
          For The Six Months Ended
June 30,
2016   2015  
Cash flows from operating activities:
Net income $ 291,798 $ 35,750
Adjustments to reconcile net income to net cash
used in operating activities:
Provision for doubtful accounts 71,216 135,387
Depreciation 177,625 155,457
Net gain on sale of fixed assets (1,757 ) -
Changes in operating assets and liabilities
Accounts receivable (2,002,287 ) (1,447,716 )
Inventory (2,106,041 ) (834,959 )
Prepaid expenses and other current assets (64,185 ) (255,154 )
Other assets - noncurrent 5,236 30,861
Trade payables 292,322 (391,131 )
Accrued liabilities 390,226 406,433
Income taxes payable -   (16,087 )
Net cash used in operating activities (2,945,847 ) (2,181,159 )
 
Cash flows from investing activities:
Additions to property and equipment (80,343 ) (48,332 )
Proceeds from disposal of property and equipment 8,847     -  
Net cash used in investing activities (71,496 )

 

(48,332 )
 
Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $1,829,764 and $1,573,651 respectively (1,913,740 ) (1,650,158 )
Issuance of notes payable, related party 2,750,000 2,250,000
Borrowings under credit facility - revolving credit, net 2,064,521   1,826,500  
Net cash provided by financing activities 2,900,781   2,426,342  
(Decrease) increase in cash (116,562 ) 196,851
Cash - beginning of period 577,303   238,696  
Cash - end of period $ 460,741   $ 435,547  
 

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