CCOM Group, Inc. Reports 2018 First Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2018.

Results for the quarter ended March 31, 2018 compared to results for the same period in 2017:

  • Sales increased 12.3% to $19,846,307 from $17,671,376
  • Gross profit increased 9.9% to $5,506,359 from $5,009,999
  • Selling, general and administrative expenses increased 8.2% to $6,005,258 from $5,551,336
  • Operating loss decreased 7.8% to $498,899 from $541,337
  • Net loss decreased 9.4% to $588,871 from $649,729
  • Net loss per common share on a fully diluted basis decreased to $(0.06) 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, 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 17 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,
2018 2017
(Unaudited)
 
Assets
Current assets:
Cash $ 563,906 $ 506,635
Accounts receivable, net of allowance for doubtful accounts
of $1,079,877 and $1,052,963, respectively 10,415,641 11,522,688
Inventory 22,273,465 16,231,516
Prepaid expenses and other current assets   1,011,891     1,121,745  
Total current assets 34,264,903 29,382,584
Property and equipment 562,758 568,079
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 378,651 424,375
Deferred tax asset - noncurrent   1,682,000     1,682,000  
$ 38,305,241   $ 33,473,967  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 16,038,234 $ 14,464,649
Notes payable - current portion; includes related party notes
of $701,958 and $196,587, respectively 760,729 279,606
Trade payables 8,304,637 4,558,305
Accrued liabilities 1,797,058 2,165,224
Income taxes payable   5,905     18,488  
Total current liabilities 26,906,563 21,486,272
Notes payable, excluding current portion; includes related party
notes of $548,042 and $599,291, respectively 645,085 645,231
Deferred tax liability - noncurrent   567,000     567,000  
Total liabilities   28,118,648     22,698,503  
 
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   (2,882,237 )   (2,293,366 )
Total stockholders' equity   10,186,593     10,775,464  
$ 38,305,241   $ 33,473,967  
 
         
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
 
For the Three Months Ended
March 31,
2018 2017
Sales $ 19,846,307 $ 17,671,376
Cost of sales   14,339,948     12,661,377  
Gross profit 5,506,359 5,009,999
 
Selling, general and administrative expenses, net   6,005,258     5,551,336  
Operating loss (498,899 ) (541,337 )
 
Other income 74,375 49,285
Interest expense, net; includes related party interest
of $14,506 and $19,183, respectively   (164,347 )   (147,891 )
Loss before income tax expense (588,871 ) (639,943 )
 
Income tax expense   -     9,786  
Net loss $   (588,871 ) $   (649,729 )
 
 
Loss per common share:
Basic and diluted $ (0.06 ) $ (0.07 )
 
Weighted average shares
outstanding:
Basic and diluted   9,154,928     9,154,928  
 
         
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For The Three Months Ended
March 31,
2018 2017
Cash flows from operating activities:
Net loss $ (588,871 ) $ (649,729 )
Adjustments to reconcile net loss to net cash
used in operating activities:
Provision for doubtful accounts 44,415 63,946
Depreciation 82,504 94,871
Net gain on sale of fixed assets (11,187 ) -
Changes in operating assets and liabilities
Accounts receivable 1,062,632 970,734
Inventory (6,041,949 ) (3,632,118 )
Prepaid expenses and other current assets 109,854 54,395
Other assets - noncurrent 45,724 -
Trade payables 3,746,332 1,188,011
Accrued liabilities (368,166 ) (237,200 )
Income taxes payable (12,583 ) (40,737 )
Net cash used in operating activities (1,931,295 ) (2,187,827 )
 
Cash flows from investing activities:
Additions to property and equipment (13,384 ) (25,263 )
Proceeds from disposal of property and equipment 25,027   -  
Net cash provided by (used in) investing activities 11,643   (25,263 )
 
Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $46,098 and $42,762 respectively (96,661 ) (87,121 )
Issuance of short term financing, related party 500,000 500,000
Repayments under credit facility - revolving credit, net 1,573,584   1,718,532  
Net cash provided by financing activities 1,976,923   2,131,411  
Increase (decrease) in cash 57,271 (81,679 )
Cash - beginning of period 506,635   448,758  
Cash - end of period $ 563,906   $ 367,079  
 

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