HAWTHORNE, N.J.--(BUSINESS WIRE)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2018.
Results for the year ended December 31, 2018 compared to results for the same period in 2017:
- Sales increased 13.4% to $104,657,935 from $92,330,429
- Gross profit increased 11.0% to $27,277,147 from $24,579,010
- Selling, general and administrative expenses increased 8.0% to $24,837,160 from $23,000,348
- Operating income increased 54.6% to $2,439,987 from $1,578,662
- Net income increased to $3,071,267 from $514,407; the 2018 amount includes a $1,231,000 non-cash income tax benefit and the 2017 amount includes a $517,899 non-cash income tax expense
- Net income per share on a fully diluted basis increased to $0.32 per share from $0.05 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.
(Financial Highlights Follow)
| CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||
| Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 307,472 | $ | 506,635 | ||||
| Accounts receivable, net of allowance for doubtful accounts | ||||||||
| of $497,526 and $1,052,963, respectively | 11,384,957 | 11,522,688 | ||||||
| Inventory | 18,740,410 | 16,231,516 | ||||||
| Prepaid expenses and other current assets | 1,046,161 | 1,121,745 | ||||||
| Total current assets | 31,479,000 | 29,382,584 | ||||||
| Property and equipment | 612,600 | 568,079 | ||||||
| Goodwill | 1,416,929 | 1,416,929 | ||||||
| Other assets - noncurrent | 471,178 | 424,375 | ||||||
| Deferred tax asset - noncurrent | 2,700,000 | 1,682,000 | ||||||
| $ | 36,679,707 | $ | 33,473,967 | |||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Borrowings under credit facility - revolving credit | $ | 13,476,541 | $ | 14,464,649 | ||||
| Notes payable - current portion; includes related party notes | ||||||||
| of $211,226 and $196,587, respectively | 264,266 | 279,606 | ||||||
| Trade payables | 5,655,011 | 4,558,305 | ||||||
| Accrued liabilities | 2,479,556 | 2,165,224 | ||||||
| Income taxes payable | 715 | 18,488 | ||||||
| Total current liabilities | 21,876,089 | 21,486,272 | ||||||
| Notes payable, excluding current portion; includes related party | ||||||||
| notes of $389,109 and $599,291, respectively | 602,887 | 645,231 | ||||||
| Deferred tax liability - noncurrent | 354,000 | 567,000 | ||||||
| Total liabilities | 22,832,976 | 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 | ||||||
| Retained Earnings (accumulated deficit) | 777,901 | (2,293,366 | ) | |||||
| Total stockholders' equity | 13,846,731 | 10,775,464 | ||||||
| $ | 36,679,707 | $ | 33,473,967 | |||||
| CCOM Group, Inc. | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| For the Years Ended | ||||||||||||
| December 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Sales | $ | 104,657,935 | $ | 92,330,429 | ||||||||
| Cost of sales | 77,380,788 | 67,751,419 | ||||||||||
| Gross profit | 27,277,147 | 24,579,010 | ||||||||||
| Selling, general and administrative expenses, net | 24,837,160 | 23,000,348 | ||||||||||
| Operating income | 2,439,987 |
|
1,578,662 | |||||||||
| Other income | 269,325 | 205,456 | ||||||||||
| Interest expense, net; includes related party interest of | ||||||||||||
| $59,728 and $79,093, respectively | (745,019 | ) | (646,523 | ) | ||||||||
| Income before income tax (benefit) expense | 1,964,293 | 1,137,595 | ||||||||||
| Income tax (benefit) expense | (1,106,974 | ) | 623,188 | |||||||||
| Net income | $ | 3,071,267 | $ | 514,407 | ||||||||
| Income per common share: | ||||||||||||
| Basic | $ | 0.33 | $ | 0.05 | ||||||||
| Diluted | $ | 0.32 | $ | 0.05 | ||||||||
| Weighted average shares | ||||||||||||
| outstanding: | ||||||||||||
| Basic | 9,154,928 | 9,154,928 | ||||||||||
| Diluted | 9,439,540 | 9,439,540 | ||||||||||
| The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||||
| CCOM Group, Inc. | |||||||||||||||||||||
| Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||
| For The Years Ended December 31, 2018 and 2017 | |||||||||||||||||||||
| Number of shares | |||||||||||||||||||||
|
Redeemable Convertible Preferred Stock |
Common Stock |
Redeemable Convertible Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings / Accumulated Deficit |
Total Stockholders' Equity |
|||||||||||||||
| Balance at December 31, 2016 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | (2,807,773 | ) | $ | 10,261,057 | ||||||||
| Net income | 514,407 | 514,407 | |||||||||||||||||||
| Balance at December 31, 2017 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | (2,293,366 | ) | $ | 10,775,464 | ||||||||
| Net income | 3,071,267 | 3,071,267 | |||||||||||||||||||
| Balance at December 31, 2018 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | 777,901 | $ | 13,846,731 | |||||||||
| The accompanying notes are an integral part of these consolidated financial statements. | |||||||||||||||||||||
| CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||
| For the Years Ended | ||||||||||||
| December 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 3,071,267 | $ | 514,407 | ||||||||
| Adjustments to reconcile net income to net cash | ||||||||||||
| provided by (used in) operating activities: | ||||||||||||
| Deferred income tax (benefit) expense | (1,231,000 | ) | 517,899 | |||||||||
| Provision for doubtful accounts | 334,558 | 585,168 | ||||||||||
| Depreciation and amortization | 298,654 | 359,184 | ||||||||||
| Net gain on sale of property and equipment | (24,756 | ) | (200 | ) | ||||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable | (196,827 | ) | (1,319,599 | ) | ||||||||
| Inventory | (2,508,894 | ) | (1,343,491 | ) | ||||||||
| Prepaid expenses and other current assets | 75,584 | (441,706 | ) | |||||||||
| Other assets - noncurrent | (46,803 | ) | (136,630 | ) | ||||||||
| Trade payables | 1,096,706 | 706,298 | ||||||||||
| Accrued liabilities | 314,332 | 170,141 | ||||||||||
| Income taxes payable | (17,773 | ) | (23,700 | ) | ||||||||
| Net cash provided by (used in) operating activities | 1,165,048 | # | (412,229 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Additions to property and equipment | (108,356 | ) | (119,301 | ) | ||||||||
| Proceeds from disposal of property and equipment | 43,027 | 200 | ||||||||||
| Net cash used in investing activities | (65,329 | ) | (119,101 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Repayments of notes payable: includes related party | - | - | ||||||||||
| repayments of $195,763 and $276,283 respectively | (310,774 | ) | (457,587 | ) | ||||||||
| Repayments of short term financing, related party | (1,500,000 | ) | (2,000,000 | ) | ||||||||
| Issuance of short term financing, related party | 1,500,000 | 2,000,000 | ||||||||||
| Issuance of notes payable, related party | - | - | ||||||||||
| (Repayments) borrowings under credit facility - revolving credit, net | (988,108 | ) | 1,046,794 | |||||||||
| Net cash (used in) provided by financing activities | (1,298,882 | ) | 589,207 | |||||||||
| (Decrease) Increase in cash | (199,163 | ) | 57,877 | |||||||||
| Cash - beginning of period | 506,635 | 448,758 | ||||||||||
| Cash - end of period | $ | 307,472 | $ | 506,635 | ||||||||
| The accompanying notes are an integral part of these consolidated financial statements. | ||||||||||||