CCOM Group, Inc. Reports 2019 First Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2019.

Results for the quarter ended March 31, 2019 compared to results for the same period in 2018:

  • Sales increased 9.9% to $21,803,610 from $19,846,307
  • Gross profit increased 10.9% to $6,108,140 from $5,506,359
  • Selling, general and administrative expenses increased 5.4% to $6,331,664 from $6,005,258
  • Operating loss decreased 55.2% to $223,524 from $498,899
  • Net loss decreased 36.9% to $371,572 from $588,871
  • Net loss per common share on a fully diluted basis decreased to $(0.04) from $(0.06) 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
Condensed Consolidated Balance Sheets
         
March 31, December 31,
  2019   2018
(Unaudited)
 
Assets
Current assets:
Cash $ 482,451 $ 307,472
Accounts receivable, net of allowance for doubtful accounts
of $521,787 and $497,526, respectively 10,686,015 11,384,957
Inventory 21,657,046 18,740,410
Prepaid expenses and other current assets   1,092,831   1,046,161
Total current assets 33,918,343 31,479,000
Property and equipment 612,440 612,600
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 465,001 471,178
Deferred tax asset - noncurrent   2,700,000   2,700,000
$ 39,112,713 $ 36,679,707
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 16,740,418 $ 13,476,541
Notes payable - current portion; includes related party notes
of $215,212 and $211,226, respectively 268,026 264,266
Trade payables 5,481,148 5,655,011
Accrued liabilities 2,259,159 2,479,556
Income taxes payable   715   715
Total current liabilities 24,749,466 21,876,089
Notes payable, excluding current portion; includes related party
notes of $333,788 and $389,109, respectively 534,088 602,887
Deferred tax liability - noncurrent   354,000   354,000
Total liabilities   25,637,554   22,832,976
 
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   406,329   777,901
Total stockholders' equity   13,475,159   13,846,731
$ 39,112,713 $ 36,679,707
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
         
For the Three Months Ended
March 31,
2019 2018
Sales $ 21,803,610 $ 19,846,307
Cost of sales 15,695,470 14,339,948
Gross profit 6,108,140 5,506,359
 
Selling, general and administrative expenses, net 6,331,664 6,005,258
Operating loss (223,524) (498,899)
 
Other income 57,351 74,375
Interest expense, net; includes related party interest
of $10,937 and $14,506, respectively (187,019) (164,347)
Loss before income tax expense (353,192) (588,871)
 
Income tax expense 18,380 -
Net loss $ (371,572) $ (588,871)
 
 
Loss per common share:
Basic and diluted $ (0.04) $ (0.06)
 
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,
2019     2018
Cash flows from operating activities:
Net loss $ (371,572) $ (588,871)
Adjustments to reconcile net loss to net cash
used in operating activities:
Provision for doubtful accounts (7,708) 44,415
Depreciation 65,080 82,504
Net gain on sale of fixed assets (2,225) (11,187)
Changes in operating assets and liabilities
Accounts receivable 706,650 1,062,632
Inventory (2,916,636) (6,041,949)
Prepaid expenses and other current assets (46,670) 109,854
Other assets - noncurrent 6,177 45,724
Trade payables (173,863) 3,746,332
Accrued liabilities (220,397) (368,166)
Income taxes payable - (12,583)
Net cash used in operating activities (2,961,164) (1,931,295)
 
Cash flows from investing activities:
Additions to property and equipment (69,695) (13,384)
Proceeds from disposal of property and equipment 7,000 25,027
Net cash (used in) provided by investing activities (62,695) 11,643
 
Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $51,335 and $46,098 respectively (65,039) (96,661)
Issuance of short term financing, related party - 500,000
Borrowings under credit facility - revolving credit, net 3,263,877 1,573,584
Net cash provided by financing activities 3,198,838 1,976,923
Increase in cash 174,979 57,271
Cash - beginning of period 307,472 506,635
Cash - end of period $ 482,451 $ 563,906
 

Contacts

Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224.

Contacts

Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224.