HAWTHORNE, N.J.--(BUSINESS WIRE)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter and nine months ended September 30, 2020.
Results for the quarter ended September 30, 2020 compared to results for the same period in 2019:
- Sales decreased 11.7% to $28,185,554 from $31,903,370
- Gross profit decreased 4.6% to $7,401,499 from $7,759,476
- Selling, general and administrative expenses decreased 7.3% to $6,169,708 from $6,658,897
- Operating income increased 11.9% to $1,231,791 from $1,100,579
- Net income increased 18.1% to $917,443 from $776,788; the 2020 and 2019 amounts include a $158,333 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset).
- Net income per share on a fully diluted basis increased to $0.09 per share from $0.08 per share
Results for the nine months ended September 30, 2020 compared to results for the same period in 2019:
- Sales decreased 10.6% to $77,279,836 from $86,396,102
- Gross profit decreased 9.6% to $19,979,153 from $22,096,617
- Selling, general and administrative expenses decreased 6.7% to $18,242,620 from $19,553,634
- Operating income decreased 23.1% to $1,618,161 from $2,104,893
- Net income decreased 31.4% to $1,161,213 from $1,693,443; the 2020 and 2019 amounts include a $316,666 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset).
- Net income per share on a fully diluted basis decreased to $0.12 per share from $0.17 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 15 locations in its geographic trading area. For more information on CCOM’s operations, products and/or services, please visit www.ccomgrp.com.
For further information, please contact Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224.
(Financial Highlights Follow)
| CCOM GROUP, INC. AND SUBSIDIARIES | ||||
| Condensed Consolidated Balance Sheets | ||||
September 30, |
|
December 31, |
||
2020 |
|
2019 |
||
(Unaudited) |
|
|
||
Assets |
||||
| Current assets: | ||||
| Cash | $ 286,554 |
$ 193,448 |
||
| Accounts receivable, net of allowance for doubtful accounts of $793,952 and $557,532, respectively | 10,833,885 |
11,260,382 |
||
| Inventory | 19,055,708 |
17,858,956 |
||
| Prepaid expenses and other current assets | 699,968 |
973,961 |
||
| Total current assets | 30,876,115 |
30,286,747 |
||
| Property and equipment | 1,183,043 |
1,009,524 |
||
| Goodwill | 1,416,929 |
1,416,929 |
||
| Other assets - noncurrent | 247,314 |
356,788 |
||
| Deferred tax asset - noncurrent | 2,482,334 |
2,799,000 |
||
$ 36,205,735 |
$ 35,868,988 |
|||
Liabilities and Stockholders' Equity |
||||
| Current liabilities: | ||||
| Borrowings under credit facility - revolving credit | $ 8,372,940 |
$ 12,395,838 |
||
| Notes payable - current portion | 1,549,132 |
107,776 |
||
| Trade payables | 5,179,366 |
4,128,135 |
||
| Accrued liabilities | 2,376,126 |
2,657,118 |
||
| Income taxes payable | - |
24,625 |
||
| Total current liabilities | 17,477,564 |
19,313,492 |
||
| Notes payable, excluding current portion | 1,362,993 |
351,531 |
||
| Deferred tax liability - noncurrent | 354,000 |
354,000 |
||
| Total liabilities | 19,194,557 |
20,019,023 |
||
| Commitments and contingencies | ||||
| Stockholders' equity: | ||||
| Redeemable convertible preferred stock, $.05 par value, 2,500,000 shares authorized, 284,612 shares issued and (Repayments) borrowings under credit facility - revolving credit, net | 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 | 3,942,348 |
2,781,135 |
||
| Total stockholders' equity | 17,011,178 |
15,849,965 |
||
$ 36,205,735 |
$ 35,868,988 |
|||
- |
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| CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
For The Three Months Ended |
For The Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
| Sales | $ | 28,185,554 |
$ | 31,903,370 |
$ | 77,279,836 |
$ | 86,396,102 |
| Cost of sales | 20,784,055 |
24,143,894 |
57,300,683 |
64,299,485 |
||||
| Gross profit | 7,401,499 |
7,759,476 |
19,979,153 |
22,096,617 |
||||
| Selling, general and administrative expenses | 6,169,708 |
6,658,897 |
18,242,620 |
19,553,634 |
||||
| Operating income | 1,231,791 |
1,100,579 |
# | 1,736,533 |
# | 2,542,983 |
||
| Other income | 44,026 |
49,594 |
179,364 |
157,902 |
||||
| Interest expense, net; includes related party interest of $0 and $7,708 for three months ended September 30, 2020 and 2019, respectively, and $0 and $34,503 for the nine months ended September 30, 2020 and 2019, respectively | (78,525) |
(192,767) |
(297,736) |
(595,992) |
||||
| Income from operations | 1,197,292 |
957,406 |
1,618,161 |
2,104,893 |
||||
| Income tax expense | 279,849 |
180,618 |
456,948 |
411,450 |
||||
| Net income | $ | 917,443 |
$ | 776,788 |
$ | 1,161,213 |
$ | 1,693,443 |
| Income per common share: | ||||||||
| Basic | $ 0.10 |
$ 0.08 |
$ 0.12 |
$ 0.18 |
||||
| Diluted | $ 0.09 |
$ 0.08 |
$ 0.12 |
$ 0.17 |
||||
| Weighted average shares | ||||||||
| outstanding: | ||||||||
| Basic | 9,154,928 |
9,154,928 |
9,154,928 |
9,154,928 |
||||
| Diluted | 9,439,540 |
9,439,540 |
9,439,540 |
9,439,540 |
||||
| CCOM GROUP, INC. AND SUBSIDIARIES | ||||||
| Condensed Consolidated Statements of Cash Flows | ||||||
| (Unaudited) | ||||||
| For The Nine Months Ended | ||||||
| September 30, | ||||||
2020 |
2019 |
|||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 1,161,213 |
$ | 1,693,443 |
||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||
| Deferred income taxes | 316,666 |
316,666 |
||||
| Provision for doubtful accounts | 274,627 |
151,254 |
||||
| Depreciation | 309,633 |
230,201 |
||||
| Net gain on sale of fixed assets | (12,300) |
(2,225) |
||||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable | 151,870 |
(1,199,571) |
||||
| Inventory | (1,196,752) |
(1,711,727) |
||||
| Prepaid expenses and other current assets | 273,993 |
51,631 |
||||
| Other assets - noncurrent | 109,474 |
109,366 |
||||
| Trade payables | 1,051,231 |
9,515 |
||||
| Accrued liabilities | (280,992) |
285,484 |
||||
| Income taxes payable | (24,625) |
(715) |
||||
| Net cash provided by (used in) operating activities | 2,134,038 |
(66,678) |
||||
| Cash flows from investing activities: | ||||||
| Additions to property and equipment | (228,920) |
(337,549) |
||||
| Proceeds from disposal of property and equipment | 12,300 |
7,000 |
||||
| Net cash used in investing activities | (216,620) |
(330,549) |
||||
| Cash flows from financing activities: | ||||||
| Repayments of notes payable: includes related party repayments of $0 and $600,335 respectively | (86,670) |
(655,885) |
||||
| Repayments of short term financing, related party | (500,000) |
|||||
| Issuance of financing | 2,285,256 |
|||||
| Issuance of short term financing, related party | 500,000 |
|||||
| Borrowings under credit facility - revolving credit, net | (4,022,898) |
1,177,245 |
||||
| Net cash (used in) provided by financing activities | (1,824,312) |
521,360 |
||||
| Increase in cash | 93,106 |
124,133 |
||||
| Cash - beginning of period | 193,448 |
307,472 |
||||
| Cash - end of period | $ | 286,554 |
$ | 431,605 |
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