HAWTHORNE, N.J.--(BUSINESS WIRE)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2020.
Results for the year ended December 31, 2020 compared to results for the same period in 2019:
- Sales decreased 10.3% to $101,936,300 from $113,701,032
- Gross profit decreased 9.7% to $26,213,512 from $29,016,775
- Selling, general and administrative expenses decreased 6.7% to $24,600,667 from $26,375,014
- Operating income decreased 38.9% to $1,612,845 from $2,641,761
- Net income decreased 19.4% to $1,053,885 from $1,308,234; the 2020 amount includes a $250,425 non-cash income tax expense and the 2019 amount includes a $596,000 non-cash income tax expense
- Net income per share on a fully diluted basis decreased to $0.11 per share from $0.13 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.ccom-group.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 | ||||||
Consolidated Balance Sheets | ||||||
December 31, | December 31, | |||||
|
2020 |
|
2019 |
|||
Assets |
||||||
Current assets: | ||||||
Cash | $ |
388,267 |
$ |
193,448 |
||
Accounts receivable, net of allowance for doubtful accounts of $766,459 and $557,532, respectively |
|
10,305,665 |
|
11,260,382 |
||
Inventory |
|
20,936,936 |
|
17,858,956 |
||
Prepaid expenses and other current assets |
|
749,053 |
|
973,961 |
||
Total current assets |
|
32,379,921 |
|
30,286,747 |
||
Property and equipment |
|
1,095,506 |
|
1,009,524 |
||
Goodwill |
|
1,416,929 |
|
1,416,929 |
||
Other assets - noncurrent |
|
188,824 |
|
356,788 |
||
Deferred tax asset - noncurrent |
|
2,548,575 |
|
2,799,000 |
||
$ |
37,629,755 |
$ |
35,868,988 |
|||
Liabilities and Stockholders' Equity |
||||||
Current liabilities: | ||||||
Borrowings under credit facility - revolving credit | $ |
9,151,368 |
$ |
12,395,838 |
||
Notes payable - current portion |
|
627,009 |
|
107,776 |
||
Trade payables |
|
5,892,126 |
|
4,128,135 |
||
Accrued liabilities |
|
2,450,810 |
|
2,657,118 |
||
Income taxes payable |
|
2,850 |
|
24,625 |
||
Total current liabilities |
|
18,124,163 |
|
19,313,492 |
||
Notes payable, excluding current portion |
|
2,247,742 |
|
351,531 |
||
Deferred tax liability - noncurrent |
|
354,000 |
|
354,000 |
||
Total liabilities |
|
20,725,905 |
|
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 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 |
|
3,835,020 |
|
2,781,135 |
||
Total stockholders' equity |
|
16,903,850 |
|
15,849,965 |
||
$ |
37,629,755 |
$ |
35,868,988 |
|||
CCOM GROUP, INC. AND SUBSIDIARES | ||||||||
Consolidated Statements of Income | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2020 |
2019 |
|||||||
Sales | $ | 101,936,300 |
$ | 113,701,032 |
||||
Cost of sales | 75,722,788 |
84,684,257 |
||||||
Gross profit | 26,213,512 |
29,016,775 |
||||||
Selling, general and administrative expenses, net | 24,600,667 |
26,375,014 |
||||||
Operating income | 1,612,845 |
|
2,641,761 |
|||||
Other income | 219,067 |
226,497 |
||||||
Interest expense, net; includes related party interest of | ||||||||
$0 and $34,503, respectively | (370,455) |
(748,440) |
||||||
Income before income tax expense | 1,461,457 |
2,119,818 |
||||||
Income tax expense | 407,572 |
811,584 |
||||||
Net income | $ | 1,053,885 |
$ | 1,308,234 |
||||
Income per common share: | ||||||||
Basic | $ 0.11 |
$ 0.14 |
||||||
Diluted | $ 0.11 |
$ 0.13 |
||||||
Weighted average shares | ||||||||
outstanding: | ||||||||
Basic | 9,154,928 |
9,154,928 |
||||||
Diluted | 9,439,540 |
9,439,540 |
CCOM GROUP,INC. AND SUBSIDIARIES | ||||||||||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||||||||
For The Year Ended December 31, 2020 and 2019 | ||||||||||||||||||
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, 2018 | 284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
1,472,901 |
$ |
14,541,731 |
||||||
Net Income |
|
1,308,234 |
|
1,308,234 |
||||||||||||||
Balance at December 31, 2019 | 284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
2,781,135 |
$ |
15,849,965 |
||||||
Net Income |
|
1,053,885 |
|
1,053,885 |
||||||||||||||
Balance at December 31, 2020 | 284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
3,835,020 |
$ |
16,903,850 |
||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||
Consolidated Statements of Cash Flows | |||||||||
For The Years Ended | |||||||||
December 31, | |||||||||
2020 |
2019 |
||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 1,053,885 |
$ | 1,308,234 |
|||||
Adjustments to reconcile net income to net cash | |||||||||
provided by operating activities: | |||||||||
Deferred income tax expense | 250,425 |
596,000 |
|||||||
Provision for doubtful accounts | 288,924 |
295,476 |
|||||||
Depreciation and amortization | 414,212 |
319,042 |
|||||||
Net gain on sale of property and equipment | (12,851) |
(13,279) |
|||||||
Changes in operating assets and liabilities | |||||||||
Accounts receivable | 665,793 |
(170,901) |
|||||||
Inventory | (3,077,980) |
881,454 |
|||||||
Prepaid expenses and other current assets | 224,908 |
72,200 |
|||||||
Other assets - noncurrent | 167,964 |
114,390 |
|||||||
Trade payables | 1,763,991 |
(1,526,876) |
|||||||
Accrued liabilities | (206,308) |
177,562 |
|||||||
Income taxes payable | (21,775) |
23,910 |
|||||||
Net cash provided by operating activities | 1,511,188 |
2,077,212 |
|||||||
Cash flows from investing activities: | |||||||||
Additions to property and equipment | (254,711) |
(468,609) |
|||||||
Proceeds from disposal of property and equipment | 21,600 |
37,000 |
|||||||
Net cash used in investing activities | (233,111) |
(431,609) |
|||||||
Cash flows from financing activities: | |||||||||
Repayments of notes payable: includes related party | |||||||||
repayments of $0 and $600,335 respectively | (124,044) |
(678,924) |
|||||||
Proceeds from PPP loans | 2,285,256 |
||||||||
Repayments of short term financing, related party | - |
(500,000) |
|||||||
Issuance of short term financing, related party | - |
500,000 |
|||||||
Repayments under credit facility - revolving credit, net | (3,244,470) |
(1,080,703) |
|||||||
Net cash used in financing activities | (1,083,258) |
(1,759,627) |
|||||||
Increase/(decrease) in cash | 194,819 |
(114,024) |
|||||||
Cash - beginning of period | 193,448 |
307,472 |
|||||||
Cash - end of period | $ | 388,267 |
193,448 |
||||||