CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2017.
Results for the quarter ended March 31, 2017 compared to results for the same period in 2016:
- Sales decreased 1.2% to $17,671,376 from $17,878,764
- Gross profit increased 1.4% to $5,009,999 from $4,940,991
- Selling, general and administrative expenses increased 1.7% to $5,551,336 from $5,461,201
- Operating loss increased 4.1% to $541,337 from $520,210
- Net loss increased 5.2% to $649,729 from $617,777
- Net loss per share on a fully diluted basis remained the same at $(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.
(Financial Highlights Follow)
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
March 31, | December 31, | ||||||||||
2017 | 2016 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash | $ | 367,079 | $ | 448,758 | |||||||
Accounts receivable, net of allowance for doubtful accounts | |||||||||||
of $1,149,911 and $1,078,613, respectively | 9,753,577 | 10,788,257 | |||||||||
Inventory | 18,520,143 | 14,888,025 | |||||||||
Prepaid expenses and other current assets | 625,644 | 680,039 | |||||||||
Total current assets | 29,266,443 | 26,805,079 | |||||||||
Property and equipment | 738,354 | 756,050 | |||||||||
Goodwill | 1,416,929 | 1,416,929 | |||||||||
Other assets - noncurrent | 171,144 | 171,144 | |||||||||
Deferred tax asset - noncurrent | 2,316,500 | 2,316,500 | |||||||||
$ | 33,909,370 | $ | 31,465,702 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Borrowings under credit facility - revolving credit | $ | 15,136,387 | $ | 13,417,855 | |||||||
Convertible notes payable, excluding current portion-related party | 100,000 | - | |||||||||
Notes payable - current portion; includes related party notes | |||||||||||
of $679,399 and $176,283, respectively | 852,646 | 353,208 | |||||||||
Trade payables | 5,040,018 | 3,852,007 | |||||||||
Accrued liabilities | 1,757,883 | 1,995,083 | |||||||||
Income taxes payable | 1,451 | 42,188 | |||||||||
Total current liabilities | 22,888,385 | 19,660,341 | |||||||||
Convertible notes payable, excluding current portion-related party | - | 100,000 | |||||||||
Notes payable, excluding current portion; includes related party | |||||||||||
notes of $750,000 and $795,879, respectively | 842,657 | 877,304 | |||||||||
Deferred tax liability - noncurrent | 567,000 | 567,000 | |||||||||
Total liabilities | 24,298,042 | 21,204,645 | |||||||||
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 | (3,457,502 | ) | (2,807,773 | ) | |||||||
Total stockholders' equity | 9,611,328 | 10,261,057 | |||||||||
$ | 33,909,370 | $ | 31,465,702 | ||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Operations | ||||||||||
(Unaudited) | ||||||||||
For the Three Months Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | |||||||||
Sales | $ | 17,671,376 | $ | 17,878,764 | ||||||
Cost of sales | 12,661,377 | 12,937,773 | ||||||||
Gross profit | 5,009,999 | 4,940,991 | ||||||||
Selling, general and administrative expenses, net | 5,551,336 | 5,461,201 | ||||||||
Operating loss | (541,337) | (520,210) | ||||||||
Other income | 49,285 | 43,517 | ||||||||
Interest expense, net; includes related party interest | ||||||||||
of $19,183 and $29,666, respectively | (147,891) | (141,084) | ||||||||
Income tax expense | 9,786 | - | ||||||||
Net loss | $ | (649,729) | $ | (617,777) | ||||||
Loss per common share: | ||||||||||
Basic and diluted | $ (0.07) | $ (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, | ||||||||||||
2017 | 2016 | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (649,729) | $ | (617,777) | ||||||||
Adjustments to reconcile net loss to net cash | ||||||||||||
used in operating activities: | ||||||||||||
Provision for doubtful accounts | 63,946 | 31,405 | ||||||||||
Depreciation | 94,871 | 87,991 | ||||||||||
Net gain on sale of fixed assets | - | (957) | ||||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable | 970,734 | 366,869 | ||||||||||
Inventory | (3,632,118) | (4,975,064) | ||||||||||
Prepaid expenses and other current assets | 54,395 | (142,754) | ||||||||||
Other assets - noncurrent | - | 2,618 | ||||||||||
Trade payables | 1,188,011 | 2,410,298 | ||||||||||
Accrued liabilities | (237,200) | 177,370 | ||||||||||
Income taxes payable | (40,737) | - | ||||||||||
Net cash used in operating activities | (2,187,827) | (2,660,001) | ||||||||||
Cash flows from investing activities: | ||||||||||||
Additions to property and equipment | (25,263) | (37,760) | ||||||||||
Proceeds from disposal of property and equipment | - | 8,047 | ||||||||||
Net cash used in investing activities | (25,263) | (29,713) | ||||||||||
Cash flows from financing activities: | ||||||||||||
Repayments of notes payable: includes related party | ||||||||||||
repayments of $42,762 and $789,485 respectively | (87,121) | (834,012) | ||||||||||
Issuance of notes payable, related party | 500,000 | 2,750,000 | ||||||||||
Repayments under credit facility - revolving credit, net | 1,718,532 | 618,228 | ||||||||||
Net cash provided by financing activities | 2,131,411 | 2,534,216 | ||||||||||
Decrease in cash | (81,679) | (155,498) | ||||||||||
Cash - beginning of period | 448,758 | 577,303 | ||||||||||
Cash - end of period | $ | 367,079 | $ | 421,805 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170515005436/en/
Contacts:
Peter D. Gasiewiczr, 973-427-8224
Chief
Executive Officer
or
William Salekr, 973-427-8224
Chief
Financial Office