CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2017.
Results for the year ended December 31, 2017 compared to results for the same period in 2016:
- Sales increased 5.8% to $92,330,429 from $87,283,700
- Gross profit increased 5.2% to $24,579,010 from $23,359,519
- Selling, general and administrative expenses increased 4.6% to $23,000,348 from $21,980,338
- Operating income increased 14.5% to $1,578,662 from $1,379,181
- Net income decreased 28.0% to $514,407 from $713,972; the 2017 amounts includes a $517,899 non-cash income tax expense and the 2016 amount includes a $150,000 non-cash income tax expense
- Net income per share on a fully diluted basis decreased to $0.05 per share from $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 | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
December 31, | December 31, | |||||||||||
2017 | 2016 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash | $ | 506,635 | $ | 448,758 | ||||||||
Accounts receivable, net of allowance for doubtful accounts | ||||||||||||
of $1,052,963 and $1,078,613, respectively | 11,522,688 | 10,788,257 | ||||||||||
Inventory | 16,231,516 | 14,888,025 | ||||||||||
Prepaid expenses and other current assets | 1,121,745 | 680,039 | ||||||||||
Total current assets | 29,382,584 | 26,805,079 | ||||||||||
Property and equipment | 568,079 | 756,050 | ||||||||||
Goodwill | 1,416,929 | 1,416,929 | ||||||||||
Other assets - noncurrent | 424,375 | 171,144 | ||||||||||
Deferred tax asset - noncurrent | 1,682,000 | 2,316,500 | ||||||||||
$ | 33,473,967 | $ | 31,465,702 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Borrowings under credit facility - revolving credit | $ | 14,464,649 | $ | 13,417,855 | ||||||||
Notes payable - current portion; includes related party notes | ||||||||||||
of $196,587 and $176,283, respectively | 279,606 | 353,208 | ||||||||||
Trade payables | 4,558,305 | 3,852,007 | ||||||||||
Accrued liabilities | 2,165,224 | 1,995,083 | ||||||||||
Income taxes payable | 18,488 | 42,188 | ||||||||||
Total current liabilities | 21,486,272 | 19,660,341 | ||||||||||
Convertible notes payable, excluding current portion-related party | - | 100,000 | ||||||||||
Notes payable, excluding current portion; includes related party | ||||||||||||
notes of $599,291 and $795,879, respectively | 645,231 | 877,304 | ||||||||||
Deferred tax liability - noncurrent | 567,000 | 567,000 | ||||||||||
Total liabilities | 22,698,503 | 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 | (2,293,366 | ) | (2,807,773 | ) | ||||||||
Total stockholders' equity | 10,775,464 | 10,261,057 | ||||||||||
$ | 33,473,967 | $ | 31,465,702 | |||||||||
CCOM Group, Inc. | ||||||||||||||
Consolidated Statements of Operations | ||||||||||||||
For the Years Ended | ||||||||||||||
December 31, | ||||||||||||||
2017 | 2016 | |||||||||||||
Sales | $ | 92,330,429 | $ | 87,283,700 | ||||||||||
Cost of sales | 67,751,419 | 63,924,181 | ||||||||||||
Gross profit | 24,579,010 | 23,359,519 | ||||||||||||
Selling, general and administrative expenses, net | 23,000,348 | 21,980,338 | ||||||||||||
Operating income | 1,578,662 | 1,379,181 | ||||||||||||
Other income | 205,456 | 189,961 | ||||||||||||
Interest expense, net; includes related party interest of | ||||||||||||||
$79,093 and $101,464, respectively | (646,523 | ) | (589,302 | ) | ||||||||||
Income before income tax expense | 1,137,595 | 979,840 | ||||||||||||
Income tax expense | 623,188 | 265,868 | ||||||||||||
Net income | $ | 514,407 | $ | 713,972 | ||||||||||
Income per common share: | ||||||||||||||
Basic | $ | 0.05 | $ | 0.08 | ||||||||||
Diluted | $ | 0.05 | $ | 0.07 | ||||||||||
Weighted average shares | ||||||||||||||
outstanding: | ||||||||||||||
Basic | 9,154,928 | 9,154,928 | ||||||||||||
Diluted | 9,439,540 | 9,439,540 | ||||||||||||
CCOM Group, Inc. | ||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
For The Year Ended December 31, 2017 and 2016 | ||||||||||||||||||||||||||||||||||||||||||
Number of shares | ||||||||||||||||||||||||||||||||||||||||||
Redeemable |
Common |
Redeemable |
Common |
Additional Paid- |
Accumulated |
Total | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | 284,612 | 9,154,928 | $ | 14,231 | $ | 457,746 | $ | 12,596,853 | $ | (3,521,745 | ) | $ | 9,547,085 | |||||||||||||||||||||||||||||
Net income | 713,972 | 713,972 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
For The Years Ended | |||||||||||||||
December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 514,407 | $ | 713,972 | |||||||||||
Adjustments to reconcile net income to net cash | |||||||||||||||
used in operating activities: | |||||||||||||||
Deferred income tax expense | 517,899 | 150,000 | |||||||||||||
Provision for doubtful accounts | 585,168 | 339,551 | |||||||||||||
Depreciation | 359,184 | 368,323 | |||||||||||||
Net gain on sale of fixed assets | (200 | ) | (4,757 | ) | |||||||||||
Changes in operating assets and liabilities | |||||||||||||||
Accounts receivable | (1,319,599 | ) | (1,084,802 | ) | |||||||||||
Inventory | (1,343,491 | ) | (1,342,071 | ) | |||||||||||
Prepaid expenses and other current assets | (441,706 | ) | (74,576 | ) | |||||||||||
Other assets - noncurrent | (136,630 | ) | 8,131 | ||||||||||||
Trade payables | 706,298 | 18,428 | |||||||||||||
Accrued liabilities | 170,141 | 622,010 | |||||||||||||
Income taxes payable | (23,700 | ) | 41,768 | ||||||||||||
Net cash used in operating activities | (412,229 | ) | (244,023 | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Additions to property and equipment | (119,301 | ) | (160,991 | ) | |||||||||||
Proceeds from disposal of property and equipment | 200 | 11,847 | |||||||||||||
Net cash used in investing activities | (119,101 | ) | (149,144 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayments of notes payable: includes related party | - | - | |||||||||||||
repayments of $276,283 and $262,773 respectively | (457,587 | ) | (436,706 | ) | |||||||||||
Repayments of short term financing, related party | (2,000,000 | ) | (3,750,000 | ) | |||||||||||
Issuance of short term financing, related party | 2,000,000 | 3,750,000 | |||||||||||||
Borrowings under credit facility - revolving credit, net | 1,046,794 | 701,328 | |||||||||||||
Net cash provided by financing activities | 589,207 | 264,622 | |||||||||||||
Increase (decrease) in cash | 57,877 | (128,545 | ) | ||||||||||||
Cash - beginning of period | 448,758 | 577,303 | |||||||||||||
Cash - end of period | $ | 506,635 | $ | 448,758 | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180430005353/en/
Contacts:
Peter D. Gasiewicz, Chief Executive
Officer
William Salek, Chief Financial Officer
973-427-8224