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CCOM Group, Inc. Reports 2021 Third Quarter Results

November 12, 2021 GMT

HAWTHORNE, N.J.--(BUSINESS WIRE)--Nov 12, 2021--

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the three and nine months ended September 30, 2021.

Results for the three months ended September 30, 2021 compared to results for the same period in 2020:

  • Sales increased 14.6% to $32,310,514 from $28,185,554
  • Gross profit increased 21.8% to $9,012,731 from $7,401,499
  • Selling, general and administrative expenses increased 19.4% to $7,365,369 from $6,169,708
  • Operating income increased 33.7% to $1,647,362 compared to $1,231,791
  • Net income of $3,615,164 compared to $917,443; the 2021 and 2020 amounts each include a $158,333 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset). The 2021 amount includes a $2,285,256 gain on early extinguishment of PPP debt.
  • Net income per share on a fully diluted basis increased to $0.37 per share from $0.09 per share

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Results for the nine months ended September 30, 2021 compared to results for the same period in 2020:

  • Sales increased 17.9% to $91,076,042 from $77,279,836
  • Gross profit increased 24.5% to $24,868,691 from $19,979,153
  • Selling, general and administrative expenses increased 11.1% to $20,273,021 from $18,242,620
  • Operating income of $4,595,670 compared to $1,736,533
  • Net income of $6,209,349 compared to $1,161,213; the 2021 and 2020 amounts each include a $158,333 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset). The 2021 amount includes a $2,285,256 gain on early extinguishment of PPP debt.
  • Net income per share on a fully diluted basis increased to $0.64 per share from $0.12 per share

About CCOM Group, Inc.

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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.

(Financial Highlights Follow)

 

CCOM GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

 

September 30,

December 31,

2021

2020

(Unaudited)

 

Assets

Current assets:

Cash

$

296,154

$

388,267

Accounts receivable, net of allowance for doubtful accounts
of $664,162 and $766,459, respectively

11,699,412

10,305,665

Inventory

23,575,963

20,936,936

Prepaid expenses and other current assets

821,064

749,053

Total current assets

36,392,593

32,379,921

Property and equipment

1,520,783

1,095,506

Goodwill

1,416,928

1,416,929

Other assets - noncurrent

576,835

188,824

Deferred tax asset - noncurrent

2,231,909

2,548,575

$

42,139,048

$

37,629,755

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under credit facility - revolving credit

$

9,492,568

$

9,151,368

Notes payable - current portion

161,629

627,009

Trade payables

5,450,050

5,892,126

Accrued liabilities

 

3,189,541

2,450,810

Income taxes payable

-

2,850

Total current liabilities

18,293,788

18,124,163

Notes payable, excluding current portion

378,061

2,247,742

Deferred tax liability - noncurrent

354,000

354,000

Total liabilities

19,025,849

20,725,905

 

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

10,044,369

3,835,020

Total stockholders' equity

23,113,199

16,903,850

$

42,139,048

$

37,629,755

 

The accompanying notes are integral part of these condensed consolidated financial statements.

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,

2021

 

 

2020

 

 

2021

 

 

2020

Sales

$

32,310,514

$

28,185,554

$

91,076,042

$

77,279,836

Cost of sales

23,297,783

20,784,055

66,207,351

57,300,683

Gross profit

9,012,731

7,401,499

24,868,691

19,979,153

 

Selling, general and administrative expenses

7,365,369

6,169,708

20,273,021

18,242,620

Operating income

1,647,362

1,231,791

4,595,670

1,736,533

 

Gain on Early Extinguishment of debt

2,285,256

-

2,285,256

-

Other income

42,121

44,026

139,719

179,364

Interest expense, net

(83,722)

(78,525)

(252,551)

(297,736)

Income from operations

3,891,017

1,197,292

6,768,094

1,618,161

 

Income tax expense

275,853

279,849

558,745

456,948

Net income

$

3,615,164

$

917,443

$

6,209,349

$

1,161,213

 

Income per common share:

Basic

$

0.38

$

0.10

$

0.66

$

0.12

Diluted

$

0.37

$

0.09

$

0.64

$

0.12

 

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

 

The accompanying notes are integral part of these condensed consolidated financial statements.

CCOM Group, Inc.

Consolidated Statements of Stockholders' Equity

For Nine Months Ended September 30, 2021

(Unaudited)

         
 

Number of shares

     
 

Redeemable
Convertible
Preferred Stock

  

Common
Stock

 

Redeemable
Convertible
Preferred Stock

 

Common
Stock

 

Additional Paid-In
Capital

 

Accumulated
Deficit

 

Total
Stockholders'
Equity

         
         

Balance at December 31, 2020

 

284,612

  

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

3,835,020

 

$

16,903,850

         
         

Net Income

 

-

  

-

 

 

-

 

 

-

 

 

-

 

 

13,839

 

 

13,839

Balance at March 31, 2021

 

284,612

  

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

3,848,859

 

$

16,917,689

         
         

Net Income

       

 

2,580,346

 

 

2,580,346

Balance at June 30, 2021

 

284,612

  

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

6,429,205

 

$

19,498,035

         
         

Net Income

       

 

3,615,164

 

 

3,615,164

Balance at September 30, 2021

 

284,612

  

9,154,928

 

$

14,231

 

$

457,746

 

$

12,596,853

 

$

10,044,369

 

$

23,113,199

         

The accompanying notes are integral part of these condensed consolidated financial statements.

 

CCOM GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

  

For The Nine Months Ended

September 30,

2021

 

2020

Cash flows from operating activities:

 

Net income

$

6,209,349

 

$

1,161,213

Adjustments to reconcile net income to net cash

 

provided by operating activities:

 

Deferred income taxes

316,666

 

316,666

Provision for doubtful accounts

62,395

 

274,627

Depreciation

384,870

 

309,633

Net gain on sale of property and equipment

(6,200)

 

(12,300)

Forgiveness of financing

(2,285,256)

 

-

Changes in operating assets and liabilities

 

Accounts receivable

(1,456,142)

 

151,870

Inventory

(2,639,027)

 

(1,196,752)

Prepaid expenses and other current assets

(72,011)

 

273,993

Other assets - noncurrent

(388,011)

 

109,474

Trade payables

(442,076)

 

1,051,231

Accrued liabilities

738,731

 

(280,992)

Income taxes payable

(2,850)

 

(24,625)

Net cash provided by operating activities

420,438

 

2,134,038

  

Cash flows from investing activities:

 

Additions to property and equipment

(741,119)

 

(228,920)

Proceeds from disposal of property and equipment

6,200

 

12,300

Net cash used in investing activities

(734,919)

 

(216,620)

  

Cash flows from financing activities:

 

Repayments of notes payable

(118,832)

 

(86,670)

Issuance of financing

-

 

2,285,256

Borrowings (repayments) under credit facility - revolving credit, net

341,200

 

(4,022,898)

Net cash provided by (used in) financing activities

222,368

 

(1,824,312)

(Decrease) / Increase in cash

(92,113)

 

93,106

Cash - beginning of period

388,267

 

193,448

Cash - end of period

$

296,154

 

$

286,554

  

The accompanying notes are integral part of these condensed consolidated financial statements.

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211112005101/en/

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

KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: MANUFACTURING OTHER MANUFACTURING OTHER RETAIL TEXTILES RETAIL

SOURCE: CCOM Group, Inc.

Copyright Business Wire 2021.

PUB: 11/12/2021 09:00 AM/DISC: 11/12/2021 09:00 AM

http://www.businesswire.com/news/home/20211112005101/en