MRO Magazine

CCOM Group, Inc. Reports 2014 Results


March 30, 2015
By Business Wire News

HAWTHORNE, N.J.

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2014.

Results for the year ended December 31, 2014 compared to results for the same period in 2013:

  • Sales decreased 8.4% to $81,048,785 from $88,458,677
  • Gross profit decreased 4.2% to $21,400,992 from $22,327,630
  • Selling, general and administrative expenses decreased 3.5% to $20,240,991 from $20,980,190
  • Operating income decreased 13.9% to $1,160,001 from $1,347,440
  • Net income decreased 74.5% to $761,240 from $2,983,212; the 2014 amount includes a $25,153 non-cash income tax expense and the 2013 amount includes a $2,074,500 non-cash income tax benefit
  • Net income per share on a fully diluted basis decreased to $0.08 from $0.32 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, appliances 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, American/Universal Supply Division, www.ausupplyinc.com, and S&A Supply, Inc., www.sasupplyinc.com. CCOM is headquartered in New Jersey, and, with its affiliates, operates out of 16 locations in its geographic trading area. For more information on CCOM’s operations, products and/or services, please visit www.ccomgrp.com.

 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
      December 31,     December 31,
2014 2013
Assets
Current assets:
Cash $ 238,696 $ 377,461
Accounts receivable, net of allowance for doubtful accounts of $892,960 and $657,765, respectively 9,654,270 9,729,122
Inventory 14,121,649 12,349,272
Prepaid expenses and other current assets 730,299 1,065,101
Deferred income tax asset   160,000     200,000  
Total current assets 24,904,914 23,720,956
Property and equipment, net 962,504 865,764
Goodwill 1,416,929 1,416,929
Other assets – noncurrent 43,246 107,718
Deferred income tax asset – noncurrent   2,056,500     2,016,500  
$ 29,384,093   $ 28,127,867  
Liabilities and Stockholders’ Equity
Current liabilities:
Borrowings under credit facility – revolving credit $ 11,940,419 $ 11,952,588
Notes payable, current portion; includes related party notes of $150,298 and $638,779, respectively 302,877 776,746
Trade payables 4,760,291 3,307,881
Accrued liabilities 1,388,238 1,664,558
Income taxes payable   16,087     14,175  
Total current liabilities 18,407,912 17,715,948
Convertible notes payable; related parties 200,000 200,000
Notes payable, non-current portion; includes related party notes of $1,134,934 and $1,285,232, respectively 1,433,257 1,659,235
Deferred income tax liability – noncurrent   567,000     538,000  
Total liabilities   20,608,169     20,113,183  
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, 9,154,953 shares issued and outstanding 457,747 457,747
Additional paid-in capital 12,596,866 12,596,866
Accumulated deficit   (4,292,920 )   (5,054,160 )
Total stockholders’ equity   8,775,924     8,014,684  
$ 29,384,093   $ 28,127,867  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
       
For the Years Ended December 31,
2014 2013
Sales $ 81,048,785 $ 88,458,677
Cost of sales   59,647,793     66,131,047  
Gross profit 21,400,992 22,327,630
 
Selling, general and administrative expenses, net   20,240,991     20,980,190  
Operating income 1,160,001 1,347,440
 
Other income 196,533 196,180
Interest expense, net; includes related party interest expense of $114,892 and $130,284, respectively   (554,011 )   (604,318 )
Income before income tax (expense) benefit 802,523 939,302
 
Income tax (expense) benefit   (41,283 )   2,043,910  
Net income $ 761,240   $ 2,983,212  
 
Income per common share:
Basic $ 0.08   $ 0.33  
Diluted $ 0.08   $ 0.32  
 
Weighted average shares outstanding:
Basic   9,154,953     9,154,953  
Diluted   9,439,565     9,446,564  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders’ Equity
For the Years Ended December 31, 2014 and 2013
      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, 2012 293,057 9,154,953 $ 14,653 $ 457,747 $ 12,659,782 $ (8,037,372 ) $ 5,094,810
 
Net Income 2,983,212 2,983,212
Preferred Stock Redemption (8,445 )   (422 )     (62,916 )       (63,338 )
Balance at December 31, 2013 284,612 9,154,953 $ 14,231 $ 457,747 $ 12,596,866 $ (5,054,160 ) $ 8,014,684
 
Net Income               761,240     761,240  
Balance at December 31, 2014 284,612   9,154,953 $ 14,231   $ 457,747 $ 12,596,866   $ (4,292,920 ) $ 8,775,924  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
 
      For The Years Ended December 31,
2014 2013
Cash flows from operating activities:
Net income $ 761,240 $ 2,983,212
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes 29,000 (2,074,500)
Provision for doubtful accounts 300,327 476,466
Depreciation and amortization 299,356 306,543
Net gain on sale of property and equipment (14,945) (9,759)
Changes in operating assets and liabilities:
Accounts receivable (225,475) 925,729
Inventory (1,772,377) (319,872)
Prepaid expenses and other current assets 334,802 307,289
Other assets – noncurrent 64,472 162,547
Trade payables 1,452,410 (1,934,163)
Accrued liabilities (276,320) 33,766
Income taxes payable 1,912 14,175
Net cash provided by operating activities 954,402 871,433
 
Cash flows from investing activities:
Additions to property and equipment (335,077) (138,359)
Proceeds from disposal of property and equipment 21,200 51,147
Net cash used in investing activities (313,877) (87,212)
 
Cash flows from financing activities:
Repurchase of preferred stock (63,338)
Repayments of notes payable; includes related party repayments of $2,138,779 and $2,123,784,
respectively (2,267,121) (2,295,958)
Issuance of notes payable, related party 1,500,000 2,000,000
Repayments under credit facility – revolving credit, net (12,169) (344,592)
Net cash used in financing activities (779,290) (703,888)
(Decrease) increase in cash (138,765) 80,333
Cash – beginning of year 377,461 297,128
Cash – end of year $ 238,696 $ 377,461
 

CCOM Group, Inc.
Peter D. Gasiewicz, 973-427-8224
Chief Executive Officer
or
William Salek, 973-427-8224
Chief Financial Officer