CCOM Group, Inc. Reports 2015 First Quarter Results

May 14, 2015 | By Business Wire News

HAWTHORNE, N.J.

CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2015.

Results for the quarter ended March 31, 2015 compared to results for the same period in 2014:

Sales decreased 3.5% to $15,556,262 from $16,125,700
Gross profit increased 2.5% to $4,611,326 from $4,498,235
Selling, general and administrative expenses increased 0.5% to $5,201,329 from $5,173,268
Operating loss decreased 12.6% to $590,003 from $675,033
Net loss decreased 12.8% to $676,559 from $775,982
Net loss per share on a fully diluted basis decreased to $(0.07) from $(0.08) 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
Condensed Consolidated Balance Sheets

	March 31,			December 31,
	2015			2014


Assets
Current assets:
Cash	$	328,533		$	238,696
Accounts receivable, net of allowance for doubtful accounts
of $939,251 and $892,960, respectively		8,731,463			9,654,270
Inventory		16,770,116			14,121,649
Prepaid expenses and other current assets		836,261			730,299
Deferred tax asset		160,000			160,000
Total current assets		26,826,373			24,904,914
Property and equipment		918,751			962,504
Goodwill		1,416,929			1,416,929
Other assets – noncurrent		31,803			43,246
Deferred tax asset – noncurrent		2,056,500			2,056,500
	$	31,250,356		$	29,384,093
Liabilities and Stockholders’ Equity
Current liabilities:
Borrowings under credit facility – revolving credit	$	12,936,333		$	11,940,419
Notes payable – current portion; includes related party notes
of $1,653,324 and $150,298, respectively		1,816,462			302,877
Convertible notes payable, related party		200,000			–
Trade payables		5,426,031			4,760,291
Accrued liabilities		1,579,795			1,388,238
Income taxes payable		–			16,087
Total current liabilities		21,958,621			18,407,912
Convertible notes payable, excluding current portion-related party		–			200,000
Notes payable, excluding current portion; includes related party
notes of $345,449 and $1,134,934, respectively		625,370			1,433,257
Deferred tax liability – noncurrent		567,000			567,000
Total liabilities		23,150,991			20,608,169

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		(4,969,479	)		(4,292,920	)
Total stockholders’ equity		8,099,365			8,775,924
	$	31,250,356		$	29,384,093


CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)

		For the Three Months Ended
		March 31,
		2015			2014
Sales	$	15,556,262		$	16,125,700
Cost of sales		10,944,936			11,627,465
Gross profit		4,611,326			4,498,235

Selling, general and administrative expenses, net		5,201,329			5,173,268
Operating loss		(590,003	)		(675,033	)

Other income		44,872			47,957
Interest expense, net; includes related party interest of $29,598 and $31,888, respectively		(131,428	)		(138,406	)
Loss before income tax expense		(676,559	)		(765,482	)

Income tax expense		–			10,500
Net loss	$	(676,559	)	$	(775,982	)


Loss per common share:
Basic and diluted		$ (0.07	)		$ (0.08	)

Weighted average shares outstanding:
Basic and diluted		9,154,953			9,154,953


CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		For The Three Months Ended
		March 31,
		2015			2014
Cash flows from operating activities:
Net loss	$	(676,559	)	$	(775,982	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred income taxes		–			10,500
Provision for doubtful accounts		54,868			76,346
Depreciation		76,946			72,879
Net gain on sale of fixed assets		–			–
Changes in operating assets and liabilities
Accounts receivable		867,939			1,336,916
Inventory		(2,648,467	)		(1,368,944	)
Prepaid expenses and other current assets		(105,962	)		172,782
Other assets – noncurrent		11,443			87,246
Trade payables		665,740			1,050,628
Accrued liabilities		191,557			38,234
Income taxes payable		(16,087	)		(14,175	)
Net cash (used in) provided by operating activities		(1,578,582	)		686,430

Cash flows from investing activities:
Additions to property and equipment		(4,941	)		(164,068	)
Net cash used in investing activities		(4,941	)		(164,068	)

Cash flows from financing activities:
Repayments of notes payable: includes related party
repayments of $786,459 and $533,664 respectively		(822,554	)		(546,593	)
Issuance of notes payable, related party		1,500,000			500,000
Repayments under credit facility – revolving credit, net		995,914			(594,056	)
Net cash provided by (used in) financing activities		1,673,360			(640,649	)
Increase (Decrease) in cash		89,837			(118,287	)
Cash – beginning of period		238,696			377,461
Cash – end of period	$	328,533		$	259,174