$CCOM
CCOM Group, Inc. Reports 2021 Third Quarter Results
Press Release | 11/12/2021
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
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.
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.
