CCOM Group, Inc. Reports 2014 Second Quarter Results

HAWTHORNE, N.J.--()--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended June 30, 2014.

Results for the quarter ended June 30, 2014 compared to results for the same period in 2013:

  • Sales decreased 2.4% to $23,858,421 from $24,443,817
  • Gross profit increased 4.6% to $6,101,342 from $5,834,727
  • Selling, general and administrative expenses decreased 6.0% to $4,878,432 (after taking into account a one-time real estate tax refund of $285,897) from $5,188,210
  • Operating income increased 89.2% to $1,222,910 from $646,517
  • Net income increased to $1,117,153 (including the one-time real estate tax refund of $285,897) from $549,762
  • Net income per share on a fully diluted basis increased to $0.12 from $0.06 per share

Results for the six months ended June 30, 2014 compared to results for the same period in 2013:

  • Sales decreased 7.4% to $39,984,121 from $43,173,255
  • Gross profit decreased 0.6% to $10,599,577 from $10,658,974
  • Selling, general and administrative expenses decreased 5.5% to $10,051,700 (after taking into account the one-time real estate tax refund of $285,897) from $10,631,793
  • Operating income increased to $547,877 from $27,181
  • Net income increased to $341,171 (including the one-time real estate tax refund of $285,897) from a net loss of $(182,215)
  • Net income per share on a fully diluted basis increased to $0.04 from $(0.02) 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
 
  June 30,   December 31,

2014

2013
(Unaudited)
 
Assets    
Current assets:
Cash $ 271,502 $ 377,461
Accounts receivable, net of allowance for doubtful accounts
of $806,025 and $658,765, respectively 11,050,358 9,729,122
Inventory 13,816,423 12,349,272
Prepaid expenses and other current assets 1,252,757 1,065,101
Deferred tax asset   200,000     200,000  
Total current assets 26,591,040 23,720,956
Property and equipment 974,513 865,764
Goodwill 1,416,929 1,416,929
Other assets - noncurrent 10,218 107,718
Deferred tax asset - noncurrent   2,016,500     2,016,500  
$ 31,009,200   $ 28,127,867  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 14,174,489 $ 11,952,588
Notes payable - current portion; includes related party notes
of $644,424 and $638,779, respectively 795,126 776,746
Trade payables 3,719,513 3,307,881
Accrued liabilities 1,632,900 1,664,558
Income taxes payable   17,890     14,175  
Total current liabilities 20,339,918 17,715,948
Convertible notes payable, excluding current portion-related party 200,000 200,000
Notes payable, excluding current portion; includes related party
notes of $1,211,580 and $1,285,232, respectively 1,554,427 1,659,235
Deferred tax liability - noncurrent   559,000     538,000  
Total liabilities   22,653,345     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   (4,712,989 )   (5,054,160 )
Total stockholders' equity   8,355,855     8,014,684  
$ 31,009,200   $ 28,127,867  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
 
    For the Three Months Ended       For the Six Months Ended
June 30, June 30,
2014 2013 2014 2013
 
Sales $ 23,858,421 $ 24,443,817 $ 39,984,121 $ 43,173,255
Cost of sales 17,757,079   18,609,090   29,384,544   32,514,281  
Gross profit 6,101,342 5,834,727 10,599,577 10,658,974
 
Selling, general and administrative expenses, net 4,878,432   5,188,210   10,051,700   10,631,793  
Operating income 1,222,910 646,517 547,877 27,181
 
Other income 53,733 63,907 101,690 113,429
Interest expense, net; includes related party interest
of $29,992 and $34,055, for the three months ended
June 30, 2014 and 2013, respectively and $60,440
and $67,464 for the six months ended June 30, 2014
and 2013, respectively (148,990 ) (150,162 ) (287,396 ) (301,825 )
Income (loss) before income tax expense 1,127,653 560,262 362,171 (161,215 )
 
Income tax expense 10,500   10,500   21,000   21,000  
Net income (loss) $ 1,117,153   $ 549,762   $ 341,171   $ (182,215 )
 
 
Income (loss) per common share:
Basic $ 0.12   $ 0.06   $ 0.04   $ (0.02 )
Diluted $ 0.12   $ 0.06   $ 0.04   $ (0.02 )
 
Weighted average shares outstanding:
Basic 9,154,953   9,154,953   9,154,953   9,154,953  
Diluted 9,439,565   9,448,010   9,439,565   9,154,953  
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For The Six Months Ended
June 30,
2014   2013
Cash flows from operating activities:      
Net income (loss) $ 341,171 $ (182,215 )
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Deferred income taxes 21,000 21,000
Provision for doubtful accounts 217,580 165,375
Depreciation 146,813 164,900
Net gain on sale of fixed assets (4,300 ) (9,259 )
Changes in operating assets and liabilities
Accounts receivable (1,538,816 ) (629,729 )
Inventory (1,467,151 ) (796,034 )
Prepaid expenses and other current assets (187,656 ) 309,572
Other assets - noncurrent 97,500 65,343
Trade payables 411,632 (371,392 )
Accrued liabilities (31,658 ) 13,441
Income taxes payable 3,715   -  
Net cash used in operating activities (1,990,170 ) (1,248,998 )
 
Cash flows from investing activities:
Additions to property and equipment (225,637 ) (42,757 )
Proceeds from disposal of property and equipment 4,300   50,647  

Net cash (used in) provided by investing activities

(221,337 ) 7,890  

 

Cash flows from financing activities:
Repayments of notes payable: includes related party repayments
of $1,068,007 and $1,058,435 respectively (1,116,353 ) (1,160,142 )
Issuance of notes payable, related party 1,000,000 1,000,000
Borrowings under credit facility - revolving credit, net 2,221,901   1,553,656  
Net cash provided by financing activities 2,105,548   1,393,514  
(Decrease) increase in cash (105,959 ) 152,406
Cash - beginning of period 377,461   297,128  
Cash - end of period $ 271,502   $ 449,534  
 

Contacts

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

Recent Stories

  • CCOM Group, Inc. Reports 2017 Second Quarter Results
    August 14, 2017
    HAWTHORNE, N.J.--(EON: Enhanced Online News)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter and six months ended June 30, 2017. Results for ... more »
  • CCOM Group, Inc. Reports 2017 First Quarter Results
    May 15, 2017
    HAWTHORNE, N.J.--(EON: Enhanced Online News)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the quarter ended March 31, 2017. Results for the quarter en... more »
  • CCOM Group, Inc. Reports 2016 Results
    April 28, 2017
    HAWTHORNE, N.J.--(EON: Enhanced Online News)--CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2016. Results for the year ended... more »
RSS feed for CCOM Group, Inc.

CCOM Group, Inc.