CCOM Group, Inc. Reports 2016 Third Quarter Results

CCOM Group, Inc. ("CCOM") (OTC Pink: "CCOM," "CCOMP"), announced its financial results for the quarter ended September 30, 2016.

Results for the quarter ended September 30, 2016 compared to results for the same period in 2015:
  • Sales increased 7.8% to $23,984,268 from $22,247,460
  • Gross profit increased 13.6% to $6,209,729 from $5,467,414
  • Selling, general and administrative expenses increased 10.5% to $5,602,748 from $5,069,673
  • Operating income increased 52.6% to $606,981 from $397,741
  • Net income decreased 50.5% to $162,306 from $327,734; the 2016 amount includes a $270,000 non-cash deferred income tax expense (with a corresponding decrease to CCOM's deferred tax asset). There was no income tax expense in 2015.
  • Net income per share on a fully diluted basis decreased to $0.02 from $0.03 per share

Results for the nine months ended September 30, 2016 compared to results for the same period in 2015:
  • Sales increased 8.9% to $65,498,808 from $60,128,029
  • Gross profit increased 10.0% to $17,545,667 from $15,945,397
  • Selling, general and administrative expenses increased 7.3% to $16,428,581 from $15,317,576
  • Operating income increased 77.9% to $1,117,086 from $627,821
  • Net income increased 24.9% to $454,104 from $363,484; the 2016 amount includes a $270,000 non-cash deferred income tax expense (with a corresponding decrease to CCOM's deferred tax asset). There was no income tax expense in 2015.
  • Net income per share on a fully diluted basis increased to $0.05 from $0.04 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, 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 17 locations in its geographic trading area. For more information on CCOM's operations, products and/or services, please visit www.ccomgrp.com.

(Financial Highlights Follow)
           
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
September 30, December 31,
    2016       2015  
(Unaudited)
 
Assets
Current assets:
Cash $   427,879 $   577,303
Accounts receivable, net of allowance for doubtful accounts
of $ 909,253 and $1,086,213, respectively 11,280,563 10,043,006
Inventory 14,354,878 13,545,954
Prepaid expenses and other current assets 1,019,191 777,757
Deferred tax asset     170,000       170,000  
Total current assets 27,252,511 25,114,020
Property and equipment 780,423 889,866
Goodwill 1,416,929 1,416,929
Other assets - noncurrent - 6,981
Deferred tax asset - noncurrent     2,026,500       2,296,500  
$   31,476,363   $   29,724,296  
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit $ 13,858,532 $ 12,716,527
Notes payable - current portion; includes related party notes
of $172,803 and $162,773, respectively 359,332 325,895
Trade payables 3,728,796 3,833,579
Accrued liabilities 1,898,465 1,373,073
Income taxes payable     300       420  
Total current liabilities 19,845,425 18,249,494
Convertible notes payable, excluding current portion-related party 100,000 200,000
Notes payable, excluding current portion; includes related party
notes of $841,276 and $972,161, respectively 962,749 1,160,717
Deferred tax liability - noncurrent     567,000       567,000  
Total liabilities     21,475,174       20,177,211  
 
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,
9,154,928 shares issued and outstanding 457,746 457,746
Additional paid-in capital 12,596,853 12,596,853
Accumulated deficit     (3,067,641 )     (3,521,745 )
Total stockholders' equity     10,001,189       9,547,085  
$   31,476,363   $   29,724,296  
 

 
 

CCOM Group, Inc.Condensed Consolidated Statements of Operations(Unaudited)
   
 

 

For The Three Months EndedSeptember 30,

 

For The Nine Months EndedSeptember 30,

 

 
2016 2015 2016 2015
Sales $ 23,984,268 $ 22,247,460 $ 65,498,808 $ 60,128,029
Cost of sales 17,774,539   16,780,046   47,953,141   44,182,632  
Gross profit 6,209,729 5,467,414 17,545,667 15,945,397
 
Selling, general and administrative expenses 5,602,748   5,069,673   16,428,581   15,317,576  
Operating income 606,981 397,741

 
1,117,086

 
627,821
 
Other income 51,752 66,703 141,257 143,206
Interest expense, net; includes related party interest of
$17,532 and $28,948 for three months ended September 30, 2016
and 2015, respectively, and $84,596 and $88,163 for the
nine months ended September 30, 2016 and 2015, respectively (143,920 ) (136,710 ) (451,732 ) (407,543 )
Income before income tax expense 514,813 327,734 806,611 363,484
 
Income tax expense 352,507   -   352,507   -  
Net income $ 162,306   $ 327,734   $ 454,104   $ 363,484  
 
Income per common share:
Basic

$

0.02
 

$

0.04
 

$

0.05
 

$

0.04
 
Diluted

$

0.02
 

$

0.03
 

$

0.05
 

$

0.04
 
 
Weighted average shares

outstanding:
Basic

 
9,154,928   9,154,945   9,154,928   9,154,950  
Diluted 9,439,540   9,439,557   9,439,540   9,439,562  
 
     
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
For The Nine Months Ended
September 30,
2016   2015  
Cash flows from operating activities:
Net income $ 454,104 363,484
Adjustments to reconcile net income to net cash
used in operating activities:
Deferred income taxes 270,000 -
Provision for doubtful accounts 187,261 187,565
Depreciation 269,209 239,377
Net gain on sale of fixed assets (1,757 ) (6,040 )
Changes in operating assets and liabilities
Accounts receivable (1,424,818 ) (1,773,160 )
Inventory (808,924 ) (220,232 )
Prepaid expenses and other current assets (241,434 ) (180,377 )
Other assets - noncurrent 6,981 33,647
Trade payables (104,783 ) (217,173 )
Accrued liabilities 525,392 407,515
Income taxes payable (120 ) (16,087 )
Net cash used in operating activities (868,889 ) (1,181,481 )
 
Cash flows from investing activities:
Additions to property and equipment (86,250 ) (129,774 )
Proceeds from disposal of property and equipment 8,847     6,040  
Net cash used in investing activities (77,403 )   (123,734 )
 
Cash flows from financing activities:
Repurchase of stock - (14 )
Repayments of notes payable: includes related party
repayments of $2,870,855 and $2,361,593 respectively (3,095,137 ) (2,478,925 )
Issuance of notes payable, related party 2,750,000 3,000,000
Borrowings under credit facility - revolving credit, net 1,142,005   922,895  
Net cash provided by financing activities 796,868   1,443,956  
(Decrease) increase in cash (149,424 ) 138,741
Cash - beginning of period 577,303   238,696  
Cash - end of period $ 427,879   377,437  
 

View source version on businesswire.com: http://www.businesswire.com/news/home/20161114005428/en/

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX