CCOM Group, Inc. Reports 2021 Results

HAWTHORNE, N.J.–()–CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2021.

Results for the year ended December 31, 2021 compared to results for the same period in 2020:

  • Sales increased 18.1% to $120,346,433 from $101,936,300
  • Gross profit increased 28.5% to $33,683,440 from $26,213,512
  • Selling, general and administrative expenses increased 12.4% to $27,640,471 from $24,600,667
  • Operating income increased to $6,042,969 from $1,612,845
  • Net income increased to $7,382,228 from $1,053,885; the 2021 amount includes a $147,897 non-cash income tax expense and the 2020 amount includes a $250,425 non-cash income tax expense
  • Net income per share on a fully diluted basis increased to $0.76 per share from $0.11 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.

For further information, please contact Peter D. Gasiewicz, Chief Executive Officer, or William Salek, Chief Financial Officer, at (973) 427-8224.

(Financial Highlights Follow)

CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
 

December 31,

December 31,

2021

2020

Assets

Current assets:
Cash

$

281,889

$

388,267

Accounts receivable, net of allowance for doubtful accounts of $674,491 and $766,459, respectively

10,739,082

10,305,665

Inventory

25,496,908

20,936,936

Prepaid expenses and other current assets

751,647

749,053

Total current assets

37,269,526

32,379,921

Property and equipment

1,498,246

1,095,506

Goodwill

1,416,929

1,416,929

Other assets – noncurrent

564,720

188,824

Deferred tax asset – noncurrent

2,400,678

2,548,575

$

43,150,099

$

37,629,755

Liabilities and Stockholders’ Equity

Current liabilities:
Borrowings under credit facility – revolving credit

$

8,705,539

$

9,151,368

Notes payable – current portion

157,561

627,009

Trade payables

5,737,877

5,892,126

Accrued liabilities

3,565,042

2,450,810

Income taxes payable

2,557

2,850

Total current liabilities

18,168,576

18,124,163

Notes payable, excluding current portion

341,445

2,247,742

Deferred tax liability – noncurrent

354,000

354,000

Total liabilities

18,864,021

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 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

Retained Earnings

11,217,248

3,835,020

Total stockholders’ equity

24,286,078

16,903,850

$

43,150,099

$

37,629,755

CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
 

For the Years Ended

December 31,

2021

2020

Sales

$

120,346,433

$

101,936,300

Cost of sales

86,662,993

75,722,788

Gross profit

33,683,440

26,213,512

Selling, general and administrative expenses, net

27,640,471

24,600,667

Operating income

6,042,969

1,612,845

Other income

185,098

219,067

Gain on Early Extinguishment of debt

2,285,256

Interest expense, net

(327,282

)

(370,455

)

Income before income tax expense

8,186,041

1,461,457

Income tax expense

803,813

407,572

Net income

$

7,382,228

$

1,053,885

Income per common share:
Basic

$

0.81

$

0.11

Diluted

$

0.76

$

0.11

Weighted average shares outstanding:
Basic

9,154,928

9,154,928

Diluted

9,439,540

9,439,540

CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders’ Equity
For The Year Ended December 31, 2021 and 2020
 

Number of shares

Redeemable

Convertible

Preferred

Stock

Common

Stock

Redeemable

Convertible

Preferred

Stock

Common

Stock

Additional Paid-

In Capital

Retained

Earnings

Total

Stockholders’

Equity

Balance at December 31, 2019

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

2,781,135

$

15,849,965

Net Income

1,053,885

1,053,885

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

7,382,228

7,382,228

Balance at December 31, 2021

284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

11,217,248

$

24,286,078

CCOM GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
 

For The Years Ended

 

December 31,

 

2021

2020

Cash flows from operating activities:    
Net income  

$

7,382,228

 

$

1,053,885

Adjustments to reconcile net income to net cash    
provided by operating activities:    
Deferred income tax expense  

147,897

 

250,425

Provision for doubtful accounts  

128,332

 

288,924

Depreciation and amortization  

542,527

 

414,212

Net gain on sale of property and equipment  

(8,200

)

 

(12,851

)

Forgiveness of financing  

(2,285,256

)

 

Changes in operating assets and liabilities    
Accounts receivable  

(561,749

)

 

665,793

Inventory  

(4,559,972

)

 

(3,077,980

)

Prepaid expenses and other current assets  

(2,594

)

 

224,908

Other assets – noncurrent  

(375,896

)

 

167,964

Trade payables  

(154,249

)

 

1,763,991

Accrued liabilities  

1,114,232

 

(206,308

)

Income taxes payable  

(293

)

 

(21,775

)

Net cash provided by operating activities  

1,367,007

 

1,511,188

   
Cash flows from investing activities:    
Additions to property and equipment  

(876,240

)

 

(254,711

)

Proceeds from disposal of property and equipment  

8,200

 

21,600

Net cash used in investing activities  

(868,040

)

 

(233,111

)

   
Cash flows from financing activities:    
Repayments of notes payable  

(159,516

)

 

(124,044

)

Issuance of financing  

 

2,285,256

Repayments under credit facility – revolving credit, net  

(445,829

)

 

(3,244,470

)

Net cash used in financing activities  

(605,345

)

 

(1,083,258

)

(Decrease) / Increase in cash  

(106,378

)

 

194,819

Cash – beginning of year  

388,267

 

193,448

Cash – end of year  

$

281,889

 

$

388,267

LEAVE A REPLY

Please enter your comment!
Please enter your name here