HAWTHORNE, N.J.–(BUSINESS WIRE)–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 | Common | Redeemable | Common | Additional Paid- | Retained | Total | |||||||||||||
| 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 | ||||
