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 |
||||
