CCOM Group, Inc. Reports 2014 Results
HAWTHORNE, N.J.--(BUSINESS WIRE)-- CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2014.
Results for the year ended December 31, 2014 compared to results for the same period in 2013:
- Sales decreased 8.4% to $81,048,785 from $88,458,677
- Gross profit decreased 4.2% to $21,400,992 from $22,327,630
- Selling, general and administrative expenses decreased 3.5% to $20,240,991 from $20,980,190
- Operating income decreased 13.9% to $1,160,001 from $1,347,440
- Net income decreased 74.5% to $761,240 from $2,983,212; the 2014 amount includes a $25,153 non-cash income tax expense and the 2013 amount includes a $2,074,500 non-cash income tax benefit
- Net income per share on a fully diluted basis decreased to $0.08 from $0.32 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 | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash | $ | 238,696 | $ | 377,461 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $892,960 and $657,765, respectively | 9,654,270 | 9,729,122 | ||||||||||
Inventory | 14,121,649 | 12,349,272 | ||||||||||
Prepaid expenses and other current assets | 730,299 | 1,065,101 | ||||||||||
Deferred income tax asset | 160,000 | 200,000 | ||||||||||
Total current assets | 24,904,914 | 23,720,956 | ||||||||||
Property and equipment, net | 962,504 | 865,764 | ||||||||||
Goodwill | 1,416,929 | 1,416,929 | ||||||||||
Other assets - noncurrent | 43,246 | 107,718 | ||||||||||
Deferred income tax asset - noncurrent | 2,056,500 | 2,016,500 | ||||||||||
$ | 29,384,093 | $ | 28,127,867 | |||||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Borrowings under credit facility - revolving credit | $ | 11,940,419 | $ | 11,952,588 | ||||||||
Notes payable, current portion; includes related party notes of $150,298 and $638,779, respectively | 302,877 | 776,746 | ||||||||||
Trade payables | 4,760,291 | 3,307,881 | ||||||||||
Accrued liabilities | 1,388,238 | 1,664,558 | ||||||||||
Income taxes payable | 16,087 | 14,175 | ||||||||||
Total current liabilities | 18,407,912 | 17,715,948 | ||||||||||
Convertible notes payable; related parties | 200,000 | 200,000 | ||||||||||
Notes payable, non-current portion; includes related party notes of $1,134,934 and $1,285,232, respectively | 1,433,257 | 1,659,235 | ||||||||||
Deferred income tax liability - noncurrent | 567,000 | 538,000 | ||||||||||
Total liabilities | 20,608,169 | 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 | (4,292,920 | ) | (5,054,160 | ) | ||||||||
Total stockholders' equity | 8,775,924 | 8,014,684 | ||||||||||
$ | 29,384,093 | $ | 28,127,867 | |||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||
Consolidated Statements of Income | ||||||||||
For the Years Ended December 31, | ||||||||||
2014 | 2013 | |||||||||
Sales | $ | 81,048,785 | $ | 88,458,677 | ||||||
Cost of sales | 59,647,793 | 66,131,047 | ||||||||
Gross profit | 21,400,992 | 22,327,630 | ||||||||
Selling, general and administrative expenses, net | 20,240,991 | 20,980,190 | ||||||||
Operating income | 1,160,001 | 1,347,440 | ||||||||
Other income | 196,533 | 196,180 | ||||||||
Interest expense, net; includes related party interest expense of $114,892 and $130,284, respectively | (554,011 | ) | (604,318 | ) | ||||||
Income before income tax (expense) benefit | 802,523 | 939,302 | ||||||||
Income tax (expense) benefit | (41,283 | ) | 2,043,910 | |||||||
Net income | $ | 761,240 | $ | 2,983,212 | ||||||
Income per common share: | ||||||||||
Basic | $ | 0.08 | $ | 0.33 | ||||||
Diluted | $ | 0.08 | $ | 0.32 | ||||||
Weighted average shares outstanding: | ||||||||||
Basic | 9,154,953 | 9,154,953 | ||||||||
Diluted | 9,439,565 | 9,446,564 | ||||||||
CCOM GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||||||||||
For the Years Ended December 31, 2014 and 2013 | ||||||||||||||||||||
Number of shares | ||||||||||||||||||||
Redeemable Convertible Preferred Stock | Common Stock | Redeemable Convertible Preferred Stock | Common Stock |
Additional Paid-In
Capital |
Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||
Balance at December 31, 2012 | 293,057 | 9,154,953 | $ | 14,653 | $ | 457,747 | $ | 12,659,782 | $ | (8,037,372 | ) | $ | 5,094,810 | |||||||
Net Income | - | - | - | - | - | 2,983,212 | 2,983,212 | |||||||||||||
Preferred Stock Redemption | (8,445 | ) | - | (422 | ) | - | (62,916 | ) | - | (63,338 | ) | |||||||||
Balance at December 31, 2013 | 284,612 | 9,154,953 | $ | 14,231 | $ | 457,747 | $ | 12,596,866 | $ | (5,054,160 | ) | $ | 8,014,684 | |||||||
Net Income | - | - | - | - | - | 761,240 | 761,240 | |||||||||||||
Balance at December 31, 2014 | 284,612 | 9,154,953 | $ | 14,231 | $ | 457,747 | $ | 12,596,866 | $ | (4,292,920 | ) | $ | 8,775,924 | |||||||
CCOM GROUP, INC. AND SUBSIDIARIES | |||||||
Consolidated Statements of Cash Flows | |||||||
For The Years Ended December 31, | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 761,240 | $ | 2,983,212 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Deferred income taxes | 29,000 | (2,074,500) | |||||
Provision for doubtful accounts | 300,327 | 476,466 | |||||
Depreciation and amortization | 299,356 | 306,543 | |||||
Net gain on sale of property and equipment | (14,945) | (9,759) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (225,475) | 925,729 | |||||
Inventory | (1,772,377) | (319,872) | |||||
Prepaid expenses and other current assets | 334,802 | 307,289 | |||||
Other assets – noncurrent | 64,472 | 162,547 | |||||
Trade payables | 1,452,410 | (1,934,163) | |||||
Accrued liabilities | (276,320) | 33,766 | |||||
Income taxes payable | 1,912 | 14,175 | |||||
Net cash provided by operating activities | 954,402 | 871,433 | |||||
Cash flows from investing activities: | |||||||
Additions to property and equipment | (335,077) | (138,359) | |||||
Proceeds from disposal of property and equipment | 21,200 | 51,147 | |||||
Net cash used in investing activities | (313,877) | (87,212) | |||||
Cash flows from financing activities: | |||||||
Repurchase of preferred stock | - | (63,338) | |||||
Repayments of notes payable; includes related party repayments of $2,138,779 and $2,123,784, | |||||||
respectively | (2,267,121) | (2,295,958) | |||||
Issuance of notes payable, related party | 1,500,000 | 2,000,000 | |||||
Repayments under credit facility - revolving credit, net | (12,169) | (344,592) | |||||
Net cash used in financing activities | (779,290) | (703,888) | |||||
(Decrease) increase in cash | (138,765) | 80,333 | |||||
Cash - beginning of year | 377,461 | 297,128 | |||||
Cash - end of year | $ | 238,696 | $ | 377,461 | |||
CCOM Group, Inc.
Peter D. Gasiewicz, 973-427-8224
Chief
Executive Officer
or
William Salek, 973-427-8224
Chief
Financial Officer
Source: CCOM Group, Inc.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- USCB Financial Holdings, Inc. (USCB) Tops Q1 EPS by 2c
- Utah Medical Products (UTMD) Reports Q1 EPS of $1.10
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!