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,
973-427-8224Chief Executive OfficerorWilliam
Salek, 973-427-8224Chief Financial Officer