CCOM Group, Inc. Reports 2021 Results

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 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

 

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Peter D. Gasiewicz, Chief Executive Officer

William Salek, Chief Financial Officer

(973) 427-8224

Source: CCOM Group, Inc.