CCOM Group, Inc. Reports 2021 Third Quarter Results
CCOM Group, Inc. (OTC Pink: CCOM, CCOMP) reported strong financial results for the three and nine months ending September 30, 2021. Sales surged by 14.6% in Q3 to $32.3 million, while net income rose sharply to $3.6 million from $917,443 in 2020. Gross profit increased by 21.8% to $9.0 million. For the nine-month period, sales were up 17.9% to $91.1 million and net income reached $6.2 million, significantly higher than $1.2 million in 2020. The company also reported gains from extinguishing PPP debt and improvements in operating income.
- Sales increased 14.6% to $32.3 million in Q3 2021.
- Net income surged to $3.6 million compared to $917,443 in Q3 2020.
- Gross profit rose 21.8% to $9.0 million.
- Sales for the nine months increased 17.9% to $91.1 million.
- Net income for nine months increased to $6.2 million from $1.2 million in 2020.
- Operating income improved by 33.7% to $1.6 million in Q3.
- Selling, general and administrative expenses increased by 19.4% in Q3.
Results for the three months ended
-
Sales increased
14.6% to from$32,310,514 $28,185,554 -
Gross profit increased
21.8% to from$9,012,731 $7,401,499 -
Selling, general and administrative expenses increased
19.4% to from$7,365,369 $6,169,708 -
Operating income increased
33.7% to compared to$1,647,362 $1,231,791 -
Net income of
compared to$3,615,164 ; the 2021 and 2020 amounts each include a$917,443 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset). The 2021 amount includes a$158,333 gain on early extinguishment of PPP debt.$2,285,256 -
Net income per share on a fully diluted basis increased to
per share from$0.37 per share$0.09
Results for the nine months ended
-
Sales increased
17.9% to from$91,076,042 $77,279,836 -
Gross profit increased
24.5% to from$24,868,691 $19,979,153 -
Selling, general and administrative expenses increased
11.1% to from$20,273,021 $18,242,620 -
Operating income of
compared to$4,595,670 $1,736,533 -
Net income of
compared to$6,209,349 ; the 2021 and 2020 amounts each include a$1,161,213 non-cash deferred income tax expense (with a corresponding decrease to CCOM’s deferred tax asset). The 2021 amount includes a$158,333 gain on early extinguishment of PPP debt.$2,285,256 -
Net income per share on a fully diluted basis increased to
per share from$0.64 per share$0.12
About
(Financial Highlights Follow)
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Condensed Consolidated Balance Sheets |
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|
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2021 |
2020 |
|||||
(Unaudited) |
||||||
Assets |
||||||
Current assets: |
||||||
Cash |
$ | 296,154 |
$ | 388,267 |
||
Accounts receivable, net of allowance for doubtful accounts
|
||||||
11,699,412 |
10,305,665 |
|||||
Inventory |
23,575,963 |
20,936,936 |
||||
Prepaid expenses and other current assets |
821,064 |
749,053 |
||||
Total current assets | 36,392,593 |
32,379,921 |
||||
Property and equipment |
1,520,783 |
1,095,506 |
||||
|
1,416,928 |
1,416,929 |
||||
Other assets - noncurrent |
576,835 |
188,824 |
||||
Deferred tax asset - noncurrent |
2,231,909 |
2,548,575 |
||||
$ | 42,139,048 |
$ | 37,629,755 |
|||
Liabilities and Stockholders' Equity |
||||||
Current liabilities: |
||||||
Borrowings under credit facility - revolving credit |
$ | 9,492,568 |
$ | 9,151,368 |
||
Notes payable - current portion |
161,629 |
627,009 |
||||
Trade payables |
5,450,050 |
5,892,126 |
||||
Accrued liabilities |
|
3,189,541 |
2,450,810 |
|||
Income taxes payable |
- |
2,850 |
||||
Total current liabilities | 18,293,788 |
18,124,163 |
||||
Notes payable, excluding current portion |
378,061 |
2,247,742 |
||||
Deferred tax liability - noncurrent |
354,000 |
354,000 |
||||
Total liabilities | 19,025,849 |
20,725,905 |
||||
Commitments and contingencies |
||||||
Stockholders' equity: |
||||||
Redeemable convertible preferred stock, |
||||||
(Repayments) borrowings under credit facility - revolving credit, net |
14,231 |
14,231 |
||||
Common stock, |
||||||
457,746 |
457,746 |
|||||
Additional paid-in capital |
12,596,853 |
12,596,853 |
||||
Retained earnings |
10,044,369 |
3,835,020 |
||||
Total stockholders' equity |
23,113,199 |
16,903,850 |
||||
$ | 42,139,048 |
$ | 37,629,755 |
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The accompanying notes are integral part of these condensed consolidated financial statements. |
|
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Condensed Consolidated Statements of Operations |
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(Unaudited) |
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For The Three Months Ended |
For The Nine Months Ended |
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|
|
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2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|||||
Sales |
$ |
32,310,514 |
$ |
28,185,554 |
$ |
91,076,042 |
$ |
77,279,836 |
||||||
Cost of sales |
23,297,783 |
20,784,055 |
66,207,351 |
57,300,683 |
||||||||||
Gross profit |
9,012,731 |
7,401,499 |
24,868,691 |
19,979,153 |
||||||||||
Selling, general and administrative expenses |
7,365,369 |
6,169,708 |
20,273,021 |
18,242,620 |
||||||||||
Operating income |
1,647,362 |
1,231,791 |
4,595,670 |
1,736,533 |
||||||||||
Gain on Early Extinguishment of debt |
2,285,256 |
- |
2,285,256 |
- |
||||||||||
Other income |
42,121 |
44,026 |
139,719 |
179,364 |
||||||||||
Interest expense, net |
(83,722) |
(78,525) |
(252,551) |
(297,736) |
||||||||||
Income from operations |
3,891,017 |
1,197,292 |
6,768,094 |
1,618,161 |
||||||||||
Income tax expense |
275,853 |
279,849 |
558,745 |
456,948 |
||||||||||
Net income |
$ |
3,615,164 |
$ |
917,443 |
$ |
6,209,349 |
$ |
1,161,213 |
||||||
Income per common share: |
||||||||||||||
Basic |
$ |
0.38 |
$ |
0.10 |
$ |
0.66 |
$ |
0.12 |
||||||
Diluted |
$ |
0.37 |
$ |
0.09 |
$ |
0.64 |
$ |
0.12 |
||||||
Weighted average shares |
||||||||||||||
outstanding: |
||||||||||||||
Basic |
9,154,928 |
9,154,928 |
9,154,928 |
9,154,928 |
||||||||||
Diluted |
9,439,540 |
9,439,540 |
9,439,540 |
9,439,540 |
||||||||||
The accompanying notes are integral part of these condensed consolidated financial statements. |
|
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Consolidated Statements of Stockholders' Equity |
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For Nine Months Ended |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
Number of shares |
|||||||||||||||||||||
Redeemable
|
Common
|
Redeemable
|
Common
|
Additional Paid-In
|
Accumulated
|
Total
|
|||||||||||||||
Balance at |
284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
3,835,020 |
$ |
16,903,850 |
|||||||||
Net Income |
- |
- |
|
- |
|
- |
|
- |
|
13,839 |
|
13,839 |
|||||||||
Balance at |
284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
3,848,859 |
$ |
16,917,689 |
|||||||||
Net Income |
|
2,580,346 |
|
2,580,346 |
|||||||||||||||||
Balance at |
284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
6,429,205 |
$ |
19,498,035 |
|||||||||
Net Income |
|
3,615,164 |
|
3,615,164 |
|||||||||||||||||
Balance at |
284,612 |
9,154,928 |
$ |
14,231 |
$ |
457,746 |
$ |
12,596,853 |
$ |
10,044,369 |
$ |
23,113,199 |
|||||||||
The accompanying notes are integral part of these condensed consolidated financial statements. |
|
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Condensed Consolidated Statements of Cash Flows |
||||||||||
(Unaudited) |
||||||||||
For The Nine Months Ended |
||||||||||
|
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2021 |
2020 |
|||||||||
Cash flows from operating activities: |
||||||||||
Net income |
$ |
6,209,349 |
$ |
1,161,213 |
||||||
Adjustments to reconcile net income to net cash |
||||||||||
provided by operating activities: |
||||||||||
Deferred income taxes |
316,666 |
316,666 |
||||||||
Provision for doubtful accounts |
62,395 |
274,627 |
||||||||
Depreciation |
384,870 |
309,633 |
||||||||
Net gain on sale of property and equipment |
(6,200) |
(12,300) |
||||||||
Forgiveness of financing |
(2,285,256) |
- |
||||||||
Changes in operating assets and liabilities |
||||||||||
Accounts receivable |
(1,456,142) |
151,870 |
||||||||
Inventory |
(2,639,027) |
(1,196,752) |
||||||||
Prepaid expenses and other current assets |
(72,011) |
273,993 |
||||||||
Other assets - noncurrent |
(388,011) |
109,474 |
||||||||
Trade payables |
(442,076) |
1,051,231 |
||||||||
Accrued liabilities |
738,731 |
(280,992) |
||||||||
Income taxes payable |
(2,850) |
(24,625) |
||||||||
Net cash provided by operating activities |
420,438 |
2,134,038 |
||||||||
Cash flows from investing activities: |
||||||||||
Additions to property and equipment |
(741,119) |
(228,920) |
||||||||
Proceeds from disposal of property and equipment |
6,200 |
12,300 |
||||||||
Net cash used in investing activities |
(734,919) |
(216,620) |
||||||||
Cash flows from financing activities: |
||||||||||
Repayments of notes payable |
(118,832) |
(86,670) |
||||||||
Issuance of financing |
- |
2,285,256 |
||||||||
Borrowings (repayments) under credit facility - revolving credit, net |
341,200 |
(4,022,898) |
||||||||
Net cash provided by (used in) financing activities |
222,368 |
(1,824,312) |
||||||||
(Decrease) / Increase in cash |
(92,113) |
93,106 |
||||||||
Cash - beginning of period |
388,267 |
193,448 |
||||||||
Cash - end of period |
$ |
296,154 |
$ |
286,554 |
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The accompanying notes are integral part of these condensed consolidated financial statements. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211112005101/en/
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