CCOM Group, Inc. Reports 2021 Results

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CCOM Group, Inc. (“CCOM”) (OTC Pink: “CCOM,” “CCOMP”), announced its financial results for the year ended December 31, 2021.

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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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