CCOM Group, Inc. Reports 2013 Second Quarter Results

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CCOM Group, Inc. Reports 2013 Second Quarter Results

HAWTHORNE, N.J.--(BUSINESS WIRE)-- CCOM Group, Inc. ("CCOM") (OTCQB: "CCOM," "CCOMP"), today announced its financial results for the three months and six months ended June 30, 2013.

Results for the three months ended June 30, 2013 compared to results for the same period in 2012:

  • Sales increased 12.4% to $24,443,817 from $21,737,833
  • Gross profit increased 5.6% to $5,834,727 from $5,524,183
  • Selling, general and administrative expenses increased 3.3% to $5,188,210 from $5,023,109
  • Operating income increased 29.0% to $646,517 from $501,074
  • Net income increased 35.4% to $549,762 from $405,979
  • Net income per share on a fully diluted basis increased to $0.06 from $0.04 per share

Results for the six months ended June 30, 2013 compared to results for the same period in 2012:

  • Sales increased 8.4% to $43,173,255 from $39,829,607
  • Gross profit increased 5.8% to $10,658,974 from $10,072,773
  • Selling, general and administrative expenses increased 1.9% to $10,631,793 from $10,435,457
  • Operating income increased to $27,181 from an operating loss of $(362,684)
  • Net loss decreased 67.3% to $(182,215) from $(557,611)
  • Net loss per share on a fully diluted basis decreased to $(0.02) from $(0.06) per share

Peter D. Gasiewicz, Chief Executive Officer of CCOM, said, "We are pleased that sales have continued to increase for three consecutive quarters as compared to the prior year's corresponding quarters. Our focus continues toward a wider, more profitable, and less seasonal family of products. We are hopeful that the HVAC market will rebound and expect that we'll be able to capitalize on a recovery."

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 17 locations in its geographic trading area. For more information on CCOM's operations, products and/or services, please visit www.ccomgrp.com.

Safe Harbor Statement

The foregoing press release may contain statements concerning CCOM's financial performance, markets and business operations that may be considered "forward-looking" under applicable securities laws. CCOM cautions readers of this press release that actual results might differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from any results that are projected in the forward-looking statements include the following: continued acceptance of CCOM's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in CCOM's periodic report filings with the Securities and Exchange Commission. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in CCOM's periodic reports and registration statements filed with the Securities and Exchange Commission. CCOM undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.

(Financial Highlights Follow)

  
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30,  December 31,
20132012
(Unaudited)
Assets
Current assets:
Cash$449,534$297,128
Accounts receivable, net of allowance for doubtful accounts of $570,658 and $429,186, respectively11,595,67111,131,317
Inventory12,825,43412,029,400
Prepaid expenses and other current assets 1,062,818  1,372,390 
Total current assets25,933,45724,830,235
Property and equipment900,6431,036,710
Goodwill1,416,9291,416,929
Other assets - noncurrent204,922270,265
Deferred income tax asset - noncurrent 100,000  100,000 
$28,555,951 $27,654,139 
Liabilities and Stockholders' Equity
Current liabilities:
Borrowings under credit facility - revolving credit$13,850,836$12,297,180
Notes payable, current portion; includes related party notes of $1,383,335 and $607,999, respectively1,519,179745,500
Convertible notes payable-related party200,000-
Trade payables4,870,6525,242,044
Accrued liabilities 1,644,233  1,630,792 
Total current liabilities22,084,90019,915,516
Convertible notes payable-related party-200,000
Notes payable, non-current portion; includes related party notes of $606,004 and $1,440,015, respectively1,041,4561,947,813
Deferred income tax liability - noncurrent 517,000  496,000 
Total liabilities 23,643,356  22,559,329 
Commitments and contingencies
Stockholders' equity:
Redeemable convertible preferred stock, $.05 par value, 2,500,000 shares authorized, 293,057 shares
issued and outstanding, liquidation preference of $1,465,28514,65314,653
Common stock, $.05 par value, 20,000,000 shares authorized, 9,154,953 shares issued and outstanding457,747457,747
Additional paid-in capital12,659,78212,659,782
Accumulated deficit (8,219,587) (8,037,372)
Total stockholders' equity 4,912,595  5,094,810 
$28,555,951 $27,654,139 
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
   
For The Three Months EndedFor The Six Months Ended
June 30,June 30,
2013 20122013 2012
Sales$24,443,817$21,737,833$43,173,255$39,829,607
Cost of sales18,609,09016,213,65032,514,28129,756,834
Gross profit5,834,7275,524,18310,658,97410,072,773
 
Selling, general and administrative expenses, net5,188,2105,023,10910,631,79310,435,457
Operating income (loss)646,517501,07427,181(362,684)
 
Other income63,90754,343113,429108,592
Interest expense, net; includes related party interest of $34,055 and $18,877 for three months ended June 30, 2013 and 2012, respectively, and $67,464 and $34,913 for the six months ended June 30, 2013 and 2012, respectively
 
(150,162)(149,438)(301,825)(303,519)
Income (loss) before income tax expense560,262405,979(161,215)(557,611)
 
Income tax expense10,500-21,000-
Net income (loss)$549,762$405,979$(182,215)$(557,611)
 
Income (loss) per common share:
Basic$ 0.06$ 0.04$ (0.02)$ (0.06)
Diluted$ 0.06$ 0.04$ (0.02)$ (0.06)
 
Weighted average shares outstanding:
Basic9,154,9539,154,9539,154,9539,154,953
Diluted9,448,0109,448,0109,154,9539,154,953
 
 
CCOM GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 For Six Months Ended
June 30,
2013 2012
Cash flows from operating activities:
Net loss$(182,215)$(557,611)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred income taxes21,000-
Provision for doubtful accounts165,375238,653
Depreciation164,900187,492
Net gain on disposal of fixed assets(9,259)(1,113)
Changes in operating assets and liabilities:
Accounts receivable(629,729)(506,402)
Inventory(796,034)(1,047,122)
Prepaid expenses and other current assets309,572147,342
Other assets - noncurrent65,34346,078
Trade payables(371,392)65,608
Accrued liabilities13,44147,250
Income taxes payable-(586)
Net cash used in operating activities(1,248,998)(1,380,411)
 
Cash flows from investing activities:
Additions to property and equipment(42,757)(80,335)
Proceeds from disposal of property and equipment50,6472,600
Net cash provided by (used in) investing activities7,890(77,735)
 
Cash flows from financing activities:
Repayments of notes payable; includes related party repayments of $1,048,014
and $366,005, respectively(1,160,142)(544,135)
Issuance of notes payable, related party1,000,000850,000
Borrowings under credit facility - revolving credit, net1,553,6561,124,296
Net cash provided by financing activities1,393,5141,430,161
Increase (decrease) in cash152,406(27,985)
Cash - beginning of period297,128271,697
Cash - end of period$449,534$243,712
 

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CCOM Group, Inc.
Peter D. Gasiewicz, 973-427-8224
Chief Executive Officer
or
William Salek, 973-427-8224
Chief Financial Officer

KEYWORDS:   United States  North America  New Jersey

INDUSTRY KEYWORDS:

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