CCOM Group, Inc. Reports 2012 Third Quarter Results

CCOM Group, Inc. Reports 2012 Third Quarter Results

HAWTHORNE, N.J.--(BUSINESS WIRE)-- CCOM Group, Inc. (name changed from Colonial Commercial Corp.) ("CCOM") (OTCQB: "CCOM," "CCOMP"), today announced its financial results for the three months and nine months ended September 30, 2012.

Results for the three months ended September 30, 2012 compared to results for the same period in 2011:

  • Sales decreased $9,747 to $21,357,739 from $21,367,486

  • Gross profit decreased 3.2% to $5,398,025 from $5,575,162

  • Selling, general and administrative expenses decreased 0.8% to $5,012,185 from $5,053,022

  • Operating income decreased 26.1% to $385,840 from $522,140

  • Net income decreased 29.4% to $282,858 from $400,528

  • Net income per share on a fully diluted basis decreased to $0.03 from $0.04 per share


Results for the nine months ended September 30, 2012 compared to results for the same period in 2011:

  • Sales increased 8.1% to $61,187,346 from $56,624,156

  • Gross profit increased 1.8% to $15,470,798 from $15,194,917

  • Selling, general and administrative expenses increased 1.6% to $15,447,642 from $15,202,146

  • Operating income increased $30,385 to $23,156 from $(7,229)

  • Net loss decreased 25.0% to $(274,753) from $(366,182)

  • Net loss per share on a fully diluted basis decreased to $(0.03) from $(0.04) per share

William Pagano, Chief Executive Officer of CCOM, said, "The Company's third quarter results reflect an unanticipated decline in sales during the month of September compared to our experience in prior years. We believe this decline was related to a general economic slowdown in our region and not a result of a loss of market penetration. Looking toward the fourth quarter, we are assessing the impact of Hurricane Sandy upon our business. This was the most destructive event to occur in our region in many years. I am pleased to say that no Company personnel were injured and that the Company incurred no significant property loss. We are also seeing strong demand for residential and commercial electric generators and are examining the potential impact on our business of the repair and reconstruction of buildings damaged in the storm."

About CCOM Group, Inc.

CCOM distributes heating, ventilating and air conditioning, ("HVAC"), equipment, parts and accessories, climate control systems, customized control panels, and plumbing and electrical supplies and equipment to professional contractors in the states of New York, New Jersey, Massachusetts, Connecticut and eastern Pennsylvania 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. The Company also distributes home appliances to dealer groups and appliance stores through its Goldman Universal division. The Company is headquartered in New Jersey, and, with its affiliates, operates out of 18 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 the company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the company'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.

CCOM GROUP, INC. (FORMERLY COLONIAL COMMERCIAL CORP.) AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

September 30,

December 31,

2012

2011

(Unaudited)

Assets

Current assets:

Cash

$

293,327

$

271,697

Accounts receivable, net of allowance for doubtful accounts of $490,309 and $652,449, respectively

9,218,982

10,057,598

Inventory

13,273,357

12,035,597

Prepaid expenses and other current assets

1,292,323

1,413,531

Total current assets

24,077,989

23,778,423

Property and equipment

883,997

949,912

Goodwill

1,416,929

1,416,929

Other assets

276,480

428,532

$

26,655,395

$

26,573,796

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under credit facility - revolving credit

$

12,238,749

$

11,991,407

Notes payable, current portion; includes related party notes of $382,009 and $32,009, respectively

747,933

384,630

Trade payables

5,819,795

5,681,928

Accrued liabilities

1,309,627

1,476,776

Income taxes payable

-

586

Total current liabilities

20,116,104

19,535,327

Convertible notes payable-related party

200,000

200,000

Notes payable, non-current portion; includes related party notes of $774,007 and $798,014, respectively

1,753,093

1,977,518

Total liabilities

22,069,197

21,712,845

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 $1,465,285

14,653

14,653

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

12,659,782

12,659,782

Accumulated deficit

(8,545,984

)

(8,271,231

)

Total stockholders' equity

4,586,198

4,860,951

$

26,655,395

$

26,573,796

CCOM GROUP, INC. (FORMERLY COLONIAL COMMERCIAL CORP.) AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

For The Three Months Ended

For The Nine Months Ended

September 30,

September 30,

2012

2011

2012

2011

Sales

$

21,357,739

$

21,367,486

$

61,187,346

$

56,624,156

Cost of sales

15,959,714

15,792,324

45,716,548

41,429,239

Gross profit

5,398,025

5,575,162

15,470,798

15,194,917

Selling, general and administrative expenses, net

5,012,185

5,053,022

15,447,642

15,202,146

Operating income (loss)

385,840

522,140

23,156

(7,229

)

Other income

52,696

56,810

161,288

198,374

Interest expense, net; includes related party interest of $17,913

and $15,350 for the three months ended September 30, 2012

and 2011, respectively, and $52,827 and $46,769 for the nine

months ended September 30, 2012 and 2011, respectively

(155,678

)

(178,422

)

(459,197

)

(557,327

)

Net income (loss)

$

282,858

$

400,528

$

(274,753

)

$

(366,182

)

Income (loss) per common share:

Basic

$

0.03

$

0.04

$

(0.03

)

$

(0.04

)

Diluted

$

0.03

$

0.04

$

(0.03

)

$

(0.04

)

Weighted average shares outstanding:

Basic

9,154,953

9,154,953

9,154,953

8,179,129

Diluted

9,448,010

9,448,010

9,154,953

8,179,129

CCOM GROUP, INC. (FORMERLY COLONIAL COMMERCIAL CORP.) AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

For Nine Months Ended

September 30,

2012

2011

Cash flows from operating activities:

Net loss

$

(274,753

)

$

(366,182

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Provision for doubtful accounts

307,083

244,449

Depreciation

277,213

277,890

Net gain on disposal of fixed assets

(1,113

)

(644

)

Changes in operating assets and liabilities

Accounts receivable

531,533

(1,335,523

)

Inventory

(1,237,760

)

(1,394,220

)

Prepaid expenses and other current assets

121,208

(323,252

)

Other assets - noncurrent

152,052

(10,971

))

Trade payables

137,867

307,970

Accrued liabilities

(167,149

)

(109,950

)

Income taxes payable

(586

)

(2,360

)

Net cash used in operating activities

(154,405

)

(2,712,793

)

Cash flows from investing activities:

Additions to property and equipment

(129,070

)

(63,656

)

Proceeds from disposal of property and equipment

2,600

4,383

Net cash used in investing activities

(126,470

)

(59,273

)

Cash flows from financing activities:

Repayments of notes payable; includes related party repayments of $874,007

and $224,007, respectively

(1,144,837

)

(458,409

)

Issuance of notes payable, related party

1,200,000

250,000

Issuance of common stock

-

2,250,000

Borrowings under credit facility - revolving credit, net

247,342

768,176

Net cash provided by financing activities

302,505

2,809,767

Increase in cash

21,630

37,701

Cash - beginning of period

271,697

75,390

Cash - end of period

$

293,327

$

113,091



CCOM Group, Inc.
William Pagano, 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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