CCOM Group, Inc. Reports 2013 First Quarter Results

CCOM Group, Inc. Reports 2013 First Quarter Results

HAWTHORNE, N.J.--(BUSINESS WIRE)-- CCOM Group, Inc. ("CCOM") (OTCQB: "CCOM," "CCOMP"), today announced its financial results for the three months ended March 31, 2013.

Results for the three months ended March 31, 2013 compared to results for the same period in 2012:

  • Sales increased 3.5% to $18,729,438 from $18,091,774

  • Gross profit increased 6.1% to $4,824,247 from $4,548,590

  • Selling, general and administrative expenses increased 0.6% to $5,443,583 from $5,412,348

  • Operating loss decreased 28.3% to $(619,336) from $(863,758)

  • Net loss decreased 24.0% to $(731,977) from $(963,590)

  • Net loss per share on a fully diluted basis decreased to $(0.08) from $(0.11) per share


Michael Goldman, Chief Executive Officer of CCOM, said, "The Company is seasonal and incurs losses in the first quarter each year. The 3.5% increase in first quarter year-over-year sales follows an 8.6% increase in fourth quarter year-over-year sales. Sales gains remained consistent in our residential and commercial businesses."

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 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 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. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

March 31,

December 31,

2013

2012

(Unaudited)

Assets

Current assets:

Cash

$

201,635

$

297,128

Accounts receivable, net of allowance for doubtful accounts of $512,282 and $429,186, respectively

9,350,730

11,131,317

Inventory

13,604,058

12,029,400

Prepaid expenses and other current assets

1,069,853

1,372,390

Total current assets

24,226,276

24,830,235

Property and equipment

926,521

1,036,710

Goodwill

1,416,929

1,416,929

Other assets - noncurrent

237,704

270,265

Deferred income tax asset - noncurrent

100,000

100,000

$

26,907,430

$

27,654,139

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under credit facility - revolving credit

$

12,420,211

$

12,297,180

Notes payable, current portion; includes related party notes of $1,391,663 and $607,999, respectively

1,525,876

745,500

Convertible notes payable-related party

200,000

-

Trade payables

5,452,412

5,242,044

Accrued liabilities

1,335,324

1,630,792

Total current liabilities

20,933,823

19,915,516

Convertible notes payable-related party

-

200,000

Notes payable, non-current portion; includes related party notes of $648,349 and $1,440,015, respectively

1,104,274

1,947,813

Deferred income tax liability - noncurrent

506,500

496,000

Total liabilities

22,544,597

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 $1,465,285

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

(8,769,349

)

(8,037,372

)

Total stockholders' equity

4,362,833

5,094,810

$

26,907,430

$

27,654,139

CCOM GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

For The Three Months Ended

March 31,

2013

2012

Sales

$

18,729,438

$

18,091,774

Cost of sales

13,905,191

13,543,184

Gross profit

4,824,247

4,548,590

Selling, general and administrative expenses

5,443,583

5,412,348

Operating loss

(619,336)

(863,758)

Other income

49,522

54,249

Interest expense, net; includes related party interest of $30,076 and $16,036, respectively

(151,663)

(154,081)

Loss before income tax expense

$

(721,477)

$

(963,590)

Income tax expense

10,500

-

Net loss

(731,977)

(963,590)

Net loss per common share:

Basic and diluted

$

(0.08)

$

(0.11)

Weighted average shares outstanding:

Basic and diluted

9,154,953

9,154,953

CCOM GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

For Three Months Ended

March 31,

2013

2012

Cash flows from operating activities:

Net loss

$

(731,977)

$

(963,590)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Deferred income taxes

10,500

-

Provision for doubtful accounts

83,773

123,184

Depreciation

81,548

93,667

Net gain on disposal of fixed assets

(2,720)

-

Changes in operating assets and liabilities:

Accounts receivable

1,696,814

1,693,934

Inventory

(1,574,658)

(482,476)

Prepaid expenses and other current assets

302,537

307,177

Other assets - noncurrent

32,561

14,441

Trade payables

210,368

(97,618)

Accrued liabilities

(295,468)

(268,660)

Net cash (used in) provided by operating activities

(186,722)

420,059

Cash flows from investing activities:

Additions to property and equipment

-

(57,274)

Proceeds from disposal of property and equipment

31,361

-

Net cash provided by (used in) investing activities

31,361

(57,274)

Cash flows from financing activities:

Repayments of notes payable; includes related party repayments of $508,002

and $8,002, respectively

(563,163)

(95,183)

Issuance of notes payable, related party

500,000

350,000

Borrowings (repayments) under credit facility - revolving credit, net

123,031

(465,897)

Net cash provided by (used in) financing activities

59,868

(211,080)

(Decrease) increase in cash

(95,493)

151,705

Cash - beginning of period

297,128

271,697

Cash - end of period

$

201,635

$

423,402



CCOM Group, Inc.
Michael Goldman, 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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