Business Wire | May 13, 2021 09:00AM EDT

CCOM Group, Inc. Reports 2021 First Quarter Results

May 13, 2021

HAWTHORNE, N.J.--(BUSINESS WIRE)--May 13, 2021--CCOM Group, Inc. ("CCOM") (OTC Pink: "CCOM," "CCOMP"), announced its financial results for the quarter ended March 31, 2021.

Results for the quarter ended March 31, 2021 compared to results for the same period in 2020:

* Sales decreased 1.5% to $22,082,860 from $22,408,803 * Gross profit increased 2.5% to $6,059,854 from $5,914,511 * Selling, general and administrative expenses decreased 8.0% to $5,991,712 from $6,512,497 * Operating income of $68,142 compared to operating loss of $(597,986) * Net income of $13,839 compared to a net loss of $(688,151) * Net income per share on a fully diluted basis of $0.00 per share compared to a net loss per share on a fully diluted basis of $(0.07) 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 SUBSIDIARIESCondensed Consolidated Balance Sheets March 31, December 31, 2021 2020

(Unaudited) AssetsCurrent assets:Cash $ 213,132 $ 388,267

Accounts receivable, net of allowance for doubtfulaccountsof $688,433 and $766,459, respectively 10,722,144 10,305,665

Inventory 25,416,309 20,936,936

Prepaid expenses and other current assets 548,682 749,053

Total current assets 36,900,267 32,379,921

Property and equipment 1,102,081 1,095,506

Goodwill 1,416,928 1,416,929

Other assets - noncurrent 320,113 188,824

Deferred tax asset - noncurrent 2,548,575 2,548,575

$ 42,287,964 $ 37,629,755

Liabilities and Stockholders' EquityCurrent liabilities:Borrowings under credit facility - revolving credit $ 12,067,906 $ 9,151,368

Notes payable - current portion 913,476 627,009

Trade payables 7,805,141 5,892,126

Accrued liabilities 2,303,510 2,450,810

Income taxes payable 2,850 2,850

Total current liabilities 23,092,883 18,124,163

Notes payable, excluding current portion 1,923,392 2,247,742

Deferred tax liability - noncurrent 354,000 354,000

Total liabilities 25,370,275 20,725,905

Commitments and contingenciesStockholders' equity:Redeemable convertible preferred stock, $.05 parvalue,2,500,000 shares authorized, 284,612 shares issuedandoutstanding, liquidation preference of $1,423,060 14,231 14,231

Common stock, $.05 par value, 20,000,000 sharesauthorized,9,154,928 shares issued and outstanding 457,746 457,746

Additional paid-in capital 12,596,853 12,596,853

Retained Earnings 3,848,859 3,835,020

Total stockholders' equity 16,917,689 16,903,850

$ 42,287,964 $ 37,629,755

CCOM GROUP, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations(Unaudited)For the Three Months EndedMarch 31,2021

2020

Sales$22,082,860

$22,408,803

Cost of sales16,023,006

16,494,292

Gross profit6,059,854

5,914,511

Selling, general and administrative expenses, net5,991,712

6,512,497

Operating income/(loss)68,142

(597,986)

Other income41,197

56,454

Interest expense, net(76,651)

(131,553)

Income/(loss) before income tax expense32,688

(673,085)

Income tax expense18,849

15,066

Net Income/(loss)$13,839

$(688,151)

Income/(Loss) per common share:Basic$0.00

$(0.07)

Diluted$0.00

$(0.07)

Weighted average sharesoutstanding:Basic9,154,928

9,154,928

Diluted9,439,540

9,154,928

CCOM GROUP, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Operations(Unaudited) For the Three Months Ended March 31, 2021 2020

Sales $ 22,082,860 $ 22,408,803

Cost of sales 16,023,006 16,494,292

Gross profit 6,059,854 5,914,511

Selling, general and administrative expenses, net 5,991,712 6,512,497

Operating income/(loss) 68,142 (597,986)

Other income 41,197 56,454

Interest expense, net (76,651) (131,553)

Income/(loss) before income tax expense 32,688 (673,085)

Income tax expense 18,849 15,066

Net Income/(loss) $ 13,839 $ (688,151)

Income/(Loss) per common share:Basic $ 0.00 $ (0.07)

Diluted $ 0.00 $ (0.07)

Weighted average sharesoutstanding:Basic 9,154,928 9,154,928

Diluted 9,439,540 9,154,928

CCOM GROUP, INC. AND SUBSIDIARIESConsolidated Statements of Stockholders' EquityFor The Three Months Ended March 31, 2021(Unaudited)Number of sharesRedeemableConvertiblePreferred StockCommon StockRedeemableConvertiblePreferred StockCommon StockAdditional Paid-InCapitalRetained Earnings/ Accumulated DeficitTotalStockholders'EquityBalance at December 31, 2020284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

3,835,020

$

16,903,850

Net Income13,839

13,839

Balance at March 31, 2021284,612

9,154,928

$

14,231

$

457,746

$

12,596,853

$

3,848,859

$

16,917,689

CCOM GROUP, INC. AND SUBSIDIARIESConsolidated Statements of Stockholders' EquityFor The Three Months Ended March 31, 2021(Unaudited) Number of shares Retained Redeemable Redeemable Additional Earnings Total Convertible Common Convertible Common Paid-In / Stockholders' Preferred Stock Preferred Stock Capital Accumulated Equity Stock Stock Deficit

Balanceat 284,612 9,154,928 $ 14,231 $ 457,746 $ 12,596,853 $ 3,835,020 $ 16,903,850December31, 2020 Net 13,839 13,839IncomeBalance 284,612 9,154,928 $ 14,231 $ 457,746 $ 12,596,853 $ 3,848,859 $ 16,917,689at March 31, 2021 CCOM GROUP, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(Unaudited)For The Three Months EndedMarch 31,2021

2020

Cash flows from operating activities:.Net Income/(loss)$13,839

$(688,151)

Adjustments to reconcile net income (loss) to net cashused in operating activities:Provision for doubtful accounts(85,449)

58,753

Depreciation109,282

98,253

Net gain on sale of fixed assets(3,000)

-

Changes in operating assets and liabilitiesAccounts receivable(331,030)

(519,030)

Inventory(4,479,373)

(5,396,373)

Prepaid expenses and other current assets200,371

247,686

Other assets - noncurrent(131,289)

6,225

Trade payables1,913,015

6,276,597

Accrued liabilities(147,300)

(473,826)

Net cash used in operating activities(2,940,934)

(389,866)

Cash flows from investing activities:Additions to property and equipment(115,856)

(126,784)

Proceeds from disposal of property and equipment3,000

-

Net cash used in investing activities(112,856)

(126,784)

Cash flows from financing activities:Repayments of notes payable(37,883)

(26,341)

Borrowings under credit facility - revolving credit, net2,916,538

692,964

Net cash provided by financing activities2,878,655

666,623

(Decrease)/Increase in cash(175,135)

149,973

Cash - beginning of period388,267

193,448

Cash - end of period$213,132

$343,421

View source version on businesswire.com: https://www.businesswire.com/news/home/20210513005044/en/

CONTACT: Peter D. Gasiewicz, Chief Executive Officer William Salek, Chief Financial Officer (973) 427-8224