Colonial Commercial Corp. Reports First Quarter 2004 Operating Results.Business Editors HICKSVILLE, N.Y.--(BUSINESS WIRE)--June 3, 2004 Colonial Commercial Corp. ("Colonial") (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). Bulletin Board: "CCOM CCOM Cheshil.com CCOM Conference Council on Ministries (United Methodist Church) CCOM Chicago College of Osteopathic Medicine CCOM Conseil Canadien des Organismes de Motoneige CCOM Call Center Operations Management CCOM Center of Coastal Ocean Mapping ," "CCOMP"), today announced operating results for the first quarter of the year 2004. For the quarter ended March 31, 2004, revenues increased 49.9% to $12,525,359, compared with revenues of $8,357,683 in the 2003 quarter. The inclusion of RAL 1. RAL - Rutherford Appleton Laboratory (UK). 2. RAL - An expert system. Supply Group, Inc. ("RAL"), which was acquired on September 30, 2003, and American/Universal Supply Inc. ("American"), which was a new operation that commenced on or about July 1, 2003, accounted for $3,099,435 of this increase. The remaining increase in sales was related to increased market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" in the core business of Universal Supply Group, Inc. ("Universal"), Colonial's major subsidiary. Simultaneously, gross margin dollars increased by $1,046,830 substantially and directly related to the sales increases. Gross margins expressed as a percentage of sales increased from 29.50% in 2003 to 30.42% in 2004, primarily due to increases in sales of deluxe higher margin products. The Company reported a net loss of $299,250, which included a net income tax benefit of $113,021 compared to a net loss of $69,084, which included a net income tax benefit of $82,742 in the 2003 quarter. The 2004-quarter included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $84,900 for stock based compensation compared to no stock based compensation charge in the 2003 quarter. Because of seasonal demand, results of first quarter operations are not indicative of the entire year. The Company expects that it will be profitable for the year 2004 and that profits will exceed 2003 profits. Bernard Korn, the Company's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We believe Colonial's future is promising. Universal, and its affiliates, have had significant increases in sales and operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in the past five years. We enjoy a superior reputation among customers, as well as a variety of exclusive and semi-exclusive distribution agreements with manufacturers. Our management is experienced and has the leadership qualities and focus to continue to grow and succeed." Colonial distributes climate control systems and over 350 different heating and air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. and high-end plumbing fixtures product lines through its Universal Supply Group, Inc., American/Universal Supply Inc. and RAL Supply Group, Inc. subsidiaries to heating, ventilating ventilating Natural or mechanically induced movement of fresh air into or through an enclosed space. The hazards of poor ventilation were not clearly understood until the early 20th century. Expired air may be laden with odors, heat, gases, or dust. and air conditioning (HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free ) contractors. These contractors in turn sell these products to residential and commercial/industrial customers. Universal also provides control system design, custom control panel fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , technical field support, in-house training and climate control consultation for engineers and installers. It is a leader in the design of direct digital control systems and systems that control multi-location facilities through the Internet. Universal is headquartered in New Jersey, and, with its affiliates, operates out of eight locations in New Jersey; nine in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and one in Pennsylvania. This press release includes statements that may constitute "forward-looking" statements, usually containing the words, "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, 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. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
COLONIAL COMMERCIAL CORP.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
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March 31, March 31,
2004 2003
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Sales $ 12,525,359 $ 8,357,683
Cost of Sales 8,715,380 5,892,239
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Gross Profit 3,809,979 2,465,444
General and Administrative 4,099,052 2,550,887
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Operating Income (Loss) (289,073) (85,443)
Other 56,650 84,005
Interest Income 67 153
Interest Expense (179,915) (150,541)
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Income (Loss) Before Income Taxes (412,271) (151,826)
Income Taxes (Benefit) (113,021) (82,742)
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Net Income (Loss) $ (299,250) $ (69,084)
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(Loss) Per Common Share:
Basic $ (0.11) $ (0.04)
Diluted $ (0.11) $ (0.04)
Weighted Average Shares Outstanding:
Basic 2,726,692 1,603,794
Diluted 2,726,692 1,603,794
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