x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For
the fiscal year ended December 31, 2005
|
||
or
|
||
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For the transition period from ____________ to ____________ |
New
York
|
11-2037182
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
275
Wagaraw Road, Hawthorne, New Jersey
|
07506
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
|
None
|
OTC
Bulletin Board
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
Class
|
Outstanding
at March 1, 2006
|
|
Common
Stock, $.05 par value per share
|
4,548,644
shares
|
|
Convertible
Preferred Stock, $.05 par value per share
|
480,536
shares
|
PART
I
|
||
Page
|
||
Item
1.
|
2
|
|
|
||
Item
1A.
|
3
|
|
Item
2.
|
6
|
|
Item
3.
|
6
|
|
Item
4.
|
9
|
|
PART
II
|
||
Item
5.
|
9
|
|
Item
6.
|
11
|
|
Item
7.
|
12
|
|
Item
7A.
|
18
|
|
Item
8.
|
19
|
|
Item
9.
|
19
|
|
Item
9A.
|
19
|
|
PART
III
|
||
Item
10.
|
20
|
|
Item
11.
|
23
|
|
Item
12.
|
25
|
|
Item
13.
|
27
|
|
Item
14.
|
29
|
|
PART
IV
|
||
Item
15.
|
29
|
a.
|
employment
levels and job growth;
|
b.
|
population
growth;
|
c.
|
housing
demand or modernization of existing
homes;
|
d.
|
consumer
confidence (which can be substantially affected by external conditions,
including international hostilities involving the United States);
and
|
e.
|
the
availability of financing for homeowners and
homebuyers.
|
Common
Stock
|
|
Convertible
Preferred Stock
|
|
||||||||||
|
|
|
|
|
|
||||||||
2005
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|||||
First
Quarter
|
$
|
1.65
|
$
|
1.40
|
$
|
1.68
|
$
|
1.48
|
|||||
Second
Quarter
|
1.66
|
1.35
|
1.60
|
1.32
|
|||||||||
Third
Quarter
|
2.70
|
1.50
|
2.75
|
1.46
|
|||||||||
Fourth
Quarter
|
2.75
|
2.00
|
2.55
|
1.85
|
Common
Stock
|
|
Convertible
Preferred Stock
|
|
||||||||||
|
|
|
|
|
|
||||||||
2004
|
|
High
|
|
Low
|
|
High
|
|
Low
|
|||||
First
Quarter
|
$
|
1.95
|
$
|
.50
|
$
|
1.05
|
$
|
.60
|
|||||
Second
Quarter
|
1.85
|
1.20
|
1.50
|
.95
|
|||||||||
Third
Quarter
|
2.05
|
1.16
|
2.00
|
1.20
|
|||||||||
Fourth
Quarter
|
1.78
|
1.35
|
1.80
|
1.30
|
Approximate
Number of Record Holders
|
||
Title
of Class
|
(As
of March 1, 2006)
|
|
Common
stock par value $.05 per share
|
295
|
|
Convertible
preferred stock par value $.05 per share
|
877
|
Equity
Compensation Plan Information
|
||||||||||
Number
of securities to be issued upon exercise of outstanding options,
warrants
and rights
|
Weighted-average
exercise price of outstanding options, warrants and rights
|
Number
of securities remaining available for future issuance under equity
compensation plans
|
||||||||
Equity
compensation plans approved by security holders
|
106,000
|
$
|
0.25
|
0
|
||||||
Equity
compensation plans not approved by security holders
|
0
|
$
|
0.00
|
0
|
||||||
Total
|
106,000
|
$
|
0.25
|
0
|
Years
Ended December 31,
|
||||||||||||||||
2005
|
2004
|
2003
|
2002
|
2001
|
||||||||||||
Sales
|
$
|
66,690,945
|
$
|
61,454,128
|
$
|
44,671,136
|
$
|
36,998,800
|
$
|
31,080,398
|
(1)
|
|||||
|
||||||||||||||||
Operating
income
|
2,400,424
|
1,717,812
|
1,296,597
|
226,567
|
519,860
|
|||||||||||
|
||||||||||||||||
Income
(loss) from continuing operations
|
2,115,631
|
1,661,156
|
1,320,263
|
(106,310
|
)
|
(1,610,810
|
)
|
|||||||||
|
||||||||||||||||
Income
(loss) from operations of discontinued segment
|
-
|
-
|
-
|
3,300,695
|
(2)
|
(6,098,023
|
)
|
|||||||||
|
||||||||||||||||
Income
on disposal of discontinued operation
|
-
|
-
|
-
|
-
|
106,509
|
|||||||||||
|
||||||||||||||||
Income
(loss) on discontinued operation
|
-
|
-
|
-
|
3,300,695
|
(5,991,514
|
)
|
||||||||||
|
||||||||||||||||
|
||||||||||||||||
Net
income
|
$
|
2,115,631
|
$
|
1,661,156
|
$
|
1,320,263
|
$
|
3,194,385
|
$
|
(7,602,324
|
)
|
|||||
|
||||||||||||||||
Income
(loss) per common share:
|
||||||||||||||||
|
||||||||||||||||
Basic:
|
||||||||||||||||
|
||||||||||||||||
Continuing
operations
|
$
|
.49
|
$
|
.49
|
$
|
.67
|
$
|
(0.07
|
)
|
$
|
(1.00
|
)
|
||||
|
||||||||||||||||
Income
(loss) on discontinued operation
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2.06
|
$
|
(3.74
|
)
|
|||||
|
||||||||||||||||
Net
income (loss) per common share
|
$
|
.49
|
$
|
.49
|
$
|
.67
|
$
|
1.99
|
$
|
(4.74
|
)
|
|||||
|
||||||||||||||||
Diluted:
|
||||||||||||||||
|
||||||||||||||||
Continuing
operations
|
$
|
.40
|
$
|
.36
|
$
|
.38
|
$
|
(0.07
|
)
|
$
|
(1.00
|
)
|
||||
|
||||||||||||||||
Income
(loss) on discontinued operation
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2.06
|
$
|
(3.74
|
)
|
|||||
|
||||||||||||||||
Net
income (loss) per common share
|
$
|
.40
|
$
|
.36
|
$
|
.38
|
$
|
1.99
|
$
|
(4.74
|
)
|
December
31,
|
||||||||||||||||
2005
|
2004
|
2003
|
2002
|
2001
|
||||||||||||
Total
assets
|
$
|
27,537,375
|
$
|
24,515,258
|
$
|
20,618,987
|
$
|
13,686,842
|
$
|
13,925,490
|
||||||
|
||||||||||||||||
Current
liabilities
|
||||||||||||||||
|
||||||||||||||||
Borrowings
under credit facility
|
11,745,985
|
12,325,209
|
12,232,030
|
(2)
|
10,350,889
|
(2)
|
7,929,576
|
|||||||||
|
||||||||||||||||
Other
|
8,216,989
|
6,617,377
|
7,089,276
|
(3)
|
3,953,063
|
(3)
|
9,659,183
|
(3)
|
||||||||
|
||||||||||||||||
Long-term
liabilities, less current
|
||||||||||||||||
|
||||||||||||||||
Obligations
|
1,400,834
|
1,398,774
|
326,700
|
64,775
|
213,001
|
(1)
|
Due
to the discontinuance of operations in 2001, excludes sales from
Atlantic
which were $24,561,972 in 2001.
|
(2)
|
The
amounts shown in the table as “Borrowings under Credit Facility,” as of
December 31, 2003 and December 31, 2002, includes $2,500,000 which
Colonial Commercial Corp. and Universal agreed to pay to their
lending
bank in consideration of the bank releasing Colonial Commercial
Corp. and
Universal from their guarantees to the bank of an additional $3,300,695
of
Atlantic’s line of credit. The release from the $3,300,695 of the
guarantee resulted in the recognition of income from discontinued
operations in 2002. See “General Business
Developments.”
|
(3)
|
Amount
includes $219,007 of contingent liabilities of Atlantic. This liability
was settled in June 2004.
|
Payment
Due by Period (in thousands)
|
||||||||||||||||
Less
than
|
Over
|
|||||||||||||||
Total
|
1
Year
|
1-3
Years
|
4-5
Years
|
5
Years
|
||||||||||||
Operating
leases
|
$
|
10,382
|
$
|
2,751
|
$
|
5,700
|
$
|
1,085
|
$
|
846
|
||||||
Compensation
agreements
|
2,155
|
730
|
1,225
|
200
|
-
|
|||||||||||
Notes
payable
|
1,566
|
165
|
1,395
|
6
|
-
|
|||||||||||
Notes
payable interest
|
346
|
132
|
214
|
-
|
-
|
|||||||||||
Line
of credit
|
11,746
|
11,746
|
-
|
-
|
-
|
|||||||||||
Line
of credit interest
|
881
|
881
|
-
|
-
|
-
|
|||||||||||
Totals
|
$
|
27,076
|
$
|
16,405
|
$
|
8,534
|
$
|
1,291
|
$
|
846
|
Name
|
Age
|
Position
with the Company
|
||
Common Stock Directors and Executive Officers: | ||||
E.
Bruce Fredrikson
|
67
|
Director,
Chairman of Audit Committee
|
||
Melissa
Goldman
|
37
|
Director
|
||
Michael
Goldman
|
67
|
Director
|
||
Bernard
Korn
|
80
|
Chairman
of the Board and Chief Executive Officer of the Company
|
||
William
Pagano
|
66
|
Director
and President of the Company and President of Universal
|
||
William
Salek
|
44
|
Chief
Financial Officer and Secretary of the Company and Vice President
of
Universal
|
||
Carl
L. Sussman
|
81
|
Director
|
||
Convertible Preferred Stock Directors: | ||||
William
Koon
|
76
|
Director
|
||
Ronald
Miller
|
62
|
Director
|
||
Jack
Rose
|
87
|
Director
|
Long-Term
|
|||||
Compensation
|
|||||
Annual
Compensation
|
Stock
|
||||
Name
and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Options
(Shares)
|
|
Bernard
Korn
|
2005
|
150,000
|
-
|
-
|
|
Chairman
of the Board, and Chief Executive
|
2004
|
150,000
|
-
|
-
|
|
Officer
of the Company
|
2003
|
158,654
|
-
|
60,000
|
|
William
Pagano
|
2005
|
200,000
|
317,924
|
-
|
|
Director
and President of the Company and
|
2004
|
200,000
|
240,862
|
-
|
|
President
of Universal
|
2003
|
200,000
|
232,257
|
-
|
|
William
Salek
|
2005
|
120,000
|
41,798
|
-
|
|
Chief
Financial Officer and Secretary of the
|
2004
|
105,000
|
27,350
|
-
|
|
Company
and Vice President of Universal
|
2003
|
95,000
|
25,736
|
-
|
|
|
Shares
Acquired on Exercise (#)
|
|
Value
Realized ($)
|
|
Number
of Unexercised Options at Fiscal Year-End
Exercisable/Unexercisable
|
|
Value
of Unexercised In-The-Money Options at Fiscal Year-End
Exercisable/Unexercisable
|
|
||||
|
|
|
|
|
|
|
|
|
|||||
Bernard
Korn
|
35,000
|
$
|
70,000
|
52,000/0
|
$
|
96,200/0
|
|||||||
William
Pagano
|
20,000
|
$
|
46,000
|
0/0
|
$
|
0/0
|
|||||||
William
Salek
|
5,000
|
$
|
10,500
|
0/0
|
$
|
0/0
|
Common
Stock
|
|||||||
Amount
and
|
|||||||
Nature
of
|
|||||||
Beneficial
|
|||||||
Name
of Beneficial Owner
|
Ownership*
|
Percent
of Class
|
|||||
Officers
and Directors:
|
|||||||
E.
Bruce Fredrikson
|
6,000
|
**
|
|||||
Melissa
Goldman
|
5,400
|
**
|
|||||
Michael
Goldman
|
933,000
|
(1)
|
19.86
|
%
|
|||
William
Koon
|
18,741
|
(2)
|
**
|
||||
Bernard
Korn
|
629,255
|
(3)
|
13.68
|
%
|
|||
Ronald
H. Miller
|
12,054
|
(4)
|
**
|
||||
William
Pagano
|
667,973
|
(5)
|
14.58
|
%
|
|||
Jack
Rose
|
222,767
|
(6)
|
4.88
|
%
|
|||
William
Salek
|
61,667
|
(7)
|
1.35
|
%
|
|||
Carl
L. Sussman
|
99,607
|
(8)
|
2.19
|
%
|
|||
All
Officers and Directors as a Group:
|
2,656,464
|
55.06
|
%
|
||||
Other
Holders of Over 5%:
|
|||||||
Rita
C. Folger
|
478,719
|
(9)
|
10.45
|
%
|
|||
Richard
Rozzi
|
335,000
|
7.36
|
%
|
||||
Goldman
Associates of NY, Inc.
|
750,000
|
(10)
|
15.96
|
%
|
(a)
|
Exhibits
and Financial Statements
|
(1)
|
Financial
Statements. See Item 8. Index to Financial
Statements
|
(2)
|
Financial
Statement Schedules. See F-1 through F-28,
attached
|
(3)
|
Exhibits
|
Incorporated
By
|
|||||||||||
Filed
|
Date
Filed
|
Reference
|
|||||||||
Exhibit
|
Exhibit
Name
|
Herewith
|
Form
|
With
SEC
|
From
Exhibit
|
||||||
Restated
Certificate of Incorporation of Registrant dated January 6,
1983
|
Yes
|
||||||||||
Certificate
of Amendment of the Certificate of Incorporation dated October
31,
1986
|
Yes
|
||||||||||
Certificate
of Amendment of the Certificate of Incorporation dated June 24,
1988
|
Yes
|
||||||||||
Certificate
of Amendment of the Certificate of Incorporation dated January
13,
1998
|
Yes
|
||||||||||
Certificate
of Amendment of the Certificate of Incorporation dated January
13,
1998
|
Yes
|
||||||||||
By-Laws
of Registrant
|
Yes
|
||||||||||
Specimen
of Common Stock Certificate
|
Yes
|
||||||||||
Specimen
of Convertible Preferred Stock Certificate
|
Yes
|
||||||||||
10.01
|
|
Employment
Agreement dated as of January 1, 1998 between Registrant and
Bernard
Korn
|
10-KSB
|
03-31-98
|
10(a)
|
||||||
|
(a)
|
Amendment
Number 1 dated April 1, 1999 to Employment Agreement dated as
of January
1, 1998 between Registrant and Bernard Korn
|
10-K
|
04-11-01
|
10(a)(i)
|
||||||
(b)
|
Amendment
Number 2 dated April 1, 2000 to Employment Agreement dated as
of January
1, 1998 between Registrant and Bernard Korn
|
10-K
|
04-11-01
|
10(a)(ii)
|
|||||||
(c)
|
Amendment
Number 3 dated October 29, 2002 to Employment Agreement dated
as of
January 1, 1998 between Registrant and Bernard Korn
|
10-K
|
11-18-03
|
10(a)(iii)
|
|||||||
(d)
|
Amendment
Number 4 dated October 29, 2002 to Employment Agreement dated
as of
January 1, 1998 between Registrant and Bernard Korn
|
10-K
|
11-18-03
|
10(a)(iv)
|
|||||||
Amendment
Number 5 dated May 17, 2004 to Employment Agreement dated as
of January 1,
1998 between Registrant and Bernard Korn
|
Yes
|
||||||||||
10.02
|
Employment
Agreement dated as of June 25, 1999 between Universal Supply
Group, Inc.
and William Pagano
|
8-K
|
07-09-99
|
10(a)(iii)
|
|||||||
(a)
|
Amendment
Number 1 dated October 29, 2002 to Employment Agreement dated
as of June
25, 1999 between Universal Supply Group, Inc. and William
Pagano
|
8-K
|
11-02-05
|
10.02
|
|||||||
(b)
|
Amendment
Number 2 dated as of June 15, 2005 to Employment Agreement dated
as of
June 25, 1999 between Universal Supply Group, Inc. and William
Pagano
|
8-K
|
06-20-05
|
99.1
|
Employment
Agreement dated June 25, 1999 between Universal Supply Group,
Inc. and
William Salek
|
Yes
|
||||||||||
(a)
|
Amended
and Restated Employment Agreement dated as of January 20, 2005
to
Employment Agreement dated as of June 25, 1999 between Universal
Supply
Group, Inc. and William Salek
|
8-K
|
01-20-05
|
10.01
|
|||||||
10.04
|
1996
Stock Option Plan
|
S-8
|
10-02-97
|
28B
|
|||||||
10.05
|
Purchase
Agreement dated March 25, 1999 for business and assets subject
to certain
liabilities of Universal Supply Group, Inc.
|
10-KSB
|
03-30-99
|
10(g)
|
|||||||
(a)
|
Amendment
Number 1 dated June 25, 1999 to Purchase Agreement dated March
25,
1999
|
8-K
|
07-09-99
|
10(a)(ii)
|
|||||||
(b)
|
Loan
and Security Agreement dated June 24, 1999 between LaSalle Bank
National
Association and Universal Supply Group, Inc.
|
8-K
|
07-09-99
|
10(a)(iv)
|
|||||||
(c)
|
Demand
Note dated June 24, 1999 between LaSalle Bank National Association
and
Colonial Commercial Sub Corp.
|
8-K
|
07-09-99
|
10(a)(v)
|
|||||||
(d)
|
Guaranty
of All Liabilities and Security Agreement of Colonial Commercial
Sub Corp.
by Colonial Commercial Corp. to LaSalle Bank National Association
dated
June 24, 1999
|
8-K
|
07-09-99
|
10(a)(vi)
|
|||||||
(e)
|
Waiver
and Tenth Amendment dated November 21, 2002 to the Loan and Security
Agreement dated June 24, 1999 between LaSalle Bank National Association
and Universal Supply Group, Inc.
|
10-K
|
11-18-03
|
10(e)(vi)
|
|||||||
(f)
|
Securities
Pledge Agreement dated November 21, 2002 made by the Registrant
in favor
of LaSalle Bank National Association, re: Universal Supply Group,
Inc.
|
10-K
|
11-18-03
|
(10)(e)(vii)
|
|||||||
10.06
|
Certain
documents related to refinance with Wells Fargo Business Credit,
Inc. of
asset based loan and term loan dated July 28, 2004, previously
with
LaSalle Bank National Association:
|
||||||||||
(a)
|
Credit
Security Agreement dated July 28, 2004 between American/Universal
Supply,
Inc., The RAL Supply Group, Inc. and Universal Supply Group,
Inc. to Wells
Fargo Business Credit, Inc.
|
10-Q
|
08-16-04
|
10.1
|
|||||||
10.07
|
Certain
documents related to Well-Bilt Steel Products, Inc.:
|
||||||||||
(a)
|
Reaffirmation
Agreement, General Release Consent and Acknowledgement of Commercial
Reasonableness of Private Sale dated February 1, 2001between
Atlantic
Hardware & Supply Corporation, Universal Supply Group, Inc., Colonial
Commercial Corp., and the Secured Lender
|
8-K
|
02-16-01
|
10(a)(i)
|
(b)
|
Reaffirmation
Agreement, General Release Consent and Acknowledgement of Commercial
Reasonableness of Private Sale dated February 1, 2001between
Well-Bilt
Steel Products, Inc. and the Secured Lender
|
8-K
|
02-16-01
|
10(a)(ii)
|
|||||||
(c)
|
Foreclosure
Agreement dated February 1, 2001 between Independent Steel Products,
LLC,
the Secured Lender, Atlantic Hardware & Supply Corporation, Universal
Supply group, Inc. and Well-Bilt Steel Products, Inc.
|
8-K
|
02-16-01
|
10(a)(iii)
|
|||||||
(d)
|
Bill
of Sale and Assignment dated February 1, 2001 made by the Secured
Lender
in favor of Independent Steel Products, LLC
|
8-K
|
02-16-01
|
10(a)(iv)
|
|||||||
10.08
|
Inventory
Control Agreement re: Universal Supply Group, Inc. taking in
inventory on
a consignment basis dated August 9, 2001 between Douglas-Guardian
Services
Corporation, Universal Supply Group, Inc. and GMC Sales
corp.
|
10-K
|
11-18-03
|
10(g)
|
|||||||
10.09
|
Agreement
of Purchase of Sale of Assets dated July 1, 2002 between Goldman
Associates of New York, Inc. and Universal Supply Group,
Inc.
|
10-K
|
11-18-03
|
10(h)
|
|||||||
Private
Placement Purchase Agreement dated June 30, 2003 by and among
Colonial
Commercial Corp. and the persons who are counterparts to the
Agreement as
“Investors”
|
Yes
|
||||||||||
Private
Placement Purchase Agreement dated February 12, 2004 by and among
Colonial
Commercial Corp. and the persons who are counterparts to the
Agreement as
“Investors”
|
Yes
|
||||||||||
10.12
|
Private
Placement Purchase Agreement dated July 29, 2004 by and among
Colonial
Commercial Corp, and the persons who are counterparts to the
Agreement as
“Investors” including:
|
||||||||||
|
(a)
|
Private
Placement Purchase Agreement
|
10-Q
|
08-16-04
|
4.1
|
||||||
|
(b)
|
Convertible
Note Payable
|
10-Q
|
08-16-04
|
4.2
|
||||||
10.13
|
Private
Placement Purchase Agreement dated July 29, 2004 by and among
Michael
Goldman and Goldman Associates of New York, Inc.
including:
|
10-Q
|
08-16-04
|
4.3
|
|||||||
(a)
|
Private
Placement Agreement
|
10-Q
|
08-16-04
|
4.4
|
|||||||
(b)
|
Secured
Note
|
10-Q
|
08-16-04
|
4.5
|
|||||||
(c)
|
Warrant
|
10-Q
|
08-16-04
|
4.6
|
|||||||
10.14
|
Asset
Purchase Agreement dated September 5, 2003 for the purchase of
certain
assets, subject to certain liabilities of The RAL Supply Group,
Inc., by
RAL Purchasing Corp., a wholly-owned subsidiary of Colonial Commercial
Corp.
|
8-K
|
10-15-03
|
10(a)(i)
|
10.15
|
RAL
Closing Statement dated September 30, 2003
|
8-K
|
10-15-03
|
10(a)(ii)
|
|||||||
10.16
|
Lease
Agreement by and between Zanzi Realty, Inc. and The RAL Supply
Group,
Inc., dated September 1, 1998
|
8-K
|
11-02-05
|
10.04
|
|||||||
(a)
|
First
Modification of Lease Agreement dated September 30, 2003 to Lease
Agreement by and between Zanzi Realty, Inc. and The RAL Supply
Group,
Inc., dated September 1, 1998
|
8-K
|
11-02-05
|
10.05
|
|||||||
(b)
|
Second
Modification of Lease Agreement dated April 12, 2005 to Lease
Agreement by
and between Zanzi Realty, Inc. and The RAL Supply Group, Inc.,
dated
September 1, 1998
|
8-K
|
11-02-05
|
10.06
|
|||||||
10.17
|
Offer
to Purchase Odd Lot Shares and Letter of Transmittal dated August
16,
2005
|
8-K
|
08-18-05
|
10.01
|
|||||||
11.01
|
Statement
re computation of per share earnings (loss)—Not filed since computations
are readily apparent from the Consolidated Financial
Statements
|
||||||||||
14.01
|
Code
of Ethics
|
10-K
|
04-15-05
|
14
|
|||||||
Subsidiaries
of Registrant
|
Yes
|
||||||||||
Consent
of Registered Independent Public Accounting Firm—Weiser,
LLP
|
Yes
|
||||||||||
Certification
of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
Yes
|
||||||||||
Certification
of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
Yes
|
||||||||||
Certification
of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
Yes
|
||||||||||
Certification
of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
Yes
|
||||||||||
99.01
|
Affidavit
dated January 28, 2002 in support of Atlantic Hardware & Supply
Corporation’s Petition for Relief under Chapter 11 of the U.S. Bankruptcy
Code
|
10-K
|
11-18-03
|
99.1
|
|||||||
Dismissal
of Atlantic Hardware & Supply Corporation’s Petition for Relief by the
U.S. Bankruptcy Court for the Eastern District of New York dated
May 18,
2005
|
Yes
|
CONTENTS
|
|
Page
|
|
Report
of Independent Registered Public Accounting Firm: Weiser
LLP
|
F-2
|
Consolidated
Balance Sheets as of December 31, 2005 and 2004
|
F-3
|
Consolidated
Statements of Operations for the Years Ended December 31, 2005,
2004 and
2003
|
F-4
|
Consolidated
Statements of Stockholders’ Equity for the Years Ended December 31, 2005,
2004 and 2003
|
F-5
|
Consolidated
Statements of Cash Flows for the Years Ended December 31, 2005,
2004 and
2003
|
F-6
|
Notes
to the Consolidated Financial Statements
|
F-7
|
Schedule
II - Valuation and Qualifying Accounts
|
F-28
|
All
other schedules are omitted because they are not required or the
information required is given in the consolidated financial statements
or
notes thereto.
|
December
31,
|
December
31,
|
||||||
2005
|
2004
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
613,456
|
$
|
310,659
|
|||
Accounts
receivable, net of allowance for doubtful accounts of $185,971
in 2005 and
$290,448 in 2004
|
8,489,717
|
7,774,588
|
|||||
Inventory
|
12,214,261
|
11,002,314
|
|||||
Prepaid
expenses and other current assets
|
1,066,658
|
865,732
|
|||||
Deferred
tax asset - current portion
|
637,500
|
574,061
|
|||||
Total
current assets
|
23,021,592
|
20,527,354
|
|||||
Property
and equipment
|
1,669,484
|
1,656,149
|
|||||
Goodwill
|
1,628,133
|
1,628,133
|
|||||
Other
intangibles
|
11,334
|
27,500
|
|||||
Other
assets - noncurrent
|
135,832
|
183,183
|
|||||
Deferred
tax asset - noncurrent
|
1,071,000
|
492,939
|
|||||
|
$
|
27,537,375
|
$
|
24,515,258
|
|||
Liabilities
and Stockholders' Equity
|
|||||||
Current
liabilities:
|
|||||||
Trade
payables
|
$
|
5,991,946
|
$
|
4,721,790
|
|||
Accrued
liabilities
|
2,047,159
|
1,744,006
|
|||||
Income
taxes payable
|
12,772
|
36,316
|
|||||
Borrowings
under credit facility - revolving credit
|
11,183,008
|
10,658,542
|
|||||
Borrowings
under credit facility - term loan
|
562,977
|
1,666,667
|
|||||
Notes
payable - current portion; includes related party notes of $60,389
in 2005
and $30,000 in 2004
|
165,112
|
115,265
|
|||||
Total
current liabilities
|
19,962,974
|
18,942,586
|
|||||
Notes
payable, excluding current portion; includes related party notes
of
$1,000,625 in 2005 and $993,125 in 2004
|
1,400,834
|
1,398,774
|
|||||
Total
liabilities
|
21,363,808
|
20,341,360
|
|||||
|
|||||||
Commitments
and contingencies
|
|||||||
|
|||||||
Stockholders'
equity:
|
|||||||
Redeemable
convertible preferred stock, $.05 par value, 2,500,000 shares
authorized,
484,721 in 2005 and 790,439 in 2004 shares issued and outstanding,
liquidation preference of $2,423,605 in 2005 and $3,952,195 in
2004
|
24,236
|
39,522
|
|||||
Common
stock, $.05 par value, 20,000,000 shares authorized, 4,544,459
in 2005 and
4,158,441 in 2004 shares issued and outstanding
|
227,223
|
207,922
|
|||||
Additional
paid-in capital
|
10,626,859
|
10,746,836
|
|||||
Accumulated
deficit
|
(4,704,751
|
)
|
(6,820,382
|
)
|
|||
Total
stockholders' equity
|
6,173,567
|
4,173,898
|
|||||
|
$
|
27,537,375
|
$
|
24,515,258
|
COLONIAL
COMMERCIAL CORP. AND SUBSIDIARIES
|
||||||||||
Consolidated
Statements of Operations
|
||||||||||
For
the Years Ended December 31,
|
||||||||||
2005
|
2004
|
2003
|
||||||||
Net
sales
|
$
|
66,690,945
|
$
|
61,454,128
|
$
|
44,671,136
|
||||
Cost
of sales
|
46,507,769
|
43,069,981
|
31,504,654
|
|||||||
Gross
profit
|
20,183,176
|
18,384,147
|
13,166,482
|
|||||||
Selling,
general and administrative expenses, net
|
17,782,752
|
16,666,335
|
11,869,885
|
|||||||
Operating
income
|
2,400,424
|
1,717,812
|
1,296,597
|
|||||||
Other
income
|
272,597
|
320,359
|
324,367
|
|||||||
Interest
expense, net; includes related party interest of $94,703 in 2005,
$45,007
in 2004 and $3,181 in 2003
|
(1,044,454
|
)
|
(875,683
|
)
|
(637,857
|
)
|
||||
Income
from operations before income tax benefit
|
1,628,567
|
1,162,488
|
983,107
|
|||||||
Income
tax benefit
|
(487,064
|
)
|
(498,668
|
)
|
(337,156
|
)
|
||||
Net
income
|
$
|
2,115,631
|
$
|
1,661,156
|
$
|
1,320,263
|
||||
Income
per common share:
|
||||||||||
Basic
|
$
|
0.49
|
$
|
0.49
|
$
|
0.67
|
||||
Diluted
|
$
|
0.40
|
$
|
0.36
|
$
|
0.38
|
||||
Weighted
average shares outstanding:
|
||||||||||
Basic
|
4,295,697
|
3,403,152
|
1,971,129
|
|||||||
Diluted
|
5,293,114
|
4,587,966
|
3,501,698
|
COLONIAL
COMMERCIAL CORP. AND SUBSIDIARIES
|
||||||||||||||||||||||
Consolidated
Statements of Stockholders' Equity
|
||||||||||||||||||||||
For
The Years Ended December 31, 2005, 2004, and 2003
|
||||||||||||||||||||||
Number
of shares
|
||||||||||||||||||||||
Redeemable
Convertible Preferred Stock
|
Common
Stock
|
Redeemable
Convertible Preferred Stock
|
Common
Stock
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Total
Stockholders' Equity
|
||||||||||||||||
Balance
at December 31, 2002
|
1,464,252
|
1,603,794
|
$
|
73,213
|
$
|
80,190
|
$
|
8,966,513
|
$
|
(9,801,801
|
)
|
$
|
(681,885
|
)
|
||||||||
Net
income
|
1,320,263
|
1,320,263
|
||||||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
-
|
92,000
|
-
|
92,000
|
|||||||||||||||
Issuance
of common stock
|
-
|
802,000
|
-
|
40,100
|
200,500
|
-
|
240,600
|
|||||||||||||||
Other
|
2,540
|
(2,476
|
)
|
127
|
(124
|
)
|
-
|
-
|
3
|
|||||||||||||
Balance
at December 31, 2003
|
1,466,792
|
2,403,318
|
73,340
|
120,166
|
9,259,013
|
(8,481,538
|
)
|
970,981
|
||||||||||||||
Net
income
|
1,661,156
|
1,661,156
|
||||||||||||||||||||
Stock-based
compensation
|
62,025
|
62,025
|
||||||||||||||||||||
Conversion
of shares of preferred stock to common stock
|
(83,623
|
)
|
83,623
|
(4,181
|
)
|
4,181
|
-
|
|||||||||||||||
Retirement
of preferred stock
|
(592,730
|
)
|
(29,637
|
)
|
(326,002
|
)
|
(355,639
|
)
|
||||||||||||||
Issuance
of common stock
|
1,620,000
|
81,000
|
1,554,000
|
1,635,000
|
||||||||||||||||||
Options
exercised
|
51,500
|
2,575
|
10,300
|
12,875
|
||||||||||||||||||
Warrant
value
|
|
|
|
|
187,500
|
|
187,500
|
|||||||||||||||
Balance
at December 31, 2004
|
790,439
|
4,158,441
|
39,522
|
207,922
|
10,746,836
|
(6,820,382
|
)
|
4,173,898
|
||||||||||||||
Net
income
|
2,115,631
|
2,115,631
|
||||||||||||||||||||
Stock-based
compensation
|
(74,450
|
)
|
(74,450
|
)
|
||||||||||||||||||
Conversion
of shares of preferred stock to common stock
|
(298,018
|
)
|
298,018
|
(14,901
|
)
|
14,901
|
-
|
|||||||||||||||
Retirement
of preferred stock
|
(7,700
|
)
|
(385
|
)
|
(15,015
|
)
|
(15,400
|
)
|
||||||||||||||
Options
exercised
|
88,000
|
4,400
|
17,600
|
22,000
|
||||||||||||||||||
Tax
effect of options exercised
|
(48,112
|
)
|
(48,112
|
)
|
||||||||||||||||||
Balance
at December 31, 2005
|
484,721
|
4,544,459
|
$
|
24,236
|
$
|
227,223
|
$
|
10,626,859
|
$
|
(4,704,751
|
)
|
$
|
6,173,567
|
COLONIAL
COMMERCIAL CORP. AND SUBSIDIARIES
|
||||||||||
Consolidated
Statements of Cash Flows
|
||||||||||
For
The Years Ended December 31,
|
||||||||||
2005
|
2004
|
2003
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
2,115,631
|
$
|
1,661,156
|
$
|
1,320,263
|
||||
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||||
Deferred
tax benefit
|
(641,500
|
)
|
(645,600
|
)
|
(421,400
|
)
|
||||
Stock-based
compensation
|
(74,450
|
)
|
62,025
|
92,000
|
||||||
Provision
for doubtful accounts
|
101,724
|
225,183
|
188,050
|
|||||||
Depreciation
|
387,719
|
366,223
|
232,315
|
|||||||
Amortization
of intangibles
|
16,166
|
26,667
|
41,666
|
|||||||
Accretion
of debt discount
|
37,500
|
15,625
|
-
|
|||||||
Tax
effect of options exercised
|
(48,112
|
)
|
-
|
-
|
||||||
Changes
in operating assets and liabilities, net of the effects of
acquisition:
|
||||||||||
Accounts
receivable
|
(816,853
|
)
|
(1,745,871
|
)
|
(671,771
|
)
|
||||
Inventory
|
(1,211,947
|
)
|
(1,219,492
|
)
|
(1,770,078
|
)
|
||||
Prepaid
expenses and other current assets
|
(200,926
|
)
|
(245,054
|
)
|
(151,378
|
)
|
||||
Other
assets - noncurrent
|
47,351
|
(183,183
|
)
|
-
|
||||||
Trade
payables
|
1,270,156
|
(574,089
|
)
|
1,533,048
|
||||||
Accrued
liabilities
|
303,153
|
230,428
|
(118,196
|
)
|
||||||
Income
taxes payable
|
(23,544
|
)
|
(139,298
|
)
|
135,384
|
|||||
Net
cash provided by (used in) operating activities
|
1,262,068
|
(2,165,280
|
)
|
409,903
|
||||||
|
||||||||||
Cash
flows from investing activities:
|
||||||||||
Cash
acquired in acquisition of RAL Supply Group, Inc.
|
-
|
-
|
3,575
|
|||||||
Additions
to property and equipment
|
(401,054
|
)
|
(507,241
|
)
|
(377,407
|
)
|
||||
Net
cash used in investing activities
|
(401,054
|
)
|
(507,241
|
)
|
(373,832
|
)
|
||||
|
||||||||||
Cash
flows from financing activities:
|
||||||||||
Issuance
of common stock and exercise of stock options
|
22,000
|
1,647,875
|
240,600
|
|||||||
Retirement
of preferred stock
|
(15,400
|
)
|
(355,639
|
)
|
-
|
|||||
Repayments
of notes payable: includes related party repayments of $48,091
in 2005,
$30,000 in 2004, and -0- in 2003.
|
(141,292
|
)
|
(105,883
|
)
|
(38,402
|
)
|
||||
Issuance
of notes payable: includes related party notes of $48,480 in 2005,
$1,075,000 in 2004, and -0- in 2003.
|
155,699
|
1,173,392
|
73,643
|
|||||||
Issuance
of warrants
|
-
|
187,500
|
-
|
|||||||
Repayments
under credit facility - term loan
|
(1,103,690
|
)
|
(572,333
|
)
|
(261,000
|
)
|
||||
Repayments
(borrowings) under credit facility - revolving credit
|
524,466
|
665,512
|
(4,920
|
)
|
||||||
Net
cash (used in) provided by financing activities
|
(558,217
|
)
|
2,640,424
|
9,921
|
||||||
Increase
(decrease) in cash
|
302,797
|
(32,097
|
)
|
45,992
|
||||||
Cash
- beginning of year
|
310,659
|
342,756
|
296,764
|
|||||||
Cash
- end of year
|
$
|
613,456
|
$
|
310,659
|
$
|
342,756
|
(1)
|
Summary
of Significant Accounting Policies and
Practices
|
Computer
hardware and software
|
3-5
years
|
|
Furniture
and fixtures
|
5
years
|
|
Automobiles
|
3-5
years
|
2005
|
2004
|
2003
|
||||||||
Net
income, as reported
|
$
|
2,115,631
|
$
|
1,661,156
|
$
|
1,320,263
|
||||
Add:
Stock-based compensation related to option repricing
|
(74,450
|
)
|
62,025
|
92,000
|
||||||
Deduct:
Total stock-based employee compensation determined under fair value-based
method for all awards
|
-
|
-
|
(26,000
|
)
|
||||||
Pro
forma
|
$
|
2,041,181
|
$
|
1,723,181
|
$
|
1,386,263
|
||||
Basic
net income per common share
|
||||||||||
As
reported
|
$
|
.49
|
$
|
.49
|
$
|
.67
|
||||
Pro
forma
|
$
|
.48
|
$
|
.51
|
$
|
.70
|
||||
Diluted
net income per common share
|
||||||||||
As
reported
|
$
|
.40
|
$
|
.36
|
$
|
.38
|
||||
Pro
forma
|
$
|
.39
|
$
|
.38
|
$
|
.40
|
(Unaudited)
|
||||
For
The Year Ended
|
||||
(in
000s except for EPS data)
|
December
31, 2003
|
|||
Net
Sales
|
$
|
51,657
|
||
Operating
Income
|
1,741
|
|||
Net
Income From Continuing Operations
|
1,631
|
|||
Earnings
Per Share From Continuing Operations
|
||||
Basic
|
$
|
.83
|
||
Diluted
|
$
|
.47
|
2005
|
2004
|
||||||
Computer
hardware and software
|
$
|
884,011
|
$
|
678,737
|
|||
Furniture
and fixtures
|
85,180
|
67,015
|
|||||
Leasehold
improvements
|
1,361,620
|
1,249,954
|
|||||
Automobiles
|
560,484
|
498,025
|
|||||
2,891,295
|
2,493,731
|
||||||
Less
accumulated depreciation and amortization
|
1,221,811
|
837,582
|
|||||
$
|
1,669,484
|
$
|
1,656,149
|
December
31, 2005
|
December
31, 2004
|
|||||||||||||||||||||
Estimated
|
||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
Useful
|
||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Carrying
|
Accumulated
|
Carrying
|
Life
|
||||||||||||||||
Amount
|
Amortization
|
Amount
|
Amount
|
Amortization
|
Amount
|
(Years)
|
||||||||||||||||
Covenants
Not to Compete
|
$
|
241,667
|
$
|
(230,333
|
)
|
$
|
11,334
|
$
|
241,667
|
$
|
(214,167
|
)
|
$
|
27,500
|
5
|
For
the Years Ended December 31,
|
||||
2006
|
$
|
7,834
|
||
2007
|
2,000
|
|||
2008
|
1,500
|
|||
$
|
11,334
|
2005
|
2004
|
||||||
Various
term notes payable, (collateralized by the equipment purchased)
with
aggregate monthly principal and interest installments of $8,760
and $4,019
for 2005 and 2004, respectively, bearing interest between .9% to
5.9%*
|
$
|
245,321
|
$
|
170,914
|
|||
Subordinated term note
payable to a private individual, $30,000 annual principal payment,
interest at 9% payable monthly.**
|
90,000
|
120,000
|
|||||
Subordinated
term note payable to an investment company, $30,000 annual principal
payments, interest at 9% payable monthly
|
90,000
|
120,000
|
|||||
Term
notes payable to private investors, subordinated unsecured convertible
notes payable, bearing interest at 11% per annum, interest payable
quarterly, with 50% of the principal payable on June 1, 2008 and
the
balance on June 1, 2009. The notes are convertible into 175,000
shares of
common stock at $3.00 per share during the term of the
notes.***
|
525,000
|
525,000
|
|||||
Term
note payable of $750,000 to corporation, subordinated secured note
payable, bearing interest at the prime rate and payable quarterly,
principal payable on June 30, 2008 and warrants to purchase 150,000
shares
of common stock at $3.00 per share expiring June 30, 2008. The
warrant was
initially recorded at a fair value of $187,500 and recorded as
a discount
from the face value of the note and an increase to additional paid
in
capital. The discount is being accreted over the term of the note
as
additional interest expense. The Company recorded $37,500 and $15,625
in
interest expense during 2005 and 2004, respectively, related to
the
warrant.****
|
615,625
|
578,125
|
|||||
1,565,946
|
1,514,039
|
||||||
Less
current installments
|
165,112
|
115,265
|
|||||
$
|
1,400,834
|
$
|
1,398,774
|
2006
|
$
|
165,112
|
||
2007
|
131,850
|
|||
2008
|
984,974
|
|||
2009
|
277,991
|
|||
2010
|
6,019
|
|||
|
$
|
1,565,946
|
Shares
Subject to Option
|
Weighted
Average Exercise Price
|
||||||
Balance
at December 31, 2002
|
233,000
|
3.06
|
|||||
Expired
|
(91,500
|
)
|
2.25
|
||||
Granted
|
104,000
|
.25
|
|||||
Balance
at December 31, 2003
|
245,500
|
.25
|
|||||
Options
Exercised
|
(51,500
|
)
|
.25
|
||||
Balance
at December 31, 2004
|
194,000
|
.25
|
|||||
Options
Exercised
|
(88,000
|
)
|
.25
|
||||
Balance
at December 31, 2005
|
106,000
|
.25
|
Options
Outstanding and Exercisable
|
|||||||||||
Weighted
Average
|
|||||||||||
Range
of
|
Remaining
|
Weighted
Average
|
|||||||||
Exercise
Prices
|
Shares
|
Contractual
Life
|
Exercise
Price
|
||||||||
$.25
|
106,000
|
5.62
|
$.25
|
2005
|
2004
|
2003
|
||||||||
Net
income (numerator)
|
$
|
2,115,631
|
$
|
1,661,156
|
$
|
1,320,263
|
||||
Weighted
average common shares (denominator for basic income per
share)
|
4,295,697
|
3,403,152
|
1,971,129
|
|||||||
Effect
of dilutive securities:
|
||||||||||
Convertible
preferred stock
|
683,695
|
918,778
|
1,466,792
|
|||||||
Convertible
notes
|
175,000
|
72,931
|
-
|
|||||||
Employee
stock options
|
138,722
|
193,105
|
63,777
|
|||||||
Weighted
average common and potential common shares outstanding (denominator
for
diluted income (loss) per share)
|
5,293,114
|
4,587,966
|
3,501,698
|
|||||||
Basic
net income (loss) per share
|
$
|
.49
|
$
|
.49
|
$
|
.67
|
||||
Diluted
net income (loss) per share
|
$
|
.40
|
$
|
.36
|
$
|
.38
|
2005
|
2004
|
2003
|
||||||||||||||||||||||||||
State
|
State
|
State
|
||||||||||||||||||||||||||
And
|
And
|
And
|
||||||||||||||||||||||||||
Federal
|
Local
|
Total
|
Federal
|
Local
|
Total
|
Federal
|
Local
|
Total
|
||||||||||||||||||||
Current
|
$
|
(16,239
|
)
|
$
|
170,675
|
$
|
154,436
|
$
|
9,000
|
$
|
137,932
|
$
|
146,932
|
$
|
(69,970
|
)
|
$
|
154,214
|
$
|
84,244
|
||||||||
Deferred
|
(641,500
|
)
|
-
|
(641,500
|
)
|
(645,600
|
)
|
-
|
(645,600
|
)
|
(421,400
|
)
|
-
|
(421,400
|
)
|
|||||||||||||
Total
tax (benefit) expense
|
$
|
(657,739
|
)
|
$
|
170,675
|
$
|
(487,064
|
)
|
$
|
(636,600
|
)
|
$
|
137,932
|
$
|
(498,668
|
)
|
$
|
(491,370
|
)
|
$
|
154,214
|
$
|
(337,156
|
)
|
2005
|
2004
|
2003
|
||||||||
Deferred
tax expense (benefit), exclusive of the effects of the other components
listed below
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Decrease
in beginning-of-the-year balance of the valuation allowance for
deferred
tax assets
|
(641,500
|
)
|
(645,600
|
)
|
(421,400
|
)
|
||||
Generation
of continuing operations net operating loss carryforward
|
-
|
-
|
-
|
|||||||
$
|
(641,500
|
)
|
$
|
(645,600
|
)
|
$
|
(421,400
|
)
|
2005
|
2004
|
2003
|
||||||||
|
||||||||||
Tax
provision at Federal statutory rate
|
34.0
|
%
|
34.0
|
%
|
34.0
|
%
|
||||
State
income taxes, net of federal benefit
|
6.9
|
%
|
6.0
|
%
|
6.0
|
%
|
||||
Benefit
from Alternative Minimum Tax carryback refund
|
0.0
|
%
|
0.0
|
%
|
(9.0
|
)%
|
||||
Change
in valuation allowance for deferred tax assets
|
(73.3
|
)%
|
(83.7
|
)%
|
(65.3
|
)%
|
||||
Permanent
differences
|
1.7
|
%
|
0.0
|
%
|
0.0
|
%
|
||||
Other
|
0.8
|
%
|
0.8
|
%
|
0.0
|
%
|
||||
Total
|
(29.9
|
)%
|
(42.9
|
)%
|
(34.3
|
)%
|
2005
|
2004
|
||||||
Current
Deferred Tax Assets:
|
|||||||
Federal
net operating loss carryforwards
|
$
|
637,500
|
$
|
574,061
|
|||
Current
Deferred Tax Assets
|
$
|
637,500
|
$
|
574,061
|
|||
Non-current
Deferred Tax Assets:
|
|||||||
Federal
net operating loss carryforwards
|
$
|
10,718,325
|
$
|
13,585,090
|
|||
State
net operating loss carryforwards
|
64,435
|
138,789
|
|||||
Allowance
for doubtful accounts
|
114,837
|
98,752
|
|||||
Additional
costs inventoried for tax purposes
|
562,998
|
376,730
|
|||||
Alternative
Minimum Tax Credit Carryforward
|
46,243
|
-
|
|||||
Compensation
|
204,428
|
-
|
|||||
Rent
|
57,320
|
-
|
|||||
Non-current
Deferred Tax Assets
|
11,768,586
|
14,199,361
|
|||||
Non-current
Deferred Tax Liabilities:
|
|||||||
Goodwill
|
(667,224
|
)
|
(138,111
|
)
|
|||
Depreciation
|
(162,985
|
)
|
(29,722
|
)
|
|||
Non-current
Deferred Tax Liabilities
|
(830,209
|
)
|
(167,833
|
)
|
|||
Non-current
Deferred Tax Assets
|
10,938,377
|
14,031,528
|
|||||
Less
Valuation Allowance
|
(9,867,377
|
)
|
(13,538,589
|
)
|
|||
Net
Non-Current Deferred Tax Assets
|
$
|
1,071,000
|
$
|
492,939
|
Expiration
Year
|
Net
Operating Losses
|
|||
2006
|
$
|
4,811,000
|
||
2007
|
4,945,000
|
|||
2008
|
415,000
|
|||
2020
|
5,960,000
|
|||
2021
|
2,737,000
|
|||
2022
|
14,532,000
|
|||
$
|
33,400,000
|
2005
|
2004
|
2003
|
||||||||
Cash
paid during the years for:
|
||||||||||
Interest
|
$
|
971,629
|
$
|
852,288
|
$
|
543,646
|
||||
Income
Taxes
|
$
|
308,585
|
$
|
173,665
|
$
|
102,900
|
2006
|
$
|
2,750,861
|
||
2007
|
2,577,399
|
|||
2008
|
2,074,893
|
|||
2009
|
1,047,989
|
|||
2010
|
670,225
|
|||
Thereafter
|
1,260,279
|
|||
Total
|
$
|
10,381,646
|
QUARTER
ENDED
|
|||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
||||||||||
(Dollars
in thousands, except per share data)
|
|||||||||||||
2005
|
|||||||||||||
Net
sales
|
$
|
13,347
|
$
|
17,502
|
$
|
17,378
|
$
|
18,464
|
|||||
Gross
profit
|
4,253
|
5,132
|
5,092
|
5,706
|
|||||||||
Net
income (loss)
|
(199
|
)
|
520
|
1,019
|
776
|
||||||||
Income
(loss) per common share:
|
|||||||||||||
Basic:
|
|||||||||||||
Net
income (loss)
|
(0.05
|
)
|
0.12
|
0.24
|
0.17
|
||||||||
Diluted:
|
|||||||||||||
Net
income (loss)
|
(0.05
|
)
|
0.10
|
0.19
|
0.15
|
||||||||
2004
|
|||||||||||||
Net
sales
|
$
|
12,525
|
$
|
16,149
|
$
|
16,185
|
$
|
16,595
|
|||||
Gross
profit
|
3,810
|
4,798
|
4,731
|
5,045
|
|||||||||
Net
income (loss)
|
(299
|
)
|
664
|
839
|
457
|
||||||||
Income
(loss) per common share:
|
|||||||||||||
Basic:
|
|||||||||||||
Net
income (loss)
|
(0.11
|
)
|
0.22
|
0.22
|
0.11
|
||||||||
Diluted:
|
|||||||||||||
Net
income (loss)
|
(0.11
|
)
|
0.16
|
0.17
|
0.09
|
Additions
|
||||||||||||||||
Description
|
Balance
at Beginning of Year
|
Charged
to Costs and Expenses
|
Charged
to Other Accounts
|
Deductions
|
Balance
at End of Year
|
|||||||||||
For
the year ended December 31, 2005 Allowance for doubtful
accounts
|
$
|
290,448
|
$
|
101,724
|
$
|
69,144
|
(a)
|
$
|
(275,345)
|
(b)
|
$
|
185,971
|
||||
For
the year ended December 31, 2004 Allowance for doubtful
accounts
|
$
|
284,829
|
$
|
225,183
|
$
|
14,862
|
(a)
|
$
|
(234,426)
|
(b)
|
$
|
290,448
|
||||
For
the year ended December 31, 2003 Allowance for doubtful
accounts
|
$
|
265,211
|
$
|
188,050
|
$
|
14,040
|
(a)
|
$
|
(182,472)
|
(b)
|
$
|
284,829
|
(a)
|
Comprised
primarily of accounts that were previously charged against the
allowance,
and have since been collected.
|
(b)
|
Comprised
primarily of uncollected accounts charged against the
allowance.
|
COLONIAL
COMMERCIAL CORP.
|
||||
(Registrant)
|
||||
By:
|
/s/
Bernard Korn
|
|||
Bernard
Korn, Chairman and
|
||||
Chief
Executive Officer
|
||||
By:
|
/s/
William Salek
|
|||
William
Salek,
|
||||
Chief
Financial Officer
|
By:
|
/s/
E. Bruce Fredrikson
|
|||
E.
Bruce Fredrikson, Director
|
||||
By:
|
/s/
Melissa Goldman
|
|||
Melissa
Goldman, Director
|
||||
By:
|
/s/
Michael Goldman
|
|||
Michael
Goldman, Director
|
||||
By:
|
/s/
Bernard Korn
|
|||
Bernard
Korn, Chairman and
|
||||
Chief
Executive Officer
|
||||
By:
|
/s/
William Koon
|
|||
William
Koon, Director
|
||||
By:
|
/s/
Ronald Miller
|
|||
Ronald
Miller, Director
|
||||
By:
|
/s/
William Pagano
|
|||
William
Pagano, President and Director
|
||||
By:
|
/s/
Jack Rose
|
|||
Jack
Rose, Director
|
||||
By:
|
/s/
Carl L. Sussman
|
|||
Carl
L. Sussman, Director
|