Command Center, Inc. (OTCQB:CCNI) (http://www.otcmarkets.com/stock/CCNI/quote), a national provider of on-demand and temporary staffing solutions, today announced its results for the first quarter ended March 29, 2013. The company reported first quarter revenues of $19.9 million, an increase of 4.2% compared to revenue of $19.1 million for the first quarter of 2012. Gross profit for the quarter was $5.2 million, an increase of 12.5% compared to $4.6 million for the comparable period last year. Net income for the quarter was $12,000 compared to a net loss of $561,000 for the first quarter of 2012.
“We continue to focus on changes that improve business practices that should lead us to greater profitability,” said Bubba Sandford, President and Chief Executive Officer. “During the first quarter, we instituted changes, including establishment of new operating and hiring standards and implementation of a number of cost cutting measures. We believe that some of those new initiatives contributed to growing gross margin to 26.2% compared to 24.3% reported in the comparable period in 2012. We are also beginning to see increased business activity in many of the industry sectors in which we are engaged and believe that we are well positioned to grow profitably.”
During the second quarter, the company significantly reduced its financing expense through renegotiating its credit facility with Wells Fargo Bank. The new terms include a reduction in interest rate and fees and extend the term of the facility to April 2016. The company filed a Form 8-K on May 7, 2013 that contains additional details on the terms of the new agreement.
Mr. Sandford commented, “We are very pleased to have the opportunity to continue our relationship with Wells Fargo Bank. Under the terms of the new agreement, we believe the company will generate stronger cash flow at a lower cost of funding on a go forward basis. The newly negotiated agreement is in line with the executive team’s focus on its new strategy to increase profitability and strengthen cash production as we grow Command’s overall business. We look forward to continuing our relationship with Wells Fargo as the company’s growth requires a flexible capital partner.”
The company’s quarterly report on Form 10-Q can be accessed online at www.sec.gov or by visiting the investor relations section of the Command Center website at www.commandonline.com.
About Command Center, Inc.
The company provides flexible on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, hospitality and event services, as well as other assignments such as emergency and disaster relief projects. In 2012, the company provided employment for 35,500 Field Team Members who worked 5.5 million hours for over 3,400 clients. Additional information on Command Center is available at www.commandonline.com. Information on the company’s Bakken Staffing division can be found at www.bakkenstaffing.com.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, the severity and duration of the general economic downturn, the availability of worker’s compensation insurance coverage, the availability of capital and suitable financing for the Company’s activities, the ability to attract, develop and retain qualified store managers and other personnel, product and service demand and acceptance, changes in technology, the impact of competition and pricing, government regulation, and other risks set forth in the Form 10-K filed with the Securities and Exchange Commission on March 22, 2013 and in other statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
| 13 Weeks Ended | ||||||||||||||||
| March 29, 2013 | March 30, 2012 | |||||||||||||||
| Revenue | $ | 19,904,718 | $ | 19,093,681 | ||||||||||||
| Cost of staffing services | 14,685,127 | 14,452,123 | ||||||||||||||
| Gross profit | 5,219,591 | 4,641,558 | ||||||||||||||
| Selling, general and administrative expenses | 4,953,830 | 4,319,335 | ||||||||||||||
| Depreciation and amortization | 89,011 | 120,463 | ||||||||||||||
| Income (loss) from operations | 176,750 | 201,760 | ||||||||||||||
| Interest expense and other financing expense | (220,300 | ) | (147,073 | ) | ||||||||||||
| Change in fair value of derivative liability | 55,756 | (616,183 | ) | |||||||||||||
| Net income (loss) before income taxes | 12,206 | (561,496 | ) | |||||||||||||
| (Provision) benefit for income taxes | - | - | ||||||||||||||
| Net loss | $ | 12,206 | $ | (561,496 | ) | |||||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.00 | $ | (0.01 | ) | |||||||||||
| Diluted | $ | 0.00 | $ | (0.01 | ) | |||||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 59,611,242 | 59,044,786 | ||||||||||||||
| Diluted | 62,644,642 | 59,044,786 | ||||||||||||||
| Command Center, Inc. | ||||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||||
| March 29, 2013 | December 28, 2012 | |||||||||||||||
| ASSETS | (unaudited) | |||||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 848,578 | $ | 1,632,993 | ||||||||||||
| Restricted cash | 17,313 | 21,295 | ||||||||||||||
| Accounts receivable, net of allowance for doubtful accounts | 10,919,142 | 13,701,396 | ||||||||||||||
| Prepaid expenses, deposits and other | 325,860 | 409,547 | ||||||||||||||
| Prepaid workers' compensation | - | 22,852 | ||||||||||||||
| Other receivables | 17,799 | 17,618 | ||||||||||||||
| Current portion of workers' compensation deposits | 1,000,000 | 1,200,000 | ||||||||||||||
| Total Current Assets | 13,128,692 | 17,005,701 | ||||||||||||||
| Property and equipment - net | 563,672 | 609,772 | ||||||||||||||
| Workers' compensation risk pool deposit, less current portion | 861,788 | 506,196 | ||||||||||||||
| Goodwill | 3,306,786 | 3,306,786 | ||||||||||||||
| Intangible assets - net | 487,551 | 522,535 | ||||||||||||||
| Total Assets | $ | 18,348,489 | $ | 21,950,990 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts payable | $ | 506,328 | $ | 722,150 | ||||||||||||
| Checks issued and payable | 579,120 | 511,105 | ||||||||||||||
| Account purchase agreement facility | 6,670,725 | 9,051,999 | ||||||||||||||
| Other current liabilities | 291,452 | 507,122 | ||||||||||||||
| Contingent liability | - | 322,874 | ||||||||||||||
| Accrued wages and benefits | 1,659,089 | 1,713,480 | ||||||||||||||
| Current portion of workers' compensation premiums and claims liability | 1,195,175 | 2,005,579 | ||||||||||||||
| Total Current Liabilities | 10,901,889 | 14,834,309 | ||||||||||||||
| Long-Term Liabilities | ||||||||||||||||
| Warrant liabilities | 543,717 | 599,473 | ||||||||||||||
| Workers' compensation claims liability, less current portion | 2,512,230 | 2,510,687 | ||||||||||||||
| Total Liabilities | 13,957,836 | 17,944,469 | ||||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Stockholders' Equity | ||||||||||||||||
| Preferred stock - $0.001 par value, 5,000,000 shares authorized; none issued | - | - | ||||||||||||||
Common stock - 100,000,000 shares, $0.001 par value, authorized; 59,611,242 and 59,611,242 shares issued and outstanding, respectively | 59,611 | 59,611 | ||||||||||||||
| Additional paid-in capital | 56,005,303 | 55,633,377 | ||||||||||||||
| Accumulated deficit | (51,674,261 | ) | (51,686,467 | ) | ||||||||||||
| Total Stockholders' Equity | 4,390,653 | 4,006,521 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | 18,348,489 | $ | 21,950,990 | |||||||||||||
Contacts:
Dan Jackson, 208-773-7450 ext. 4239
dan.jackson@commandonline.com
