Command Center Reports First Quarter 2013 Results

Command Center Reports First Quarter 2013 Results

COEUR D'ALENE, Idaho--(BUSINESS WIRE)-- 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  



Command Center, Inc.
Dan Jackson, 208-773-7450 ext. 4239
dan.jackson@commandonline.com

KEYWORDS:   United States  North America  Idaho

INDUSTRY KEYWORDS:

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2416527, ~/Articles/ArticleHandler.aspx, 4/17/2014 12:10:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...