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August 13, 2012 07:00 AM Eastern Daylight Time Command Center Announces Profitable Second Quarter on 19.6% Increase in Revenue, Improved Margins

Command Center, Inc. (OTCQB:CCNI) (http://www.ir-site.com/commandcenter/quote.asp), a national provider of on-demand and temporary staffing solutions, today reported revenue of $24.27 million for the thirteen week period ended June 29, 2012. This represents an increase of 19.6% on revenue of $20.30 million for the thirteen-week period ended July 1, 2011.

“I am pleased by the sharp focus throughout our entire organization on improving sales, margins and profits over the past year”

For the second quarter ended June 29, 2012, the company reported net income of $842,583, or $.01 per share, based on 59.15 million basic and 63.99 million diluted weighted average shares outstanding. For the comparable year-ago period, the company reported net income of $669,742, or $.01 per share, based on 57.30 million basic and 61.77 million diluted weighted average shares outstanding.

Command Center has now reported 12-month trailing earnings of $2.77 million, or about $.043 per share on a fully diluted basis.

For the twenty-six week period ended June 29, 2012, Command Center reported total revenue of $43.36 million, an increase of 18.2% on revenue of $36.68 million for the twenty-six week period ended July 1, 2011. Net income for the six months was $281,087, or $.00 per share, compared with a net loss of $1,631,694, or ($.03) per share in the same period last year.

The company said gross profit margin improved to 24.8% and 24.6% in the second quarter and first half of 2012, respectively, versus 23.3% and 21.6% in the like year-ago periods. SG&A expenses were 20.8% of revenue in the second quarters of both this and the prior year, and 21.6% and 23.7% of revenue for the first six-month periods of 2012 and 2011, respectively. Workers’ compensation expense was 4.4% and 5.5% of revenue for the twenty-six weeks of 2012 and 2011, respectively.

“I am pleased by the sharp focus throughout our entire organization on improving sales, margins and profits over the past year,” said Command Center Chairman and CEO Glenn Welstad. “Strong organic sales growth at the branch level in the second quarter and first half of 2012 has been augmented by an increase in our coverage of the Bakken Region of North Dakota, as well as the increase in restoration activities of Disaster Recovery Services, Inc., our wholly-owned subsidiary. We expect these positive trends to continue and have positioned Command Center for even stronger growth in the second half of this year and beyond.”

The company recently announced it had opened, or was in the process of opening, a total of seven new branch offices in six different states. This move is expected to accelerate its expansion and create greater visibility for the company nationwide.

The company’s quarterly report on Form 10-Q can be accessed online at www.sec.gov, or on the Command Center website at http://www.ir-site.com/commandcenter/default.asp.

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. 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 April 9, 2012 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.

 
Command Center, Inc.
Consolidated Condensed Balance Sheets
 
        June 29, 2012       December 30,
        (unaudited)       2011
ASSETS                
                 
Current Assets                
Cash       $ 365,597         $ 1,131,296  
Restricted cash         47,055           -  
Accounts receivable, net of allowance for bad debt         4,340,930           2,160,072  
Prepaid expenses, deposits and other         552,561           396,908  
Prepaid workers' compensation         78,403           27,632  
Other receivables - current         10,971           11,028  
Current portion of workers' compensation deposits         788,000           798,000  
Deferred tax asset         621,695           912,195  
Total Current Assets         6,805,212           5,437,131  
Property and equipment - net         474,063           383,014  
Workers' compensation risk pool deposit, less current portion         574,441           130,834  
Goodwill         3,306,786           2,500,000  
Intangible assets - net         585,934           46,834  
Total Assets       $ 11,746,436         $ 8,497,813  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities                
Accounts payable       $ 604,611         $ 900,174  
Checks issued and payable         349,037           169,738  
Other current liabilities         567,001           558,821  
Current portion of contingent liability         473,018           -  
Accrued wages and benefits         1,525,067           785,665  
Current portion of notes payable         25,000           -  
Current portion of workers' compensation premiums and claims liability         1,785,602           1,186,661  
Total Current Liabilities         5,329,336           3,601,059  
Long-term liabilities                
Warrant liabilities         1,167,515           983,415  
Contingent liabilities, less current portion         328,153           -  
Workers' compensation claims liability, less current portion         2,385,687           2,148,675  
Total Liabilities         9,210,691           6,733,149  
Commitments and contingencies (Note 4 and 8)                
Stockholders' equity                
Preferred stock - $0.01 par value, 5,000,000 shares authorized; none issued         -           -  

Common stock - 100,000,000 shares, $0.001 par value,
authorized; 59,142,368 and 57,606,368 shares issued and
outstanding, respectively

        59,240           57,606  
Additional paid-in capital         55,441,163           54,952,802  
Accumulated deficit         (52,964,658 )         (53,245,744 )
Total Stockholders' Equity         2,535,745           1,764,664  
Total Liabilities and Stockholders' Equity       $ 11,746,436         $ 8,497,813  
 
Command Center, Inc.
Consolidated Condensed Statements of Operations
(unaudited)
 
        Thirteen Weeks Ended       Twenty-six Weeks Ended
        June 29, 2012       July 1, 2011       June 29, 2012       July 1, 2011
Revenue       $ 24,269,530         $ 20,299,940         $ 43,363,211         $ 36,679,763  
Cost of staffing services         18,256,277           15,576,291           32,708,401           28,750,335  
Gross profit         6,013,253           4,723,649           10,654,811           7,929,428  
Selling, general and administrative expenses         5,037,524           4,222,218           9,356,860           8,682,095  
Depreciation and amortization         82,937           126,999           203,400           258,276  
Income (loss) from operations         892,792           374,431           1,094,551           (1,010,943 )
Interest expense and other financing expense         (191,792 )         (166,639 )         (338,865 )         (302,672 )
Change in fair value of warrant liability         432,083           461,950           (184,100 )         (318,079 )
Net income (loss) before income taxes         1,133,083           669,742           571,587           (1,631,694 )
Provision for income taxes         (290,500 )         -           (290,500 )         -  
Net income (loss)       $ 842,583         $ 669,742         $ 281,087         $ (1,631,694 )
                                 
Earnings (loss) per share:                                
Basic       $ 0.01         $ 0.01         $ 0.00         $ (0.03 )
Diluted       $ 0.01         $ 0.01         $ 0.00         $ (0.03 )
                                 
Weighted average shares outstanding:                                
Basic         59,146,678           57,303,049           59,095,732           56,178,720  
Diluted         63,985,995           61,767,321           63,720,922           56,178,720  

 

Contacts

Market Makers
Jimmy Caplan, 512-329-9505
jcap@austin.rr.com

PR

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