Command Center Reports Second Quarter 2013 Results

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Command Center Reports Second 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 results for the second quarter ended June 28, 2013.

The company reported second quarter revenue of $23.3 million, a decrease of 4.0% compared to revenue of $24.3 million for the thirteen-week period ended June 29, 2012. Gross margins as a percent of revenue increased to 25.3% from 24.8% reported in the second quarter a year ago. Gross profit for the quarter was $5.9 million—compared to $6.0 million for the second quarter last year. Net income for the quarter was $473,000, or $.01 per share, based upon 59.6 million basic and 62.5 million diluted weighted average shares. For the comparable year-ago period, the company reported net income of $843,000, or $.01 per share, based upon 59.1 million basic and 64.0 million diluted weighted average shares.


For the twenty-six week period ended June 28, 2013, Command Center reported revenue of $43.2 million, compared to $43.4 million in the first six months of last year. Net income for the first six months of 2013 was $485,000, or $0.01 per share, compared with net income of $281,000, or $.00 per share, in the same period last year. Gross profit improved to $11.1 million, or 25.7% of revenue in the current year, compared to $10.7 million or 24.6% of revenue in the comparable twenty-six week period of 2012.

Bubba Sandford, Command Center's President and CEO, commented on the results by stating, "Since my appointment as President and CEO five months ago, our primary focus has been on having relationships with quality customers, with increased gross margins and risk-appropriate work. As a result, we are evaluating the profitability and quality of both existing business relationships and potential new customers. As anticipated, this has resulted in loss of some lower-margin work that otherwise would have contributed to overall revenue for the quarter but that would have also decreased gross margins and profitability."

Mr. Sandford stressed that the company is dedicated to increasing margins, enhancing the quality of services provided to customers, controlling costs, and reducing the overall number of subpar accounts. Mr. Sandford went on to say, "The company has placed greater emphasis on obtaining and retaining better business with better margins. We fully intend to maintain and increase revenue once our initiatives are fully implemented, but we anticipate doing so with increased control of costs and gross margins."

Viewing the present results as a whole, Mr. Sandford stated, "The Company is moving in a new and positive direction, but with that comes some initial sacrifices regarding certain areas within the business and a shift in what we include in our view of success. In the end, we are confident that our assessments, and the changes based upon those assessments, are going to greatly increase the quality of business that we do, which will in turn increase both revenue and profitability, ultimately leading to greater shareholder value."

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 about Command Center, Inc., 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.

 
Command Center, Inc.
Consolidated Condensed Balance Sheets
 
    June 28, 2013    December 28, 2012
ASSETS(unaudited)
Current Assets
Cash$1,298,181$1,632,993
Restricted cash-21,295
Accounts receivable, net of allowance for doubtful accounts11,112,95013,701,396
Prepaid expenses, deposits and other387,974409,547
Prepaid workers' compensation123,21822,852
Other receivables17,60817,618
Current portion of workers' compensation deposits 995,738  1,200,000 
Total Current Assets13,935,66917,005,701
Property and equipment - net415,725609,772
Workers' compensation risk pool deposit, less current portion1,302,518506,196
Goodwill3,306,7863,306,786
Intangible assets - net 453,067  522,535 
Total Assets$19,413,765 $21,950,990 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable$546,149$722,150
Checks issued and payable392,684511,105
Account purchase agreement facility7,569,2249,051,999
Other current liabilities356,653507,122
Contingent liability-322,874
Accrued wages and benefits1,324,4411,713,480
Current portion of workers' compensation premiums and claims liability 1,277,929  2,005,579 
Total Current Liabilities11,467,08014,834,309
Long-Term Liabilities
Warrant liabilities502,069599,473
Workers' compensation claims liability, less current portion 2,540,390  2,510,687 
Total Liabilities 14,509,539  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, respectively59,61159,611
Additional paid-in capital56,046,30355,633,377
Accumulated deficit (51,201,688) (51,686,467)
Total Stockholders' Equity 4,904,226  4,006,521 
Total Liabilities and Stockholders' Equity$19,413,765 $21,950,990 
 
 
Command Center, Inc.
Consolidated Statements of Operations
(unaudited)
 
   13 Weeks Ended   26 Weeks Ended
June 28, 2013   June 29, 2012June 28, 2013   June 29, 2012
Revenue$23,294,561$24,269,530$43,199,279$43,363,211
Cost of staffing services 17,412,312  18,256,277  32,097,439  32,708,400 
Gross profit5,882,2496,013,25311,101,84010,654,811
Selling, general and administrative expenses5,204,2005,066,97910,158,0309,386,315
Depreciation and amortization 128,038  82,937  217,049  203,400 
Income (loss) from operations550,011863,337726,7611,065,096
Interest expense and other financing expense(119,086)(191,792)(339,385)(338,864)
Change in fair value of derivative liabilities 41,648  461,538  97,404  (154,645)
Net income (loss) before income taxes472,5731,133,083484,779571,587
(Provision) benefit for income taxes -  (290,500) -  (290,500)
Net income (loss)$472,573 $842,583 $484,779 $281,087 
 
Earnings per share:
Basic$0.01 $0.01 $0.01 $0.00 
Diluted$0.01 $0.01 $0.01 $0.00 
 
Weighted average shares outstanding:
Basic59,611,24259,146,67859,611,24259,095,732
Diluted62,484,45963,985,99562,794,13263,720,922

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INVESTOR RELATIONS CONTACT:
Command Center, Inc.
Ron Junck, 208-773-7450 ext. 4240
investors@commandonline.com

KEYWORDS:   United States  North America  Idaho

INDUSTRY KEYWORDS:

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