Command Center Announces Third Quarter Results

Command Center Announces Third Quarter Results

POST FALLS, 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 reported revenue of $28.38 million for the third quarter ended September 28, 2012. This represents an increase of 13.7% on revenue of $24.97 million for the third quarter ended September 30, 2011. Revenue in the third quarter of 2012 was derived from 58 company-owned stores, as compared with 53 stores in the like year-ago period.

For the quarter ended September 28, 2012, the company reported net income of $721,844, or $.01 per share, based on 62.80 million diluted weighted average shares outstanding. For the comparable year-ago period, the company reported net income of $1.42 million, or $.02 per share, based on 61.22 million diluted weighted average shares outstanding.


For the thirty-nine week (nine month) period ended September 28, 2012, Command Center reported revenue of $71.75 million, an increase of 16.4% on revenue of $61.65 million in the comparable period ended September 30, 2011. Net income for the first nine months of 2012 was $1.00 million, or $0.02 per share, based on 62.96 million diluted weighted average shares outstanding, compared with a net loss of $212,417, or $0.00 per share, based on 56.62 million basic and diluted weighted average shares outstanding in the same period last year.

The company said gross profit margin in the third quarter and first nine months of 2012 improved to 25.9% and 25.1%, respectively - versus 23.6% and 22.4% in the like year-ago periods. SG&A expenses were $6.28 million, or 22.1% of revenue, in the third quarter of 2012, versus $4.56 million, or 18.3% of revenue, in the previous year's third quarter. For the nine-month period, SG&A expenses were $15.67 million, or 21.8% of revenue in 2012, versus $13.24 million, or 21.5% of revenue in 2011.

"We are pleased to report higher sales, stronger profit margins and continued profitability, despite the economy's slow recovery," said Command Center Chairman and CEO, Glenn Welstad. "Because of our commitment and ability to provide superior customer service across many different sectors, the company has been able to expand its customer base on both the local and national level."

Mr. Welstad noted that the increase in SG&A expenses during the third quarter was related primarily to increases in compensation and travel activities, as well as additional costs associated with new branch office openings and expansion into high growth areas such as Bakken Staffing and restoration services.

Command Center is currently active with disaster relief and recovery efforts on the East Coast following Hurricane Sandy. According to Mr. Welstad, this work is expected to have a positive impact on fourth quarter operating results. "Command Center is uniquely qualified to mobilize large numbers of workers to service these types of opportunities, and they have become increasingly important as catalysts for our growth."

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

September 28, 2012

December 30,

(unaudited)

2011

ASSETS

Current Assets

Cash

$

1,339,287

$

1,131,296

Restricted cash

39,957

-

Accounts receivable, net of allowance for bad debt

5,063,114

2,160,072

Prepaid expenses, deposits and other

544,698

396,908

Prepaid workers' compensation

35,579

27,632

Other receivables - current

15,876

11,028

Current portion of workers' compensation deposits

1,000,000

798,000

Deferred tax asset

214,000

912,195

Total Current Assets

8,252,511

5,437,131

Property and equipment - net

517,759

383,014

Workers' compensation risk pool deposit, less current portion

757,201

130,834

Goodwill

3,306,786

2,500,000

Intangible assets - net

552,188

46,834

Total Assets

$

13,386,445

$

8,497,813

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

519,286

$

900,174

Checks issued and payable

405,394

169,738

Other current liabilities

743,398

558,821

Current portion of contingent liability

669,568

-

Accrued wages and benefits

2,079,699

785,665

Current portion of workers' compensation premiums and claims liability

2,152,495

1,186,661

Total Current Liabilities

6,569,840

3,601,059

Long-term liabilities

Warrant liabilities

791,824

983,415

Contingent liabilities, less current portion

85,668

-

Workers' compensation claims liability, less current portion

2,578,953

2,148,675

Total Liabilities

10,026,285

6,733,149

Commitments and contingencies

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

59,426

57,606

Additional paid-in capital

55,543,548

54,952,802

Accumulated deficit

(52,242,814

)

(53,245,744

)

Total Stockholders' Equity

3,360,160

1,764,664

Total Liabilities and Stockholders' Equity

$

13,386,445

$

8,497,813

Command Center, Inc.

Consolidated Condensed Statements of Operations

(unaudited)

Thirteen Weeks Ended

Thirty-nine Weeks Ended

September 28, 2012

September 30, 2011

September 28, 2012

September 30, 2011

Revenue

$

28,384,931

$

24,972,597

$

71,748,142

$

61,652,359

Cost of staffing services

21,047,247

19,070,906

53,755,648

47,821,241

Gross profit

7,337,684

5,901,691

17,992,494

13,831,119

Selling, general and administrative expenses

6,277,242

4,559,920

15,663,556

13,242,016

Depreciation and amortization

81,871

95,252

285,271

353,527

Income (loss) from operations

978,571

1,246,519

2,043,667

235,576

Interest expense and other financing expense

(221,220

)

(230,824

)

(560,085

)

(533,496

)

Change in fair value of warrant liability

372,188

403,582

217,543

85,503

Net income (loss) before income taxes

1,129,539

1,419,277

1,701,125

(212,417

)

Provision for income taxes

(407,695

)

-

(698,195

)

-

Net income (loss)

$

721,844

$

1,419,277

$

1,002,930

$

(212,417

)

Earnings (loss) per share:

Basic

$

0.01

$

0.02

$

0.02

$

(0.00

)

Diluted

$

0.01

$

0.02

$

0.02

$

(0.00

)

Weighted average shares outstanding:

Basic

59,301,342

57,534,368

59,167,829

56,622,445

Diluted

62,805,231

61,217,221

62,964,574

56,622,445



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