Command Center Announces 2012 Results
Command Center Announces 2012 Results
Revenue Up 20.2% to $98.4 Million; Net Income Up 82.6% to $1.6 Million
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 revenue of $98.4 million for the 52-week period ended December 28, 2012, a 20.2% increase on revenue of $81.9 million for the 52-week period ended December 30, 2011.
The company reported net income in 2012 of $1.6 million, or $.03 per basic and $.02 diluted weighted average common share outstanding, as compared with net income of $.9 million, or $.02 per basic and $.01 per diluted weighted average common share outstanding in the prior year. There were 59 branch stores operating in 24 states at the end of 2012 versus 51 branch stores operating in 23 states at 2011 fiscal year end.
Todd Welstad, Chief Operating Officer, stated, "2012 was a good year for Command Center. It was the second profitable year posted by the company since it was first organized in 2002 and represented sequential year-to-year profitability growth over 2011. Our teams executed well, increasing market share both in our existing territories and by expanding into new markets including post-disaster recovery work.
"Our teams consistently met their objective to connect qualified job seekers with temporary, on-demand and permanent placements," said Mr. Welstad. "Command continues to execute on its commitment to deliver quality employees to our customers, which allowed the company to grow gross margins from 22.8% in 2011 to 25.3% in 2012. SG&A expense in 2012 was 22.4% of revenue compared to 21.6% in 2011. The increase was the result of rebuilding infrastructure that will be necessary to continue to support the type of revenue growth that we were able to achieve in 2012. Our strengthened infrastructure positions us well for continued growth in 2013. While we invested in the Command platform, due to a focus on increased margins, we were also able to report our second consecutive year of positive bottom line growth and improved net income as a percentage of revenue to 1.6% in 2012 compared to 1.0% in 2011."
Mr. Welstad also commented, "We consistently challenge our field management teams to improve on the top line growth they are able to achieve over the course of a year, while charging them to continue to focus on providing great customer service. Our field teams are well experienced and are leaders in the communities that they serve. We also have made some changes in the Command executive leadership team with the addition of Dan Jackson, our Chief Financial Officer who joined us early in the second quarter of 2012, and more recently, with the addition of Frederick "Bubba" Sandford, our new Chief Executive Officer who joined us in the first quarter of 2013. We believe that we are well positioned to have a successful 2013 and that the opportunities for growth in on-demand staffing will continue to proliferate in the current economic environment."
In 2012, the company provided employment for 35,500 Field Team Members who worked 5.5 million hours for over 3,400 clients. Investors can find additional information by accessing the company's 2012 annual report on Form 10-K 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. 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.
Command Center, Inc. | |||||||||||
Consolidated Balance Sheets | |||||||||||
December 28, | December 30, | ||||||||||
2012 | 2011 | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash | $ | 1,632,993 | $ | 1,131,296 | |||||||
Restricted cash | 21,295 | - | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $519,064 and $231,948, respectively | 13,701,396 | 8,282,737 | |||||||||
Prepaid expenses, deposits and other | 409,547 | 396,908 | |||||||||
Prepaid workers' compensation | 22,852 | 27,632 | |||||||||
Other receivables | 17,618 | 11,028 | |||||||||
Current portion of workers' compensation deposits | 1,200,000 | 798,000 | |||||||||
Deferred tax asset | - | 912,195 | |||||||||
Total Current Assets | 17,005,701 | 11,559,796 | |||||||||
Property and equipment - net | 609,772 | 383,014 | |||||||||
Workers' compensation risk pool deposit, less current portion | 506,195 | 130,834 | |||||||||
Goodwill | 3,306,786 | 2,500,000 | |||||||||
Intangible assets - net | 522,535 | 46,834 | |||||||||
Total Assets | $ | 21,950,990 | $ | 14,620,478 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 722,150 | $ | 900,174 | |||||||
Checks issued and payable | 511,105 | 169,738 | |||||||||
Factoring liability | 9,051,999 | 6,122,665 | |||||||||
Other current liabilities | 507,122 | 558,821 | |||||||||
Contingent liability | 322,874 | - | |||||||||
Accrued wages and benefits | 1,713,480 | 785,665 | |||||||||
Current portion of workers' compensation premiums and claims liability | 2,005,579 | 1,186,661 | |||||||||
Total Current Liabilities | 14,834,309 | 9,723,724 | |||||||||
Long-term liabilities | |||||||||||
Warrant liabilities | 599,473 | 983,415 | |||||||||
Workers' compensation claims liability, less current portion | 2,510,687 | 2,148,675 | |||||||||
Total Liabilities | 17,944,469 | 12,855,814 | |||||||||
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; 59,611,242 and 57,606,368 shares issued and outstanding, respectively | 59,611 | 57,606 | |||||||||
Additional paid-in capital | 55,633,377 | 54,952,802 | |||||||||
Accumulated deficit | (51,686,467 | ) | (53,245,744 | ) | |||||||
Total Stockholders' Equity | 4,006,521 | 1,764,664 | |||||||||
Total Liabilities and Stockholders' Equity | $ | 21,950,990 | $ | 14,620,478 | |||||||
Command Center, Inc. | |||||||||||
Consolidated Statements of Operations | |||||||||||
Fifty-two Weeks Ended | |||||||||||
December 28, 2012 | December 30, 2011 | ||||||||||
Revenue | $ | 98,432,059 | $ | 81,920,997 | |||||||
Cost of staffing services | 73,538,819 | 63,279,203 | |||||||||
Gross profit | 24,893,240 | 18,641,794 | |||||||||
Selling, general and administrative expenses | 22,043,268 | 17,683,607 | |||||||||
Depreciation and amortization | 370,768 | 441,087 | |||||||||
Income (loss) from operations | 2,479,204 | 517,100 | |||||||||
Interest expense and other financing expense | (804,036 | ) | (754,761 | ) | |||||||
Change in fair value of derivative liability | 842,256 | 179,369 | |||||||||
Net income (loss) before income taxes | 2,517,424 | (58,292 | ) | ||||||||
(Provision) benefit for income taxes | (958,147 | ) | 912,195 | ||||||||
Net income (loss) | $ | 1,559,277 | $ | 853,903 | |||||||
Earnings per share: | |||||||||||
Basic | $ | 0.03 | $ | 0.02 | |||||||
Diluted | $ | 0.02 | $ | 0.01 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 59,235,990 | 56,859,426 | |||||||||
Diluted | 63,124,705 | 61,367,518 | |||||||||
Investor Relations:
Command Center, Inc.
Dan Jackson, 208-773-7450 ext. 4239
dan.jackson@commandonline.com
KEYWORDS: United States North America Idaho
INDUSTRY KEYWORDS:
The article Command Center Announces 2012 Results originally appeared on Fool.com.
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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
