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:

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