Command Center Reports First Quarter 2013 Results

Command Center Reports First 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 its results for the first quarter ended March 29, 2013. The company reported first quarter revenues of $19.9 million, an increase of 4.2% compared to revenue of $19.1 million for the first quarter of 2012. Gross profit for the quarter was $5.2 million, an increase of 12.5% compared to $4.6 million for the comparable period last year. Net income for the quarter was $12,000 compared to a net loss of $561,000 for the first quarter of 2012.

"We continue to focus on changes that improve business practices that should lead us to greater profitability," said Bubba Sandford, President and Chief Executive Officer. "During the first quarter, we instituted changes, including establishment of new operating and hiring standards and implementation of a number of cost cutting measures. We believe that some of those new initiatives contributed to growing gross margin to 26.2% compared to 24.3% reported in the comparable period in 2012. We are also beginning to see increased business activity in many of the industry sectors in which we are engaged and believe that we are well positioned to grow profitably."


During the second quarter, the company significantly reduced its financing expense through renegotiating its credit facility with Wells Fargo Bank. The new terms include a reduction in interest rate and fees and extend the term of the facility to April 2016. The company filed a Form 8-K on May 7, 2013 that contains additional details on the terms of the new agreement.

Mr. Sandford commented, "We are very pleased to have the opportunity to continue our relationship with Wells Fargo Bank. Under the terms of the new agreement, we believe the company will generate stronger cash flow at a lower cost of funding on a go forward basis. The newly negotiated agreement is in line with the executive team's focus on its new strategy to increase profitability and strengthen cash production as we grow Command's overall business. We look forward to continuing our relationship with Wells Fargo as the company's growth requires a flexible capital partner."

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 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.

13 Weeks Ended

March 29, 2013

March 30, 2012

Revenue

$

19,904,718

$

19,093,681

Cost of staffing services

14,685,127

14,452,123

Gross profit

5,219,591

4,641,558

Selling, general and administrative expenses

4,953,830

4,319,335

Depreciation and amortization

89,011

120,463

Income (loss) from operations

176,750

201,760

Interest expense and other financing expense

(220,300

)

(147,073

)

Change in fair value of derivative liability

55,756

(616,183

)

Net income (loss) before income taxes

12,206

(561,496

)

(Provision) benefit for income taxes

-

-

Net loss

$

12,206

$

(561,496

)

Earnings per share:

Basic

$

0.00

$

(0.01

)

Diluted

$

0.00

$

(0.01

)

Weighted average shares outstanding:

Basic

59,611,242

59,044,786

Diluted

62,644,642

59,044,786

Command Center, Inc.

Consolidated Balance Sheets

March 29, 2013

December 28, 2012

ASSETS

(unaudited)

Current Assets

Cash

$

848,578

$

1,632,993

Restricted cash

17,313

21,295

Accounts receivable, net of allowance for doubtful accounts

10,919,142

13,701,396

Prepaid expenses, deposits and other

325,860

409,547

Prepaid workers' compensation

-

22,852

Other receivables

17,799

17,618

Current portion of workers' compensation deposits

1,000,000

1,200,000

Total Current Assets

13,128,692

17,005,701

Property and equipment - net

563,672

609,772

Workers' compensation risk pool deposit, less current portion

861,788

506,196

Goodwill

3,306,786

3,306,786

Intangible assets - net

487,551

522,535

Total Assets

$

18,348,489

$

21,950,990

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$

506,328

$

722,150

Checks issued and payable

579,120

511,105

Account purchase agreement facility

6,670,725

9,051,999

Other current liabilities

291,452

507,122

Contingent liability

-

322,874

Accrued wages and benefits

1,659,089

1,713,480

Current portion of workers' compensation premiums and claims liability

1,195,175

2,005,579

Total Current Liabilities

10,901,889

14,834,309

Long-Term Liabilities

Warrant liabilities

543,717

599,473

Workers' compensation claims liability, less current portion

2,512,230

2,510,687

Total Liabilities

13,957,836

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, respectively

59,611

59,611

Additional paid-in capital

56,005,303

55,633,377

Accumulated deficit

(51,674,261

)

(51,686,467

)

Total Stockholders' Equity

4,390,653

4,006,521

Total Liabilities and Stockholders' Equity

18,348,489

$

21,950,990



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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