Command Center Reports Second Quarter 2013 Results
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 accounts | 11,112,950 | 13,701,396 | ||||||||||||
Prepaid expenses, deposits and other | 387,974 | 409,547 | ||||||||||||
Prepaid workers' compensation | 123,218 | 22,852 | ||||||||||||
Other receivables | 17,608 | 17,618 | ||||||||||||
Current portion of workers' compensation deposits | 995,738 | 1,200,000 | ||||||||||||
Total Current Assets | 13,935,669 | 17,005,701 | ||||||||||||
Property and equipment - net | 415,725 | 609,772 | ||||||||||||
Workers' compensation risk pool deposit, less current portion | 1,302,518 | 506,196 | ||||||||||||
Goodwill | 3,306,786 | 3,306,786 | ||||||||||||
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 payable | 392,684 | 511,105 | ||||||||||||
Account purchase agreement facility | 7,569,224 | 9,051,999 | ||||||||||||
Other current liabilities | 356,653 | 507,122 | ||||||||||||
Contingent liability | - | 322,874 | ||||||||||||
Accrued wages and benefits | 1,324,441 | 1,713,480 | ||||||||||||
Current portion of workers' compensation premiums and claims liability | 1,277,929 | 2,005,579 | ||||||||||||
Total Current Liabilities | 11,467,080 | 14,834,309 | ||||||||||||
Long-Term Liabilities | ||||||||||||||
Warrant liabilities | 502,069 | 599,473 | ||||||||||||
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, respectively | 59,611 | 59,611 | ||||||||||||
Additional paid-in capital | 56,046,303 | 55,633,377 | ||||||||||||
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, 2012 | June 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 profit | 5,882,249 | 6,013,253 | 11,101,840 | 10,654,811 | ||||||||||||||||||||
Selling, general and administrative expenses | 5,204,200 | 5,066,979 | 10,158,030 | 9,386,315 | ||||||||||||||||||||
Depreciation and amortization | 128,038 | 82,937 | 217,049 | 203,400 | ||||||||||||||||||||
Income (loss) from operations | 550,011 | 863,337 | 726,761 | 1,065,096 | ||||||||||||||||||||
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 taxes | 472,573 | 1,133,083 | 484,779 | 571,587 | ||||||||||||||||||||
(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: | ||||||||||||||||||||||||
Basic | 59,611,242 | 59,146,678 | 59,611,242 | 59,095,732 | ||||||||||||||||||||
Diluted | 62,484,459 | 63,985,995 | 62,794,132 | 63,720,922 | ||||||||||||||||||||
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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