CCNI.. $0.315.. Earnings..
Command Center Announces Third Quarter Net Profit in Excess of $1 Million
Company Reports Second Consecutive Profitable Quarter on Revenue of $19.7 Million POST FALLS, Idaho--(BUSINESS WIRE)--November 04, 2010--
Command Center, Inc. (OTCBB: CCNI), an emerging provider of on-demand, reliable labor solutions, today announced its results for the third quarter of 2010.
For the thirteen weeks ended September 24, 2010, Command Center reported total revenue of $19.70 million, an increase of 49% on revenue of $13.19 million for the thirteen weeks ended Sept. 25, 2009. For the period, the Company reported a net profit of $1.07 million, or $.02 per share, based on 51,558,983 weighted average common shares outstanding, compared to a net loss of $249,776, or ($.01) per share, based on 37,041,172 weighted average common shares outstanding in the like year-ago quarter.
"We are thrilled to announce back-to-back profitable quarters," said Command Center Chairman and CEO, Glenn Welstad, "and we are especially excited about bringing more than $1 million to the bottom line. Despite the dramatic drop-off in oil clean-up activities in the Gulf coming into the third quarter, core business continued to improve and not only produced such excellent results, but also showed that Command's revenue streams are broadly distributed and not dependent on single large jobs to accelerate growth."
Mr. Welstad also noted that the balance sheet was vastly improved during the third quarter, resulting in significant gains in liquidity. "In addition to accumulating cash, the company reduced current liabilities by $1.8 million -- to $5.7 million on September 24, 2010 from $7.5 million on June 25, 2010 -- and improved shareholders' equity in the company."
For the thirty-nine week (nine month) period ended September 24, 2010, Command Center reported revenue of $50.64 million, an increase of 32% on revenue of $ 38.40 million in the comparable year-ago period. Net loss for the nine months of 2010 was $302,826, or ($.01) per share, based on 45,484,621 weighted average common shares outstanding, compared to a net loss of $3.82 million, or ($.10) per share, based on 36,660,036 weighted average common shares outstanding for the same period last year.
Mr. Welstad said that the gross profit margin of 26.4% in the third quarter of 2010 was down from 28.2% in the third quarter of 2009. However, even with a 49% increase in sales, SG&A expenses of $3.99 million in Q3 '10 were only 6% higher than SG&A expenses of $3.77 million in Q3 '09. "This once again demonstrates how management has been able to effectively manage costs without compromising its commitment and ability to deliver exceptional service to our growing customer base.
"We are confident, after reporting these two consecutive profitable quarters and evaluating the current status of our local and national accounts, that Command Center is well-positioned to build on these results and achieve even higher goals of revenue and profit going forward."
About Command Center, Inc.
The Company provides on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, disaster relief, hospitality and event services. Additional information on Command Center is available at www.commandonline.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 10KSB filed with the Securities and Exchange Commission on April 9, 2010 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.
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Balance Sheets
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September 24, 2010 December 25, 2009
-------------------- ---------------------
(Unaudited)
Assets
Current Assets:
Cash $ 584,331 $ 69,971
Restricted cash 150,000 --
Accounts receivable trade, net
of allowance for bad debts of
$370,000 at September 24, 2010
and $300,000 at December 25,
2009 3,234,536 5,025,113
Other receivables - current 37,036 37,059
Prepaid expenses, deposits,
and other 503,949 213,409
Prepaid workers'
compensation 492,685 224,074
Current portion of workers'
compensation risk pool
deposits 1,200,000 1,300,000
------------------- ------------------
Total current assets 6,202,537 6,869,626
------------------- ------------------
Property and Equipment, Net 456,253 877,827
------------------- ------------------
Other Assets:
Workers' compensation risk
pool deposits 1,562,693 2,318,805
Goodwill 2,500,000 2,500,000
Intangible assets - net 213,491 323,937
------------------- ------------------
Total other assets 4,276,184 5,142,742
------------------- ------------------
Total assets $ 10,934,974 $ 12,890,195
=============== ==============
Liabilities and Stockholders'
Equity (Deficit)
Current Liabilities:
Accounts payable $ 1,636,287 $ 2,174,504
Checks issued and payable 620,281 --
Line of credit facility -- 2,907,521
Accrued wages and benefits 833,332 694,079
Other current liabilities -- 224,491
Current portion of note
payable -- 9,520
Short-term note payable,
net of discount 114,345 1,025,000
Capital leases 11,425 --
Short-term note liquidity
redemption payable -- 186,939
Stock warrant liability 1,177,904 413,026
Current portion of workers'
compensation claims
liability 1,295,369 1,801,423
------------------- ------------------
Total current liabilities 5,688,943 9,436,503
------------------- ------------------
Long-Term Liabilities
Note payable, less current
portion -- 71,447
Common stock to be issued 12,200 922,000
Workers' compensation
claims liability, less
current portion 3,315,188 2,800,000
------------------- ------------------
Total long-term
liabilities 3,327,388 3,793,447
------------------- ------------------
Total liabilities 9,016,331 13,229,950
------------------- ------------------
Stockholders' Equity (Deficit)
Preferred stock - 5,000,000
shares, $0.001 par value,
authorized; no shares
issued and outstanding -- --
Common stock - 100,000,000
shares, $0.001 par value,
authorized; 54,314,368 and
37,212,922 shares issued
and outstanding,
respectively 54,314 37,213
Additional paid-in capital 53,990,561 51,446,437
Accumulated deficit (52,126,232) (51,823,405)
------------------- ------------------
Total stockholders'
equity (deficit) 1,918,643 (339,755)
------------------- ------------------
Total liabilities and
stockholders' equity
(deficit) $ 10,934,974 $ 12,890,195
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