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CCNI Q2.."our actions are having the intended effect"....

Command Center Reports Record Second Quarter 2017 Financial Results

Mon August 14, 2017 4:05 PM|Business Wire|About: CCNI
: 08-12-17 Earnings Summary
News
Revenue Increased 13% to $24.5 Million

DENVER--(BUSINESS WIRE)-- Command Center, Inc. (CCNI), a national provider of on-demand and temporary staffing solutions, reported financial results for the second quarter ended June 30, 2017.

Second Quarter 2017 Financial Highlights vs. Year-Ago Quarter

Revenue up 13.0% to a record $24.5 million compared to $21.7 million.
Gross margin increased 130 basis points to 26.5% compared to 25.2%.
Net income improved to $0.7 million or $0.01 per diluted share, compared to $0.3 million or $0.00 per diluted share.
Adjusted EBITDA increased to $1.3 million compared to $0.5 million.
Second Quarter 2017 Financial Results

Revenue in the second quarter of 2017 increased 13.0% to a record $24.5 million, compared to $21.7 million in the year-ago quarter. The increase was driven in large part by revenue contribution from the Hancock Staffing stores that were acquired in June of 2016. Excluding the Hancock Staffing stores, revenue was up 5.4% due to generally stronger results from operations company-wide.

Gross margin in the second quarter increased 130 basis points to 26.5%, compared to 25.2% in the year-ago quarter. The increase was the result of the company’s continued emphasis on coaching and training field personnel to produce increased margins based on the value of the services provided to customers.

Selling, general and administrative expenses in the second quarter were $5.2 million, compared to $5.0 million in the year-ago quarter. As a percentage of revenue, SG&A expenses were 21.1%, compared to 23.2% in the second quarter of 2016. The decline was primarily due to lower salaries and bad debt expense as a percentage of revenue.

Operating income in the second quarter increased to $1.2 million, compared to $0.4 million in the second quarter of 2016. Net income increased to $0.7 million or $0.01 per share, compared to net income of $0.3 million or $0.00 per share in the year-ago quarter.

Adjusted EBITDA (a non-GAAP term defined below) in the second quarter increased to $1.3 million compared to $0.5 million in the year-ago quarter.

Cash, including restricted cash, at June 30, 2017 was $4.1 million compared to $3.0 million at December 30, 2016. The company carried a $0.1 million balance on its account purchase agreement at June 30, 2017 compared to no debt at the end of 2016.

Command Center ended the quarter with 66 stores operating in 22 states.

Management Commentary

“Since taking significant actions to improve operations in the second quarter of 2016, we have generated four straight quarters of considerable revenue growth and three straight quarters of gross margin expansion,” said Bubba Sandford, president and CEO of Command Center. “Our record second quarter results continued to be driven by our ‘Keys to Success,’ which are defined by selling to good customers, increasing margins whenever possible and servicing both our customers and our employees with excellence. Strong improvements in EBITDA, net income and cash are further evidence that our actions are having the intended effect.

“As demonstrated by the second quarter financials, the company continues to head in the right direction. As always, we will focus on sensible capital allocation as we move through the end of the year. This will include re-engaging our stock repurchase program and opportunistically examining possible acquisitions and additional store openings. We continue to believe these strategies are the most optimal for driving long-term shareholder value.”.....

https://seekingalpha.com/pr/16915201-command-center-reports-record-second-quarter-2017-financial-results