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Command Center Announces Third Quarter Net Profit in Excess of $1 Million

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Command Center Announces Third Quarter Net Profit in Excess of $1 Million Powered By Docstoc
					Command Center Announces Third Quarter Net
Profit in Excess of $1 Million
Company Reports Second Consecutive Profitable Quarter on Revenue of $19.7 Million

November 04, 2010 07:03 AM Eastern Daylight Time  

POST FALLS, Idaho--(EON: Enhanced Online News)--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.
Balance Sheets
                                                                                  September 24,       December 25,
                                                                                  2010                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
                                                                                  3,234,536           5,025,113
September 24, 2010 and $300,000 at December 25, 2009
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            37,213
54,314,368 and 37,212,922 shares issued and outstanding, respectively
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
Command Center, Inc.
Statements of Operations (Unaudited)
                                                     Thirteen Weeks Ended           Thirty-nine Weeks Ended
                                                     September 24, September 25, September 24, September 25,
                                                     2010            2009           2010           2009
Operating Revenue:
Operating Revenue:
Revenue from staffing services                       $ 19,674,071 $ 13,173,084 $ 50,542,743 $ 38,331,742
Other income                                         26,815          13,855         97,099         69,874
Total operating revenue                              19,700,886 13,186,939 50,639,842 38,401,616
Cost of Staffing Services:
Temporary worker costs                               13,504,804 8,957,172           34,926,139 26,282,246
Workers' compensation costs                          878,804         463,401        2,294,231      2,170,542
Other direct costs of services                       109,496         47,620         262,218        131,254
Total cost of staffing services                      14,493,104 9,468,193           37,482,588 28,584,042
Gross Profit                                         5,207,782       3,718,746      13,157,254 9,817,574
Selling, General, and Administrative Expenses:
Personnel costs                                      2,124,479       1,860,868      5,625,516      6,039,755
Selling and marketing expenses                       52,838          11,976         182,054        81,787
Transportation and travel                            433,985         202,789        972,120        772,131
Office expenses                                      188,327         149,020        555,591        661,784
Legal, professional and consulting                   126,247         168,900        583,343        583,276
Depreciation and amortization                        144,268         194,050        431,127        609,598
Rents and leases                                     379,389         476,140        1,164,929      1,701,119
Other expenses                                       538,433         619,408        1,463,145      1,940,982
Total selling, general, and administrative expenses  3,987,966       3,683,151      10,977,825 12,390,432
Income (Loss) from Operations                        1,219,816       35,595         2,179,429      (2,572,858 )
Other Income (Expense):
Interest expense and other financing expense         (430,507      ) (285,371     ) (1,037,900 ) (854,715     )
Gain (loss) on debt extinguishment                   4,491           —              (840,307     ) (518,251   )
Change in fair value of warrant liability            280,327         —              (604,048     ) 126,000
                                                     (145,689      ) (285,371     ) (2,482,255 ) (1,246,966 )
Net Income (Loss)                                    $ 1,074,127 $ (249,776 ) $ (302,826 ) $ (3,819,824 )
Earnings (Loss) per Share:
Basic                                                0.02            (0.01        ) (0.01        ) (0.10      )
Diluted                                              0.02            (0.01        ) (0.01        ) (0.10      )
Weighted Average Common Shares
Outstanding:
Basic                                                51,558,983 37,041,172 45,484,621 36,660,036
Diluted                                              56,582,673 37,041,172 45,484,621 36,660,036

Contacts
Investor Relations:
Market Makers
Jimmy Caplan, 512-329-9505
jcap@austin.rr.com

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