Categories: Press Release 1/15/2010 2:23 AM
           
Press Release Source: Command Center, Inc. On Friday January 15, 2010, 10:39 am EST

POST FALLS, Idaho--(BUSINESS WIRE)--Command Center, Inc. (an emerging provider of on-demand, reliable labor solutions, today announced its results for the third quarter of 2009.

For the thirteen weeks ended September 25, 2009, total revenue was $13.2 million, compared to $21.9 million for the thirteen weeks ended September 26, 2008. For the period, the Company reported a net loss of $249,776, or ($0.01) per share, based on 37,041,172 weighted average common shares outstanding, compared to a net loss of $115,820, or ($0.00) per share, based on 36,097,086 weighted average common shares outstanding in the like year-ago quarter.

For the thirty-nine week period ended September 25, 2009, Command Center reported total revenue of $38.4 million, compared to $63.1 million in the thirty-nine week period ended September 26, 2008. The net loss for the nine months was $3.8 million, or ($0.10) per share, compared to a loss of $4.1 million, or ($0.11) per share, in the same period last year.

“Despite the challenges imposed by current economic conditions,” said Glenn Welstad, Command Center Chairman and CEO, “branch consolidation, enhanced sales efforts throughout the entire organization, and the maintenance of strict cost controls resulted in a third-quarter operating loss from operations of less than $50,000. At the same time, expense for workers’ compensation coverage decreased to $463,401 from the $1.13 million recorded in the third quarter of 2008.”

For the thirteen weeks ended September 25, 2009, the Company reported cost of services of $9.47 million and gross profit margin of 28.2 percent, compared to cost of services of $15.86 million and gross profit margin of 27.5 percent in the like year-ago quarter. SG&A expenses for the period were $3.77 million, or 28.6 percent of revenue, compared to $5.82 million, or 26.6 percent of revenue, for the same period last year.

For the thirty-nine week period ending September 25, 2009, the Company reported cost of services of $28.58 million and gross profit margin of 25.6 percent, compared to cost of services of $46.75 million and gross profit margin of 25.8 percent in the like year-ago period. SG&A expenses for the period were $13.1 million, or 34.1 percent of revenue, compared to $19.8 million, or 31.4 percent of revenue, for the same period last year.

Mr. Welstad noted that the current outlook for the staffing industry and for Command Center is very positive. “We are encouraged by the increasing number of new business opportunities. Many of our best customers are expanding their activities, and customers who have not used our services during the last 12 months are beginning to place orders for our temporary workers. We believe that Command Center is now positioned to return to a solid growth path with improved revenue and profitability during 2010.”

A copy of the Form 10-Q is available in the investor relations section of the Company’s website, www.commandonline.com.

About Command Center, Inc.

The Company provides 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. 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, 2009 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 Sheet                    
Assets                   September 25, 2009   December 26, 2008
CURRENT ASSETS:               Unaudited    
  Cash               $ 146,707     $ 2,174,960  
 

Accounts receivable trade, net of allowance for bad debts of $500,000

                   
 

 

at September 25, 2009 and December 26, 2008

        5,023,415       5,223,113  
  Prepaid expenses, deposits, and other current assets           965,248       1,260,153  
  Current portion of workers' compensation risk pool deposits         1,300,000       1,500,000  
      Total current assets             7,435,370       10,158,226  
                         
PROPERTY AND EQUIPMENT, NET               2,041,561       2,589,201  
                         
OTHER ASSETS:                    
  Workers' compensation risk pool deposits           2,533,784       2,729,587  
  Goodwill                 2,500,000       2,500,000  
  Intangible assets - net               368,854       503,606  
      Total other assets             5,402,638       5,733,193  
                    $ 14,879,569     $ 18,480,620  
                         
Liabilities and Stockholders' Equity                  
CURRENT LIABILITIES:                    
  Accounts payable             $ 1,873,304     $ 1,080,735  
  Line of credit facility               3,012,144       2,579,313  
  Accrued wages and benefits               583,783       981,293  
  Other current liabilities               284,880       195,566  
  Current portion of note payable             9,520       9,520  
  Short-term note payable, net of discount             1,025,000       1,868,748  
  Workers' compensation and risk pool deposits payable           668,518       531,062  
  Warrant liability               336,000       --  
  Current portion of workers' compensation claims liability         1,300,000       1,500,000  
      Total current liabilities             9,093,149       8,746,237  
                         
LONG-TERM LIABILITIES:                  
  Note payable, less current portion             71,447       76,135  
  Finance obligation               1,125,000       1,125,000  
  Workers' compensation claims liability, less current portion         2,800,000       2,986,372  
      Total long-term liabilities             3,996,447       4,187,507  
                         
COMMITMENTS AND CONTINGENCIES (NOTE 10)           -       -  
                         
STOCKHOLDERS' EQUITY:                  
   

 

           
 

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;

               
   

37,074,798 and 36,290,053 shares issued and outstanding, respectively

    37,075       36,290  
  Additional paid-in capital               51,432,762       51,370,627  
  Accumulated deficit               (49,679,865 )     (45,860,041 )
      Total stockholders' equity             1,789,972       5,546,876  
                    $ 14,879,569     $ 18,480,620  
                         
                         
See accompanying notes to unaudited financial statements.
Command Center, Inc.                    
Statements of Operations (Unaudited)                    
          Thirteen Weeks Ended   Thirty-nine Weeks Ended
          September 25   September 26   September 25   September 26
REVENUE:           2009       2008       2009       2008  
  Revenue from services       $ 13,173,084     $ 21,747,587     $ 38,331,742     $ 62,675,317  
  Other income         13,855       122,928       69,874       378,662  
            13,186,939       21,870,515       38,401,616       63,053,979  
COST OF SERVICES:                    
  Temporary worker costs         8,957,172       14,475,694       26,282,246       41,385,881  
  Workers' compensation costs         463,401       1,129,315       2,170,542       4,898,238  
  Other direct costs of services         47,620       253,474       131,254       470,512  
            9,468,193       15,858,483       28,584,042       46,754,631  
GROSS PROFIT         3,718,746       6,012,032       9,817,574       16,299,348  
                       
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:              
  Personnel costs         1,860,868       2,961,797       6,039,755       10,263,983  
  Selling and marketing expenses         11,976       74,204       81,787       598,302  
  Transportation and travel         202,789       609,216       772,131       1,945,799  
  Office expenses         35,982       98,403       136,670       324,429  
  Legal, professional and consulting         168,900       247,000       583,276       795,425  
  Depreciation and amortization         194,050       214,630       609,598       643,456  
  Rents and leases         376,141       623,747       1,701,119       1,916,955  
  Other expenses         915,612       988,558       2,779,714       3,314,338  
            3,766,318       5,817,555       12,704,050       19,802,687  
                       
INCOME (LOSS) FROM OPERATIONS         (47,572 )     194,477       (2,886,476 )     (3,503,339 )
                       
OTHER INCOME (EXPENSE):                    
  Interest expense         (148,490 )     (286,285 )     (482,807 )     (578,354 )
  Loss on extinguishment of debt         -       -       (518,251 )     -  
  Change in fair value of warrant liability       -       -       126,000       -  
  Interest and other income (expense)         (53,714 )     (24,011 )     (58,290 )     (23,355 )
            (202,204 )     (310,296 )     (933,348 )     (601,709 )
                       
NET LOSS         $ (249,776 )   $ (115,819 )   $ (3,819,824 )   $ (4,105,048 )
                       
LOSS PER SHARE, BASIC AND DILUTED       $ (0.01 )   $ (0.00 )   $ (0.10 )   $ (0.11 )
                       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING     37,041,172       36,157,965       36,660,036       35,993,368  
                       
                       
                       
See accompanying notes to unaudited financial statements.