POST FALLS, Idaho--(BUSINESS WIRE)--Command Center, Inc. (Pink Sheets:CCNI - News), an emerging provider of on-demand, reliable labor solutions, today announced revenue of $51.5 million for the 52-week period ended December 25, 2009, compared with revenue of $78.8 million for the 52-week period ended December 26, 2008.
The company said the reduction in revenue was caused primarily by the weakening economy and the reduction in operating stores to 50 at the end of fiscal 2009, down from 57 at the end of 2008.
According to Command’s Chairman and CEO, Glenn Welstad, “Management’s yearlong objective to increase selling efforts, with strong cost controls in place, brought cash flow to essentially break even in the fourth quarter of 2009. We also saw favorable results in the first quarter of 2010, with a year-over-year average weekly sales increase of 14% reported in March 2010. We remain optimistic that we have turned the corner towards rising sales and profitability.â€
Command Center reported a net loss of $6 million, or $0.16 per basic and diluted weighted average common share outstanding, for the 52-week period ended December 25, 2009. This compares with a net loss of $17.6 million, or $1.04 per basic and diluted weighted average common share outstanding, for the comparable period of 2008. The loss in 2008 included impairment of goodwill charges of $11.76 million related to the acquisition of franchises in 2006. There were no further impairment charges in 2009, and goodwill remains at $2.5 million.
Mr. Welstad said management is also focused this year on improving working capital, reducing debt and interest expense, and lowering the company’s receivable financing costs. “Through the recent renewal of our primary credit line and the modification of our subordinate debt, we have already made considerable progress in improving our financial position and reducing our financing costs. We are now fully compliant with all of the terms of these credit facilities. We expect this year to generate additional working capital from equity investments, refunds of collateral deposits with former workers’ compensation insurance carriers, and positive cash flow from operations. That gives us further confidence that 2010 can be a turnaround year for Command Center.â€
Investors can access the company’s 2009 annual report on Form 10-K at EDGAR, or by visiting the investor relations section of the Command Center website at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.commandonline.com&esheet=6244303&lan=en_US&anchor=www.commandonline.com&index=1&md5=368c8d66e0c41204c24a0f01573cead0
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 http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.commandonline.com&esheet=6244303&lan=en_US&anchor=www.commandonline.com&index=2&md5=c8a98de583c7ca40d007c7c912ffe093.
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.
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COMMAND CENTER, INC.
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Balance Sheets
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Assets
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December 25, 2009
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December 26, 2008
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CURRENT ASSETS:
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Cash
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$
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69,971
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$
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2,174,960
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Accounts receivable trade, net of allowance for bad debts of $300,000 and $500,000 at December 25, 2009 and December 26, 2008, respectively
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5,025,113
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5,223,113
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Other receivables
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37,059
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284,244
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Prepaid expenses and deposits
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437,483
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975,909
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Current portion of workers' compensation risk pool deposits
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1,300,000
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1,500,000
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Total current assets
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6,869,626
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10,158,226
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PROPERTY AND EQUIPMENT - NET
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877,827
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2,589,201
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OTHER ASSETS:
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Workers' compensation risk pool deposits, less current portion
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2,318,805
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2,729,587
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Goodwill
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2,500,000
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2,500,000
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Intangible asset - net
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323,937
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503,606
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Total other assets
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5,142,742
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5,733,193
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TOTAL ASSETS
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$
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12,890,195
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$
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18,480,620
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| |
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Liabilities and Stockholders' Equity (Deficit)
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CURRENT LIABILITIES:
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Accounts payable trade
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$
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2,174,504
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$
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1,080,735
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Line of credit facility
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2,907,521
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2,579,313
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Accrued wages and benefits
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694,079
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981,293
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Other current liabilities
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224,491
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195,566
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Current portion of note payable
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9,520
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9,520
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Short-term note payable, net of discount
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1,025,000
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1,868,748
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Short-term note liquidity redemption payable
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186,939
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-
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Workers' compensation insurance and risk pool deposits payable
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501,423
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531,062
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Stock warrant liability
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413,026
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-
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Current portion of workers' compensation claims liability
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1,300,000
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1,500,000
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Total current liabilities
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9,436,503
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8,746,237
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LONG-TERM LIABILITIES:
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Note payable, less current portion
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71,447
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76,135
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Workers' compensation claims liability, less current portion
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2,800,000
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2,986,372
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Common stock to be issued
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922,000
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-
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Finance obligation
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-
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1,125,000
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Total long-term liabilities
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3,793,447
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4,187,507
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TOTAL LIABILITIES:
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13,229,950
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12,933,744
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COMMITMENTS AND CONTINGENCIES (Note 9,13,14)
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STOCKHOLDERS' EQUITY (DEFICIT):
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Preferred stock - $0.001 par value, 5,000,000 shares authorized; none issued
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-
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-
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Common stock - $0.001 par value, 100,000,000 shares authorized; 37,212,923 and 36,290,053 shares issued and outstanding, respectively
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37,213
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36,290
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Additional paid-in capital
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51,446,437
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51,370,627
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Accumulated deficit
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(51,823,405
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)
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(45,860,041
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)
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Total stockholders' equity (deficit)
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(339,755
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)
|
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5,546,876
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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$
|
12,890,195
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$
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18,480,620
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COMMAND CENTER, INC.
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Statements of Operations
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52 Weeks Ended
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52 Weeks Ended
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REVENUE:
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December 25, 2009
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December 26, 2008
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Revenue from services
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$
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51,474,445
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$
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78,812,404
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Other income
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86,490
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421,621
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51,560,935
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79,234,025
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COST OF SERVICES:
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Temporary worker costs
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35,425,932
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52,317,484
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Workers' compensation costs
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2,941,370
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5,799,145
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Other direct costs of services
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212,780
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521,128
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38,580,082
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58,637,757
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GROSS PROFIT
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12,980,853
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20,596,268
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
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Personnel costs
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8,035,961
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12,941,348
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Selling and marketing expenses
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91,108
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396,203
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Transportation and travel
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943,657
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2,475,462
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Office expenses
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854,349
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1,394,826
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Legal, professional and consulting
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818,006
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1,061,827
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Depreciation and amortization
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786,142
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868,208
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Rents and leases
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2,081,534
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2,523,361
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Other expenses
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754,537
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879,165
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Utilities and telephone
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1,114,040
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1,208,701
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Bank fees
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430,836
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591,910
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Insurance
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379,974
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710,727
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Bad debt
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|
307,714
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|
|
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534,517
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Impairment of goodwill
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|
-
|
|
|
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11,757,929
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| |
|
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16,597,858
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|
|
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37,344,184
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LOSS FROM OPERATIONS
|
|
|
(3,617,005
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)
|
|
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(16,747,916
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)
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|
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OTHER INCOME (EXPENSE)
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Interest expense
|
|
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(1,877,081
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)
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(848,890
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)
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Other
|
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-
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(24,581
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)
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Loss on extinguishment of debt
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|
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(518,251
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)
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-
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|
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Change in fair value of stock warrant liability
|
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48,973
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|
|
-
|
|
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|
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(2,346,359
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)
|
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(873,471
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)
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|
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NET LOSS
|
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$
|
(5,963,364
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)
|
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$
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(17,621,387
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)
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NET LOSS PER SHARE - BASIC
|
|
$
|
(0.16
|
)
|
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$
|
(0.49
|
)
|
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC
|
|
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36,782,420
|
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|
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36,059,701
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