Command Center Announces Profitable Second Quarter on 19.6% Increase in Revenue, Improved Margins
Released: 08/13/12 07:00 AM EDT

Command Center, Inc. (OTCQB:CCNI) (http://www.ir-site.com/commandcenter/quote.asp), a national provider of on-demand and temporary staffing solutions, today reported revenue of $24.27 million for the thirteen week period ended June 29, 2012. This represents an increase of 19.6% on revenue of $20.30 million for the thirteen-week period ended July 1, 2011.

For the second quarter ended June 29, 2012, the company reported net income of $842,583, or $.01 per share, based on 59.15 million basic and 63.99 million diluted weighted average shares outstanding. For the comparable year-ago period, the company reported net income of $669,742, or $.01 per share, based on 57.30 million basic and 61.77 million diluted weighted average shares outstanding.

Command Center has now reported 12-month trailing earnings of $2.77 million, or about $.043 per share on a fully diluted basis.

For the twenty-six week period ended June 29, 2012, Command Center reported total revenue of $43.36 million, an increase of 18.2% on revenue of $36.68 million for the twenty-six week period ended July 1, 2011. Net income for the six months was $281,087, or $.00 per share, compared with a net loss of $1,631,694, or ($.03) per share in the same period last year.

The company said gross profit margin improved to 24.8% and 24.6% in the second quarter and first half of 2012, respectively, versus 23.3% and 21.6% in the like year-ago periods. SG&A expenses were 20.8% of revenue in the second quarters of both this and the prior year, and 21.6% and 23.7% of revenue for the first six-month periods of 2012 and 2011, respectively. Workers’ compensation expense was 4.4% and 5.5% of revenue for the twenty-six weeks of 2012 and 2011, respectively.

“I am pleased by the sharp focus throughout our entire organization on improving sales, margins and profits over the past year,” said Command Center Chairman and CEO Glenn Welstad. “Strong organic sales growth at the branch level in the second quarter and first half of 2012 has been augmented by an increase in our coverage of the Bakken Region of North Dakota, as well as the increase in restoration activities of Disaster Recovery Services, Inc., our wholly-owned subsidiary. We expect these positive trends to continue and have positioned Command Center for even stronger growth in the second half of this year and beyond.”

The company recently announced it had opened, or was in the process of opening, a total of seven new branch offices in six different states. This move is expected to accelerate its expansion and create greater visibility for the company nationwide.

The company’s quarterly report on Form 10-Q can be accessed online at www.sec.gov, or on the Command Center website at http://www.ir-site.com/commandcenter/default.asp.

About Command Center, Inc.

The company provides flexible 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 such as emergency and disaster relief projects. Additional information on Command Center is available at www.commandonline.com. Information on the company’s Bakken Staffing division can be found at www.bakkenstaffing.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 10-K filed with the Securities and Exchange Commission on April 9, 2012 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.
Consolidated Condensed Balance Sheets
June 29, 2012December 30,
(unaudited)2011
ASSETS
Current Assets
Cash $ 365,597 $ 1,131,296
Restricted cash 47,055 -
Accounts receivable, net of allowance for bad debt 4,340,930 2,160,072
Prepaid expenses, deposits and other 552,561 396,908
Prepaid workers' compensation 78,403 27,632
Other receivables - current 10,971 11,028
Current portion of workers' compensation deposits 788,000 798,000
Deferred tax asset 621,695 912,195
Total Current Assets 6,805,212 5,437,131
Property and equipment - net 474,063 383,014
Workers' compensation risk pool deposit, less current portion 574,441 130,834
Goodwill 3,306,786 2,500,000
Intangible assets - net 585,934 46,834
Total Assets $ 11,746,436 $ 8,497,813
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 604,611 $ 900,174
Checks issued and payable 349,037 169,738
Other current liabilities 567,001 558,821
Current portion of contingent liability 473,018 -
Accrued wages and benefits 1,525,067 785,665
Current portion of notes payable 25,000 -
Current portion of workers' compensation premiums and claims liability 1,785,602 1,186,661
Total Current Liabilities 5,329,336 3,601,059
Long-term liabilities
Warrant liabilities 1,167,515 983,415
Contingent liabilities, less current portion 328,153 -
Workers' compensation claims liability, less current portion 2,385,687 2,148,675
Total Liabilities 9,210,691 6,733,149
Commitments and contingencies (Note 4 and 8)
Stockholders' equity
Preferred stock - $0.01 par value, 5,000,000 shares authorized; none issued - -

Common stock - 100,000,000 shares, $0.001 par value,
authorized; 59,142,368 and 57,606,368 shares issued and
outstanding, respectively

59,240 57,606
Additional paid-in capital 55,441,163 54,952,802
Accumulated deficit (52,964,658 ) (53,245,744 )
Total Stockholders' Equity 2,535,745 1,764,664
Total Liabilities and Stockholders' Equity $ 11,746,436 $ 8,497,813
Command Center, Inc.
Consolidated Condensed Statements of Operations
(unaudited)
Thirteen Weeks EndedTwenty-six Weeks Ended
June 29, 2012July 1, 2011June 29, 2012July 1, 2011
Revenue $ 24,269,530 $ 20,299,940 $ 43,363,211 $ 36,679,763
Cost of staffing services 18,256,277 15,576,291 32,708,401 28,750,335
Gross profit 6,013,253 4,723,649 10,654,811 7,929,428
Selling, general and administrative expenses 5,037,524 4,222,218 9,356,860 8,682,095
Depreciation and amortization 82,937 126,999 203,400 258,276
Income (loss) from operations 892,792 374,431 1,094,551 (1,010,943 )
Interest expense and other financing expense (191,792 ) (166,639 ) (338,865 ) (302,672 )
Change in fair value of warrant liability 432,083 461,950 (184,100 ) (318,079 )
Net income (loss) before income taxes 1,133,083 669,742 571,587 (1,631,694 )
Provision for income taxes (290,500 ) - (290,500 ) -
Net income (loss) $ 842,583 $ 669,742 $ 281,087 $ (1,631,694 )
Earnings (loss) per share:
Basic $ 0.01 $ 0.01 $ 0.00 $ (0.03 )
Diluted $ 0.01 $ 0.01 $ 0.00 $ (0.03 )
Weighted average shares outstanding:
Basic 59,146,678 57,303,049 59,095,732 56,178,720
Diluted 63,985,995 61,767,321 63,720,922 56,178,720

Contacts:

<fc:contacts xmlns="http://www.w3.org/1999/xhtml"> Market Makers<br/>Jimmy Caplan, 512-329-9505<br/><a href="mailto:jcap@austin.rr.com">jcap@austin.rr.com</a></fc:contacts>