Command Center, Inc. (OTCQB: CCNI) is engaged as an on-demand and temporary staffing solutions provider. Shares of the temporary staffing company are rallying 17.21%, through early trading on Tuesday, August 15, 2017. Over the past month, Command Center, Inc. has seen average daily volume of 21,877 shares. However, volume of 156,100 shares or dollar volume of $56,024, has already exchanged hands on Tuesday.
Shares of Command Center, Inc. are increasing today, after the company announced second quarter 2017 earnings. During the second quarter, the company reported record revenue of $24.5 million, growth of 13% compared to a year ago. Gross margins grew to 26.5% from 25.2% and net income came in at $0.7 million. Here is the full press release detailing of the earnings release:
Command Center, Inc. Press Release:
DENVER–(BUSINESS WIRE)– Command Center, Inc. (OTCQB: 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.
“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.”
Command Center will hold a conference call tomorrow, August 15, at 10:00 a.m. Eastern time (8:00 a.m. Mountain time) to discuss its second quarter 2017 results.
Date: Tuesday, August 15, 2017
Time: 10:00 a.m. Eastern time (8:00 a.m. Mountain time)
Toll-free dial-in number: 1-888-468-2440
International dial-in number: 1-719-457-2642
Conference ID: 9418168
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
A replay of the conference call will be available after 1:00 p.m. Eastern time on the same day and continuing through August 29, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 9418168
About Command Center, Inc.
Command Center, Inc. provides flexible on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, hospitality and event services. Through 66 field offices, the company provides employment annually for approximately 34,000 field team members working for over 3,200 clients. For more information about Command Center, go to www.commandonline.com.
Important Cautions Regarding Forward-Looking Statements
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, national, regional and local economic conditions, the availability of workers’ 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 our most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission, copies of which are available on our website at www.commandonline.com and the SEC website at www.sec.gov. 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.
Reconciliation of Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles (“GAAP”), the company also presents the non-GAAP terms of EBITDA and Adjusted EBITDA. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, non-cash compensation and certain non-recurring expenses, including reserve for workers’ compensation deposits. The company uses EBITDA and Adjusted EBITDA as financial measures as management believes investors find them to be useful tools to perform more meaningful comparisons of past, present and future operating results, and as a means to evaluate our results of operations. The company believes these metrics are useful compliments to net income and other financial performance measures. EBITDA and Adjusted EBITDA are not intended to represent net income as defined by GAAP, and such information should not be considered as an alternative to net income or any other measure of performance prescribed by GAAP.