Command Center Inc. (OTC: CCNI) reported revenue edged up 0.5% year over year in the first quarter to $19.1 million.

Revenue from branches outside North Dakota rose 10% compared to the year-ago period, but a 43% decline from the company’s North Dakota branches offset the increase. North Dakota is economically dependent on the health of the oil industry.

The industrial staffing provider reported a net loss of $528,761 compared to net income of $81,583 in the first quarter of 2015, when Command Center recognized an approximate $400,000 benefit due to an actuarial adjustment associated with the prior year’s workers’ compensation liability.

Gross margin also fell in the first quarter, due to the decline in higher-margin revenue from North Dakota and a higher mix of lower-margin business.

Quote

“As we move through 2016, we expect North Dakota will represent a smaller portion of our overall revenue and the year-over-year comparisons are expected to ease,” said President and CEO Bubba Sandford. “We will also look to diversify the clients and industries we service, which we believe will reduce the potential negative impact of an economic downturn in any one industry or region. Our strong balance sheet provides us the ability to deploy cash in a manner that is opportunistic and maximizes shareholder value by increasing same-store revenue and margins, opening new stores, repurchasing the company’s stock and identifying quality acquisition targets.”

Share price and market cap

Command Center shares fell 12.77% in early afternoon trading today to 41 cents and the company has a market cap of $26.18 million, according to Yahoo!