Industrial staffing provider Command Center Inc. (OTCMKTS: CCNI) reported first-quarter revenue rose 0.5%. The Lakewood, Colo.-based company reported stronger revenue in many branches was largely offset by large national accounts project work that did not recur in 2018.

Gross margin narrowed to 24.9% from 25.7% in the year-ago quarter due to higher field team wages and increased workers’ compensation expense.

Results include $500,000 in severance costs associated with the company’s former CEO, Bubba Sandford, who stepped down effective March 31. The new CEO is Richard Coleman.

The firm announced April 16 that it settled a proxy battle with Ephraim Fields of Echo Lake Capital.

The company has 67 field offices in 23 states.

Quote

“Our first quarter reflected strong revenue across many of our branches, which was offset by some one-time larger national accounts project work in 2017,” Coleman said.

“While proactively managing our costs remains a priority, we took a substantial noncash impairment on a workers’ compensation deposit in receivership dating back four years,” he continued. “This deposit did not support any working capital needs of the company and will have essentially no effect on our ongoing financial condition. We also incurred severance-related costs in the quarter associated with the departure of our former CEO.”

Share price and market cap

Shares in Command Center edged down 0.84% to $5.90 as of 1:35 p.m. Eastern time. The company had a market cap of $29.33 million.