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A goodwill impairment and several one-time charges hit the bottom line of Command Center Inc. The Post Falls ID-based industrial staffing firm reported a net loss of almost $24.0 million in 2007 compared with $1.8 million in the previous year.
The company said it had a non-cash goodwill impairment charge of $18.3 million in the fourth quarter. In addition to other one-time and non-cash charges, the company said it also spent $1.2 million to establish a national sales force.
Chairman and CEO Glenn Welstad said the company had an operational loss, excluding non-cash and significant non-recurring items, of about $2.4 million in 2007
Command Center also reported that accurate year-over-year comparisons of results are difficult because it switched to a company-operated model in the last nine months of the year from a franchisor in the first three months.
Revenue rose 38.5% to $98.7 million in 2007 from $71.3 million in 2006. Gross margin slipped to 26.9% from 28.4%.
"Although we expect to report a loss in the winter months comprising the first quarter of 2008, we are beginning to see progress in our sales and cost control efforts," Welstad said.
Command Center Inc. (OTCBB: CCNI.OB)
For full-year 2007 ended Dec. 28, 2007, compared with the previous year.
Revenue: $98.7 million, +38.5%
Net loss: $24.0 million vs. net loss of $1.8 million