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Command Center revenue falls 8%, but net income rises

March 20, 2014

Command Center Inc. (OTCBB: CCNI), a Coeur d’Alene, Idaho-based industrial staffing provider, reported fourth-quarter revenue fell 8 percent year over year to $24.6 million. However, net income in the fourth quarter increased 121 percent to $1.2 million.

Command Center attributes the revenue decline to a lack of large-scale disaster relief projects occurring in the quarter, as compared to 2012 with the impact of Hurricane Sandy recovery work. 

For full-year 2013, revenue fell 5 percent to $93.7 million from $98.4 million in 2013 and net income rose 89 percent to $2.9 million, a result of greater focus on higher margin business while lowering its cost structure, according to the company.

“The decline in revenues reflects the absence of large disaster relief projects in 2013, which has historically been a low-margin, high-risk business and one which we expect to limit in the future,” said CEO Bubba Sandford. “In fact, as our fourth-quarter results demonstrate, we operate more profitably without participating in the recovery efforts for major national disasters, and we expect this trend to continue.”

Excluding revenue from disaster recovery work, revenue increased 8 percent in both the fourth quarter and full-year 2013 compared to the year-ago periods, according to the company.

Gross margin for the year rose to 25.9 percent from 25.3 percent in the previous year.

“As we begin the new fiscal year, we’ve never been in a stronger financial position or enjoyed a more cohesive team of people working towards commons goals," said Sandford. “This has set the stage for growth in 2014 and beyond. We see the potential for solid growth across all of our business units, based upon continued increases in same store sales, new offices at selected locations and favorable opportunities for acquisitions.”

Shares in Command Center rose 12.20 percent to 46 cents in early afternoon trading and Command Center has a market cap of approximately $27.42 million, according to Yahoo!