Command Center Inc. (OTC: CCNI) reported revenue rose 5.3% year over year in the second quarter to $22.8 million. However, net income at the Coeur d’Alene, Idaho-based industrial staffing provider fell to $530,000 from $1.5 million in the year-ago quarter.

Revenue from branches outside the Bakken Shale region of North Dakota rose 12% compared to the same year-ago period, offsetting the 24% decline from the company’s five branches located in the Bakken Shale region. Command Center reported revenue from this region will not likely return to the historically high levels experienced in 2014.

Gross margin edged up, driven by lower workers’ compensation costs; however, the impact of lower workers’ compensation costs was partially offset by a decrease in margins related to the decline in higher-margin revenue in the Bakken Shale region.

Command Center reported it purchased in May a convertible promissory note issued by Labor SMART Inc. (OTCBB: LTNC) and sent Labor Smart a notice of default on the note and a letter of intent to purchase its assets. Command Center is pursuing the collection of the note through the court system.

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“Since coming to Command Center two years ago, we focused on driving increased shareholder value through the three core ‘Keys to Success’ that serve as the basis for our operations,” said President and CEO Bubba Sandford. “First, we try to sell to customers who value our service. Secondly, we work to improve our margins whenever possible, and third, we strive to provide excellent service to our customers. We are also focused on driving positive cash flow by remaining lean and controlling our costs. Following these tenets has resulted in a strong balance sheet and a nimble organization.”

Sandford added, “We are now into a new phase of our operations, as we enhance shareholder value by operating our existing business profitably and strategically investing our cash. During the second quarter, we implemented three of the four options we see for investing our cash by improving same-store revenue, implementing a stock repurchase program and investing in potential acquisition opportunities.”

Share price and market cap

Command Center shares rose 1.61% in early afternoon trading today to 63 cents and the company has a market cap of $41.54 million, according to Yahoo!