Command Center, Inc. (OTCQB: CCNI) (http://www.otcmarkets.com/stock/CCNI/quote), a national provider of on-demand and temporary staffing solutions, today reported revenue of $28.38 million for the third quarter ended September 28, 2012. This represents an increase of 13.7% on revenue of $24.97 million for the third quarter ended September 30, 2011. Revenue in the third quarter of 2012 was derived from 58 company-owned stores, as compared with 53 stores in the like year-ago period.

For the quarter ended September 28, 2012, the company reported net income of $721,844, or $.01 per share, based on 62.80 million diluted weighted average shares outstanding. For the comparable year-ago period, the company reported net income of $1.42 million, or $.02 per share, based on 61.22 million diluted weighted average shares outstanding.

For the thirty-nine week (nine month) period ended September 28, 2012, Command Center reported revenue of $71.75 million, an increase of 16.4% on revenue of $61.65 million in the comparable period ended September 30, 2011. Net income for the first nine months of 2012 was $1.00 million, or $0.02 per share, based on 62.96 million diluted weighted average shares outstanding, compared with a net loss of $212,417, or $0.00 per share, based on 56.62 million basic and diluted weighted average shares outstanding in the same period last year.

The company said gross profit margin in the third quarter and first nine months of 2012 improved to 25.9% and 25.1%, respectively – versus 23.6% and 22.4% in the like year-ago periods. SG&A expenses were $6.28 million, or 22.1% of revenue, in the third quarter of 2012, versus $4.56 million, or 18.3% of revenue, in the previous year’s third quarter. For the nine-month period, SG&A expenses were $15.67 million, or 21.8% of revenue in 2012, versus $13.24 million, or 21.5% of revenue in 2011.

“We are pleased to report higher sales, stronger profit margins and continued profitability, despite the economy’s slow recovery,” said Command Center Chairman and CEO, Glenn Welstad. “Because of our commitment and ability to provide superior customer service across many different sectors, the company has been able to expand its customer base on both the local and national level.”

Mr. Welstad noted that the increase in SG&A expenses during the third quarter was related primarily to increases in compensation and travel activities, as well as additional costs associated with new branch office openings and expansion into high growth areas such as Bakken Staffing and restoration services.

Command Center is currently active with disaster relief and recovery efforts on the East Coast following Hurricane Sandy. According to Mr. Welstad, this work is expected to have a positive impact on fourth quarter operating results. “Command Center is uniquely qualified to mobilize large numbers of workers to service these types of opportunities, and they have become increasingly important as catalysts for our growth.”

About Command Center, Inc.

The company provides flexible on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, hospitality and event services, as well as other assignments such as emergency and disaster relief projects. Additional information on Command Center is available at www.commandonline.com. Information on the company’s Bakken Staffing division can be found at www.bakkenstaffing.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, the severity and duration of the general economic downturn, the availability of worker's compensation insurance coverage, the availability of capital and suitable financing for the Company's activities, the ability to attract, develop and retain qualified store managers and other personnel, product and service demand and acceptance, changes in technology, the impact of competition and pricing, government regulation, and other risks set forth in the Form 10-K filed with the Securities and Exchange Commission on April 9, 2012 and in other statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

Command Center, Inc.
Consolidated Condensed Balance Sheets
             
September 28, 2012 December 30,
(unaudited) 2011
ASSETS
Current Assets
Cash $ 1,339,287 $ 1,131,296
Restricted cash 39,957 -
Accounts receivable, net of allowance for bad debt 5,063,114 2,160,072
Prepaid expenses, deposits and other 544,698 396,908
Prepaid workers' compensation 35,579 27,632
Other receivables - current 15,876 11,028
Current portion of workers' compensation deposits 1,000,000 798,000
Deferred tax asset   214,000     912,195  
Total Current Assets 8,252,511 5,437,131
Property and equipment - net 517,759 383,014
Workers' compensation risk pool deposit, less current portion 757,201 130,834
Goodwill 3,306,786 2,500,000
Intangible assets - net   552,188     46,834  
Total Assets $ 13,386,445   $ 8,497,813  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 519,286 $ 900,174
Checks issued and payable 405,394 169,738
Other current liabilities 743,398 558,821
Current portion of contingent liability 669,568 -
Accrued wages and benefits 2,079,699 785,665
Current portion of workers' compensation premiums and claims liability   2,152,495     1,186,661  
Total Current Liabilities 6,569,840 3,601,059
Long-term liabilities
Warrant liabilities 791,824 983,415
Contingent liabilities, less current portion 85,668 -
Workers' compensation claims liability, less current portion   2,578,953     2,148,675  
Total Liabilities   10,026,285     6,733,149  
Commitments and contingencies
Stockholders' Equity
Preferred stock - $0.01 par value, 5,000,000 shares authorized; none issued - -

Common stock - 100,000,000 shares, $0.001 par value, authorized; 59,142,368 and 57,606,368 shares issued and outstanding, respectively

59,426 57,606
Additional paid-in capital 55,543,548 54,952,802
Accumulated deficit   (52,242,814 )   (53,245,744 )
Total Stockholders' Equity   3,360,160     1,764,664  
Total Liabilities and Stockholders' Equity $ 13,386,445   $ 8,497,813  
 
Command Center, Inc.
Consolidated Condensed Statements of Operations
(unaudited)
                   
Thirteen Weeks Ended Thirty-nine Weeks Ended
September 28, 2012 September 30, 2011 September 28, 2012 September 30, 2011
Revenue $ 28,384,931 $ 24,972,597 $ 71,748,142 $ 61,652,359
Cost of staffing services   21,047,247     19,070,906     53,755,648     47,821,241  
Gross profit 7,337,684 5,901,691 17,992,494 13,831,119
Selling, general and administrative expenses 6,277,242 4,559,920 15,663,556 13,242,016
Depreciation and amortization   81,871     95,252     285,271     353,527  
Income (loss) from operations 978,571 1,246,519 2,043,667 235,576
Interest expense and other financing expense (221,220 ) (230,824 ) (560,085 ) (533,496 )
Change in fair value of warrant liability   372,188     403,582     217,543     85,503  
Net income (loss) before income taxes 1,129,539 1,419,277 1,701,125 (212,417 )
Provision for income taxes   (407,695 )   -     (698,195 )   -  
Net income (loss) $ 721,844   $ 1,419,277   $ 1,002,930   $ (212,417 )
 
Earnings (loss) per share:
Basic $ 0.01   $ 0.02   $ 0.02   $ (0.00 )
Diluted $ 0.01   $ 0.02   $ 0.02   $ (0.00 )
 
Weighted average shares outstanding:
Basic 59,301,342 57,534,368 59,167,829 56,622,445
Diluted 62,805,231 61,217,221 62,964,574 56,622,445


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