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Command Center Reports First Quarter 2013 Results

Command Center Reports First Quarter 2013 Results

Command Center, Inc. has announced its results for the first quarter ended March 29, 2013. The company reported first quarter revenues of $19.9 million, an increase of 4.2% compared to revenue of $19.1 million for the first quarter of 2012. Gross profit for the quarter was $5.2 million, an increase of 12.5% compared to $4.6 million for the comparable period last year. Net income for the quarter was $12,000 compared to a net loss of $561,000 for the first quarter of 2012.

“We continue to focus on changes that improve business practices that should lead us to greater profitability,” said Bubba Sandford, President and Chief Executive Officer. “During the first quarter, we instituted changes, including establishment of new operating and hiring standards and implementation of a number of cost cutting measures. We believe that some of those new initiatives contributed to growing gross margin to 26.2% compared to 24.3% reported in the comparable period in 2012. We are also beginning to see increased business activity in many of the industry sectors in which we are engaged and believe that we are well positioned to grow profitably.”

During the second quarter, the company significantly reduced its financing expense through renegotiating its credit facility with Wells Fargo Bank. The new terms include a reduction in interest rate and fees and extend the term of the facility to April 2016. The company filed a Form 8-K on May 7, 2013 that contains additional details on the terms of the new agreement.

Mr. Sandford commented, “We are very pleased to have the opportunity to continue our relationship with Wells Fargo Bank. Under the terms of the new agreement, we believe the company will generate stronger cash flow at a lower cost of funding on a go forward basis. The newly negotiated agreement is in line with the executive team’s focus on its new strategy to increase profitability and strengthen cash production as we grow Command’s overall business. We look forward to continuing our relationship with Wells Fargo as the company’s growth requires a flexible capital partner.”

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