CCNI reports Q1 2014 results
First Quarter 2014 Financial Highlights vs. Year-Ago Quarter
· Same store sales up 6% to $18.4 million
· Net income of $511,000 or $0.01 per diluted share
· Operating income up 237% to $596,000
· Adjusted EBITDA up 148% to $661,000
First Quarter 2014 Financial Results
“Since I came to Command Center, we have been working to build a team focused on delivering high-quality service to our customers while controlling costs,” said Command Center’s president and CEO, Bubba Sandford. “We have evaluated every phase of our operations to drive customer service and improve efficiency. I believe we now have a strong platform in place to maintain a high level of customer service while we pursue quality growth and continue to control our costs.”
Revenues in the first quarter of 2014 decreased 7% to $18.5 million compared to $19.9 million in the first quarter of 2013. The decrease in revenue is primarily attributable to an overall reduction in the number of on-demand labor stores from 58 a year ago to 53 stores at the end of this period. This reduction in operating locations was targeted to eliminate lower-performing stores in order to focus on areas of greater potential quality growth for the company.
Same store revenues increased approximately 6% to $18.4 million in Q1 2014 compared to $17.4 million in Q1 2013. Cost of staffing services decreased to 73.6% of revenue in Q1 2014 compared to 73.8% of revenue in Q1 2013, yielding gross margins of 26.4% and 26.2%, respectively. The increase in same store sales and improved margins resulted, in large part, from the company’s continued focus on attracting new quality accounts and maximizing revenue with existing clients.
Net income in the first quarter increased to $511,000 compared to $12,000 in the year-ago quarter, resulting in diluted earnings per share in the first quarter of 2014 at $0.01 compared to $0.00 in the year-ago quarter. Operating income was up 237% to $596,000 versus $177,000 in the year-ago quarter.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and the change in fair value of derivative liabilities) was up 148% to $661,000 from $266,000 in the year-ago quarter.
SG&A expenses were $4.2 million for the current period versus $5.0 million in the comparable year-ago period, representing 22.8% and 24.9% of revenue, respectively, reflecting the company’s focus on improving operating efficiency.
Cash at March 31, 2014 totaled $5.8 million, up 583% compared to $849,000 at March 29, 2013. The increase in cash is due to improved cash generation from operations.