Command Center revenue drops in Q3 2015
It confirmed a drop in revenue, reporting revenue of $24.9m, down from $27.7 million in the third quarter of 2014.
• Revenue was $24.9 million compared to $27.7 million
• Revenue, excluding stores in North Dakota, increased 6.5%
• Gross margins decreased 160 basis points to 26.1%
• Operating income was $1.4 million compared to $2.5 million
• Net income totaled $820,000 compared to $6.0 million
• Adjusted EBITDA totaled $1.6 million compared to $2.9 million
“As we continue to coach and train our branches the tenets of our & lsquo;Keys to Success,’ we see improved customer satisfaction and better business decisions at the branch level. We know this translates into higher revenue and profitability for the company, and we are confident continuing in this process will ultimately lead to greater overall success and shareholder value,” said Command Center’s president and CEO, Bubba Sandford. “The 6.5% increase in revenue for branches outside North Dakota demonstrates the positive impact of our operational strategy. We believe providing excellent service to our customers and continuing to assist our branches to do good business will achieve superior profitability and shareholder returns.
“We currently have the infrastructure in place to expand our operations in areas where we have an existing customer base, and we are confident we can profitably open additional offices in some of these areas within a short time period. We have identified a number of target markets for new or additional branches in the coming months, as we continue to remain focused on profitable operations. In addition, the recent relocation of the corporate office to Denver, while presenting some challenges, will greatly add to the company’s ability to provide quality service to our branches and our customers moving forward.
“We also have engaged in a number of possible acquisition negotiations, but to date, nothing has come to fruition. We continue to look aggressively for acquisition opportunities that are priced appropriately, add profitability and increase value for our shareholders. The market for good acquisition targets meeting these criteria is competitive at this time in our business line.
“In the last five months we have repurchased 1.8 million of the company’s shares, which is almost 3% of the outstanding shares. There is approximately $3.8 million remaining in the stock repurchase plan. We do not believe continuing this share repurchase program will prevent us from opening new branches or pursuing acquisition opportunities. We continue to believe purchasing the company’s shares is a good allocation of our cash and will provide a significant long-term return to shareholders.
“As we continue to implement our strategy for enhancing shareholder value, we are confident we will remain profitable and continue to generate cash for investing in additional opportunities. We look forward to discussing our operations and plans at the Benchmark Company Micro Cap Discovery Conference in Chicago on December 10, 2015, where we are scheduled to meet with institutional investors and analysts who are following our story.”