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Command Center revenue up 3%; converting branches to franchise model

August 13, 2019

Command Center Inc. (NASDAQ: CCNI) reported second-quarter revenue rose 2.7% year over year, and gross margin improved to 26.4%. The Lakewood, Colorado-based company reported gross margin got a boost from a decrease in workers’ compensation costs and lower unemployment costs.

  Q2 2019 Q2 2018 % change
Revenue $24,838,463 $24,175,985 2.7%
Gross profit $6,549,608 $6,277,320 4.3%
Gross margin percentage 26.4% 26.0%  
Net income $411,508 $563,247 -26.9%

The company noted that it closed its acquisition of Hire Quest Holdings LLC effective July 15. Hire Quest operates as Trojan Labor and Acrux Staffing, which provide light industrial and administrative staffing.

It had announced the deal in April. At the time, Command Center noted that Hire Quest operated primarily as a franchise model and that Command Center planned to convert its branches to the franchise model.

Quote

“We have made significant progress in the few short weeks since the closing of the merger to convert branches to the franchise model,” Command Center President and CEO Rick Hermanns said in a statement. “Approximately half of the Command Center branches have been converted, and the remaining are expected to be converted once state regulatory approval is granted, which is expected before the end of 2019.”

Share price and market cap

Shares in Command Center were trading at $8.00, and the company had a market cap of $115.7 million, according to FT.com.

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