Command Center Announces Profitable Third Quarter

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Revenue of $24.97 Million Up 26.8%

POST FALLS, Idaho--(BUSINESS WIRE)-- Command Center, Inc. (OTCBB: CCNI) (http://www.otcmarkets.com/stock/CCNI/quote), a national provider of on-demand and temporary staffing solutions, today reported revenue of $24.97 million for the third quarter ended September 30, 2011. This represents an increase of 26.8% on revenue of $19.70 million for the third quarter ended September 24, 2010. Revenue in the third quarter of 2011 was derived from 53 company-owned stores, as compared with 51 stores in the like year-ago period.

For the quarter ended September 30, 2011, the company reported net income of $703,387, or $.01 per share, based on 61.22 million diluted weighted average shares outstanding. For the comparable year-ago period, the company reported net income of $1.07 million, or $.02 per share, based on 56.58 million basic and diluted weighted average shares outstanding.

For the thirty-nine week (nine month) period ended September 30, 2011, Command Center reported total revenue of $61.65 million, an increase of 21.7% on revenue of $50.64 million in the comparable period ended September 24, 2010. The net loss for the nine months was $928,307, or ($0.02) per share, based on 56.62 million diluted weighted average shares outstanding, compared with a net loss of $302,827, or ($0.01) per share, based on 45.48 million basic and diluted weighted average shares outstanding in the same period last year.

The company said SG&A expenses were $4.41 million, or 17.7% of revenue, in the third quarter of 2011, versus $3.58 million, or 18.2% of revenue, in the previous year’s third quarter. Gross profit margin in the third quarter was 20.5% - versus 25.1% in the like year-ago period. The gross margin was impacted by the recording of an expense of $700,000 in the quarter for additional workers’ compensation costs associated with prior years.

“We are pleased to announce back-to-back profitable quarters,” said Command Center Chairman and CEO Glenn Welstad. “Third quarter SG&A expenses as a percentage of revenue decreased, but they increased by about $838,000 quarter-over-quarter. The increase was due primarily to an increase in internal wages and the related payroll taxes, certain expenses directly related to increased sales volume, including higher travel costs, and additional costs associated with expansion into new areas for growth - such as the Bakken Shale Region. Going forward, management will be focused on improving operating margins while managing costs, expanding our customer base, and achieving even higher goals of revenue and profit.”

Mr. Welstad said he expected Command’s revenue streams to continue to broaden, particularly in the areas of disaster relief and recovery, national accounts, and through the company’s newest division, Bakken Staffing. “This is a very exciting time for our company. Despite concerns about the economy in general, I believe the current opportunities for growth at Command Center are quite favorable. We are well-respected in our industry and well-positioned to take advantage of these opportunities.”

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 March 16, 2011 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.
Condensed Balance Sheets
						April 1, 2011						December 31,
						(unaudited)							2010
ASSETS
Current Assets
Cash						$	440,035					$	1,667,281
Restricted cash							-						150,000
Accounts receivable, net of allowance for bad debt of $							3,803,515						1,886,426
Prepaid expenses, deposits and other							619,833						351,657
Prepaid workers' compensation							38,784						231,840
Other receivables - current							147,998						6,667
Current portion of workers' compensation deposits							954,000						1,200,000
Total Current Assets							6,004,165						5,493,871
Property and equipment - net							367,605						411,695
Workers' compensation risk pool deposit, less current portion							57,572						1,430,814
Goodwill							2,500,000						2,500,000
Intangible assets - net							82,835						176,336
Total Assets						$	9,012,177					$	10,012,716
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable						$	271,304					$	1,546,992
Checks issued and payable							779,702						68,760
Other current liabilities							747,826						560,433
Accrued wages and benefits							1,498,170						881,640
Common stock issuable							26,200						22,200
Capital leases							-						5,422
Current portion of workers' compensation claims liability							1,702,428						1,675,512
Total Current Liabilities							5,025,630						4,760,959
Warrant liabilities							1,077,281						1,837,785
Workers' compensation claims liability, less current portion							2,238,725						2,875,000
Total Liabilities							8,341,636						9,473,744
Commitments and contingencies
Stockholders' equity
Common stock - 100,000,000 shares, $0.001 par value, authorized; 56,809,368 and 54,624,368 shares issued and outstanding, respectively							57,570						54,624
Additional paid-in capital							54,925,036						53,868,105
Accumulated deficit							(54,312,065	)					(53,383,758	)
Total Stockholders' Equity							670,541						538,972
Total Liabilities and Stockholders' Equity						$	9,012,177					$	10,012,716

Command Center, Inc.
Condensed Statements of Operations (unaudited)
						Thirteen Weeks Ended												Thirty-nine Weeks Ended
						Sept. 30, 2011						Sept. 24, 2010						Sept. 30, 2011						Sept. 24, 2010
Revenue						$	24,972,597					$	19,700,886					$	61,652,359					$	50,639,842
Cost of staffing services							19,850,532						14,760,448						48,805,895						37,805,681
Gross profit							5,122,065						4,940,438						12,846,464						12,834,161
Selling, general and administrative expenses							4,414,019						3,576,353						12,728,952						10,223,605
Depreciation and amortization							95,252						144,268						353,527						431,127
Loss from operations							612,794						1,219,817						(236,015	)					2,179,429
Interest expense and other financing expense							(312,989	)					(430,507	)					(777,795	)					(1,037,901	)
Loss on debt extinguishment							-						4,491						-						(840,307	)
Change in fair value of warrant liability							403,582						280,327						85,503						(604,048	)
Basic and diluted net loss						$	703,387					$	1,074,128					$	(928,307	)				$	(302,827	)

INVESTOR RELATIONS:Market MakersJimmy Caplan, 512-329-9505[email protected]

Source: Command Center, Inc.

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