Command Security Corp. Expects to Report an Approximately $4 Million Loss for Fiscal 1998.LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--July 7, 1998--Command Security Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMMD CMMD Ceramic Metal Matrix Diaphragm CMMD Command ) reported in its 10K filing extension that it expects a net loss of approximately $4 million for the fiscal year ended March 31, 1998. The 10K is due to be filed on July 14, 1998. In addition to reductions in gross margins of approximately $1.1 million primarily due to increased reserves for general liability claims and increased labor costs, the company increased its provision for doubtful accounts by $1 million, primarily due to GFM GFM Government-Furnished Material GfM Gesellschaft Für Musikforschung GFM Global Freight Management GFM Gruyere Fribourg Morat (Swiss / Fribourg Railways-Bus Organisation) GFM Global Force Management GFM Gram Formula Mass , a large service agreement client that filed for bankruptcy in August 1997. The company also incurred a $750,000 charge for the write-down of the value of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , it incurred losses in connection with certain labor claims of approximately $350,000, it reversed income tax benefits of $260,000 recorded in previous years by increasing deferred tax asset valuation allowances and reported an approximately $600,000 increase in general and administrative expenses. William C. Vassell, chairman of the board said: "We are continuing our efforts to reduce expenses and improve margins. We are beginning to see results from our marketing efforts and expect to see continued growth in our revenues. I think it is important to note that although we expect to report a loss for fiscal 1999, due in substantial part to approximately $1.35 million in amortization of intangibles, we expect to continue to have positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ." Command Security Corp. provides security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the to company owned offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New Jersey, California, Illinois, Connecticut, Florida and Pennsylvania and provide services to independent security companies nationwide.
CONTACT: Command Security Corp., Lagrangeville
William C. Vassell, Chairman
914/454-3703
or
Radcliffe & Associates Inc.
Donald Radcliffe
212/605-0174
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