Command Security Corporation Comments On Client Filing Chapter 11.Business Editors LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--March 3, 2000 Command Security Corporation (Nasdaq:CMMD CMMD Ceramic Metal Matrix Diaphragm CMMD Command ) commented on the recent bankruptcy filing by one of the Company's clients, Tower Air, Inc. At the time of the Chapter 11 filing, Tower owed Command $750,000 or 6.1% of the Company's accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . It is not known at this time how much of this amount may be recovered. Command is continuing to service Tower on a prepaid basis. Revenue from Tower has represented approximately 5% of the Company's revenue. Nathan Nelson, the Company's CFO See Chief Financial Officer. said, "Command's core business remains fundamentally sound with improved sales reported by regional offices. We do not anticipate a significant cash flow problem as a result of the Tower filing. The Company's borrowing availability under its line of credit remains adequate. We will do everything in our power to recover as much of this debt as possible. We anticipate a significant adverse impact on the Company's earnings for the fourth quarter and for the fiscal year-ending March 31, 2000." Statements in this press release other than statements of historical fact are "forward-looking statements." Such statements are subject to certain risks and uncertainties including the demand for the company's services, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience , and other risk factors identified from time to time in the company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from any forward looking statements. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements. Command Security Corporation 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 through 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, Georgia, Massachusetts and Pennsylvania and provides services via independent security companies nationwide. |
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