Command Security Corporation Reports First Fiscal Quarter Results.Business Editors LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--Aug. 20, 2001 -Revenue Increases 14.8% -Gross Profit Percentage 13.9% Command Security Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CMMD CMMD Ceramic Metal Matrix Diaphragm CMMD Command ) today announced results for its first fiscal quarter ended June 30, 2001. For the quarter, revenue increased by 14.8% to $18.5 million from the $16.1 million reported in the same period of the prior fiscal year. This increase is primarily as a result of increased revenues from additional accounts within the commercial airline industry and an increase in ATM servicing in the UK. Gross profit as a percentage of revenue decreased to 13.9 percent of revenue for the first fiscal quarter ended, June 30, 2001 compared to 16.6 percent of revenue for the same period of the prior fiscal year. This percentage was impacted by an increase in use of subcontractors (particularly with respect to the UK ATM contracts) and the tight 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 . The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first fiscal quarter was ($206,663) compared to an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $203,387 for the same period of the prior fiscal year. The operating results for the period were impacted primarily by the cost of investment in people and infrastructure to maintain and manage the revenue growth and the additional sales people and associated costs necessary to expand the business organically. The net loss applicable to common shareholders for the quarter ended June 30, 2001 was ($394,220) or ($.06) per share compared to net income of $29,433 or $.005 per share for the same period of the prior fiscal year. Commenting on the results of the quarter William C. Vassell, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Command said, "Although we expected to suffer lower profits in the first quarter due to the additional costs of the sales program, we are disappointed by the results of certain divisions and the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the overall margin. A full review of the business is currently being undertaken to ensure a return to profitability and increased shareholder value."
COMMAND SECURITY CORPORATION
First Quarter Ended
June 30
2001 2000
---- ----
Revenue $18,498,741 $16,117,665
Operating profit/
(loss) (206,663) 203,387
Net income/(loss) (394,220) 70,107
Preferred stock
dividend - (40,674)
----------- -----------
Net income/(loss)
applicable to common
stockholders ($ 394,220) $ 29,433
=========== ===========
Net income/(loss)
per common share $ (.06) $ .005
=========== ===========
Weighted average
number of common
shares outstanding 6,287,343 6,287,343
=========== ===========
About Command 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. Statements in this press release other than statements of historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." 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, 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. |
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