Command Security Corporation Reports Results for First Fiscal Quarter.Business Editors LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--August 21, 2000 -- REVENUES UP 20.3% -- PROFITABLE QUARTER Command Security Corporation (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 ) today reported results for its first fiscal quarter ended June 30, 2000. For the quarter, revenue increased to $16,117,665, a 20.3% increase from the $13,402,632 recorded in the same period in the prior fiscal year. The majority of this revenue increase is as a result of the addition of new accounts primarily within the commercial airline, general commercial, and hospital related industries. In addition, there was a substantial increase in revenues generated from the servicing of new ATM sites. Gross profit, as a percentage of revenue, was 16.6% for the quarter ended June 30, 2000, compared with 18.4% for the quarter ended June 30, 1999. This decrease in gross profit percentage can be attributed to higher labor costs and overtime which is partially due to tight labor markets 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 . Gross profit, as a percentage of revenues for the fiscal year ended March 31, 2000 was 16.9%. William C. Vassell, Chairman of the Board commenting on the results said, "We are extremely pleased with the increase in revenues achieved in our first quarter which was achieved despite the loss of one of our larger clients, Tower Air, due to bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . We believe that we will continue to show revenue growth for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future." Net income applicable to common stockholders was $29,133 or $.005 per share for the period ended June 30, 2000 compared to $148,760 or $.02 per share for the same period in the prior fiscal year. Working capital increased by $43,275 to $792,989 as of June 30, 2000. Nathan Nelson the Company's CFO See Chief Financial Officer. said "In addition to the reduced gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. due to tight labor markets, the Company's profit margin and general and administrative expenses were impacted by new business start-up costs associated with the substantial increase in revenue for the quarter." 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. 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.
COMMAND SECURITY CORPORATION
Condensed Statements of Operations
Quarter ended
June 30,
2000 1999
---- ----
Revenues $16,117,665 $13,402,632
Operating profit 203,387 309,241
Net Income 70,107 189,434
Preferred stock
dividends ( 40,674) ( 40,674)
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Net income applicable to
common shareholders $ 29,433 $ 148,760
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Net income per common
share $ .005 $ .02
Weighted average number of common shares
outstanding 6,287,343 6,658,143
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