Command Security reports first quarter results.LAGRANGEVILLE, N.Y.--(BUSINESS WIRE)--Aug. 19, 1996--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 its results today for its first fiscal quarter ending June 30, 1996. Revenues for the period were $12,000,789, a reduction of approximately $2.9 million from the $14,902,453 reported for the same period last year. The net loss for the period after provision for preferred dividends was $122,174 or 2 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to a loss of $186,331 or 3 cents per share in the same period of last year. 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. for the quarter ended June 30, 1996 increased to $144,204, an increase of 199 percent from the $48,257 recorded in the same period of 1995. This increase was achieved despite a $141,205 increase in a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for amortization of intangibles of $445,791 in 1996 from $304,586 in 1995. During the quarter, management re-evaluated the useful lives of the customer lists acquired from ISS ISS See Institutional Shareholder Services (ISS). in October 1993. Based on the review, the company has reduced the useful life of these lists from 15 to 5 years. This resulted in $144,900 of additional amortization charges for the period. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased by $220,261 to $664,169 in the quarter ended June 30, 1996 from $443,905 recorded in the same period last year. Commenting on the results, William C. Vassell, chairman of the board, stated, "During the period we focused on improving long term profitability from our existing operations. This resulted in a reduction of revenues, as we eliminated unprofitable accounts. We also made progress reducing our general and administration expenses." Vassell added, "We have recently seen increased demand for services in our Aviation Safeguards Division which has significant operations at Kennedy and Los Angeles International Airports. We see substantial potential growth in this area." In early July, Command retained Radcliffe & Associates Inc. to provide investor relations Investor relations The process by which the corporation communicates with its investors. and financial public relations Financial public relations Public relations division of a company charged with cultivating positive investor relations and proper disclosure information. services to the company. Vassell stated, "In light of the improved operating results and our prospects for continued growth, we believe that it is time to make the financial community more aware of the developments and potential for the Company. We selected Radcliffe & Associates based upon their background working primarily with growing small-cap NASDAQ companies." 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 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 and Florida and provides back-offices service agreements to independent security companies nationwide. -0-
Condensed Statements of Operations
For the Quarter Ended
June 30, 1996 June 30, 1995
Revenue $12,000,789 $14,902,453
Cost of revenue 10,040,157 12,745,017
Gross profit 1,960,632 2,157,436
Service contract revenue 327,772 307,887
2,288,404 2,465,323
Operating expenses
General and administrative 1,635,323 2,023,609
Amortization of intangibles 445,791 304,586
Provision for doubtful accounts 63,086 88,871
2,144,200 2,417,066
Operating profit 144,204 48,257
Interest income 59,801 29,603
Interest expense (281,920) (260,949)
Equipment dispositions (11,968) (3,247)
Loss before income taxes (89,883) (186,336)
Provision for income taxes -0- -0-
Net loss (89,883) (186,336)
Preferred stock dividends (32,291) -0-
Net loss applicable to
common stockholders $(122,174) $(186,336)
Net Income/(Loss) per Share $ (0.02) $ (0.03)
CONTACT: Command Security Corp. William C. Vassell, 914/454-3703 or H. Richard Dickinson, 212/689-6565 or Radcliffe & Associates, Inc. Donald Radcliffe, 212/605-0174 |
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