Command Security Corporation Reports Results For First Quarter Of Fiscal 2013

Command Security Corporation (NYSE MKT: MOC) announced today its financial results for its first fiscal quarter of 2013 ended June 30, 2012.

For the three months ended June 30, 2012, revenues increased 2.5% to $35,641,679, compared with revenues of $34,785,603 in the same period of the prior year. Operating income for the three months ended June 30, 2012 increased 7.7% to $513,782, compared with $476,861 in the same period of the prior year. Net income increased 10.8% to $231,268, or $0.02 per basic and diluted share, compared with $208,720, or $0.02 per basic and diluted share in the same period of the prior year.

The increase in revenues for three months ended June 30, 2012, as compared with the corresponding period of the prior year was due primarily to the following events:
  • Increased revenues associated with an expansion of services provided under a contract with a major transportation company;
  • Expansion of aviation services with an existing customer at a domestic airport location;
  • A new contract with a large municipal agency;
  • A new contract with an international air freight carrier at four domestic airport locations; and
  • A new contract with a community college.

The increase in revenues was partially offset by the following events:
  • The previously reported loss of security services contracts for a large technology company and a semiconductor equipment manufacturer’s facility;
  • Reductions in service hours and rates associated with the renewal of a contract with a major international carrier;
  • The absence in the current period of a large airport construction contract;
  • Reduction in service hours at a major hospital; and
  • Loss of a service contract with a large international carrier in the fourth quarter of the prior fiscal year.

The increase in operating and net income for the three months ended June 30, 2012 as compared with the corresponding period of the prior year was due primarily to the events described above.

Craig P. Coy, Chief Executive Officer of Command Security, stated, “This has been an excellent quarter for our team. Sales were strong with no significant loss of accounts during the period and operations were strong with improvements in delivering great service to our customers. Overall, I am very pleased with the direction the company is moving.”

About Command Security Corporation

Command Security Corporation provides uniformed security officers, aviation security services and support security services to commercial, financial, industrial, aviation and governmental customers throughout the United States. We safeguard against theft, fraud, fire, intrusion, vandalism and the many other threats that our customers are facing today. By partnering with each customer, we design programs customized to meet their specific security needs and address their particular concerns. We bring years of expertise, including sophisticated systems for hiring, training, supervision and oversight, backed by cutting-edge technology, to every situation that our customers face involving security. Our mission is to enable our customers to operate their businesses without disruption or loss, and to create safe environments for their employees. For more information concerning our company, please refer to our website at www.commandsecurity.com.

Forward-Looking Statements

This announcement by Command Security Corporation (referred to herein as the “Company”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company that are based on management’s assumptions, expectations and projections about the Company. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that actual results of the Company could differ materially from those projected in the forward-looking statements as a result of various factors, including but not limited to the factors described under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2012, filed with the Securities and Exchange Commission, and such other risks disclosed from time to time in the Company’s periodic and other reports filed with the Securities and Exchange Commission. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission, which are publicly available at the Securities and Exchange Commission’s website at www.sec.gov/edgar.shtml.
 

COMMAND SECURITY CORPORATION
 
Three Months Ended
June 30,
    (Unaudited)

 
   

2012
   

2011

Revenues
  $ 35,641,679   $ 34,785,603

Operating income
    513,782     476,861

Other expense
    32,514     68,141

Provision for income taxes
    250,000     200,000

Net income
  $ 231,268   $ 208,720
Net income per common share  
Basic $ 0.02 $ 0.02
Diluted   $ 0.02   $ 0.02
Weighted average number of common shares outstanding
Basic 9,666,498 10,878,098
Diluted     9,666,498     10,983,494
 
   
Balance Sheet Highlights   June 30, 2012   March 31, 2012
    (Unaudited)   (Audited)
         
Cash   $ 9,189   $ 1,175,809
Accounts receivable     22,017,818     20,608,677
Total current assets     24,703,999     26,191,815
Total assets     31,563,607     33,041,683
Total current liabilities     13,228,061     15,235,721
Short-term debt     4,734,486     6,830,951
Total liabilities     13,979,367     15,812,063
Stockholders’ equity     17,584,240     17,229,620
Total liabilities and stockholders’ equity   $ 31,563,607   $ 33,041,683
 

Copyright Business Wire 2010

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