Attached files
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10-Q - COMMAND SECURITY CORP | v210493_10q.htm |
EX-31.2 - COMMAND SECURITY CORP | v210493_ex31-2.htm |
EX-31.1 - COMMAND SECURITY CORP | v210493_ex31-1.htm |
EX-32.1 - COMMAND SECURITY CORP | v210493_ex32-1.htm |
EX-32.2 - COMMAND SECURITY CORP | v210493_ex32-2.htm |
NEWS
RELEASE
Company
Contact:
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Barry
Regenstein, President
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Command
Security Corporation
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845-454-3703
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COMMAND
SECURITY CORPORATION REPORTS
RESULTS
FOR THIRD QUARTER OF FISCAL 2011
Lagrangeville,
New York***February 9, 2011***Command Security Corporation
(NYSE Amex: MOC) announced today its financial results for its third fiscal
quarter of 2011 ended December 31, 2010.
For the
three months ended December 31, 2010, revenues decreased 0.2% to $37,525,639,
compared with revenues of $37,592,668 in the same period of the prior
year. Operating income for the three months ended December 31, 2010
decreased 26.8% to $1,090,449, compared with $1,489,455 in the same period of
the prior year. Net income decreased 24.4% to $551,366, or $0.05 per
basic and diluted share, compared with $729,530, or $0.07 per basic and diluted
share in the same period of the prior year.
For the
nine months ended December 31, 2010, revenues increased 0.5% to $110,706,205,
compared with revenues of $110,135,424 in the same period of the prior
year. Operating income for the nine months ended December 31, 2010
decreased 1.9% to $2,969,364, compared with $3,027,075 in the same period of the
prior year. Net income increased 0.8% to $1,461,326, or $0.13 per
basic and diluted share, compared with $1,450,447, or $0.13 per basic and
diluted share in the same period of the prior year.
The
increase in revenues for the nine months ended December 31, 2010 was due
primarily to: (i) a full nine months of revenues in the current year
period related to a contract that commenced at various dates during the prior
year period to provide security services to a major transportation company and
(ii) expansion of services provided to new and existing security customers and
several airlines. The increase in our revenues was partially offset
by: (i) the loss of revenues associated with a contract with Delta
Air Lines at John F. Kennedy International Airport (“JFK”); (ii) the loss of a
contract to provide services to a major domestic airline carrier at Oakland
International Airport (“OAK”); (iii) reduced demand for our services from
several of our airline customers that we believe is primarily related to trends
in the aviation industry toward reduced capacity and (iv) reductions in service
hours and rates of certain security services customers.
The
decrease in operating and net income for the three months ended December 31,
2010 compared to the corresponding period of the prior fiscal year was due
mainly to: (i) the loss of the aviation services contracts at JFK and
OAK as noted above and (ii) higher wage and related benefit rates at Los Angeles
International Airport (“LAX”) resulting from local living wage ordinances and a
collective bargaining agreement which we were not able to fully recover through
increases to our customer billing rates during the current year
period. The decrease in operating and net income was partially offset
by expansion of security services to a major transportation services company and
of services provided to new and existing security customers and several airlines
as discussed above.
The
increase in operating and net income for the nine months ended December 31, 2010
compared to the corresponding period of the prior fiscal year was due mainly
to: (i) a full nine months of operations under a contract that
commenced at various dates during the prior year period to provide security
services to a major transportation company and (ii) expanded security services
provided to new and existing customers as described above. The
increase in operating and net income was partially offset by: (i) the loss of
the aviation services contracts at JFK and OAK as noted above and (ii) higher
wage and related benefit rates at LAX as previously discussed.
Commenting
on the results from the third fiscal quarter of 2010, Edward S. Fleury, Chief
Executive Officer of Command Security, stated, “Once again this quarter, the
expansion of our security services business has been unfavorably impacted by the
loss of large aviation services contracts. The marketplace continues
to be highly competitive as there is still a high degree of uncertainty about
the likelihood, shape and timing of an economic recovery, but we believe that
our operating strategies are working and that fundamentals underlying our core
business are solid. In spite of this challenging business
environment, we are pleased with our relatively consistent third-quarter and
year-to-date performance, and our sales pipeline remains robust as we continue
to bid and win new security services contracts from customers involved in a wide
variety of industries. We are currently evaluating a number of
alternatives that would allow us to expand the depth and breadth of our
security-based offerings and further accelerate our growth. As
always, we are committed to providing our customers and business partners the
most efficient and effective solutions to their security needs both now and in
the future.”
Barry I
Regenstein, President of Command Security, stated, “We continue our efforts to
position our company for growth and improved operating
efficiencies. We are proud of our talented employees and management
team, and their dedication to our customers, consistent outstanding performance
and persistent focus on operating efficiencies. Looking forward to
fiscal 2012, we will continue to seek to be agile and innovative in meeting our
customers’ needs and optimizing our services portfolio so that we remain well
positioned to meet the needs of our current and targeted
customers.”
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, 2010, 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
December 31,
(Unaudited)
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Nine Months Ended
December 31,
(Unaudited)
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|||||||||||||||
2010
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2009
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2010
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2009
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Revenues
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$ | 37,525,639 | $ | 37,592,668 | $ | 110,706,205 | $ | 110,135,424 | ||||||||
Operating
income
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1,090,449 | 1,489,455 | 2,969,364 | 3,027,075 | ||||||||||||
Other
expense
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66,083 | 110,225 | 245,038 | 349,928 | ||||||||||||
Provision
for income taxes
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473,000 | 649,700 | 1,263,000 | 1,226,700 | ||||||||||||
Net
income
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$ | 551,366 | $ | 729,530 | $ | 1,461,326 | $ | 1,450,447 | ||||||||
Net
income per common share
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||||||||||||||||
Basic
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$ | 0.05 | $ | 0.07 | $ | 0.13 | $ | 0.13 | ||||||||
Diluted
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$ | 0.05 | $ | 0.07 | $ | 0.13 | $ | 0.13 | ||||||||
Weighted
average number of common shares outstanding
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||||||||||||||||
Basic
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10,874,098 | 10,872,098 | 10,872,765 | 10,840,467 | ||||||||||||
Diluted
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11,074,769 | 11,119,264 | 11,109,460 | 11,219,977 |
Balance Sheet Highlights
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December 31, 2010
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March 31, 2010
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||||||
(Unaudited)
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(Audited)
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Cash
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$ | 33,356 | $ | 1,211,948 | ||||
Accounts
receivable
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22,878,978 | 23,131,801 | ||||||
Total
current assets
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28,588,765 | 28,540,443 | ||||||
Total
assets
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36,623,218 | 36,715,081 | ||||||
Total
current liabilities
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17,348,045 | 19,116,985 | ||||||
Short-term
debt
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10,546,937 | 10,995,744 | ||||||
Total
liabilities
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18,021,743 | 19,931,846 | ||||||
Stockholders’
equity
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18,601,475 | 16,783,235 | ||||||
Total
liabilities and stockholders’ equity
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$ | 36,623,218 | $ | 36,715,081 |