Command Security Corp. (MOC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Command Security Corp. has a market cap of $22.2 million; its shares were traded at around $2.05 with a P/E ratio of 11.4 and P/S ratio of 0.1.
Our revenues increased $637,810 or 0.9%, to $73,180,566 for the six months ended September 30, 2010, from $72,542,756 in the corresponding period of the prior year. The increase in revenues for the six months ended September 30, 2010 was due mainly to: (i) a full six 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 that generated additional aggregate revenues in the six months ended September 30, 2010 of approximately $3,900,000; (ii) expansion of services provided to new and existing customers as described above that resulted in additional aggregate revenues of approximately $2,500,000 and (iii) rate increases at LAX as noted above. The increase in our revenues was partially offset by: (i) the loss of revenues of approximately $5,300,000 associated with a contract with Delta at JFK as noted above; (ii) 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, which resulted in reductions of service hours that we provided to such carriers and a corresponding reduction of revenues from such carriers of an aggregate of approximately $600,000 and (iii) reductions in service hours and rates of certain security services customers.
Our gross profit decreased $150,271, or 2.8%, to $5,210,314 (14.1% of revenue) for the three months ended September 30, 2010 from $5,360,585 (14.3% of revenue) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of Delta skycap, wheelchair, cargo, security and baggage handling services at JFK as noted above and (ii) higher wage and related benefit rates at 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 gross profit was partially offset by expansion of services provided to new and existing security customers and several airlines as discussed above.
Our general and administrative expenses increased by $16,993 or 0.4%, to $4,166,655 (11.3% of revenues) for the three months ended September 30, 2010, from $4,149,662 (11.1% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the three months ended September 30, 2010 resulted primarily from higher professional fees, partially offset by lower executive and administrative salaries.
Our general and administrative expenses increased by $75,058 or 0.9%, to $8,294,030 (11.3% of revenues) for the six months ended September 30, 2010, from $8,218,972 (11.3% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the six months ended September 30, 2010 resulted primarily from higher stock compensation costs associated with stock option awards to key management personnel and directors and higher professional fees. Partially offsetting the increase in general and administrative expenses are lower executive and administrative salaries.
Interest expense decreased by $36,492, or 29.2%, to $88,539 for the three months ended September 30, 2010, from $125,031 in the corresponding period of the prior year, and $60,248, or 24.8%, to $182,278 for the six month period ended September 30, 2010 from $242,526 in the corresponding period of the prior year. The decrease in interest expense for the three and six months ended September 30, 2010 was due mainly to lower weighted average interest rates and average outstanding borrowings under our commercial revolving loan agreement. The decreases were partially offset by increased interest expense associated with our short-term insurance financing.
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Command Security Corp. has a market cap of $22.2 million; its shares were traded at around $2.05 with a P/E ratio of 11.4 and P/S ratio of 0.1.
Highlight of Business Operations:
Our revenues decreased by $530,474 or 1.4%, to $36,944,398 for three months ended September 30, 2010, from $37,474,872 in the corresponding period of the prior year. The decrease in revenues for the three months ended September 30, 2010 was mainly due to: (i) the loss of revenues of approximately $2,300,000 associated with skycap, wheelchair, cargo, security and baggage handling services previously provided to Delta Air Lines (“Delta”) at John F. Kennedy International Airport (“JFK”) and (ii) reductions in service hours and rates of certain security services customers. The decrease in our revenues was partially offset by: (i) increased revenues of approximately $600,000 associated with an expansion of services provided under a contract with a major transportation company; (ii) expansion of services provided to new and existing security customers and several airlines that resulted in additional aggregate revenues of approximately $1,200,000 and (iii) rate increases at Los Angeles International Airport (“LAX”) in connection with higher wage and related benefit rates resulting from local living wage ordinances and a collective bargaining agreement.Our revenues increased $637,810 or 0.9%, to $73,180,566 for the six months ended September 30, 2010, from $72,542,756 in the corresponding period of the prior year. The increase in revenues for the six months ended September 30, 2010 was due mainly to: (i) a full six 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 that generated additional aggregate revenues in the six months ended September 30, 2010 of approximately $3,900,000; (ii) expansion of services provided to new and existing customers as described above that resulted in additional aggregate revenues of approximately $2,500,000 and (iii) rate increases at LAX as noted above. The increase in our revenues was partially offset by: (i) the loss of revenues of approximately $5,300,000 associated with a contract with Delta at JFK as noted above; (ii) 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, which resulted in reductions of service hours that we provided to such carriers and a corresponding reduction of revenues from such carriers of an aggregate of approximately $600,000 and (iii) reductions in service hours and rates of certain security services customers.
Our gross profit decreased $150,271, or 2.8%, to $5,210,314 (14.1% of revenue) for the three months ended September 30, 2010 from $5,360,585 (14.3% of revenue) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of Delta skycap, wheelchair, cargo, security and baggage handling services at JFK as noted above and (ii) higher wage and related benefit rates at 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 gross profit was partially offset by expansion of services provided to new and existing security customers and several airlines as discussed above.
Our general and administrative expenses increased by $16,993 or 0.4%, to $4,166,655 (11.3% of revenues) for the three months ended September 30, 2010, from $4,149,662 (11.1% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the three months ended September 30, 2010 resulted primarily from higher professional fees, partially offset by lower executive and administrative salaries.
Our general and administrative expenses increased by $75,058 or 0.9%, to $8,294,030 (11.3% of revenues) for the six months ended September 30, 2010, from $8,218,972 (11.3% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the six months ended September 30, 2010 resulted primarily from higher stock compensation costs associated with stock option awards to key management personnel and directors and higher professional fees. Partially offsetting the increase in general and administrative expenses are lower executive and administrative salaries.
Interest expense decreased by $36,492, or 29.2%, to $88,539 for the three months ended September 30, 2010, from $125,031 in the corresponding period of the prior year, and $60,248, or 24.8%, to $182,278 for the six month period ended September 30, 2010 from $242,526 in the corresponding period of the prior year. The decrease in interest expense for the three and six months ended September 30, 2010 was due mainly to lower weighted average interest rates and average outstanding borrowings under our commercial revolving loan agreement. The decreases were partially offset by increased interest expense associated with our short-term insurance financing.
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