Command Security Corp. (MOC, Financial) filed Quarterly Report for the period ended 2010-12-31.
Command Security Corp. has a market cap of $20.1 million; its shares were traded at around $1.79 with a P/E ratio of 10.8 and P/S ratio of 0.1.
Our revenues increased $570,781 or 0.5%, to $110,706,205 for the nine months ended December 31, 2010, from $110,135,424 in the corresponding period of the prior year. The increase in revenues for the nine months ended December 31, 2010 was due mainly 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 that generated additional aggregate revenues in the nine months ended December 31, 2010 of approximately $4,600,000; (ii) expansion of services provided to new and existing customers as described above that resulted in additional aggregate revenues of approximately $3,300,000 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 $7,100,000 associated with a contract with Delta at JFK as noted above; (ii) the loss of a contract to provide services to a major domestic airline carrier at OAK of approximately $470,000; (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, 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 $500,000 and (iv) reductions in service hours and rates of certain security services customers.
Our gross profit decreased $169,388, or 3.0%, to $5,454,774 (14.5% of revenue) for the three months ended December 31, 2010 from $5,624,162 (15.0% 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; (ii) the loss of an aviation services contract at OAK as noted above and (iii) 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: (i) expansion of security services to a major transportation company as noted above and (ii) expansion of services provided to new and existing security customers and several airlines as discussed above.
Our general and administrative expenses increased by $228,533 or 5.6%, to $4,289,553 (11.4% of revenues) for the three months ended December 31, 2010, from $4,061,020 (10.8% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the three months ended December 31, 2010 resulted primarily from higher: (i) executive salaries resulting mainly from additional costs associated with reorganizing and closing one regional cost center and increased charges for vacation time; (ii) facility costs and (iii) professional fees. Partially offsetting the increase in general and administrative expenses are lower administrative salaries.
Our general and administrative expenses increased by $303,591 or 2.5%, to $12,583,583 (11.4% of revenues) for the nine months ended December 31, 2010, from $12,279,992 (11.1% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the nine months ended December 31, 2010 resulted primarily from higher: (i) stock compensation costs associated with stock option awards to key management personnel and directors; (ii) executive salaries as described above; (iii) facility costs and (iv) professional fees. Partially offsetting the increase in general and administrative expenses are lower administrative salaries.
Interest expense decreased by $31,602, or 28.2%, to $80,315 for the three months ended December 31, 2010, from $111,917 in the corresponding period of the prior year, and $91,850, or 25.9%, to $262,593 for the nine month period ended December 31, 2010 from $354,443 in the corresponding period of the prior year. The decrease in interest expense for the three months ended December 31, 2010 was due primarily to lower average outstanding borrowings under our commercial revolving loan agreement and for the nine months ended December 31, 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 $20.1 million; its shares were traded at around $1.79 with a P/E ratio of 10.8 and P/S ratio of 0.1.
Highlight of Business Operations:
Our revenues decreased slightly by $67,029 or 0.2%, to $37,525,639 for three months ended December 31, 2010, from $37,592,668 in the corresponding period of the prior year. The decrease in revenues for the three months ended December 31, 2010 was mainly due to: (i) the loss of revenues of approximately $1,800,000 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) the loss of a contract to provide services to a major domestic airline carrier at Oakland International Airport (“OAK”) of approximately $450,000. The decrease in our revenues was partially offset by: (i) increased revenues of approximately $700,000 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 $800,000 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 $570,781 or 0.5%, to $110,706,205 for the nine months ended December 31, 2010, from $110,135,424 in the corresponding period of the prior year. The increase in revenues for the nine months ended December 31, 2010 was due mainly 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 that generated additional aggregate revenues in the nine months ended December 31, 2010 of approximately $4,600,000; (ii) expansion of services provided to new and existing customers as described above that resulted in additional aggregate revenues of approximately $3,300,000 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 $7,100,000 associated with a contract with Delta at JFK as noted above; (ii) the loss of a contract to provide services to a major domestic airline carrier at OAK of approximately $470,000; (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, 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 $500,000 and (iv) reductions in service hours and rates of certain security services customers.
Our gross profit decreased $169,388, or 3.0%, to $5,454,774 (14.5% of revenue) for the three months ended December 31, 2010 from $5,624,162 (15.0% 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; (ii) the loss of an aviation services contract at OAK as noted above and (iii) 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: (i) expansion of security services to a major transportation company as noted above and (ii) expansion of services provided to new and existing security customers and several airlines as discussed above.
Our general and administrative expenses increased by $228,533 or 5.6%, to $4,289,553 (11.4% of revenues) for the three months ended December 31, 2010, from $4,061,020 (10.8% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the three months ended December 31, 2010 resulted primarily from higher: (i) executive salaries resulting mainly from additional costs associated with reorganizing and closing one regional cost center and increased charges for vacation time; (ii) facility costs and (iii) professional fees. Partially offsetting the increase in general and administrative expenses are lower administrative salaries.
Our general and administrative expenses increased by $303,591 or 2.5%, to $12,583,583 (11.4% of revenues) for the nine months ended December 31, 2010, from $12,279,992 (11.1% of revenues) in the corresponding period of the prior year. The increase in general and administrative expenses for the nine months ended December 31, 2010 resulted primarily from higher: (i) stock compensation costs associated with stock option awards to key management personnel and directors; (ii) executive salaries as described above; (iii) facility costs and (iv) professional fees. Partially offsetting the increase in general and administrative expenses are lower administrative salaries.
Interest expense decreased by $31,602, or 28.2%, to $80,315 for the three months ended December 31, 2010, from $111,917 in the corresponding period of the prior year, and $91,850, or 25.9%, to $262,593 for the nine month period ended December 31, 2010 from $354,443 in the corresponding period of the prior year. The decrease in interest expense for the three months ended December 31, 2010 was due primarily to lower average outstanding borrowings under our commercial revolving loan agreement and for the nine months ended December 31, 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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