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Command Security Corp. Reports Operating Results (10-Q)

February 10, 2012 | About:
10qk

10qk

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Command Security Corp. (MOC) filed Quarterly Report for the period ended 2011-12-31.

Command Security Corp. has a market cap of $18.3 million; its shares were traded at around $1.58 with a P/E ratio of 13 and P/S ratio of 0.1.

Highlight of Business Operations:

Our revenues decreased by $1,741,128, or 4.6%, to $35,784,511 for the three months ended December 31, 2011, from $37,525,639 in the corresponding period of the prior year. The decrease in revenues for the three months ended December 31, 2011 was mainly due to: (i) the previously reported loss of a major domestic carrier’s aviation services business at six domestic airport locations during the latter half of fiscal 2011 of approximately $1,900,000; (ii) the loss of security services contracts for a Silicon Valley technology company, a Silicon Valley semiconductor equipment manufacturer’s facility in New York and a company that provides distribution services to a grocery retailer in New Jersey of approximately $680,000; (iii) reductions in security services hours associated with a large banking and financial services organization of approximately $580,000 and (iv) reductions in service hours and rates of approximately $270,000 associated with the renewal of a contract with a major international carrier at John F. Kennedy International Airport (“JFK”). The decrease in our revenues was partially offset by: (i) increased revenues of approximately $1,040,000 associated with an expansion of services provided under a contract with a major transportation company; (ii) a new aviation services contract with a municipal airport authority of approximately $310,000 and (iii) expansion of services to new and existing security and aviation customers that resulted in additional aggregate revenues of approximately $480,000.

Our revenues decreased by $4,027,481, or 3.6%, to $106,678,724 for the nine months ended December 31, 2011, from $110,706,205 in the corresponding period of the prior year. The decrease in revenues for the nine months ended December 31, 2011 was mainly due to: (i) the previously reported loss of a major domestic carrier’s aviation services business at six domestic airport locations during the latter half of fiscal 2011 of approximately $6,500,000; (ii) the loss of security services contracts for a Silicon Valley technology company, a Silicon Valley semiconductor equipment manufacturer’s facility in New York and a company that provides distribution services to a grocery retailer in New Jersey of approximately $1,440,000; (iii) reductions in security services hours associated with a large banking and financial services organization of approximately $1,450,000 and (iv) reductions in service hours and rates of approximately $250,000 associated with the renewal of a contract with a major international carrier at JFK. The decrease in our revenues was partially offset by: (i) increased revenues of approximately $3,230,000 associated with an expansion of services provided under a contract with a major transportation company; (ii) a new aviation services contract with a municipal airport authority of approximately $970,000 and (iii) expansion of services to new and existing security and aviation customers that resulted in additional aggregate revenues of approximately $1,790,000.

Our gross profit decreased $926,280 or 17.0%, to $4,528,494 (12.7% of revenues) for the three months ended December 31, 2011, from $5,454,774 (14.5% of revenues) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of a major domestic carrier’s aviation services business as noted above; (ii) the loss of security services contracts for a technology company, semiconductor equipment manufacturer and a company that provides distribution services to a grocery retailer as described above; (iii) reductions in security services hours associated with a large bank and financial services organization; (iv) reductions in service hours and rates associated with the renewal of a contract at JFK as noted above; (v) additional federal unemployment tax surcharges associated with several states in which we operate that had Federal Unemployment Trust Fund loans, taken to keep their unemployment insurance benefit programs solvent during recent periods of extended high unemployment and (vi) professional and related fees principally associated with settlement of employment related claims. The decrease in gross profit was partially offset by expansion of security services to a major transportation company and services provided to new and existing security and aviation customers as described above.

Our gross profit decreased $1,419,625, or 9.0%, to $14,267,297 (13.4% of revenues) for the nine months ended December 31, 2011, from $15,686,922 (14.2% of revenues) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of a major domestic carrier’s aviation services business as noted above; (ii) the loss of security services contracts for a technology company, semiconductor equipment manufacturer and a company that provides distribution services to a grocery retailer as described above; (iii) reductions in security services hours associated with a large bank and financial services organization; (iv) reductions in service hours and rates associated with the renewal of a contract at JFK as noted above; (v) additional federal and state unemployment tax surcharges as described above and (vi) professional and related fees principally associated with settlement of employment related claims. The decrease in gross profit was partially offset by: (i) expansion of security services to a major transportation company as noted above; (ii) expansion of services provided to new and existing security and aviation customers as discussed above and (iii) lower costs associated with our workers’ compensation insurance program.

Our general and administrative expenses decreased by $601,068 or 4.8%, to $11,982,515 (11.2% of revenues) for the nine months ended December 31, 2011, from $12,583,583 (11.4% of revenue) in the corresponding period of the prior year. The decrease in general and administrative expenses for the nine months ended December 31, 2011 resulted primarily from lower: (i) executive salaries resulting mainly from reorganizing our regional and local branch management and (ii) stock based compensation costs, which were partially offset by higher legal and executive search fees.

Read the The complete Report

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10qk
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