Command Security Corp. (MOC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Command Security Corporation has a market cap of $12.4 million; its shares were traded at around $1.1499 with a P/E ratio of 115 and P/S ratio of 0.1. Command Security Corporation had an annual average earning growth of 10% over the past 10 years.
Our gross profit decreased $122,304, or 2.6%, to $4,528,100 (12.7% of revenues) for the three months ended June 30, 2012, from $4,650,404 (13.4% of revenues) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of a security services contract with a semiconductor equipment manufacturer; (ii) reductions in service hours and rates associated with the renewal of a contract as noted above; (iii) the absence in the current period of a large airport construction contract; (iv) reduction in service hours at a major hospital and (v) the loss of a service contract with a large international carrier in the fourth quarter of last year. The decrease in gross profit was partially offset by: (i) increased revenues associated with an expansion of services provided under a contract with a major transportation company; (ii) expansion of services with an existing customer at a domestic airport location; (iii) a new contract with a large municipal agency; (iv) a new contract with an international air freight carrier at four domestic airport locations and (v) a new contract with a community college.
Our general and administrative expenses decreased by $157,270, or 3.8%, to $3,942,031 (11.1% of revenues) for the three months ended June 30, 2012, from $4,099,301 (11.8% of revenues) in the corresponding period of the prior year. The decrease in general and administrative expenses for the three months ended June 30, 2012 resulted primarily from lower executive salaries resulting mainly from the absence in the current year period of termination payments made to the former CEO in the prior year and reductions in Human Resources personnel. The decrease in general and administrative expenses was partially offset by higher consulting fees and accruals for unused vacation pay in the current year period.
Our gross profit margin decreased during the three months ended June 30, 2012 to 12.7% of revenues, compared with 13.4% during the corresponding period of the prior year. We expect our gross profit margins to average between 13.0% and 14.0% of revenue in fiscal 2013 based on current business conditions. We expect gross profit to remain under pressure due primarily to continued price competition, including competition from companies that have substantially greater financial and other resources than we have. However, we expect these effects will be moderated by continued operational efficiencies resulting from better management and leveraging of our cost structures, improved workers’ compensation experience ratings, workflow process efficiencies associated with our integrated financial software system and higher contributions from our continuing new business development.
Our security services division generated approximately $22.2 million or 62.4% of our total revenues in the three months ended June 30, 2012. One security services customer accounted for approximately $8.7 million or 24.4% of our total revenues during the three months ended June 30, 2012. The loss of this customer or any material reduction in business from this customer would materially and adversely affect our business, financial condition and results of operations.
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Command Security Corporation has a market cap of $12.4 million; its shares were traded at around $1.1499 with a P/E ratio of 115 and P/S ratio of 0.1. Command Security Corporation had an annual average earning growth of 10% over the past 10 years.
Highlight of Business Operations:
Our revenues increased by $856,076, or 2.5%, to $35,641,679 for the three months ended June 30, 2012 from $34,785,603 in the corresponding period of the prior year. The increase in revenues for the three months ended June 30, 2012 was due mainly to: (i) expansion of services provided under a contract with a major transportation company of approximately $600,000; (ii) expansion of aviation services with an existing customer at a domestic airport location of approximately $390,000; (iii) a new contract with a large municipal agency which commenced during the fourth quarter of the prior fiscal year of approximately $340,000; (iv) a new contract with an international air freight carrier at four domestic airport locations of approximately $329,000 and (v) a new contract with a community college which commenced during the second half of the prior fiscal year of approximately $126,000. The increase in revenues was partially offset by: (i) the previously reported loss of security services contracts for a technology company and a semiconductor equipment manufacturer’s facility of approximately $216,000; (ii) reductions in service hours and rates of approximately $200,000 associated with the renewal of a contract with a major international carrier; (iii) the absence in the current period of a large airport construction contract of approximately $190,000; (iv) reduction in service hours at a major hospital of approximately $160,000 and (v) the loss of a service contract with a large international carrier in the fourth quarter of the prior fiscal year of approximately $160,000.Our gross profit decreased $122,304, or 2.6%, to $4,528,100 (12.7% of revenues) for the three months ended June 30, 2012, from $4,650,404 (13.4% of revenues) in the corresponding period of the prior year. The decrease was due mainly to: (i) the loss of a security services contract with a semiconductor equipment manufacturer; (ii) reductions in service hours and rates associated with the renewal of a contract as noted above; (iii) the absence in the current period of a large airport construction contract; (iv) reduction in service hours at a major hospital and (v) the loss of a service contract with a large international carrier in the fourth quarter of last year. The decrease in gross profit was partially offset by: (i) increased revenues associated with an expansion of services provided under a contract with a major transportation company; (ii) expansion of services with an existing customer at a domestic airport location; (iii) a new contract with a large municipal agency; (iv) a new contract with an international air freight carrier at four domestic airport locations and (v) a new contract with a community college.
Our general and administrative expenses decreased by $157,270, or 3.8%, to $3,942,031 (11.1% of revenues) for the three months ended June 30, 2012, from $4,099,301 (11.8% of revenues) in the corresponding period of the prior year. The decrease in general and administrative expenses for the three months ended June 30, 2012 resulted primarily from lower executive salaries resulting mainly from the absence in the current year period of termination payments made to the former CEO in the prior year and reductions in Human Resources personnel. The decrease in general and administrative expenses was partially offset by higher consulting fees and accruals for unused vacation pay in the current year period.
Our gross profit margin decreased during the three months ended June 30, 2012 to 12.7% of revenues, compared with 13.4% during the corresponding period of the prior year. We expect our gross profit margins to average between 13.0% and 14.0% of revenue in fiscal 2013 based on current business conditions. We expect gross profit to remain under pressure due primarily to continued price competition, including competition from companies that have substantially greater financial and other resources than we have. However, we expect these effects will be moderated by continued operational efficiencies resulting from better management and leveraging of our cost structures, improved workers’ compensation experience ratings, workflow process efficiencies associated with our integrated financial software system and higher contributions from our continuing new business development.
Our security services division generated approximately $22.2 million or 62.4% of our total revenues in the three months ended June 30, 2012. One security services customer accounted for approximately $8.7 million or 24.4% of our total revenues during the three months ended June 30, 2012. The loss of this customer or any material reduction in business from this customer would materially and adversely affect our business, financial condition and results of operations.
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