(COMTEX) B: COMMAND SECURITY CORP - Financial Results For First Fiscal Q
B: COMMAND SECURITY CORP - Financial Results For First Fiscal Quarter Ending -
June 30, 2002
New York, New York, Aug 14, 2002 (Market News Publishing via COMTEX) -- Command
Security Corporation:
-- Record revenue up 52.3% for quarter
-- Operating income $2.8 million compared to $0.2 million loss
-- EPS $.29 compared to $(.06) in prior year
Command Security Corporation reported results for its first fiscal quarter
ending June 30, 2002. Revenue for the quarter increased to $28,271,152 a 52.3%
increase from the $18,558,098 reported for same period in the prior fiscal year.
This increase in revenue was due to additional revenue from the aviation
division, primarily due to the additional volumes and higher rates on the
pre-board screening services provided to the FAA. This increase was partially
offset by revenue loss from the closure of our marginal National Accounts
division.
Gross profit increased to $6,356,740 or 22.5% of revenue for the quarter ended
June 30, 2002 from $2,622,249 for the same period in the prior fiscal year. This
improvement is due to three factors; higher wage rates and margins to provide
better qualified security officers at US airports, improved margins in the guard
division and the closure of the National Accounts division.
William C. Vassell, Chairman of Command, reports progress in the Aviation
division under Martin C. Blake, Jr., Vice President of the Aviation Division.
Mr. Blake commented, "Since September 11, 2001 we have expanded our service
capabilities to include LaGuardia Airport, Philadelphia International Airport,
and San Jose International Airport. In addition to pre-board screening which is
subject to federalization, we have added and expanded services to meet the
higher level security demanded as well as other important airport service
requirements. These services include catering security, lobby agents, customer
ambassador service and our traditional sky cap, baggage handling and wheelchair
escort services enhanced by our proprietary SMART WHEEL(TM) technology. We have
strengthened our management team to pursue these opportunities."
Operating profit for the quarter ended June 30, 2002 was $2,776,104 compared to
a loss of $(206,663) for the same period of the prior fiscal year.
Net income applicable to common shareholders for the quarter ended June 30, 2002
was $1,824,327 or $0.29 per share compare to a loss of $(394,220) or $(.06) per
share in the same period of the prior fiscal year. In the current quarter
preferred dividends of $325,394 or $.05 per share were declared which included
$284,720 of arrears not paid in prior quarters.
Commenting on the results for the quarter William C. Vassell, Chairman and
President of Command said, "We are extremely pleased with the results achieved
during the quarter. Although we expect to lose revenue as the government
federalizes the pre-board screening function at airports as was recently done at
JFK and LaGuardia, we feel we have positioned the Company to take advantage of
higher margin opportunities to ensure future profitability for the Company.
Annualized revenues are currently expected to be around $70 million immediately
post federalization and we are working hard to continually improve this number
although always at the right margin. This does not assume any significant new
wins between now and full federalization, such as securing one or more of the
pilot airports. We believe because of our experience and high level of service
we have provided that we have a significant opportunity to participate in one or
more of the five pilot programs that the government will be conducting for
engaging private companies to provide pre-board screening services at our
nations airports."
COMMAND SECURITY CORPORATION
Three Months Ended
June 30
2002 2001
Revenue $28,271,152 $18,558,098
Operating profit/(loss) 2,776,104 (206,663)
Net income/(loss) before income taxes 2,606,060 (394,220)
Provision for income taxes (456,339) 0
Net income/(loss) 2,149,721 (394,220)
Preferred dividends (325,394) -
Net income /(loss) applicable to common
stockholders $1,824,327 $(394,220)
Net Income/(loss) per common shares (Basic) $.29 $(.06)
Weighted average number of common shares
outstanding 6,287,343 6,287,343
About Command
Command Security Corporation provides security services through company-owned
offices in New York, New Jersey, California, Illinois, Connecticut, Florida,
Massachusetts and Pennsylvania.
Statements in this press release other than statements of historical fact are
"forward-looking statements." Such statements are subject to certain risks and
uncertainties including the demand for the Company's services, litigation, labor
market, and other risk factors identified from time to time in the Company's
filings with the Securities and Exchange Commission that could cause actual
results to differ materially from any forward looking statements. These
forward-looking statements represent the Company's judgment as of the date of
this release. The Company disclaims, however, any intent or obligation to update
these forward-looking statements.
CONTACT: TEL: 845/454-3703 William C. Vassell, Command Security Co
p.
TEL: 212/605-0201 Donald Radcliffe, Radcliffe & Assoc. In
.
MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041.
(C) 2002 Market News Publishing Inc.
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KEYWORD: New York, New York
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