CCNI: October revenue above expectations, increasing estimates.
By Ian Gilson, CFA
Command Center, Inc. (CCNI) has reported its revenue for October, 2012. This was significantly higher than we had forecast at $9.3 million versus our estimate of $8.3 million. This is the beginning of the seasonal slowdown so the 17.2% increase in revenue per store was not expected. The store count was 58, one less than we had anticipated.
Both Bakken Staffing and Disaster Recovery Services are showing well above average growth. The recent destruction caused by Hurricane Sandy will be a major clean-up effort and the Baltimore office will focus on supplying labor to the national contractors involved in this effort in New Jersey. Since the hurricane also impacted Delaware, New York State (as far west as Rochester NY) and Pennsylvania the demand for labor from Command Center may extend outside of New Jersey.
The continued need for labor in the Williston Basin and the clean-up on the east coast will probably drive revenue to near record levels in the fourth quarter. We have increased our 2012 revenue estimates from $96 million to $100 million and earnings estimates from $0.04 a share to $0.06 a share.
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