HireQuest, Inc. - Quarter Report: 2018 June (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE
ACT OF 1934
For the
quarterly period ended: June 29, 2018
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE
ACT OF 1934
Commission file
number: 000-53088
COMMAND CENTER, INC.
(Exact
name of registrant as specified in its charter)
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Washington
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91-2079472
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(State
of incorporation)
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(I.R.S.
Employer Identification No.)
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3609 S. Wadsworth Blvd., Suite 250, Lakewood, CO
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80235
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(Registrant's
telephone number, including area code: (866)
464-5844
Indicate
by check mark whether the Registrant (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes
☑ No ☐
Indicate
by check mark whether the registrant has submitted electronically
and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405
of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files). Yes ☑ No ☐
Indicate
by check mark whether the Registrant is a large accelerated filer
☐ , an accelerated filer ☐ , a non-accelerated filer ☐ , a smaller reporting company ☑ , or an emerging growth company ☐ (as defined in Rule 12b-2 of the Exchange
Act).
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the Registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Number
of shares of issuer's common stock outstanding at August 9, 2018:
4,878,592
Command Center, Inc.
Table of Contents
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Page
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PART I. FINANCIAL INFORMATION
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3
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4
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5
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6
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13
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16
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16
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PART II. OTHER INFORMATION
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17
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17
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17
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17
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17
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18
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18
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19
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PART I. FINANCIAL INFORMATION
Item 1. Financial
Statements
Command Center, Inc.
Consolidated Balance Sheets
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June
29,
2018
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December
29,
2017
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ASSETS
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(unaudited)
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Current
assets
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Cash
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$5,759,456
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$7,768,631
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Restricted
cash
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57,868
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12,853
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Accounts
receivable, net of allowance for doubtful accounts of $216,949 and
$281,932, respectively
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9,450,198
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9,394,376
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Prepaid expenses,
deposits and other assets
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739,692
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740,280
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Prepaid workers'
compensation
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481,465
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167,597
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Other
receivables
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239,852
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-
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Current portion of
workers' compensation deposits
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-
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99,624
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Total current
assets
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16,728,531
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18,183,361
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Property and
equipment, net
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363,467
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372,145
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Deferred tax
asset
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1,111,571
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721,602
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Workers'
compensation risk pool deposit, less current portion
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201,563
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201,563
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Workers'
compensation risk pool deposit in receivership, net
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260,000
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1,800,000
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Goodwill and other
intangible assets, net
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3,984,773
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4,085,576
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Total
assets
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$22,649,905
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$25,364,247
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current
liabilities
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Accounts
payable
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$290,396
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$563,402
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Account purchase
agreement facility
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-
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853,562
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Other current
liabilities
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533,310
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898,809
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Accrued wages and
benefits
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1,629,525
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1,503,688
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Current portion of
workers' compensation claims liability
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998,419
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1,031,500
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Total current
liabilities
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3,451,650
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4,850,961
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Workers'
compensation claims liability, less current portion
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1,001,208
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917,497
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Total
liabilities
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4,452,858
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5,768,458
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Commitments and
contingencies (Note 9)
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Stockholders'
equity
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Preferred stock -
$0.001 par value, 416,666 shares authorized; none
issued
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-
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-
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Common stock -
$0.001 par value, 8,333,333 shares authorized; 4,878,592 and
4,993,672 shares issued and outstanding, respectively
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4,878
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4,994
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Additional paid-in
capital
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55,470,964
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56,211,837
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Accumulated
deficit
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(37,278,795)
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(36,621,042)
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Total stockholders'
equity
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18,197,047
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19,595,789
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Total liabilities
and stockholders' equity
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$22,649,905
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$25,364,247
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Command Center, Inc.
Consolidated Statements of Operations
(unaudited)
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Thirteen weeks ended
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Twenty-six weeks ended
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June 29,
2018
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June 30,
2017
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June 29,
2018
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June 30,
2017
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Revenue
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$24,175,985
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$24,503,660
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$46,643,383
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$46,851,909
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Cost
of staffing services
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17,898,665
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18,010,803
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34,771,996
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34,620,818
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Gross
profit
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6,277,320
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6,492,857
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11,871,387
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12,231,091
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Selling,
general and administrative expenses
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5,368,908
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5,164,512
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12,582,528
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10,508,119
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Depreciation
and amortization
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87,926
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96,277
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180,517
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191,827
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Income
(loss) from operations
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820,486
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1,232,068
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(891,658)
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1,531,145
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Interest
expense and other financing expense
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267
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1,225
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2,430
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1,229
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Net income (loss)
before income taxes
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820,219
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1,230,843
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(894,088)
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1,529,916
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Provision (benefit)
for income taxes
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256,972
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495,947
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(239,646)
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612,568
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Net income
(loss)
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$563,247
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$734,896
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$(654,442)
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$917,348
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Earnings (loss) per share:
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Basic
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$0.11
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$0.15
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$(0.13)
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$0.18
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Diluted
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$0.11
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$0.14
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$(0.13)
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$0.18
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Weighted average shares outstanding:
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Basic
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4,924,245
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5,025,676
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4,953,701
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5,025,532
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Diluted
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4,931,201
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5,079,969
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4,953,701
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5,083,434
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Command Center, Inc.
Consolidated Statements of Cash Flows
(unaudited)
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Twenty-six weeks ended
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June 29,
2018
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June 30,
2017
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Cash flows from operating activities
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Net
(loss) income
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$(654,442)
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$917,348
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Adjustments
to reconcile net income to net cash used in
operations:
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Depreciation
and amortization
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180,517
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191,827
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Provision
for bad debt
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6,115
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(542,112)
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Stock
based compensation
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218,221
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17,787
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Reserve
on workers' compensation risk pool deposit in
receivership
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1,540,000
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-
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Cumulative
effect of accounting change
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(3,311)
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-
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Deferred
tax asset
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(389,969)
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612,568
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Gain
on disposition of property and equipment
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(5,684)
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-
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Changes
in operating assets and liabilities:
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Accounts
receivable
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(61,936)
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310,915
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Prepaid
expenses, deposits, and other assets
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587
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(98,440)
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Prepaid
workers' compensation
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(313,868)
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21,494
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Accounts
payable
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(273,006)
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(77,010)
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Other
current liabilities
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(365,499)
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735
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Accrued
wages and benefits
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(114,833)
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211,902
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Workers'
compensation risk pool deposits
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99,624
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6,932
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Workers'
compensation claims liability
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50,629
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(638,877)
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Net
cash (used in) provided by operating activities
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(86,855)
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935,069
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Cash flows from investing activities
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Purchase
of property and equipment
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(84,851)
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(100,547)
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Proceeds
from the sale of property and equipment
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19,500
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-
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Net
cash used in investing activities
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(65,351)
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(100,547)
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Cash flows from financing activities
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Net
change in account purchase agreement facility
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(1,093,414)
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222,683
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Purchase
of treasury stock
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(718,540)
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-
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Net
cash (used in) provided by financing activities
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(1,811,954)
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222,683
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Net (decrease) increase in cash
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(1,964,160)
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1,057,205
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Cash, beginning of period
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7,781,484
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3,047,417
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Cash, end of period
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$5,817,324
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$4,104,622
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Supplemental disclosure of non-cash activities
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Purchase
of vested stock options
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240,670
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-
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Common
stock issued for services
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62,436
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315
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Supplemental disclosure of cash flow information
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Interest
paid
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2,576
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1,229
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Income
taxes paid
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2,284
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248,020
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Command Center, Inc.
Notes to Consolidated Financial Statements
NOTE 1 – BASIS OF
PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements have
been prepared by Command Center, Inc. ("Command Center,” the
“Company,” “we,” "us," or
“our”) in accordance with accounting principles
generally accepted in the United States of America, or U.S. GAAP,
for interim financial reporting and rules and regulations of the
Securities and Exchange Commission, or the SEC. Accordingly,
certain information and footnote disclosures normally included in
financial statements prepared in accordance with U.S. GAAP have
been condensed or omitted. In the opinion of our management, all
adjustments, consisting of only normal recurring accruals,
necessary for a fair presentation of the financial position,
results of operations, and cash flows for the fiscal periods
presented have been included.
These consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and
related notes included in our Annual Report filed on Form 10-K for
the year ended December 29, 2017. The results of operations for the
twenty-six weeks ended June 29, 2018 are not necessarily indicative
of the results expected for the full fiscal year, or for any other
fiscal period.
Consolidation: The
consolidated financial statements include the accounts of Command
Center and all of our wholly-owned subsidiaries. All significant
intercompany balances and transactions have been eliminated in
consolidation.
Use of estimates: The preparation of consolidated
financial statements in conformity with U.S. GAAP requires us to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements
and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates.
Significant estimates include the allowance for doubtful accounts,
workers’ compensation risk pool deposits, and workers’
compensation claims liability. For additional information related
to our workers' compensation risk pool deposits,
see Note 9 – Commitments and
Contingencies.
Concentrations: At June
29, 2018, 10.4% of accounts receivable were due from a single
client. For the period ended June 29, 2018, 7.9% of our total
revenue came from that same client. At December 29, 2017, 11.8% of
accounts receivable were due from a single customer. For the period
ended December 29, 2017, 8.5% of our total revenue came from that
same client.
Revenue recognition: Revenue is recognized at the time we satisfy
our performance obligation. Because our clients receive and consume
the benefits of our services simultaneously, our performance
obligations are typically satisfied when our services are provided.
Revenue is reported net of customer credits, discounts, and taxes
collected from customers that are remitted to taxing
authorities.
Below are a summaries of our revenue disaggregated by industry (in
thousands, except percentages):
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Thirteen weeks ended
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June 29, 2018
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June 30, 2017
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Industrial,
manufacturing and warehousing
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$8,557
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35.0%
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$8,041
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33.0%
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Construction
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4,442
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18.0%
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5,383
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22.0%
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Hospitality
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4,046
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17.0%
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4,825
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20.0%
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Transportation
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3,503
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15.0%
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3,332
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13.0%
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Retail
and Other
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3,628
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15.0%
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2,923
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12.0%
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Total
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$24,176
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100.0%
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$24,504
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100.0%
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|
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Twenty-six weeks ended
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June 29, 2018
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June 30, 2017
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Industrial,
manufacturing and warehousing
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$17,185
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36.0%
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$15,295
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33.0%
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Construction
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8,486
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18.0%
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9,498
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20.0%
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Hospitality
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7,793
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17.0%
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9,098
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19.0%
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Transportation
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7,252
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16.0%
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6,955
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15.0%
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Retail
and Other
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5,927
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13.0%
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6,006
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13.0%
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Total
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$46,643
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100.0%
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$46,852
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100.0%
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Recently adopted accounting pronouncements: In May 2014, the Financial Accounting
Standards Board, or FASB, issued new revenue recognition guidance
under Accounting Standards Update, or ASU, 2014-09 that supersedes
the existing revenue recognition guidance under U.S. GAAP. The new
standard focuses on creating a single source of revenue guidance
for revenue arising from contracts with customers for all
industries. The objective of the new standard is for companies to
recognize revenue when it transfers the promised goods or services
to its customers at an amount that represents what the company
expects to be entitled to in exchange for those goods or
services.
The new standard became effective for us beginning December 30,
2017. We implemented the standard using the modified retrospective
approach which recognized the cumulative effect of application on
that date. As a result of adopting this new standard, we made an
adjustment that increased Revenue on our Consolidated Statement of
Operations and decreased Accumulated deficit on our Consolidated
Balance Sheet by approximately $3,000. We have applied the guidance
in this new standard to all contracts at the date of initial
application.
Recent accounting pronouncements: In February 2016, the FASB issued ASU
2016-02 amending the existing accounting standards for lease
accounting and requiring lessees to recognize a right-of-use asset
and a corresponding lease liability on its balance sheet. Both the
asset and liability will initially be measured at the present value
of the future minimum lease payments. Consistent with current U.S.
GAAP, the presentation of expenses and cash flows will depend
primarily on the classification of the lease as either a finance or
an operating lease. The new standard also requires additional
quantitative and qualitative disclosures regarding the amount,
timing and uncertainty of cash flows arising from leases in order
to provide additional information about the nature of an
organization’s leasing activities. This ASU is effective for
annual periods, and interim periods within those annual periods,
beginning after December 15, 2018, with early adoption permitted. A
modified retrospective approach is required. We plan on adopting
the guidance on the effective date. We are currently evaluating the
impact of the new guidance on our consolidated financial statements
and related disclosures. We expect, upon adoption, nearly, if not
all, of our leases will be recognized on our Consolidated Balance
Sheet as operating lease liabilities and right-of-use assets. We do
not expect the adoption of this standard to have a material impact
on the pattern of lease related expenses currently recognized in
our Consolidated Statements of Operations.
In January 2017, the FASB issued ASU 2017-04, “Intangibles
– Goodwill and Other (Topic 350): Simplifying the Test for
Goodwill Impairment.” The new guidance simplifies the
subsequent measurement of goodwill by eliminating the requirement
to perform a Step 2 impairment test to compute the implied fair
value of goodwill. Instead, companies will only compare the fair
value of a reporting unit to its carrying value (Step 1) and
recognize an impairment charge for the amount by which the carrying
amount exceeds the reporting unit’s fair value; however, the
loss recognized may not exceed the total amount of goodwill
allocated to that reporting unit. Additionally, an entity should
consider income tax effects from any tax-deductible goodwill on the
carrying amount of the reporting unit when measuring the goodwill
impairment loss, if applicable. This amended guidance is effective
for fiscal years and interim periods beginning after December 15,
2019, with early adoption permitted for interim or annual goodwill
impairment tests performed on testing dates after January 1,
2017. We plan to adopt this guidance for our 2018 annual
impairment test and do not expect the adoption to have a material
impact on our financial statements.
In June 2016, the FASB issued ASU 2016-13, “Financial
Instruments – Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments.” The standard
significantly changes how entities will measure credit losses for
most financial assets and certain other instruments that are not
measured at fair value through net income. The standard will
replace today's “incurred loss” approach with an
“expected loss” model for instruments measured at
amortized cost. For available-for-sale securities, entities will be
required to record allowances rather than reduce the carrying
amount, as they do today under the other-than-temporary impairment
model. It also simplifies the accounting model for purchased
credit-impaired debt securities and loans. This guidance is
effective for annual periods beginning after December 15, 2019, and
interim periods therein. Early adoption is permitted for annual
periods beginning after December 15, 2018, and interim periods
therein. We are currently evaluating the impact of the new guidance
on our consolidated financial statements and related
disclosures.
Other accounting standards that have been issued by the FASB or
other standards-setting bodies are not expected to have a material
impact on our financial position, results of operations, and cash
flows. For the period ended June 29, 2018, the adoption of
other accounting standards had no material impact on our financial
positions, results of operations, or cash flows.
NOTE 2 – EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income or
loss available to common stockholders by the weighted average
number of common shares outstanding, and does not include the
impact of any potentially dilutive common stock equivalents.
Diluted earnings per share reflect the potential dilution of
securities that could share in our earnings through the conversion
of common shares issuable via outstanding stock options except
where their inclusion would be anti-dilutive. For the twenty-six
weeks ended June 29, 2018, there were approximately 4,000
outstanding stock options that were excluded from the diluted
earnings per share calculation because their inclusion would have
been anti-dilutive. Total outstanding common stock equivalents at
June 29, 2018 and June 30, 2017, were approximately 202,000 and
182,000, respectively.
Diluted common shares outstanding were calculated using the
treasury stock method and are as follows:
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|
Thirteen
weeks ended
|
Twenty-six
weeks ended
|
||
|
|
June 29,
2018
|
June 30,
2017
|
June 29,
2018
|
June 30,
2017
|
|
Weighted
average number of common shares used in basic net income (loss) per
common share
|
4,924,245
|
5,025,676
|
4,953,701
|
5,025,532
|
|
Dilutive
effects of stock options
|
6,956
|
54,293
|
-
|
57,902
|
|
Weighted
average number of common shares used in diluted net income (loss)
per common share
|
4,931,201
|
5,079,969
|
4,953,701
|
5,083,434
|
NOTE 3 – ACCOUNT PURCHASE AGREEMENT & LINE OF CREDIT
FACILITY
In May 2016, we signed an account purchase agreement with our
lender, Wells Fargo Bank, N.A, which allows us to sell eligible
accounts receivable for 90% of the invoiced amount on a full
recourse basis up to the facility maximum of $14.0 million. When
the receivable is paid by our customers, the remaining 10% is paid
to us, less applicable fees and interest. Eligible accounts
receivable are generally defined to include accounts that are not
more than ninety days past due.
Pursuant to this agreement, we owed approximately $854,000 at
December 29, 2017, and at June 29, 2018 there was approximately
$240,000 that was owed to us which is included in Other receivables
on our Consolidated Balance Sheet. The current agreement bears
interest at the Daily One Month London Interbank Offered Rate plus
2.50% per annum. At June 29, 2018, the effective interest rate was
4.50%. Interest is payable on the actual amount advanced.
Additional charges include an annual facility fee equal to 0.50% of
the facility threshold in place and lockbox fees. As collateral for
repayment of any and all obligations, we granted Wells Fargo Bank,
N.A. a security interest in all of our property including, but not
limited to, accounts receivable, intangible assets, contract
rights, deposit accounts, and other such assets. The agreement
requires that the sum of our unrestricted cash plus net accounts
receivable must at all times be greater than the sum of the amount
outstanding under the agreement plus accrued payroll and accrued
payroll taxes. At June 29, 2018 and December 29, 2017, we were in
compliance with this covenant. There was approximately $49,000 and
$13,000 available to us under this agreement at June 29, 2018 and
December 29, 2017, respectively.
As of June 29, 2018, we have a letter of credit with Wells Fargo
for approximately $6.2 million that secures our obligations to our
workers’ compensation insurance carrier and reduces the
amount available to us under the account purchase
agreement. For additional information related to this letter
of credit, see Note 5 – Workers’
Compensation Insurance and Reserves.
NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill and other intangible assets are stated net of accumulated
amortization. The following table summarizes the goodwill and
intangible asset balances:
|
|
June 29,
2018
|
December 29,
2017
|
|
Goodwill
|
$3,777,568
|
$3,777,568
|
|
Intangible
assets
|
659,564
|
659,564
|
|
Accumulated
amortization
|
(452,359)
|
(351,556)
|
|
Goodwill
and other intangible assets, net
|
$3,984,773
|
$4,085,576
|
Amortization expense for the thirteen and twenty-six weeks ended
June 29, 2018 was approximately $47,000 and $101,000, respectively.
Amortization expense for the thirteen and twenty-six weeks ended
June 30, 2017 was approximately $56,000 and $112,000,
respectively.
NOTE 5 – WORKERS' COMPENSATION INSURANCE AND
RESERVES
In April 2014, we changed our workers’ compensation carrier
to ACE American Insurance Company, or ACE, in all states in which
we operate other than Washington and North Dakota. The ACE policy
is a high deductible policy where we have primary responsibility
for all claims. ACE provides insurance for covered losses and
expenses in excess of $500,000 per incident. Under this high
deductible program, we are largely self-insured. Per our
contractual agreements with ACE, we must provide a collateral
deposit of approximately $6.2 million, which is accomplished
through a letter of credit under our account purchase agreement
with Wells Fargo. For workers’ compensation claims
originating in Washington and North Dakota, we pay workers’
compensation insurance premiums and obtain full coverage under
mandatory state government administered programs. Our liability
associated with claims in these jurisdictions is limited to the
payment of premiums, which are based upon the amount of payroll
paid within the particular state. Accordingly, our consolidated
financial statements reflect only the mandated workers’
compensation insurance premium liability for workers’
compensation claims in these jurisdictions.
As part of our high deductible workers’ compensation
programs, our carriers require that we collateralize a portion of
our future workers’ compensation obligations in order to
secure future payments made on our behalf. This collateral is
typically in the form of cash and cash equivalents. At June 29,
2018, our cash and non-cash collateral totaled approximately $6.4
million and consisted of cash deposits of approximately $202,000
and a letter of credit of approximately $6.2 million.
Workers’ compensation expense for our field team members is
recorded as a component of our cost of services and consists of the
following components: changes in our self-insurance reserves as
determined by our third party actuary, actual claims paid,
insurance premiums and administrative fees paid to our
workers’ compensation carrier(s), and premiums paid to
mandatory state government administered programs. Workers’
compensation expense for the thirteen and twenty-six weeks ended
June 29, 2018 was approximately $869,000 and $1.9 million,
respectively. Workers’ compensation expense for the thirteen
and twenty-six weeks ended June 30, 2017 was approximately $787,000
and $1.6 million, respectively.
NOTE 6 – STOCK BASED COMPENSATION
Employee Stock Incentive Plan: Our 2008 Stock Incentive Plan, which permitted the
grant of up to 533,333 equity awards, expired in January 2016.
Outstanding awards continue to remain in effect according to the
terms of the plan and the award documents. On November 17, 2016,
our stockholders approved the Command Center, Inc. 2016
Stock Incentive Plan under
which our Compensation Committee is authorized to issue awards for
up to 500,000 shares of our common stock over the 10 year life of
the plan. Pursuant to awards under these plans, there were
approximately 72,000 and 191,000 stock options vested at June 29,
2018 and December 29, 2017, respectively.
The following table summarizes our stock options outstanding at
December 29, 2017, and changes during the period ended June 29,
2018. The expired options were issued to our former CEO and
subsequently cancelled pursuant to the severance agreement with
him.
|
|
Number of shares underlying options
|
Weighted average exercise price per share
|
Weighted average grant date fair value
|
|
Outstanding,
December 29, 2017
|
254,995
|
$4.49
|
$2.68
|
|
Granted
|
117,500
|
5.67
|
3.15
|
|
Forfeited
|
(21,875)
|
6.15
|
3.31
|
|
Expired
|
(148,958)
|
3.21
|
2.28
|
|
Outstanding,
June 29, 2018
|
201,662
|
5.94
|
3.18
|
The following table summarizes our non-vested stock options
outstanding at December 29, 2017, and changes during the period
ended June 29, 2018:
|
|
Number of shares underlying options
|
Weighted average exercise price per share
|
Weighted average grant date fair value
|
|
Non-vested,
December 29, 2017
|
63,539
|
$5.47
|
$2.86
|
|
Granted
|
117,500
|
5.67
|
3.15
|
|
Forfeited
|
(21,875)
|
6.15
|
3.31
|
|
Vested
|
(29,375)
|
5.67
|
3.15
|
|
Non-vested,
June 29, 2018
|
129,789
|
5.49
|
2.98
|
The following table summarizes information about our stock options
outstanding, and reflects the intrinsic value recalculated based on
the closing price of our common stock of $5.70 at June 29,
2018:
|
|
Number
of shares underlying options
|
Weighted
average exercise price per share
|
Weighted
average remaining contractual life (years)
|
Aggregate
intrinsic value
|
|
Outstanding
|
201,662
|
$5.94
|
8.70
|
$749,737
|
|
Exercisable
|
71,873
|
6.76
|
7.13
|
9,937
|
The following table summarizes information about our stock options
outstanding, and reflects weighted average contractual life at June
29, 2018:
|
|
Outstanding options
|
Vested options
|
||
|
Range of exercise prices
|
Number of shares underlying options
|
Weighted
average remaining contractual life (years)
|
Number of shares exercisable
|
Weighted
average remaining contractual life (years)
|
| $4.80-7.00 |
171,664
|
9.62
|
42,916
|
9.62
|
| $7.01-8.76 |
29,998
|
3.44
|
28,957
|
3.44
|
|
|
201,662
|
8.70
|
71,873
|
7.13
|
At June 29, 2018, there was unrecognized stock-based compensation
expense totaling approximately $301,000 relating to non-vested
options that will be recognized over the next 3.0
years.
NOTE 7 – STOCKHOLDERS’ EQUITY
Stock Repurchase: In
September 2017, our Board of Directors authorized a $5.0 million
three-year repurchase plan of our common stock. This plan replaced
the previous plan, which was put in place in April 2015. During the
thirteen weeks ended June 29, 2018, we purchased approximately
104,000 shares of common stock at an aggregate cost of
approximately $590,000 resulting in an average price of $5.69 per
share. These shares were subsequently retired. We have
approximately $3.9 million remaining under the plan. The
following table summarizes in more detail our common stock
purchased during the thirteen weeks ended June 29,
2018.
|
|
Total
shares purchased
|
Average
price per share
|
Total
number of shares purchased as part of publicly announced
plans
|
Approximate
remaining dollar value of shares that may be purchased under the
plan
|
|
Period 4 (March 31,
2018 to April 27, 2018)
|
34,310
|
$5.67
|
637,843
|
$4,302,380
|
|
Period 5 (April 28,
2018 to May 25, 2018)
|
26,382
|
5.77
|
664,225
|
4,150,262
|
|
Period 6 (May 26,
2018 to June 29, 2018)
|
42,900
|
5.66
|
707,125
|
3,907,442
|
|
Total
|
103,592
|
5.69
|
|
|
Subsequent to June 29, 2018 through August 10, 2018, we have
repurchased approximately 63,000 additional shares at an aggregate
cost of approximately $375,000.
NOTE 8 – INCOME TAX
Income tax expense during interim periods is based on applying an
estimated annual effective income tax rate to year-to-date income,
plus any significant unusual or infrequently occurring items which
are recorded in the interim period. The provision for
income taxes for the interim periods differs from the amount that
would be provided by applying the statutory U.S. federal income tax
rate to pre-tax income primarily because of state income
taxes. The computation of the annual estimated effective tax
rate at each interim period requires certain estimates and
significant judgment including, but not limited to, the expected
operating income for the year and change in tax law and tax
rates. The accounting estimates used to compute the
provision for income taxes may change as new events occur, more
experience is obtained, additional information becomes known or as
the tax environment changes.
On December 22, 2017, Congress signed Public Law No 115-97,
commonly referred to as the Tax Cut and Jobs Act of 2017. The
passage of this legislation resulted in the U.S. federal corporate
tax rate decreasing from 35% to 21% beginning in January 2018, the
elimination of the corporate alternative minimum tax, the
acceleration of depreciation for U.S. tax purposes, creating a new
limitations on deductible interest expense, and changing the rules
related to uses and limitations of net operating loss carryforwards
created in tax years beginning after December 31,
2017.
NOTE 9 – COMMITMENTS AND CONTINGENCIES
Freestone Insurance Company Liquidation: From July 2008 through April 2011, our
workers’ compensation coverage was provided under an
agreement with AMS Staff Leasing II, or AMS, through a master
policy with Freestone Insurance Company, or Freestone. During this
time period, we deposited approximately $500,000 with an affiliate
of Freestone for collateral related to the coverage through
AMS.
From April 2012 through March 2014, our workers’ compensation
insurance coverage was provided by Dallas National Insurance, who
changed its corporate name to Freestone Insurance Company. Under
the terms of the policies we were required to provide cash
collateral of $900,000 per year, for a total of $1.8 million, as a
non-depleting fund to secure our payment up to the deductible
amount.
In April 2014, the Insurance Commissioner of the State of Delaware
placed Freestone in receivership due to concerns about its
financial condition. In August 2014, the receivership was converted
to a liquidation proceeding. In late 2015, we filed timely proofs
of claim with the receiver. One proof of claim is filed as a
priority claim seeking return of the full amount of our collateral
deposits. The other proof of claim is a general claim covering
non-collateral items. If it is ultimately determined that our claim
is not a priority claim, or if there are insufficient assets in the
liquidation to satisfy the priority claims, we may not receive any
or all of our collateral.
During the second quarter of 2015 and the first quarter of 2016, it
became apparent that there was significant uncertainty related to
the collectability of the $500,000 deposit with AMS provided
related to our insurance coverage from July 2008 through April
2011. Because of this, we recorded a reserve of $250,000 in each of
those quarters, fully reserving this deposit.
In conjunction with recent management, board, and audit committee
changes, we have reviewed the estimated costs and potential
benefits of pursuing priority claimant status in the liquidation
proceeding and have altered our planned long-term strategy.
Given that Freestone has negative equity, the complexity of
this matter, our experience to date, and the amount of time this
matter has remained unresolved, we believe the
continuation of our efforts to achieve priority status will not
necessarily prove cost-effective. While we will continue to
seek priority status, we have determined that our stockholders will
be best served by a more measured investment in the recovery
effort. While we are hopeful for a more positive outcome, we
believe that without significant investment it is more likely than
not that we will be treated in a similar manner as other creditors,
resulting in our priority claim having no value. Based on court
filings and other information made available to us, we estimate the
ratio between Freestone’s liquid assets and liabilities
to be approximately 20%. We now believe this
ratio applied to our deposit represents the best estimate
of the high end of the range of our ultimate recovery. Accordingly,
we increased the reserve on this asset by approximately $1.5
million in the first quarter of 2018 resulting in a net carrying
amount of $260,000.
We believe that our recovery, if any, of the deposits placed with
Freestone and its affiliates will be the greater of: (i) the amount
determined and allowed resulting from a tracing analysis of our
collateral deposits; or (ii) the amount we would receive in
distribution as a general unsecured claimant based on the amount of
our collateral deposit. The Company and its counsel, in
conjunction and coordination with counsel for other potentially
aggrieved collateral depositors, are working diligently in order
to maximize our recovery of collateral deposits previously
made to Freestone and achieve the best possible outcome for
our stockholders. Ultimately, the amount of the collateral deposit
to be returned will be determined by the Chancery Court in
Delaware, after hearing evidence and arguments from all engaged
parties.
Management reviews these deposits at each balance sheet date and
estimates the future range in loss related to this matter could be
as high as $260,000, the net balance of the
deposit.
Legal Proceedings: From
time to time, we are involved in various legal proceedings. We
believe the outcome of these matters, even if determined adversely,
will not have a material adverse effect on our business, financial
condition or results of operations. There have been no material
changes in our legal proceedings as of June 29,
2018.
Item 2. Management’s Discussion and
Analysis of Financial Condition and Results of
Operations
Forward Looking Statements: This Form 10-Q may contain forward-looking
statements. These statements relate to Command Center, Inc.’s
(“Command Center”, the “Company”,
“we”, “us” or “our”)
expectations for future events and future financial performance.
Generally, the words “intend,” “expect,”
“anticipate,” “estimate,” or
“continue” and similar expressions identify
forward-looking statements. Forward-looking statements involve
risks and uncertainties, and future events and circumstances could
differ significantly from those anticipated in the forward-looking
statements. These statements are only predictions. In addition to
other factors discussed in this report, some of the important
factors that could cause actual results to differ from those
discussed in the forward-looking statements include risk factors
described in Item 1A of our Annual Report on Form 10-K for the year
ended December 29, 2017. Readers are cautioned not to place undue
reliance on these forward-looking statements. Although we believe
that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, levels of
activity, performance, or achievements. Our expectations, beliefs,
or projections may not be achieved or accomplished. We do not, nor
have we authorized any other person to, assume responsibility for
the accuracy and completeness of the forward-looking statements. We
undertake no duty to update any of the forward-looking statements
after the date of this report, whether as a result of new
information, future events, or otherwise, except as required by
law. You are advised to consult further disclosures we may make on
related subjects in our filings with the Securities and Exchange
Commission, or the SEC.
Overview
We are a staffing company operating primarily in the manual
on-demand labor segment of the staffing industry. Our customers
range in size from small businesses to large corporations. All of
our temporary staff, which we refer to as field team members, are
employed by us. Most of our work assignments are short-term, and
many are filled with little notice from our customers. In addition
to short and longer term temporary work assignments, we sometimes
recruit and place workers in temp-to-hire positions.
As of August 6, 2018, we owned and operated 67 on-demand labor
branches across 22 states.
Results of Operations
The following tables reflect operating results for the thirteen and
twenty-six week periods ended June 29, 2018, compared to the
thirteen and twenty-six week periods ended June 30, 2017 (in
thousands except percentages) and serves as the basis for the
narrative that follows. Percentages reflect line item amounts as a
percentage of revenue. The tables serve as the basis for the
narrative that follows.
|
|
Thirteen weeks ended
|
|||
|
|
June 29, 2018
|
June 30, 2017
|
||
|
Revenue
|
$24,176
|
100.0%
|
$24,504
|
100.0%
|
|
Cost
of staffing services
|
17,899
|
74.0%
|
18,011
|
73.5%
|
|
Gross
profit
|
6,277
|
26.0%
|
6,493
|
26.5%
|
|
Selling,
general and administrative expenses
|
5,369
|
22.2%
|
5,165
|
21.1%
|
|
Depreciation
and amortization
|
88
|
0.4%
|
96
|
0.4%
|
|
Income
from operations
|
820
|
3.4%
|
1,232
|
5.0%
|
|
Interest
expense and other financing expense
|
-
|
0.0%
|
1
|
0.0%
|
|
Net income before
income taxes
|
820
|
3.4%
|
1,231
|
5.0%
|
|
Provision for
income taxes
|
257
|
1.1%
|
496
|
2.0%
|
|
Net
income
|
$563
|
2.3%
|
$735
|
3.0%
|
|
Non-GAAP
data
|
|
|
|
|
|
EBITDA
|
$908
|
3.8%
|
$1,328
|
5.4%
|
|
Adjusted EBITDA
|
1,295
|
5.4%
|
1,336
|
5.5%
|
|
|
Twenty-six weeks ended
|
|||
|
|
June 29, 2018
|
June 30, 2017
|
||
|
Revenue
|
$46,643
|
100.0%
|
$46,852
|
100.0%
|
|
Cost
of staffing services
|
34,772
|
74.5%
|
34,621
|
73.9%
|
|
Gross
profit
|
11,871
|
25.5%
|
12,231
|
26.1%
|
|
Selling,
general and administrative expenses
|
12,582
|
27.0%
|
10,508
|
22.4%
|
|
Depreciation
and amortization
|
181
|
0.4%
|
192
|
0.4%
|
|
Income
(loss) from operations
|
(892)
|
(1.9)%
|
1,531
|
3.3%
|
|
Interest
expense and other financing expense
|
2
|
0.0%
|
1
|
0.0%
|
|
Net income (loss)
before income taxes
|
(894)
|
(1.9)%
|
1,530
|
3.3%
|
|
Provision (benefit)
for income taxes
|
(240)
|
(0.5)%
|
613
|
1.3%
|
|
Net (loss)
income
|
$(654)
|
(1.4)%
|
$917
|
2.0%
|
|
Non-GAAP
data
|
|
|
|
|
|
EBITDA
|
$(711)
|
(1.5)%
|
$1,723
|
3.7%
|
|
Adjusted
EBITDA
|
1,712
|
3.7%
|
1,741
|
3.7%
|
Use of non-GAAP Financial Measures
Earnings before interest, taxes, depreciation and amortization,
non-cash compensation, and certain non-recurring charges, or
adjusted EBITDA, is a non-GAAP measure that represents our net
income before interest expense, income tax expense, depreciation
and amortization, non-cash compensation, and certain non-recurring
charges. We utilize adjusted EBITDA as a financial measure, as
management believes investors find it a useful tool to perform more
meaningful comparisons of past, present and future operating
results and as a means to evaluate our operational results. We
believe it is a complement to net income and other financial
performance measures. Adjusted EBITDA is not intended to represent
net income as defined by generally accepted accounting principles
in the United States, or U.S. GAAP, and such information should not
be considered as an alternative to net income or any other measure
of performance prescribed by U.S. GAAP.
We use adjusted EBITDA to measure our financial performance because
we believe interest, taxes, depreciation and amortization, non-cash
compensation, and certain non-recurring charges bear little or no
relationship to our operating performance. By excluding interest
expense, adjusted EBITDA measures our financial performance
irrespective of our capital structure or how we finance our
operations. By excluding taxes on income, we
believe adjusted EBITDA provides a basis for measuring
the financial performance of our operations excluding factors that
our branches cannot control. By excluding depreciation and
amortization expense, adjusted EBITDA measures the financial
performance of our operations without regard to their historical
cost. By excluding non-cash compensation, adjusted EBITDA
provides a basis for measuring the financial performance of our
operations excluding the value of our stock and stock options. In
addition, by excluding certain non-recurring
charges adjusted EBITDA provides a basis for measuring
financial performance without non-recurring charges. For all
of these reasons, we believe that adjusted EBITDA
provides us and investors with information that is relevant and
useful in evaluating our business.
However, because adjusted EBITDA excludes depreciation
and amortization, it does not measure the capital we require to
maintain or preserve our fixed assets. In addition,
because adjusted EBITDA does not reflect interest
expense, it does not take into account the total amount of interest
we pay on outstanding debt nor does it show trends in interest
costs due to changes in our financing or changes in interest
rates. Adjusted EBITDA, as defined by us, may not be
comparable to adjusted EBITDA as reported by other
companies that do not define adjusted EBITDA exactly as
we define the term. Because we use adjusted EBITDA to
evaluate our financial performance, we reconcile it to net income,
which is the most comparable financial measure calculated and
presented in accordance with U.S. GAAP.
|
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
||
|
|
June 29,
2018
|
June 30,
2017
|
June 29,
2018
|
June 30,
2017
|
|
Net
income (loss)
|
$563
|
$735
|
$(654)
|
$917
|
|
Interest
expense
|
-
|
1
|
2
|
1
|
|
Provision
(benefit) for income taxes
|
257
|
496
|
(240)
|
613
|
|
Depreciation
and amortization
|
88
|
96
|
181
|
192
|
|
EBITDA
|
908
|
1,328
|
(711)
|
1,723
|
|
Non-cash
compensation
|
192
|
8
|
218
|
18
|
|
Reserve
for workers' compensation deposit
|
|
-
|
1,540
|
-
|
|
Proxy
settlement
|
100
|
-
|
100
|
-
|
|
Executive severance
|
95
|
-
|
565
|
-
|
|
Adjusted EBITDA
|
$1,295
|
$1,336
|
$1,712
|
$1,741
|
Thirteen Weeks Ended June 29, 2018
Summary of operations: Revenue for the thirteen weeks ended June
29, 2018 was approximately $24.2 million, a decrease of
approximately $328,000, or 1.3%, from $24.5 million for the
thirteen weeks ended June 30, 2017. This decrease is due to higher
than normal turnover in sales positions due to increased
competition in the job market related to low unemployment
rates.
Cost of staffing services: Cost of staffing services was 74.0% of
revenue in the thirteen weeks ended June 29, 2018 compared to 73.5%
for the thirteen weeks ended June 30, 2017. This increase was due
to relative increases in workers’ compensation costs, and
field team member wages and related payroll taxes. These increases
were partially offset by relative decreases in state unemployment
expense, per diem, and transportation costs.
Selling, general and administrative expenses, or
SG&A: SG&A for the
thirteen weeks ended June 29, 2018, was approximately $5.4 million,
an increase of approximately $204,000 from $5.2 million for the
thirteen weeks ended June 30, 2017. Relative to revenue, SG&A
increased 1.1% to 22.2% for the thirteen weeks ended June 29, 2018,
from 21.1% for the thirteen weeks ended June 30, 2017. This
increase is primarily due to increased internal salaries and
benefits, which includes severance of $95,000, and increased stock
based compensation. These increases were offset partially by
decreased contract labor costs and consulting, and a refund of our
workers’ compensation risk pool deposit with AIG in excess of
what was recorded of approximately $198,000. Also included in
SG&A this quarter is a one-time $100,000 expense related to the
settlement of the recent proxy contest.
Twenty-six Weeks Ended June 29, 2018
Summary of operations: Revenue for the twenty-six weeks ended June
29, 2018 was approximately $46.6 million, a decrease of
approximately $209,000, or 0.4%, from $46.9 million for the
twenty-six weeks ended June 30, 2017. This decrease is due to
higher than normal turnover in sales positions due to increased
competition in the job market related to low unemployment
rates.
Cost of staffing services: Cost of staffing services was 74.5% of
revenue in the twenty-six weeks ended June 29, 2018 compared to
73.9% for the twenty-six weeks ended June 30, 2017. This increase
was due to relative increases in workers’ compensation costs,
and field team member wages and related payroll taxes. These
increases were partially offset by relative decreases in state
unemployment expense, per diem, transportation, and other materials
costs.
Selling, general and administrative expenses, or
SG&A: SG&A for the
twenty-six weeks ended June 29, 2018, was approximately $12.6
million, an increase of approximately $2.1 million from $10.5
million for the twenty-six weeks ended June 30, 2017. This increase
is primarily due to the impairment of our workers’
compensation deposit in receivership of approximately $1.5 million.
Also included in SG&A are non-recurring executive severance
expenses of approximately $565,000, and a one-time $100,000 expense
related to the settlement of the recent proxy contest. These
non-recurring expenses combine to approximately $2.2 million, or
17.5% of total SG&A. Other increases in SG&A included an
increase in payroll and payroll related taxes, which were more than
offset by a reduction in contract labor.
Liquidity and Capital Resources
At June 29, 2018, our current assets exceeded our current
liabilities by approximately $13.3 million. Included in current
assets is cash of approximately $5.8 million and net accounts
receivable of approximately $9.5 million. Included in current
liabilities are accrued wages and benefits of approximately $1.6
million, and the current portion of our workers’ compensation
claims liability of approximately $1.0 million.
Operating activities: Through the twenty-six weeks ended June 29, 2018,
net cash used by operating activities totaled approximately $87,000
compared to cash provided by operating activities of approximately
$935,000 through the twenty-six weeks ended June 30, 2017.
Operating activity through the second quarter of 2018 included a
net loss of approximately $654,000, an increase in our deferred tax
asset of approximately $390,000, an increase in prepaid
workers’ compensation of approximately $314,000, a decrease
in accounts payable of approximately $273,000, and a decrease in
other current liabilities of approximately $365,000. These uses of
cash were partially offset by a decrease of approximately $1.5
million in our workers’ compensation risk pool deposit in
receivership, and a decrease in workers’ compensation risk
pool deposits of approximately $100,000. Operating activity through
the second quarter of 2017 included net income of approximately
$917,000, a decrease in our deferred tax asset of approximately
$613,000, a decrease in accounts receivable of approximately
$311,000, and an increase in accrued wages and benefits of
approximately $212,000. These provisions were partially offset by
our provision for bad debt of approximately $542,000 and a decrease
in our workers’ compensation claims liability of
approximately $639,000.
Investing activities: Through the twenty-six weeks ended June 29, 2018,
net cash used in investing activities totaled approximately
$65,000, compared to approximately $101,000 for the twenty-six
weeks ended June 30, 2017. These decreases in cash primarily
related to the purchase of capital equipment in both years. In 2018
this use of cash was offset by cash receipts of approximately
$20,000 related to the sale of a vehicle.
Financing activities: Through the twenty-six weeks ended June 29, 2018,
net cash used in financing activities totaled approximately $1.8
million compared to cash provided by financing activities of
approximately $223,000 through the twenty-six weeks ended June 30,
2017. Financing activity through the second quarter of 2018
included a decrease in our account purchase agreement of
approximately $1.1 million and the purchase of treasury stock of
approximately $719,000. Financing activity in 2017 related to an
increase in our account purchase agreement of approximately
$223,000.
Item 3. Quantitative and Qualitative
Disclosures about Market Risk
Command Center is a “smaller reporting company” as
defined by Regulation S-K and, as such, is not required to provide
the information contained in this item pursuant to Regulation
S-K.
Item 4. Controls and
Procedures
(a) Evaluation of disclosure
controls and procedures. Our Chief Executive Officer and our Chief
Financial Officer evaluated our disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
and Exchange Act of 1934, as amended (the "Exchange Act")), prior
to the filing of this Form 10-Q. Based on that evaluation, our
Chief Executive Officer and Chief Financial Officer concluded that,
as of June 29, 2018, our disclosure controls and procedures were
effective.
(b) Changes in internal controls
over financial reporting. There
have not been any changes in our internal control over financial
reporting during the interim period ended June 29, 2018, which have
materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time we are involved in various legal proceedings.
Except for the Freestone Insurance Company liquidation proceedings
as described in Note 9 to the Consolidated Financial Statements, we
believe the outcomes of these proceedings, even if determined
adversely, will not have a material adverse effect on our business,
financial condition or results of operations.
Item 1A. Risk Factors
There have been no material changes from the risk factors we
previously disclosed in our Annual Report on Form 10-K for the year
ended December 29, 2017 filed with the Securities and Exchange
Commission on March 29, 2018.
Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds
Recent Sales of Unregistered Securities
We did not issue any unregistered securities during the thirteen
weeks ended June 29, 2018.
Purchase of Equity Securities by the Issuer and Affiliated
Purchasers:
In September 2017, our Board of Directors authorized a $5.0 million
three year repurchase plan of our common stock. This plan replaces
the previous plan, which was put in place in April 2015. As part of
our stock repurchase program, we purchased approximately 104,000
shares of common stock at an aggregate cost of approximately
$590,000 resulting in an average price of $5.69 per share. These
shares were subsequently retired. The following table
summarizes in more detail our common stock purchased during the
thirteen weeks ended June 29, 2018.
|
|
Total
shares purchased
|
Average
price per share
|
Total
number of shares purchased as part of publicly announced
plan
|
Approximate
dollar value of shares that may yet be purchased under the
plan
|
|
Period 4 (March 31,
2018 to April 27, 2018)
|
34,310
|
$5.67
|
637,843
|
$4,302,380
|
|
Period 5 (April 28,
2018 to May 25, 2018)
|
26,382
|
5.77
|
664,225
|
4,150,262
|
|
Period 6 (May 26,
2018 to June 29, 2018)
|
42,900
|
5.66
|
707,125
|
3,907,442
|
|
Total
|
103,592
|
5.69
|
|
|
Subsequent to June 29, 2018 through August 2, 2018, we have
repurchased approximately 50,000 additional shares at an aggregate
cost of approximately $302,000.
Item 3. Defaults Upon Senior
Securities
None.
Item 4. Mine Safety
Disclosures
Not applicable.
Item 5. Other Information
In July 2018, our Board of Directors named R. Rimmy Malhotra and JD
Smith as co-chairmen of our Board, updated the membership of our
Board committees, and disbanded the Executive Committee. The table
below shows the current membership for each of our standing Board
committees and our special Board committee:
|
Audit Committee
|
|
Compensation Committee
|
|
Nominating and Governance Committee
|
|
Strategic Alternatives Committee
|
|
|
Galen Vetter (Chair)
|
|
Steven Bathgate (Chair)
|
|
JD Smith (Chair)
|
|
R.
Rimmy Malhotra (Chair)
|
|
|
Steven P. Oman
|
|
Larry Hagenbuch
|
|
Steven P. Oman
|
|
Steven Bathgate
|
|
|
Larry Hagenbuch
|
|
R. Rimmy Malhotra
|
|
Galen Vetter
|
|
JD
Smith
|
|
|
|
|
|
|
|
|
Larry Hagenbuch
|
|
Item 6. Exhibits
|
Exhibit No.
|
|
Description
|
|
|
Employment Agreement between the Company and Richard K. Coleman,
Jr. effective April 1, 2018. Incorporated by reference to Exhibit
10.1 to Form 8-K as filed on April 2, 2018.
|
|
|
|
Severance Agreement between Command Center, Inc. and Frederick
Sandford dated March 28, 2018. Incorporated by reference to
Exhibit 10.2 to Form 8-K as filed on April 3, 2018.
|
|
|
|
Settlement Agreement, dated April 16, 2018, among Command Center,
Inc., Ephraim Fields, Echo Lake Capital, Keith Rosenbloom, Lawrence
F. Hagenbuch, Randall Bort, and Sean Gelston. Incorporated by
reference to Exhibit 10.3 to Form 8-K as filed on April 18,
2018.
|
|
|
|
Certification of Richard K. Coleman, Jr., Chief Executive Officer
of Command Center, Inc. pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
|
|
Certification of Cory Smith, Chief Financial Officer of Command
Center, Inc. pursuant to Rule 13a-14(a) as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
Certification of Richard K. Coleman, Jr., Chief Executive Officer
of Command Center, Inc., and Cory Smith, Chief Financial Officer of
Command Center, Inc., pursuant to 18 U.S.C. Section 1350, as
adopted in Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized
Command Center, Inc.
|
/s/ Richard K.
Coleman, Jr.
|
|
August 13,
2018
|
|
Richard K. Coleman, Jr
|
|
Date
|
|
President
and Chief Executive Officer
|
|
|
|
|
|
|
|
/s/ Cory
Smith
|
|
August 13,
2018
|
|
Cory Smith
|
|
Date
|
|
Chief
Financial Officer
|
|
|
19