SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: September 10, 1997
(Date of Earliest Event Reported)
COMMAND SECURITY CORPORATION
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(Exact name of Registrant as Specified in its Charter)
New York
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(State of Incorporation)
0-18684
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(Commission File Number)
14-1626307
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(IRS Employer Identification No.)
Lexington Park, Lagrangeville, New York 12540
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(Address of Principal Executive Offices)
(914) 454-3703
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(Registrant's Telephone Number)
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Item 1-Item 4 Not Applicable.
Item 5 Not Applicable.
Item 6 Not Applicable.
Item 7 Financial Statements and Exhibits.
(a),(b) Not Applicable.
(c) Exhibits
(i) Press release dated September 10, 1997
Item 8. Not applicable.
<PAGE>
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 hereunto duly authorized.
Date: September 11, 1997 COMMAND SECURITY CORPORATION
By: /s/ William C. Vassell
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William C. Vassell
Chairman of the Board of Directors
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Command Security Corporation
[LOGO]
Corporate Office:
Lexington Park, P.O. Box 340
Lagrangeville, New York 12540
Tel. 914-454-3703
Fax 914-454-0075
FOR IMMEDIATE RELEASE
COMMAND SECURITY CORPORATION EXPECTS TO TAKE AN APPROXIMATELY $1 MILLION
CHARGE IN ITS SECOND FISCAL QUARTER
Lagrangeville, New York * * * September 10, 1997 * * * Command Security
Corporation (NASDAQ:CMMD) today reported that one of its service company
clients located in Boston filed last week under Chapter 7 of the
Bankruptcy Code. The potential charge to earnings for the quarter ending
September 30, 1997 based on notes and advances plus debt guaranteed by
Command (net of amounts previously deferred) is approximately $765,000.
In addition, there are accounts receivable valued at approximately
$680,000 due to Command from the service client's customers. Command
intends to aggressively pursue collection of these accounts.
The notes, advances and guarantees are secured by a lien against the
service company's client list, and under its service agreement Command
has the right to take over those accounts. Several factors, including
the results of the bankruptcy proceedings, will determine Command's
success in acquiring those accounts. Command has launched its own
investigation of the status of the accounts and has engaged counsel to
represent its interests in the bankruptcy proceedings.
William C. Vassell, the Company's Chairman of the Board, said "We will
aggressively pursue all legal remedies to collect the monies due Command
from the service company's customers as well as to obtain these
customers for Command. Although the maximum impact on earnings for the
current quarter and for the year ending March 1998 could be as much as
$1.5 million, our current expectation is closer to $1 million.
Fortunately, due to the improvements in our cash position over the past
year, the impact on our cash flow should be minimal. We are working with
our senior lender who has indicated its willingness to cooperate with us
in order to smooth out any short-term cash flow issues."
Command Security Corporation provides security services to
company-owned offices in New York, New Jersey, California, Illinois,
Connecticut, Florida and Pennsylvania and provides back office service
agreements to independent security companies nationwide.
Contact:
William C. Vassell, Chairman of the Board at 914-454-3703
Donald Radcliffe, Radcliffe & Associates, Inc. at 212-605-0174
