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: July 17, 1998
(Date of Earliest Event Reported)
COMMAND SECURITY CORPORATION
(Exact name of Registrant as Specified in its Charter)
New York
(State of Incorporation)
0-18684
(Commission File Number)
14-1626307
(IRS Employer Identification No.)
Lexington Park, Lagrangeville, New York 12540
(Address of Principal Executive Offices)
(914) 454-3703
(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 July 17, 1998
Item 8 Not Applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchanges Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 15, 1998 COMMAND SECURITY CORPORATION
By: /s/ Franklyn H. Snitow
Franklyn H. Snitow
Acting President and
Chief Executive Officer
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FOR IMMEDIATE RELEASE
CONTACT: William C. Vassell Donald Radcliffe
Chairman Radcliffe & Associates, Inc.
Tel: (914) 454-3703 Tel: (212) 605-0174
COMMAND SECURITY CORPORATION
REPORTS YEAR END RESULTS
Lagrangeville, New York *** July 17, 1998 *** Command Security Corporation
(NASDAQ: CMMD) today reported results for its fiscal year ended March 31,
1998. These results are contained in the Company's form 10-K filed with the
Securities and Exchange Commission.
Revenues for the year ended March 31, 1998 increased by more than 5% to
$51,796,882 from the $49,237,418 reported for the year ended March 31, 1997.
For the year the Company reported a loss of $(4,153,374) or $(.62) per share
compared to income of $321,000 or $.05 per share in the prior fiscal year.
As the Company had previously reported, this loss was attributable to
reductions in gross margins of approximately $1.1 million primarily due to
increased reserves for general liability claims and increased labor costs: an
increase in the provision for doubtful accounts by $1 million, primarily due
to the bankruptcy of a large service agreement client, GFM; a $750,000 charge
for the write-down of intangible assets; losses in connection with certain
labor claims of $350,000; a reversal of $260,000 of income tax benefits
recorded in prior years; and an approximately $600,000 increase in general
and administrative expenses.
William C. Vassell, Chairman of the Board said "We are beginning to see
results from our marketing efforts and expect to continue the revenue growth
we achieved during the latter half of fiscal 1998. We are continuing our
efforts to reduce expenses and improve margins. I think it is important to
note that during fiscal 1998 we were able to generate approximately $2.9
million in cash flow from operations, which is an increase of approximately
$1.8 million over the prior year."
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 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.
Command Security Corporation provides security services to company-owned
offices in New York, New Jersey, California, Illinois, Connecticut, Florida,
Georgia and Pennsylvania and provides services to independent security
companies nationwide.
<TABLE>
COMMAND SECURITY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
<CAPTION>
Years Ended March 31,
1998 1997
<S> <C> <C>
Revenue $51,796,882 $49,237,418
Income/(loss) before income tax (3,754,055) 309,670
Income tax (expense)/benefit (259,835) 140,360
Net income/(loss) $(4,013,890) $ 450,030
Preferred stock dividends (139,484) (129,030)
Net income/(loss) applicable to
Common shareholders $(4,153,374) $321,000
Income/(loss) per share of common stock $ (.62) $ .05
Weighted average number of common and
Common equivalent shares outstanding 6,689,352 6,955,548
</TABLE>
