Command Security Corporation Reports Third Quarter Results

Revenues slightly down compared to third quarter in 2003 for aviation and security guard services provider


LaGrangeville, N.Y. - Command Security Corporation has announced the financial results for its third fiscal quarter, which ended December 31, 2004.

Revenues for the three months ended December 31, 2004 decreased $352,329, or 1.7 percent, to $20,257,624, compared with revenues of $20,609,953 in the same period of the prior year. Revenues for the nine months ended December 31, 2004 increased $3,714,328, or 6.6 percent, to $59,881,542, compared with revenues of $56,167,214 in the same period of the prior year. The increase in revenues for the nine month period was primarily due to an aviation services contract with Delta Airlines that commenced in August 2003.

Operating income for the three months ended December 31, 2004 was $293,859, compared with $149,210 in the same period of the prior year. Operating loss for the nine months ended December 31, 2004 was $61,512, compared with operating income of $508,022 in the same period of the prior year. Operating loss for the nine months ended December 31, 2004 includes approximately $475,000 of costs incurred by the Company in connection with the change in the Company's management and Board of Directors in August 2004, including the resignation of the Company's former Chief Executive Officer, and related legal expenses.

Net income applicable to common stockholders for the three months ended December 31, 2004 was $183,997, compared with a net loss applicable to common stockholders of $15,539 in the same period of the prior year. Net loss applicable to common stockholders for the nine months ended December 31, 2004 was $407,326, compared with net income applicable to common stockholders of $15,343 in the same period of the prior year.

Net income per common share for the three months ended Dec. 31, 2004 was $.02, and net loss per common share for the nine months ended Dec. 31, 2004 was $.06. Diluted earnings per share were $.02 for the three months ended Dec. 31, 2004. Command does not present diluted loss per common share for the nine months ended Dec. 31, 2004 and the three months ended December 31, 2003, because the effect of the assumed issuance of common shares upon the exercise of outstanding warrants and stock options was antidilutive.

Commenting on the results, the company's Chief Operating Officer and Chief Financial Officer Barry Regenstein stated, "Our revenue and profit performance in the third quarter of fiscal 2005 were consistent with our expectations. We are continuing with our plans to build the foundation for future growth and financial performance. This is a team effort which continues to be led by our employees who make customer satisfaction, job performance and quality their top goals."

Command Security Corporation provides aviation and security guard services through company-owned offices in New York, New Jersey, California, Illinois, Connecticut, Florida, Massachusetts, Pennsylvania, Maryland and Oregon.