Command Security Corporation Reports Results for Second Quarter of Fiscal 2010

http://www.businesswire.com/news/home/20091112005209/en

Revenues Increase 11% Compared With Corresponding Quarter of Prior Fiscal Year

LAGRANGEVILLE, N.Y.--(Business Wire)--
Command Security Corporation (NYSE Amex: MOC) announced today its financial
results for its second fiscal quarter of 2010 ended September 30, 2009.

For the three months ended September 30, 2009, revenues increased 11.2% to
$37,474,872, compared with revenues of $33,706,141 in the same period of the
prior year. Operating income for the three months ended September 30, 2009
decreased 5.3% to $1,137,251, compared with $1,200,948 in the same period of the
prior year. Net income decreased 7.4% to $561,697, or $0.05 per basic and
diluted share, compared with $606,464, or $0.06 and $0.05 per basic and diluted
share, respectively, in the same period of the prior year.

For the six months ended September 30, 2009, revenues increased 10.5% to
$72,542,756, compared with revenues of $65,655,097 in the same period of the
prior year. Operating income for the six months ended September 30, 2009
decreased 31.5% to $1,537,620, compared with $2,243,675 in the same period of
the prior year. Net income decreased 37.7% to $720,917, or $0.07 and $0.06 per
basic and diluted share, respectively, compared with $1,156,399, or $0.11 and
$0.10 per basic and diluted share, respectively, in the same period of the prior
year.

The increase in revenues for the three and six months ended September 30, 2009
was due primarily to the following events:

* The commencement of security services during the first quarter of fiscal 2010
under a new contract to provide such services to a major transportation company
at approximately 120 locations in twenty-one states throughout the eastern and
western regions of the United States;
* Expansion of security services provided to new and existing customers
principally in the financial services, grocery and technology industries; and
* The acquisition of security services businesses in Florida providing services
primarily to the property management and healthcare industries.

The decrease in operating and net income for the three and six months ended
September 30, 2009 compared to the corresponding periods of the prior fiscal
year was due mainly to: (i) the loss of a contract with a major airline customer
to provide skycap, wheelchair and cargo services at John F. Kennedy
International Airport; (ii) reductions in service hours for several of our
airline and security services customers primarily resulting from a downturn in
their respective businesses; (iii) higher workers` compensation reserves
associated with increased potential future costs for certain existing claims;
and (iv) higher general and administrative expenses associated with expanded
operations.

Commenting on the results from the second fiscal quarter of 2010, Edward S.
Fleury, Chief Executive Officer of Command Security, stated, "While pleased with
our top-line growth, we implemented a number of cost reduction initiatives
during the second fiscal quarter to reduce operating and/or general and
administrative expenses during the remainder of fiscal 2010 and beyond. The key
theme for the second quarter was operating discipline. Our efforts to drive
sales and gross profit growth are continuing, and we believe our team is well
equipped to add value to our customers. My primary focus is to ensure that
Command is continuing to execute well and that we are building a foundation for
sustainable long-term growth. As previously stated, we also made some difficult
but necessary decisions to reduce our expenses during the quarter. We expect
that the combination of these actions will make us a leaner but stronger
organization focused on maximizing the value of our assets for our
shareholders."

Barry I Regenstein, President of Command Security, stated, "Since the beginning
of the year we remained unwavering in our focus to manage the business for the
future, despite a very challenging economic environment, which makes our cost
reduction and control efforts a continuing priority. We continue to steadily
move forward on our stated strategy to seize opportunities both via organic
growth and acquisition. We believe that the key business initiatives put in
place to realize that strategy are providing a pathway for achieving our stated
long-term financial goals in an economy that continues to improve."

COMMAND SECURITY CORPORATION

Three Months Ended Six Months Ended

September 30,
September 30,

(Unaudited)
(Unaudited)
2009 2008 2009 2008
Revenues $ 37,474,872 $ 33,706,141 $ 72,542,756 $ 65,655,097
Operating income 1,137,251 1,200,948 1,537,620 2,243,675
Other expense 123,554 119,484 239,703 232,276
Provision for income taxes 452,000 475,000 577,000 855,000
Net income $ 561,697 $ 606,464 $ 720,917 $ 1,156,399
Net income per common share
Basic $ 0.05 $ 0.06 $ 0.07 $ 0.11
Diluted $ 0.05 $ 0.05 $ 0.06 $ 0.10
Weighted average number of common shares outstanding
Basic 10,824,652 10,757,216 10,824,652 10,757,216
Diluted 11,262,657 11,401,752 11,270,334 11,410,941

Balance Sheet Highlights September 30, 2009 March 31, 2009
(Unaudited) (Audited)

Cash $ 176,471 $ 177,011
Accounts receivable 25,183,351 21,603,826
Total current assets 28,589,396 25,898,164
Total assets 36,783,833 34,265,035
Total current liabilities 20,270,185 18,792,120
Short-term debt 11,542,228 11,006,134
Total liabilities 21,117,576 19,543,467
Stockholders` equity 15,666,257 14,721,568
Total liabilities and stockholders` equity $ 36,783,833 $ 34,265,035

About Command Security Corporation

Command Security Corporation provides uniformed security officers, aviation
security services and support security services to commercial, financial,
industrial, aviation and governmental customers throughout the United States. We
safeguard against theft, fraud, fire, intrusion, vandalism and the many other
threats that our customers are facing today. By partnering with each customer,
we design programs customized to meet their specific security needs and address
their particular concerns. We bring years of expertise, including sophisticated
systems for hiring, training, supervision and oversight, backed by cutting-edge
technology, to every situation that our customers face involving security. Our
mission is to enable our customers to operate their businesses without
disruption or loss, and to create safe environments for their employees. For
more information concerning our company, please refer to our website at
www.commandsecurity.com.

Forward-Looking Statements

This announcement by Command Security Corporation (referred to herein as the
"Company") contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, and within the meaning of the Private Securities Litigation Reform Act of
1995 about the Company that are based on management`s assumptions, expectations
and projections about the Company. Such forward-looking statements by their
nature involve a degree of risk and uncertainty. The Company cautions that
actual results of the Company could differ materially from those projected in
the forward-looking statements as a result of various factors, including but not
limited to the factors described under the heading "Risk Factors" in the
Company`s most recent Annual Report on Form 10-K for the fiscal year ended March
31, 2009, filed with the Securities and Exchange Commission, and such other
risks disclosed from time to time in the Company`s periodic and other reports
filed with the Securities and Exchange Commission. You should consider the areas
of risk described above in connection with any forward-looking statements that
may be made by the Company. The Company undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise. You are advised, however, to consult any additional
disclosures the Company makes in proxy statements, quarterly reports on Form
10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the
Securities and Exchange Commission, which are publicly available at the
Securities and Exchange Commission`s website at www.sec.gov/edgar.shtml.

Company:
Command Security Corporation
Barry Regenstein, 845-454-3703
President

Copyright Business Wire 2009