command center - investor presentation

OTCQB: CCNI

INVESTOR PRESENTATION

September 2014

2

Safe Harbor

This presentation includes, and our officers and representatives may from time to time make, certain estimates and

other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities

Litigation Reform Act of 1995, including, among others, statements with respect to the Company’s future revenues,

earnings, strategies, prospects, consequences and all other statements that are not purely historical and that may

constitute statements of future expectation. While we believe these statements are accurate, forward-looking

statements are not historical facts and are inherently uncertain. We cannot assure you that these expectations will

occur, and our actual results may be significantly different. Factors that may cause actual results to differ materially

from those contemplated in any forward-looking statements made by us are sometimes presented within the

forward-looking statements themselves or are otherwise discussed in filings we make with the United States

Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on

Form 10-Q and Form 8-K and available on our website: http://www.commandonline.com. Any forward-looking

statement made by us in this presentation is based only on information currently available to us and speaks only as of

the date on which it is made. The Company disclaims any obligation to update or revise any forward-looking

statement, whether written or oral, that may be made from time to time, based on the occurrence of future events,

the receipt of new information, or otherwise.

© 2014 Command Center, Inc. All Rights Reserved. The Command Center logo, along with the words and phrases

Command Center, Command and Real Jobs for Real People are registered trademarks of Command Center, Inc.

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$2.1M

$0.9M

$2.8M

$4.7M

$6.1M

FY10 FY11 FY12 FY13 TTM

Adjusted EBITDA2Stock Price (8-29-14) $0.74

52 Week Low/High $0.27/$0.75

Avg Daily Volume (3 mo.) 115,000

Shares Outstanding 65.2M

Institutional Holdings (est.) 1%

Insider Holdings (est) 30%

Warrants¹ $0.50

Warrants Outstanding 1.37M

Market Cap $48.3M

Enterprise Value $48.5M

EV/Revenue (ttm) 0.5x

EV/EBITDA (ttm) 7.9x

P/E (ttm) 10.5x

Total Revenues (ttm) $90.7M

Adj. EBITDA² (ttm) $6.1M

Diluted EPS (ttm) $0.07

Cash & Equivalents $2.8M

Total Assets $20.5M

Total Debt $0.0M

Total Liabilities $9.3M

Total Equity $11.2M

Key Stats: CCNI (OTCQB)

Stock Data Source: Capital IQ. Chart Source: Bigcharts.(1) $1.00 strike, expire April 15, 2015.(2) See appendix for the reconciliation of non-GAAP financial information to GAAP.

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Who We Are…

Command Center is a nationwide provider of

on-demand and temporary staffing solutions

54 branch offices in 22 states

33,000+ employees working for 3,600+ clients*

We deliver staffing solutions focused on high-

growth market sectors, including:

Retail

Construction

Warehousing

Logistics

Energy Services

Hospitality & Event Services

2799

29133325

3610

2010 2011 2012 2013

Command Center Client Growth

*As of December 2013

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Highly-Experienced Management Team

BUBBA SANDFORD JEFF WILSON KEVIN SEMERAD

President & CEO CFO Director, Field Services

• 30+ years of leadership experience

as CEO, President, or General

Manager, guiding businesses in

various stages, including startups,

turnarounds and wind downs

• Led companies in diverse industries,

including technology, industrial

fabrication, security services, waste

management and retail

• Consultant to Silicon Valley VC

community

• MBA, Cornell Univ.; BA Psychology,

Univ. of Massachusetts at Amherst

• Former U.S. Navy SEAL

• 20+ years of senior management

experience with international public

and private companies

• CFO, Acumatica, a privately held

cloud based ERP provider

• CFO, Microvison (NASDAQ: MVIS)

• Controller, Siemens Medical

Systems, manufacturer of medical

imaging equipment

• Manager, PricewaterhouseCoopers

• Seasoned board member of

Command Center (since 2010)

• BA Accounting, Oklahoma State Univ.

• Certified Public Accountant

• Extensive history of industry success

and experience — 25+ years in

staffing and labor business

• Previously built his own

staffing/labor company from one to

16 offices

• Command Center Franchisee, 2003

to 2006

• Multiple leadership positions at

Command Center

• BAs in Marketing & Management

from Univ. of North Dakota, Grand

Forks

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New Management Team, New Focus & Positive Results Bubba Sandford appointed new president

and CEO of Command Center in March

2013, followed by a key board

appointment of John Stewart

Management instilled a service oriented

culture

Branch autonomy, with value-added

coaching & mentoring approach

Eliminated unnecessary cost

Greatly improved profitability & cash

flow

$1.6M

$2.9M$2.8M

$4.7M

FY2012 FY2013

Net Income Adj. EBITDA

Growth in Net Income & Adj. EBITDA Under New Management Team

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What We Do Supply Workers to Diversified & Established Industries

Retail Construction WarehousingTransportation

& LogisticsEnergy Services

Hospitality &

Events

General retail

staffing across

numerous

segments,

including big-box

stores

General and

skilled labor for

commercial,

industrial and

residential

construction

projects

General and cold

storage

warehousing

workers, including

loaders, order

fillers, pickers,

forklift operators

and line operators

Primarily support

staff, including

movers and

general laborers

Personnel for the

range of

businesses that

support operators

in the Energy

Sector (excluding

field workers)

Food service

personnel, setup &

teardown staff and

janitorial services

for event planners,

as well as workers

for hospitality-

related businesses,

from front desk

and food services

to housekeeping

and maintenance

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We Address the Fast-Growing $28 Billion Light-Industrial/Blue Collar Segment of the $100B U.S. Staffing Market¹

The Dynamics of the $28 Billion On-Demand Labor Industry

$28B

$36B

2013 2014F 2015F 2016F 2017F

1) Source: Staffing Industry Analysts, Command Center, Inc. estimates

“The job market is back on track, and temporary

workers are the first ones getting hired.

Consequently, staffing agencies are seeing their

businesses skyrocket…”

Light Industrial/ Blue-Collar

$28B

Office$17B

IT$17B

Healthcare$10B

Finance$17B

Other$11B

August 2014

On-demand labor offers employers:

Immediate response to changing staffing needs

Lower costs associated with recruitment, interviewing and employment

Eliminates unemployment and worker’s compensation exposure

Eases compliance burdens imposed by the ACA and other laws impacting employment

Allows access to a larger employment pool of experienced temporary staff members

On-the-job screening for possible permanent workers

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Our Branch-Centric Approach

We are 100% focused on providing branch offices the

support they need to foster high-quality, long-term client

and employee relationships

Services delivered through locally-focused teams

Allows “hands-on” interaction with both clients and employees

Fosters customer and employee loyalty

Can better identify local market opportunities and trends

Corporate office and infrastructure focused on 24/7 support for all branch locations

10

Our Branch Offices are Located in High-Growth Job Markets

• We maintain a strong concentration of

offices in established and emerging

energy sector regions with growing

employment opportunities

• Our branches are concentrated in states

with above-average employment growth

• We are well positioned to grow in current

regional locations

Our Branch Locations High Job-Growth States

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The Competitive Landscape

We’re not always the lowest cost

provider, but distinguished by our…

Unparalleled service

Greater flexibility

Highest quality of employees

Unique, hands-on customer focus

Command Center is perfectly

positioned: large enough to deliver

the best service, but small enough

to care.

The largest companies in

the semi-skilled and

unskilled on-demand

labor industry focus on

meeting the needs of

large national accounts

along with other vertical

markets. Driven by high

volume and low margins.

The temp and casual

employment industry is

highly fragmented, with

many privately owned,

small family run agencies.

These firms provide good

service but are not large

enough to meet many

customer needs.

100s of small “Mom

& Pop” Firms

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Why Customers Choose Command Center

Customized Solutions: Staffing tailored to the specific needs of

our clients

Local & Industry Expertise: Local market knowledge combined

with extensive experience in multiple industries

Excellence-in-Service: We deliver on staffing solutions we

promise

Partnered with Clients: We gain insights as we work closely with

our clients on their day-to-day staffing needs

Quality, Loyal Worker Pools: Incentives for temporary

employees, including health insurance availability, paid vacation

and flexible payment options create a strong workforce

Strong Capital Position & Infrastructure (People/IT) in Place:

Supports continued service capabilities, growth and expansion

13

Our Growth Strategy –Balance Growth & Profitability

Grow same store sales

Extensive training and support for local branches

Focus on quality customer service

Sell good accounts that recognize our value

Understand customer needs and local conditions to maximize margins

Add new branches

Focus on high growth regions

Build off success in the energy sector

Hire local staff and train in line with our philosophy

Strategic acquisitions to:

Address new vertical markets

Expand into new geographic markets

The Keys to Our Success

1. Sell good accounts

2. Know your customer

3. Price appropriately

4. Provide excellent service

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Income Statement Highlights

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Gross Margins

Cash Balance($ millions)

Net Income & EPS

24.7%

22.8%

25.3%25.9% 26.3%

FY 10 FY 11 FY 12 FY 13 TTM

$1.7$1.1

$1.6

$5.8

$2.8


$(1.6)$0.9

$1.6

$2.9 $4.5

-$0.03

$0.01$0.02

$0.05

$0.07


Net Income ($ millions)EPS

$69.4 $81.9

$98.4 $93.7 $90.7

$2.10

$0.90

$2.80 $4.70

$6.10


RevenueAdj. EBITDA

Revenue & Adj. EBITDA($ millions)

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Competitive Valuation

Company TickerTTM P/Diluted EPS¹

On Assignment, Inc. NYSE: ASGN 22.6

Kelly Services, Inc. NASDAQ:KELYA 15.5

Kforce, Inc. NASDAQ: KFRC 37.5

Manpower Group, Inc. NYSE: MAN 16.7

Insperity, Inc. NYSE: NSP 28.1

TrueBlue, Inc. NYSE: TBI 21.6

CDI Corp. NYSE: CDI 22.3

Randstad Holding NV ENXTAM: RAND 24.3

Average 23.5x

Command Center OTCQB: CCNI 10.5x

(1) Source: CapitalIQ. Valuation as of August 29, 2014

Most Consistent Measure of Value Amongst Peers is Price-Earnings Ratio

Command has

transitioned from a

marginally profitable,

loosely organized

collection of stores to a

integrated profitable

business

Our valuation has

improved but is still far

below our competitors

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Key Drivers of Shareholder Value

New management team focused on growth,

margin expansion and building a customer

focused corporate culture

Solid financial performance (EPS increased 100%

Y/Y), with growing cash flow and strong balance

sheet

Proven, highly-scalable, branch-office business

model provides operating leverage

Strong growth outlook in robust and emerging

regional markets

$69.4

$81.9

$98.4 $93.7

$2.1 $0.9 $2.8 $4.7

FY10 FY11 FY12 FY13 FY14P*

RevenueAdj. EBITDA

($ Millions)

* 2014 growth outlook issued and only effective on 8/7/14

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Contact Us

Command Center, Inc.Jeff Wilson, CFO3901 North Schreiber WayCoeur d’Alene, ID 83815Tel (208) 773-7450

Liolios GroupInvestor RelationsChris Tyson, Managing Director20371 Irvine Avenue, Suite A-100 Newport Beach, CA 92660 Tel (949) [email protected]