Command Security Corp – ‘425’ on 8/28/01 re: Command Security Corp

On:  Tuesday, 8/28/01   ·   Accession #:  906197-1-500056   ·   File #:  0-18684

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Business-Combination Transaction Communication   —   Rule 425
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 425         Command Security Press Release                         2      9K 

425
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FOR IMMEDIATE RELEASE                                                           

CONTACT:  William C. Vassell       Donald Radcliffe                             
Chairman                 Radcliffe & Associates, Inc.       
Tel: (845) 454-3703      Tel: (212) 605-0100                

COMMAND SECURITY CORPORATION  
REPORTS FIRST FISCAL QUARTER RESULTS  

o Revenue Increases 14.8%         
o Gross Profit Percentage 13.9%   

Lagrangeville, New York *** August 20, 2001 *** Command Security Corporation    
(OTCBB: CMMD) today announced results for its first fiscal quarter ended June   
30, 2001. For the quarter, revenue increased by 14.8% to $18.5 million from     
the $16.1 million reported in the same period of the prior fiscal year. This    
increase is primarily as a result of increased revenues from additional         
accounts within the commercial airline industry and an increase in ATM          
servicing in the UK.                                                            

Gross profit as a percentage of revenue decreased to 13.9 percent of revenue    
for the first fiscal quarter ended, June 30, 2001 compared to 16.6 percent of   
revenue for the same period of the prior fiscal year. This percentage was       
impacted by an increase in use of subcontractors (particularly with respect     
to the UK ATM contracts) and the tight labor market.                            

The operating loss for the first fiscal quarter was ($206,663) compared to an   
operating profit of $203,387 for the same period of the prior fiscal year.      
The operating results for the period were impacted primarily by the cost of     
investment in people and infrastructure to maintain and manage the revenue      
growth and the additional sales people and associated costs necessary to        
expand the business organically.                                                

The net loss applicable to common shareholders for the quarter ended June 30,   
2001 was ($394,220) or ($.06) per share compared to net income of $29,433 or    
$.005 per share for the same period of the prior fiscal year.                   

Commenting on the results of the quarter William C. Vassell, CEO of Command     
said, "Although we expected to suffer lower profits in the first quarter due    
to the additional costs of the sales program, we are disappointed by the        
results of certain divisions and the deterioration in the overall margin. A     
full review of the business is currently being undertaken to ensure a return    
to profitability and increased shareholder value."                              

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425
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COMMAND SECURITY CORPORATION  

                                     First Quarter Ended
                                     June 30

                                       2001               2000
                                      -----------        -----------
Revenue                                     $18,498,741        $16,117,665      
Operating profit/(loss)                        (206,663)           203,387      
Net income/(loss)                              (394,220)            70,107      
Preferred stock dividend                             --            (40,674)     
                                      -----------        -----------
Net income/(loss) applicable                                                    
to common stockholders                    $  (394,220)       $    29,433    
                                      ===========        ===========
Net income/(loss)                                                               
per common share                          $      (.06)       $      .005    
                                      ===========        ===========
Weighted average number                                                         
of common shares outstanding                6,287,343          6,287,343    
                                      ===========        ===========

About Command                                                                   

Command Security Corporation provides security services through company-owned   
offices in New York, New Jersey, California, Illinois, Connecticut, Florida,    
Georgia, Massachusetts and Pennsylvania and provides services via independent   
security companies nationwide.                                                  

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 the 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.                          

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘425’ Filing		Date		First		Last			Other Filings
Filed on:		8/28/01
		8/20/01		1					10-Q
		6/30/01		1					10-Q,  NT 10-Q
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