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Command Centre (CCNI) (Business (67 Branches, Our baseline staffing…
Command Centre (CCNI)
Business
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Our baseline staffing opportunities mostly consist of relatively small, short-term, on-demand staffing assignments.
One of the benefits that CCNI provides to customers is workers comp insurance for employees. So they carry an estimated value for their workers comp liability.
2018 One-time hits: $1.5M to workers comp pool adjustment, $0.565M to severance, $0.1M to recent proxy contest.
a lot of our revenue comes from project work. So it's very difficult at the branch level to assign a revenue goal based on a previous year's results.
serve as flex capacity for businesses that need to adjust staffing levels to meet sudden shifts in production or temporarily replace full-time employees.
Working Capital: Laborers are typically paid on the same day services are performed while customers typically pay CCNI after 30-days.
Management
Evaluating a range of alternatives to increase shareholder value... INVESTMENT BANKING FIRM ENGAGED TO UNLOCK SHAREHOLDER VALUE
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Since the Board approved the current $5 million program in September of 2017, we've repurchased approximately $2 million worth of our common stock in open market transactions. With $3 million remaining under the authorization, we plan to continue repurchasing shares of our common stock as part of a comprehensive capital allocation strategy, provided market conditions are favorable.
As we strengthen our operating platform, we also continue to monitor acquisition opportunities. However, I reiterate that acquisitions are not a current priority for us and we are instead focused on improving the effectiveness and value of our existing operations. We believe the existing branch footprint can support significantly more revenue and this is why we are actively investing into unlocking its potential.
Risks
the tight labor market is operating in a period of record low unemployment. Low unemployment generally benefits us as a tight labor market makes it challenging for our customers to find and attract appropriate candidates for the positions we staff, making outsourcing a more attractive option. But we're now at a level where it's also sometimes challenging for us to find appropriate candidates.....ut I've been asked this question by other investors, we're running at less than 4% unemployment right now and shouldn't that be a great thing for us? No, not necessarily. I'd actually prefer that we'd be running around 6% or 6.5%. Then our base of field team members would be stable and we'd still have enough opportunities with businesses having difficulty in hiring people.
Workers comp liability
IN the quarter, there were $2.2M of nonrecurring expenses... which comprised of a $1.5M expense related to an increase ni the reserve on the worker's comp risk pool
Industry
According to the Company, in the US there are 100 large, national staffing companies and 10,000 that operate at the local level.