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CCNI: January revenue up 7.7% despite the terrible weather in Montana.


By Ian Gilson, CFA

January revenue increased by 7.7% on a store count of 58. One store was closed due to lack of profits at that location. The weather in Montana and N. Dakota was terrible during the month (but January 2012 was a very good month) and this was the major factor in an average sales per store decline of 5.2%. However, since the six stores in the Bakken formation did little business for most of the month (not much manual labor is possible at -500 F) if we adjust the store count to 52 then the 7% plus gain would be an above average increase for January. Since the work still has to be done there is a potential backlog for the next two months.
The disaster work from the impact of Sandy has ended. Command Center (OTC Markets:CCNI) has learned a lot about the allocation of resources after disasters and this will better prepare the company in the future when a disaster occurs.

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