Thank you, operator. I'd like to welcome everyone to Command Center's third quarter 2018 earnings conference call. Hosting the call today are Command Center's CEO, Rick Coleman; and CFO, Cory Smith. Please be aware that some of the comments made during our call may include forward-looking statements within the meaning of the federal securities laws. Statements about our beliefs and expectations containing words such as may, could, would, will, should, believe, expect, anticipate and similar expressions constitute forward-looking statements. These statements involve risks and uncertainties regarding our operations and future results that could cause Command Center's results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statements and risk factors contained in the Company's earnings release and in its filings with the Securities and Exchange Commission, including without limitation that most recent Annual Report on Form 10-K and other periodic reports, which identifies specific risk factors that also may cause actual results or events to differ materially from those described in forward-looking statements. Copies of the Company's most recent reports on Forms 10-K, and 10-Q may be obtained on the Company's website at www.commandonline.com or at the SEC's website, at www.sec.gov. The Company does not undertake to publicly update or revise any forward-looking statements after the date of this conference call. Also note that on this call the Company will be discussing non-GAAP financial information. They are providing this information as a supplement to the information prepared in accordance with the Accounting Principles Generally Accepted in the United States or GAAP, G A A P. You can find a reconciliation of these metrics to the reported G A A P, GAAP results in the reconciliation table provided in the Company's earnings release. I would like to remind everyone on this call that this call will be available to replay through November 21, starting at 1:00 P.M. Eastern today. A link to the website replay of this call was provided in the earnings release, which is also available on the Company's website at commandonline.com. Any redistribution, retransmission or rebroadcast of this call in any way without the expressed written consent of the Command Center is strictly prohibited. Now I would like to turn the call over to CEO of Command Center, Rick Coleman. Rick please go ahead.

Thank you, Brett. Good morning and thanks to all of you for joining us. The third quarter again demonstrated our ability to deliver consistently strong profitability and return capital to shareholders. While delivering these results, we simultaneously made substantive improvements to our operating platform. This will remain our focus into 2019 and encompasses comprehensive changes to our hiring, training, compensation and benefits practices, all of which are designed to position us for future revenue growth and continued profitability. We've also methodically been evaluating ways to maximize performance at each of our 67 branches through an increased sales presence, effective account management, and improved local safety and staffing practices. During this rebuilding period, our Board of Directors is continuing to actively evaluate a range of strategic alternatives to increase shareholder value. As we noted last quarter, in late May we began our efforts to strengthen our field management team. This initiative involved clarifying reporting structures and adjusting compensation parameters for positions that have a direct impact on our revenue and profitability. We've replaced the leadership in quite a few of our branches and we're helping these new leaders succeed with an improved comprehensive training program and stronger headquarter support. In addition, we're focused on maintaining and operating and reporting structure with clear and manageable expectations that align our people, their incentives, our customers' needs, and our company's goals. A reasonable and achievable bonus structure is now in place for our branch employees and our field service managers appropriately incentivizing their success. Our HR team has raised the bar in our efforts to identify and attract high quality, high performing leaders to fill vacant revenue producing physicians. This process will take time, however, we believe the steps we're taking will enhance the level of service and value we deliver to our customers,…

Thank you, Rick. And Good morning everyone. Revenue in the third quarter of 2018 was $26.3 million, compared to $26.7 million in the third quarter of 2017. The increase of 1.5 – sorry the decrease of 1.5% is attributable to higher than normal turnover in sales position due to increased competition in the job market related to low unemployment rates. Gross margin in the third quarter of 2018 was 24.5%, compared to 26.9% in the third quarter of last year. This relative decrease in gross margin was primarily due to increased workers' compensation expenses caused by increased claims payments made in the third quarter of 2018 and a favorable fluctuation in our workers' compensation claims liability in 2017, where there was virtually no fluctuation in 2018. Selling, general and administrative this quarter were $5.6 million, compared to $5.5 million in 2017, representing a modest increase of $146,000. This increase was primarily due to increased recruiting costs and internal salaries and benefits which were partially offset by lower bad debt expense and lower legal and professional fees. Net income in the third quarter of 2018 was $546,000 or $0.11 per diluted share, compared to $851,000 or $0.17 per diluted share last year. Adjusted EBITDA in the third quarter of 2018 was $0.9 million, compared to $1.8 million in the third quarter of 2017. This decrease in adjusted EBITDA was primarily caused by lower gross profits due to decreased margins as previously discussed. Turning now to the 2018 year-to-date results. Revenue through the third quarter of 2018 was $73 million, compared to $73.6 million in 2017, a slight decrease of 0.8%. Gross margin over the same time period was 25.1% in 2018, compared to 24.6% in 2017. Selling, general and administrative expenses through the third quarter of 2018 were $18.2 million compared…

At the time we will be conducting a question-and-answer session. [Operator Instructions] Our first question comes from David Lavigne, Trickle Research. Please proceed with your question. David, your line is now live.

Oh sorry I had on mute. So Rick I think you used the term reasonable and achievable bonus structure. Did I get that? It was something like that.

Yes, hi Dave.

How are you doing? Sorry, I got lost here because I turned my mute – I had my mute on.

That’s alright.

Does that sort of suggest to me that it wasn't reasonable and achievable before or am I overstating that?

No, I think you're right. There were a couple of components in the bonus plan that was put into place in 2017 that was having a negative impact in the early part of 2018. And it had to do with budgeted targets for each of the branches, revenue targets. As I think you know by now 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. So some of those goals had been built into the targets as a result of branch managers and branch team, we're not able to achieve them. And at some point they just quit trying or they leave the company.

Okay, I'll look back. So with the workers’ comp they're actually – it sounds to me like there were actually more claims. So I mean I understand the issue of estimating it, but as Cory sort of referenced that there were actually more claims.

No, it's not a matter of more claims. Claims were kind of in line with what we've seen in the past. It's just a matter of the actual payments against those claims, which are very difficult to predict. They have to do with medical costs and things. Some of them that were paid were claims that were initiated, three to five years ago.

Okay. Can you give me a little bit of sense, I think, everybody that looks at the business, and I think if you're looking around, the one thing that everybody should be concerned with, at least in my view is just this notion of kind of wage pressure, I understand how maybe that can be beneficial to you at some points and then maybe not so much in others. And so I'm kind of thinking – I'm kind of wondering what your sense is of the net impact of that on may be an ongoing basis? And I guess maybe as an extension to that question, maybe it's the same question, but, if you're experiencing higher wage pressure, what is your ability to ultimately sort of pass that cost onto your customers? And is there kind of a lag in that somewhere where, maybe you can initially, but you do eventually – I'm just sort of looking for what your sense of the color is around this idea of maybe prevailing incoming wage pressure.

Let me answer that question by adding some information you didn't actually ask about. But 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. To answer the second part of your question, do we have the ability to raise prices? Yes, absolutely. Not everywhere though. So some of our business comes from national accounts and we've got contracts that dictate the terms. When those come up for renewal, we obviously try to sweeten the deal for us. And when we have to pay higher wages to employees for short-term work, we do build that into our margin expectations for what we charge our customers.

Great, thanks.

Absolutely, thanks for the questions.

As a reminder, we are now conducting a question-and-answer session. [Operator Instructions] There are no further questions at this time. And we have reached the end of the question-and-answer session. So I would like to turn the call back to management for closing remarks.

No closing remarks, so I just like to thank everyone for your interest and for dialing in. And we'll talk to you soon, or see you at the next quarterly call. Thanks very much.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.