Labor SMART, Inc. Secures New Terms Under Line of Credit
March 05 2014 - 07:50AM
Marketwired
Labor SMART, Inc. Secures New Terms Under Line of Credit
Amended LOC Provides Additional Liquidity to Company During
Growth
HIRAM, GA--(Marketwired - Mar 5, 2014) - Labor SMART, Inc.
(OTCQB: LTNC) (the "Company"), an emerging provider of on-demand
blue collar staffing primarily in the southeastern United States,
today announced that the company has secured more favorable terms
in its agreement with Transfac Capital and as a result has amended
the original agreement as disclosed in an 8k filed with the
SEC. The amended agreement now provides an advance rate of 85%
of receivables as compared to the previous 70% of receivables.
Ryan Schadel, Labor SMART's CEO stated, "This is a very
important development for Labor SMART. The additional cash
flow that this amendment provides will put our organization in a
stronger cash position as we prepare for our busy season and
continued expansion. Our revenues have continued to grow at high
double and triple digits for well over a year now. As we exit the
traditionally slow season for our industry, we expect revenue
growth to hasten even further as newer branches mature and
expansion branches for 2014 come on line. The more favorable
terms from Transfac Capital will also add to our ability to execute
potential acquisitions."
In the first two months of 2014, Labor SMART has reported
revenue growth of 142%, achieving $3,290,800 in revenue compared to
$1,359,304 one year ago. "This growth is primarily organic and
among those offices that have been open for a year," stated Mr.
Schadel.
About Labor SMART, Inc.
Labor SMART, Inc. provides On-Demand temporary labor to a
variety of industries. The Company's clients range from small
businesses to Fortune 100 companies. Labor SMART was founded to
provide reliable, dependable and flexible resources for on-demand
personnel to small and large businesses in areas that include
construction, manufacturing, hospitality, event-staffing,
restoration, warehousing, retailing, disaster relief and cleanup,
demolition and landscaping. Labor SMART believes it can make a
positive contribution each and every day for the benefit of its
clients and temporary employees. The Company's mission is to be the
provider of choice to its growing portfolio of customers with a
service-focused approach that enables Labor SMART to be seen as a
resource and partner to its clients.
Safe Harbor Statement
This release contains statements that constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These statements appear in a number of places
in this release and include all statements that are not statements
of historical fact regarding the intent, belief or current
expectations of Labor SMART, Inc., its directors or its officers
with respect to, among other things: (i) financing plans; (ii)
trends affecting its financial condition or results of operations;
(iii) growth strategy and operating strategy. The words "may",
"would", "will", "expect", "estimate", "can", "believe",
"potential", and similar expressions and variations thereof are
intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond Labor SMART, Inc.'s ability
to control, and that actual results may differ materially from
those projected in the forward-looking statements as a result of
various factors. More information about the potential factors that
could affect the business and financial results is and will be
included in Labor SMART, Inc.'s filings with the U.S. Securities
and Exchange Commission.
Contact: Beverly Jedynak Martin E. Janis & Company, Inc.
312-943-1123
bjedynak@janispr.com
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