Labor SMART, Inc. Becomes Self Insured in 14 States
June 19 2014 - 9:22AM
Marketwired
Labor SMART, Inc. Becomes Self Insured in 14 States
Company Expects Improved Cash Flow and Increased Gross
Margins
HIRAM, GA--(Marketwired - Jun 19, 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 it has become substantially self-insured in 14
states. This marks the achievement of one of the company's
long-stated goals.
"This is a significant positive for us," said Ryan Schadel, CEO
of Labor SMART. "Our new large deductible worker's compensation
insurance policy will improve cash flow and result in a lower cost
of sales. We expect this program to add one to three hundred basis
points to our gross profit margins almost immediately," he
said. Schadel added that Labor SMART has had self-insurance
for worker's comp as a primary goal since inception. "We are
thrilled that we have been able to meet this goal earlier than we
originally projected and with much less collateral than usually
required. Attaining this coverage demonstrates the capability of
our world class operations team and their ability to execute on our
long term objectives."
About Labor SMART 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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