Labor SMART, Inc. Posts Record June Revenue
June 30 2014 - 8:00AM
Marketwired
Labor SMART, Inc. Posts Record June Revenue
Company Plans to Focus on Continued Growth in Revenue, Margins
and Operating Income in Second Half of Year
HIRAM, GA--(Marketwired - Jun 30, 2014) - Labor SMART, Inc.
(OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue
collar staffing primarily in the southeastern United States, today
announced that the Company achieved record revenue for the month of
June.
Company-wide revenue for June 2014 (ending June 27, 2014) was
$2,209,702, a 51.85% increase compared to June 2013 revenue of
$1,455,145. Among the 14 branches open one year or more at
June 27, 2014 revenue was $1,794,407, a 23.31% increase over last
year's revenue for the same four week period. June 2014 revenue
marks the most ever achieved by the company during a four-week
month. The company expects revenue to grow exponentially as newer
branches ramp up.
"June has been a banner month for Labor SMART in revenue growth
as well as improvement in our goal of achieving overall
profitability. We are particularly pleased that our gross margins
in June 2014 increased to 23.29%, compared to June 2013 gross
margins of 16.12%," said Ryan Schadel, President and CEO of Labor
SMART. "We continue to work diligently to increase gross margins
and this remains a key goal for the company as we move through the
second six months of 2014." Schadel added that the recently
announced self-insurance program in 14 states is a huge benefit to
the company in reaching this goal, as the addition of this program
is expected to add one to three hundred basis points to gross
margins going forward.
"Our revenue growth continues to be strong and in line with our
expectations for each of our branches," Schadel said. During June
2014 for the 14 branches open for at least one year, the average
weekly revenue was $32,043, compared to $25,985 a year ago. Schadel
has stated that the company's goal for its branches is that at
maturity each branch achieves $1.5 million in annual revenue.
"We expect that going forward for the remainder of 2014 we will
open one or two more branch offices, while putting our primary
focus on continuing to grow revenue, margins and operating income."
Schadel added that the company is presently considering a number of
acquisition possibilities as it seeks to meet its acquisition goals
for the year.
Labor SMART has been growing its business, both organically
through new offices as well as through certain strategic
acquisitions. The company recently became self-insured in 14
states. This new large deductible worker's compensation insurance
policy will improve cash flow, result in a lower cost of sales in
addition to adding the one to three hundred basis points to the
company's gross profit margins, all of which should begin to be
reflected in third quarter 2014 results.
Labor SMART, Inc. provides On-Demand temporary labor to a
variety of industries through 30 offices. 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
Labor Smart (PK) (USOTC:LTNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Labor Smart (PK) (USOTC:LTNC)
Historical Stock Chart
From Apr 2023 to Apr 2024