Labor SMART, Inc. Acquires Kwik Jobs, Inc. Operating Assets
September 29 2014 - 7:45AM
Access Wire
Acquisition Expected to Add More than
$2 Million in Top Line Revenue in 2015
HIRAM, GA / ACCESSWIRE / September 29, 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 has acquired the operating assets
of Kwik Jobs, Inc. and its two branches located in Alabama and
Georgia. Terms of the all-cash acquisition were not disclosed.
Ryan Schadel, President and CEO of Labor Smart, Inc. said, “We
acquired two branches in this acquisition. The one in Alabama will
be consolidated with our existing office in Birmingham over the
coming months. We also intend to close our existing Houston office
as it has not performed up to our expectations. Our intent to
re-enter the Texas market by way of acquisition in the near
future.”
Schadel added that this acquisition is expected to “add $2-2.7
million in revenue in 2015.” He noted that while the company has
significantly slowed its planned organic branch expansion as part
of a previously announced strategy shift, Labor SMART will
aggressively pursue acquisitions that fit its business model and
culture. “We have very specific criteria for our acquisitions, and
Kwik Jobs fit that criteria extremely well.”
Schadel also commented briefly on the company’s share price.
“Our stock has experienced some downward pressure as of late. I am
as concerned about this as other shareholders and want to assure
them that the price of the stock is not reflecting the underlying
business of the company. The price pressure may be from equity
issued to pay off debt, which frequently results in this type of
downward pressure. We are aggressively investigating ways in which
we might be able to address these dramatic short term changes in
our market cap. I believe our fundamentals are what will drive long
term share price appreciation. Our business continues to grow and
margins are improving drastically. We look forward to a
record 2014.”
Labor SMART, Inc. provides On-Demand temporary labor to a
variety of industries through 31 branch 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
Source: Labor SMART, Inc.
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