Labor SMART, Inc. Reports Full Year 2014 Revenue Growth of 45 Percent

Full Year 2014 Revenue of $24 Million
Targeting Debt-Free of Convertible Notes by Mid-2015

ATLANTA, GA / ACCESSWIRE / January 7, 2015 / Labor SMART, Inc. (LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, is pleased to announce full year 2014 revenue growth of 45 percent to $24 million, compared to $16.6 million for all of 2013. Please note there may be some minor year-end adjustments due to the Company's fiscal year end changing to December 26.

Ryan Schadel, Chairman and Chief Executive Officer of Labor SMART, stated, "2014 proved to be another record year for our young company. So much has been accomplished and I believe we are well positioned in our market segment for continued growth through 2015 and beyond. Our current debt reduction and cash flow strategy is working well and the Company is not actively seeking new convertible debt to grow its business. We continue to reach out to larger shareholders for market support and are seeking a preferred equity solution to refinancing the convertible debt to a much less dilutive security. Additionally, I will continue to add to my personal position in the open market. With the share price continuing to show weakness, we may very well need to increase our authorized shares again to accommodate the reserve requirement of the remaining convertible debt."

2014 Highlights:

- Became substantially self-insured
- Expanded our branch footprint to 30 locations
- Successfully completed 2 acquisitions
- Successfully transitioned away from lower margin, higher risk business
- Expanded our management team with the hiring of COO Kimberly Thompson
- Implemented a number of key initiatives in the fourth quarter aimed at boosting cash flow and profitability in 2015

2015 Expectations:

- Expecting a dramatic cash gain in first half of 2015 which will be used to clean up remaining debt and potentially buy back shares in the float as needed
- New branch openings for 2015 will be very limited, footprint growth for 2015 expected to come from acquisitions versus new branch openings
- Seeking up to $40 million in additional revenue from acquisitions
- Anticipate increasing our current line of credit to $4 million in Q1 2015
- Expecting adjusted EBITDA of $2-3 million for fiscal year 2015
- Exploring licensing or franchising arrangements

As of December 29, 2014, Labor SMART had an approximate balance of $2.66 million in Convertible Notes Payable on its balance sheet. The shares outstanding as of December 29, 2014 stood at 191 million.

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.

Contacts:
Hayden IR
917-658-7878
hart@haydenir.com

SOURCE: Labor SMART, Inc.

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