Labor SMART, Inc. Reports Second Quarter 2015 Financial
Results
Gross Profit Surges 26% Year over Year
Atlanta, GA, United States, via NZINET CORP., 08/18/2015 - -
Labor SMART, Inc. (OTCQB:
LTNC) (the "Company"), a leader in providing on-demand blue
collar staffing primarily in the southeastern United States, today
announced it has filed its 10Q for the quarter ending June 26,
2015.
Second Quarter 2015 Highlights:
-Revenue of $6.37 million
-Gross Profit Margins improved to 27.12% vs. 21.21% a year ago
-Record Gross Profit of $1.727 million
-Net Loss reduced by 39.5% to $564k vs. 933k a year ago
"Our results from the second quarter of 2015 illustrate the
fantastic progress being made. Last year's decision to shed a
sizeable book of business had minimal impact on year over year
revenues as we replaced low margin, high risk business with more
profitable customer relationships. Despite the $68k year over year
decline in top line revenue, the Company's gross profit surged to
record levels," said Ryan Schadel, President and CEO of Labor
SMART. "In addition to achieving record gross margins, we also
reduced our net loss substantially. Year over year net losses are
expected to shrink further in the coming quarters and Labor SMART
will continue to pursue smart growth opportunities that we believe
will drive profitability and position the Company to provide the
best experience to our customers across multiple geographies."
Over the last week, the Company has received several inquiries
from shareholders and is providing the following answers to those
questions:
Q: You've stated before that 100 offices nationwide was your
goal, but you've recently sold 5 locations. Has the goal
changed?
A: The goal has not changed but the plan has evolved. The major
contributor to this evolution was becoming substantially
self-insured last year. This changed our financial model
drastically, making acquisitions more appealing than organic
expansion. Acquisitions do not impact the Company's financial
statements in the same way that organic expansion does.
Q: Is the note that Command Center, Inc. bought in default?
A: The Company believes that prior to the sale of the note to
Command Center, Inc., the terms of the note were amended by the
prior note holder to allow the note to be repaid in monthly
installments. The Company provided documentation to the new note
holder that, it believes, substantiates the amendment. Additional
details regarding this note and the Company's legal action against
Command Center, Inc. are included in our recently filed 10Q.
Q: Payroll taxes payable appears to have gone up in the new 10Q.
What happened?
A: Early in 2015 the Company created several subsidiaries.
Operations were strategically placed into these subsidiaries in
preparation for state income tax management strategies on future
profits. These subsidiaries were quarterly schedule tax depositors,
whereas the parent company is a semi-weekly depositor. The increase
in payroll taxes payable from Q1 2015 to Q2 2015 is driven by the
change in the required deposit schedule. All taxes accrued during
Q2 2015 were paid subsequent to the calendar quarter closing as
required.
Q: I see there is a new convertible note agreement on June 1,
2015. I thought we were done with those?
A: The note from June 1, 2015 was part of an extension of a
prior note entered into on August 8, 2014. Half of the prior note
was refinanced at no material cost to the Company and the maturity
date was extended into 2016 at the Company's request.
Q: Is the Company planning to do a reverse split soon?
A: No.
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.
Link back to original article on
NuziNet.com
Link back to Labor SMART, Inc. on
NuziNet.com
Contact Information
Contact:
Labor SMART, Inc.
shareholderrelations@laborsmart.com