Smart-Tek Beats Analysts' Net Profit Projections by 10% for Q1 2010
NEWPORT BEACH, Calif., April 12 /PRNewswire-FirstCall/ -- Smart-Tek Automated Services, Inc. (OTC Bulletin Board: STTN) announced projected billings of $32 million in the quarter ending March 31, with gross reportable revenue (in compliance with GAAP) in excess of $4 million. The net profit for Q1 2010 has been estimated at $545,000, approximately 10% higher than previous estimates by Grass Roots Research and Distribution, Inc.
Although the first-quarter results in this release are preliminary and subject to completion of the quarterly close procedures by the company's management and auditors, the Company believes it is appropriate to provide early commentary on the positive numbers. "Annualizing the first quarter indicates we are running at a level of $137 million in billings and $2.1 million in annualized net profit," said Brian Bonar, Smart-Tek Chairman and Chief Executive Officer. "We have made great strides in the past six months to increase revenue, and we are very pleased that we were able to exceed the original revenue and profit projection that was announced earlier this year."
Please visit the website www.smart-tekservices.com for further information.
About Smart-Tek Solutions, Inc:
The parent, Smart-Tek Solutions, Inc., generates revenue from the installation of security systems in construction projects. Its board is currently in negotiations to sell its original business and focus entirely on the PEO business of its wholly owned subsidiary, in order to achieve the best value for its shareholders. The original business generated $3.3 million and $3.8 million of revenue in 2009 and 2008 respectively, and $0 and ($3.1) loss of earnings in 2009 and 2008 respectively.
About Smart-Tek Automated Services, Inc.:
Smart-Tek Automated Services, Inc. provides financial services to small and medium-size businesses, relieving our clients from many of the day-to-day tasks that negatively impact their core business operations, such as payroll processing, human resources support, workers' compensation insurance, safety programs, employee benefits, and other administrative and aftermarket services predominantly related to staffing: staff leasing, temporary staffing and co-employment. It not only provides core services, but a wide selection of employee and employer benefits and aftermarket products.
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones and marketing arrangements and plans. Estimated revenues from its Smart-Tek Solutions, Inc. subsidiary are somewhat subjective and based on information available to the Company at the time of the determination. Also, such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the continued growth of business as planned including the fruition of new agreements in hand, existing business staying intact, and our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products and services in domestic and potential international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended , and its subsequent filings with the SEC.
SOURCE Smart-Tek Solutions, Inc.