HIRAM, Ga., May 21, 2013 /PRNewswire/ -- Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), an emerging provider of on-demand temporary staffing, today announced record first quarter revenues of $2,503,872.
In their first quarter of 2013, the Company reported revenues of $2,503,872 resulting in a 115% increase in sales over prior year first quarter revenues of $1,183,716. The Company showed a gross profit of $351,396 with a net income loss of $649,143, which was in part attributed to charges of $250,616 for stock based compensation and $241,376 in financing related costs totaling $491,992 in non-cash write-offs. The Company also saw additional expenses attributed to staff payroll increases as training continues for its expansion team in 2013.
The Company's first quarter also saw a 33% increase in branch count with their expansion from six to eight branches. However, year to date, the Company has experienced an overall increase in branch count of 133% growing from six to fourteen branches in the first five months of 2013.
Ryan Schadel, Labor SMART's CEO, stated, "We are extremely pleased with the exponential growth in top-line revenues and branch operations that we have been able to produce so far in 2013. We invested heavily in our people and our infrastructure during the first quarter and these investments are paying off handsomely now and into the future as we prepare for our next leg of expansion." He also stated, "Thus far Labor SMART has opted to expense all of its expansion costs, which also includes any improvements in the properties we lease. This also includes various computer equipment, safety equipment, office furniture, etc. that we purchase versus amortizing these costs. However, as our expansion plans continue to take shape, we may look to capitalize and amortize these costs in the future, based on material amounts they could represent as an aggregate total."
About Labor SMART, Inc.
Labor SMART, Inc. provides On-Demand temporary labor to a variety of industries. Our clients range from small businesses to fortune 100 companies. Labor SMART was founded to provide a reliable, dependable, and flexible resource for on-demand personnel to small and large businesses. Every day we provide manpower for jobs in construction, manufacturing, hospitality, events, restoration, warehousing, retail, disaster relief and more. As one of the fastest growing temporary labor providers, our goal is to become a nationwide resource and partner for our clients. We take pride in the belief that we can make a positive impact each and every day for the benefit of both our client and our temporary employees. Our mission is to be the provider of choice to our growing community of customers, with a service focused approach, that positions us as a resource and partner for their business.
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 Securities and Exchange Commission.
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SOURCE Labor SMART, Inc.