SAN DIEGO, May 16, 2012 /PRNewswire/ -- Smart-Tek Solutions, Inc. (OTC Markets: STTN) reported consolidated revenues for the year ending December 31, 2011 of $21.7 million, an increase of 26 percent over the prior fiscal year.
The increased revenues, about $4.5 million, were associated primarily from the Smark-Tek Automated Services, Inc. subsidiary. Its nurse staffing business contributed around $1 million of revenues.
The company reported a yearly net loss from operations of $8.1 million compared to net income from operations of $721,000 for the prior fiscal year.
The loss is mainly attributable to a one-time adjustment in workers compensation costs of approximately $4.4 million, tax penalties and interest of about $1.9 million, and an increase in general operating expenses during a period of rapid growth.
"Nurse staffing activities are expected to experience rapid growth in 2012. Workers compensation costs have been growing rapidly due to the overall growth of Smart-Tek in 2011. We are investigating better insurance options and have implemented better claims oversight," said Brian Bonar, CEO. "We are starting to see the benefit of our efforts in these areas in 2012," he added. "We estimate that these changes will result in improved financial results over the next several quarters."
Complete (audited) financial statements with notes thereto are provided with the company's Form 10K filed with the Securities and Exchange Commission.
About Smart-Tek Solutions, Inc:
The parent, Smart-Tek Solutions, Inc., generates revenue from its wholly owned subsidiary Smart-Tek Automated Services, Inc.
Smart-Tek Automated Services, Inc. has two business lines;
Smart-Tek Automated Services, Inc., provides financial services to small and medium-size businesses, relieving its 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.
The Company's Solvis brand provides staffing services to hospitals, medical clinics, surgical centers, and nursing care to patients in their homes.
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.