LTNC is Taking Action Now to Clean Up and Grow Up... Just Like Their Revenues Already Have
Labor Smart Inc
3270 Florence Road
Suite 200
Powder Springs, GA 30127
laborsmart.com
 
- Amazing Corporate Growth: Over the past couple of years LTNC has been able to grow their business from 7 million dollars revenue in 2012 to 16 million dollars revenue in 2013 to 18 million dollars revenue in the first nine months of 2014.
- LTNC just announced last month that 20% revenue growth to 1,633,364 dollars for the November 4-week comparable time period versus a year ago. This continues a 24-month streak of year-over-year increases for the Company. Year-to-Date 2014 revenue has exceeded 22.5 million dollars, compared to 16.6 million dollars for all of 2013.
How is this stock sub penny?!? Well a Change in Approach Should Help That: Ryan Schadel, Labor SMART Chairman and Chief Executive Officer stated "... None of this (growth) would have been possible without the growth capital we raised along the way. Venture or seed capital was not available to us, so we went the route of convertible debentures. While they may not be ideal in structure, at the time there were no traditional financing opportunities available to us. Since we now have our business generating 2 million dollars revenue per month and EBITDA positive, it is now a major focus of ours to minimize the equity dilution going forward."
Mr. Schadel, continued, "We are taking a 3-pronged approach to address the current capital structure. Due to the seasonality of our business, we expect approximately $1.2 million of operating cash flow over the next 4 months, which we will utilize to pay back a portion of the notes. We will also allow for certain note holders to convert into equity for a portion of the notes. Additionally, we are actively pursuing additional outside cash infusions to restructure a portion of the notes and for growth capital. Our dependence on convertible debentures for financing has been greatly reduced over the last 45 days as our business reached minimum scale. We believe a combination of these three alternatives will minimize the equity dilution and protect shareholder value without sacrificing our long term growth strategy. As an organization committed to transparency and communication to shareholders, we will update our investors of major changes to our outstanding share count via routine form 8K filings with the Securities and Exchange Commission."
"Business demand and performance remains strong as we continue to demonstrate healthy growth," said Ryan Schadel, Chairman and Chief Executive Officer of Labor SMART. "Key business changes and decisions over the past few months, including the focus of higher-margin business and self-insurance, have improved profitability. We are working aggressively on our capital structure situation, which includes a strategy to minimize the equity dilution of the current Convertible Notes, engage with larger shareholders for stock support and stability and protect shareholder value."
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. |
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Pink Sheets: LTNC
Market Value:
61,043 a/o Jan 08, 2015
Shares Outstanding:
55,493,408 a/o Nov 04, 2014
Float
2,405,500 a/o Feb 13, 2013
Authorized Shares:
1,000,000,000 as of 9/26/14
Short Interest:
10,000 (-13.04%) Dec 15, 2014
Transfer Agent:
West Coast Stock Transfer Inc.
RECENT NEWS:
Labor SMART, Inc. Discloses Successful Marketing Expansion
Labor SMART, Inc. Reports Full Year 2014 Revenue Growth of 45 Percent
KEY EXECUTIVES:
Ryan Schadel
President, CEO
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