Six million dollars quarterly revenues from a company this small?
Published: Tue, 08/18/15
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Morning all, LTNC just released their Q2 financial results today, and I must say the numbers are pretty staggering for such a low priced company (remember it has a $31k market cap according to OTCMarkets.com). Some of the highlights include $6.37 revenues in Q2, a 27% gross margin (versus 21% a year ago), and a record gross profit of $1.7 million. Check out the full press release... Labor SMART, Inc. Reports Second Quarter 2015 Financial Results Gross Profit Surges 26% Year over Year ATLANTA, GA--(Marketwired - Aug 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: "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. 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. Read in full at http://finance.yahoo.com/news/labor-smart-inc-reports-second-110000224.htmlRemember, this is a highly speculative play, but one that could deliver some very big gains in the future. Do you own due diligence, and be ready for the opening bell. ShiznitStocks -------------------------------------------------------------------------------------------- Hello fellow investors / traders, We've been on a nice hot streak of late, and tomorrow we have a trade that could have tremendous upside.
Get Labor SMART, Inc (LTNC) on your radar now. LTNC has an incredibly small market cap of $31k as well as the smallest float I have EVER seen.
Given its low price, LTNC is certainly more speculative than other trades I've profiled recently. But the upside is so much greater.
Just a small investment could yield significant profits if LTNC moves just one tick higher. And we have it on good authority that LTNC is about to be covered by some major investing newsletters later this week, so there is likely to be some very strong follow through as the trade gets the attention of thousands more investors and traders. Consider this a potentially lucrative early bird call. About LTNC...
Labor SMART, Inc. (LTNC) provides On-Demand temporary labor to a variety of industries through 30 offices.
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.
To learn more about LTNC, visit their website at www.laborsmart.com
Major news recently announced...
Labor SMART, Inc. to Complete Million Dollar Sale of Five Offices
Total Valuation of Deal Exceeds $1.8 Million ATLANTA, GA--(Marketwired - Aug 12, 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 that it will receive $1,025,000 in cash consideration for the sale of the operating assets of five branch offices. In addition, under the terms of the purchase agreement, Labor SMART, Inc. will retain the open accounts receivable at the sold branches, totaling $811,081. "This is a significant development for Labor SMART. The branches subject to this transaction operate in the two states where we have locations that are not covered under our large deductible workers compensation program. With exposure to the state sponsored insurance pool, these branches operate at gross margins that are 600 or more basis points lower than other branches," stated Ryan Schadel, President and CEO of Labor SMART, Inc. "The strategic sale of these locations puts Labor SMART in a much stronger position, both financially and competitively in our remaining and future markets." Labor SMART expects the transaction to be completed by close of business today and will provide an update on the Company's business strategy in the coming days. LTNC is a speculative lottery play that could be a big winner this week. Make sure you continue your own research and be ready to trade at the opening bell. |
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