Labor SMART, Inc.

April 28, 2016 11:00 ET

Labor SMART, Inc. First Quarter 2016 Revenue Jumps $304,100

Company Adds 194 New Customers

ATLANTA, GA--(Marketwired - Apr 28, 2016) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today announced comparable revenue for the first quarter of 2016 increased $304,100 year over year.

For the Quarter ended March 25, 2016, adjusted comparable revenue was $3.28 million versus $2.97 million for the same year ago period, representing organic revenue growth of over 10%. System wide Gross Profit Margins increased to 26.53% of revenue, compared to 26.05% in the year ago period.

"Labor SMART is off to a great start for 2016. While much of the public discussion this year has been related to successes with our balance sheet restructuring, it's the strength of our branch operations that enable the Company to execute on our balance sheet and capital structure initiatives," stated Ryan Schadel, Chairman and CEO of Labor SMART, Inc.

"In addition to improving revenues and gross profit margins from the 18 branch locations we operated during the first quarter, the world class sales team at Labor SMART gained nearly 200 new customers during the first thirteen weeks of 2016. Our ever improving operating metrics illustrate the ease at which we will rebuild revenue from branches sold to fund our restructuring initiatives. For FY 2016, we expect revenue from continuing operations to easily exceed prior year comparable revenue."

System wide unadjusted non-comparable revenue for the Quarter ended March 25, 2016 was $3.33 million versus $4.71 million in the year ago period, when including operational results from five branches sold on Aug 12, 2015 in a deal valued at $1.8 million, one branch sold on February 19, 2016 in a deal valued at $677k, and discontinued operations from underperforming branches.

About Labor SMART, Inc.
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.

Follow us on Twitter: @laborsmart
Investor Relations: @laborSMART_LTNC
CEO - Ryan Schadel: @CRyanSchadel

Safe Harbor Statement

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 U.S. Securities and Exchange Commission.

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