ATLANTA, GA--(Marketwired - Jun 27, 2016) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today provided updates to recent initiatives and developments at the Company.
On June 14, 2016, the Company was successful in renewing its large deductible workers compensation insurance program. The Company expects gross profit margins will benefit significantly from lower insurance rates. At June 13, 2016, the Company's total posted cash collateral for the program exceeded $500,000. No additional collateral was required to renew the program.
On June 24, 2015, the Company completed realignment of its management, corporate support, and field reporting structure. The Company is in the process of relocating its corporate facility in response to this realignment and expects to complete the relocation within the next two weeks. Effective on the same date, the Company received the official resignation of its COO, whose departure was expected.
Additionally, it has been determined that the cost of continuing the Company's public filings far outweigh the benefits for the foreseeable future. For that reason, on June 27, 2016, the Company filed a notice of termination to suspend its duty to file reports with the Securities and Exchange Commission.
The Company expects to realize savings in excess of $1.5 million over the next 36 months due to these changes. Labor SMART will use these funds, in part, to complete its balance sheet cleanup, capital restructuring initiatives, and upgrade its software infrastructure.
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.
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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.