Labor SMART, Inc. Pivots Acquisition Strategy
Atlanta, GA -- August 20, 2015 -- InvestorsHub NewsWire
-- Labor SMART, Inc. (OTCQB: LTNC)
(the "Company"), a leader in providing on-demand blue collar
staffing primarily in the southeastern United States, today
provided an update on its acquisition strategy.
"On August 19, 2015, Labor SMART, Inc. delivered a non-binding
letter of intent to acquire the operating assets of a regional
staffing company with multiple branch locations across the southern
US, providing skilled and unskilled employees to small and medium
sized businesses," stated Ryan Schadel, President and CEO of Labor
SMART, Inc. "Our initial due diligence suggests that this business
will produce $12-13 million in revenue for 2015. The business does
not have an On-Demand model and we would not seek to change it,
rather we would seek to expand on it."
"After shedding low margin, high risk business and divesting
assets with lower than ideal gross profit margins, we are able to
once again focus on smart growth and scaling up our operations in a
meaningful way. Labor SMART has a well-built centralized support
structure that can be leveraged without a substantial increase in
operating costs and we must take advantage of the resources we
have. The ability to integrate and execute on acquisitions quickly
are strengths we will lean on heavily for our next growth
phase."
"We want to make sound acquisitions that provide good cash flow
and use of resources. If an acquisition is accretive and the
integration risks are minimal, it's a deal we want to look at. We
are in mid to late stage conversations for two additional
acquisitions that we intend to pursue should the LOI submitted
yesterday reach expiration."
Labor SMART's non-binding offer will expire in five business
days if not executed by the selling party. Additionally, Labor
SMART disclosed it has secured a term sheet for the necessary
financing to complete the acquisition. The proposed financing is
not equity based.
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.
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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Contact Information
Contacts:
Labor SMART, Inc.
shareholderrelations@laborsmart.com