Labor Smart Inc (OTCMKTS:LTNC) continues to trade significant volume at the $0.001 level in recent weeks after a long drop. The stock has been plagued by massive dilution.
The problem with LTNC has always been the $8 million plus in debt they are carrying on the books which has resulted in debt holders dropping large blocks of stock on the market decimating the share price to current levels.
Labor Smart Inc (OTCMKTS: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.
LTNC bills itself as one of the premier temporary labor providers in the United States because of our commitment to reliability, flexibility and dependability. Our staffing professionals are ready at a moment’s notice to help your business meet its immediate production deadlines, staff shortages, or short notice temp labor needs for any task.
When it’s your business to maximize productivity with a temporary labor staff, it’s our business to provide you with the best of the best in on-demand labor. Whether you need a short-term helping hand, a skilled team of craftsmen, or a team of long-term laborers, Labor SMART will provide the muscle you need for your business.”
LTNC is a growing Company with significant revenues and a CEO that seems serious about growing the Company long term.
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In April LTNC 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.
CEO Ryan Schadel said at the time “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.”
On June 27 LTNC announced 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.
LTNC also said it was in the process of relocating its corporate facility in response to this realignment and expects to complete the relocation within the next two weeks. The COO resigned and LTNC filed a notice of termination to suspend its duty to file reports with the SEC. LTNC said it expects to realize savings in excess of $1.5 million over the next 36 months due to these changes.
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Currently trading at a $7.3 million market valuation LTNC has minimal assets and a significant debt problem that has resulted in massive dilution in the past evidenced by the current pps. LTNC was an exciting story developing in small caps; the Company was growing very quickly and fast emerging as a revenue powerhouse on a level that very few OTC ever achieve. It is little surprise the stock has quickly attracted a massive shareholder base who at this point are understandably very angry as debt holders have destroyed the share price. We will be updating on LTNC when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with LTNC.
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Disclosure: we hold no position in LTNC either long or short and we have not been compensated for this article.