Labor Smart Inc (OTCMKTS:LTNC) has popped up on everyone’s radar in recent days quickly attracting a significant shareholder base and transforming into one of the top traded stocks on the entire exchange.
The move up comes after the CEO Ryan Schadel, who has hinted on twitter that big things are in the works for LTNC started buying stock on the open market significantly increasing his own stake in the Company.
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 August LTNC filed its 10Q for the quarter ending June 26, 2015. Highlights for the Quarter include: -Revenue of $6.37 million -Gross Profit Margins improved to 27.12% vs. 21.21% a year ago -Record Gross Profit of $1.727 million -Net Loss reduced by 39.5% to $564k vs. 933k a year ago.
CEO Ryan Schadel said “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.”
On August 20 LTNC provided an update on its acquisition strategy. CEO Ryan Schadel said “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. 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.”
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.
Mr. Schadel continued “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.”
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Currently trading at a $2.5 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. But LTNC is an exciting story developing in small caps; the Company is 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, along with the CEO are buying up the float. 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.