Labor Smart Inc (LTNC)

[sobe4life]

Hahahaha.... IS THAT A FACT???

cpw13154

Yup they grew from 2 to 30 alright trouble is just because you have increased the number of spots that does very little when the way you were able to achieve that was through toxic financing which has now reached 3 million and oh yeah a little thing like not paying the IRS your payroll taxes to the tune of over a million!

This is a good one! Since when does the "type" of debt this company takes down effect their operations???? Oh, that's right, it doesn't! If we want to attempt to pick this company apart I don't think saying they accumulated $3 million in debt to grow a company that is going to do $25 million in revenues with $4 million in A/R's, $1.5 million in cash, +$3 million in assets and positive EBITDA is a good example!

They fell a quarter behind in payroll taxes yet we have to see this nonsense printed EVERY DAY as if they haven't already resolved the matter. Fact is, with the revenue stream the company now creates this million dollars doesn't effect their ability to grow or generate more revenues which is the only thing I'm concerned about!

cpw13154

So let me see we say the projected revenues for 2014 is 25 million and yet we also say its 40 million for same store. HUH fuzzy math.

Fuzzy math? Possibly for someone with zero knowledge in growth company's but not for anyone with basic business common sense.

Let's break this down...

You have 15 established branches that have been doing business anywhere from 1 to 3 years. These branches have had time to develop a client base and mature.

The remaining 15, are for the most part, brand new operating for less than a year.

As these now 30 branches all become matured branches Labor SMART expects to see additional growth in revenues. So the 30 branches that are going to do $25 million in revenues in 2014 will be the same branches that should produce $40 million next year in 2015.

cpw13154

Key work is gross profit and as we see with each set of financials gross is one thing and net is a whole different thing as they continue to loose millions with poor management.

Like a broken record.... Why, why, why do we have to continuously ignore the real facts when making a point?

Gross profits are up an amazing 10% climbing from 15% to 25% in te last year. THIS IS A POSITIVE!

Loosing millions of what? Doallars??? NOT!!!

If Labor SMART were loosing millions of "actual" dollars they would not be EBITDA positive! There is a difference between paper losses & write-offs and showing actual monetary losses. I've gone over this 100 times. It is basic business 101. Why does it continue to be ignored as if it hasn't been explained in detail (ad nauseum)?

cpw13154

And I really love the 1.5 million in cash thing. Really lol where did this come from> WOW

Well, of course we don't know where this came from. It actually takes an understanding of the industry, its business and an actual business acumen to figure out how much cash this company should be sitting with at this time of the year.

No surprise at all! DUH!