Labor Smart Inc (LTNC)

[sobe4life]

How about this.....

DD2Gain

How about instead of just copying and pasting revenue figures we exercise some simple math skills and post the revenue averaged per branch for 2012, 2013, and what's expected by the CEO for 2014. Voila! There's your proof that revenue performance has dropped 20% this year despite 5 of 17 new branches being supposedly established acquisitions.

It never ceases to amaze me how we expect new operations to start-up and produce the same results as an already existing matured branch that has established a client base.

So everybody understands.....

The only way we can extrapolate LTNC's stellar growth and turn it into a negative is by taking the branches that have opened up this year and add them into the equation. Because these relatively new branches have yet to establish a client base for their new region, and are not producing (yet) the numbers that an already established branch of 1,2,3 years, we can manipulate their lack of production (thus far) and make it look as though their numbers are (somehow) down.

Every year, Labor SMART has been ale to consistently produce record numbers. They already have enough of an operating history to show that indeed, once these branches mature they contribute to the record revenues we continuously see.

A MUCH BETTER way to gauge how the company is growing is by looking at year over year (YOY) same store revenue growth. The fact that this company has increased gross profit margins by 60% going from 15% to 25% while showing positive EBITDA shows that this company is moving in the right direction operationally.

Third Quarter 2014 Highlights:

- Revenues up 28% to $6.8 million vs. $5.3 million a year ago

- Same branch revenue up 12.5% year-over-year

- Gross profit margins improve to 25% vs. 15%

- Added 315 new customers

- EBITDA* of $121,577

- Adjusted EBITDA* of $344,731

- 30 branches, up from 15 at year end 2013