Labor Smart Inc (LTNC)

[Davis_Elite]

Significant Improvement in Gross Profit Margins Expected


ATLANTA, GA--(Marketwired - May 3, 2016) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today announced that it has been notified by the National Council on Compensation Insurance (NCCI) that its Experience Modification Rating (EMR) has been reduced by 31 basis points. The improved EMR will take effect on June 14, 2016.

"With our busy season getting under way and pending renewal of our large deductible workers compensation policy, news of a reduction in our EMR couldn't have come at a better time. The 31 basis point reduction represents a 21% decrease in our modification rate. This reduction is expected to have an extremely positive impact on our cost of sales and gross profit margins, which in turn will improve cash flow," stated Ryan Schadel, Chairman and CEO of Labor SMART, Inc. "The dramatic improvement in our EMR is a testament to the quality of our safety program and the dedicated field and corporate staff that administer it."

The National Council on Compensation Insurance (NCCI) gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations. NCCI's Experience Modification Rating is an integral part of the final cost of workers compensation insurance.