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Labor SMART, Inc. Posts Record June Revenue

Company Plans to Focus on Continued Growth in Revenue, Margins and Operating Income in Second Half of Year

HIRAM, GA -- (Marketwired) -- 06/30/14 -- 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 the Company achieved record revenue for the month of June.

Company-wide revenue for June 2014 (ending June 27, 2014) was $2,209,702, a 51.85% increase compared to June 2013 revenue of $1,455,145. Among the 14 branches open one year or more at June 27, 2014 revenue was $1,794,407, a 23.31% increase over last year's revenue for the same four week period. June 2014 revenue marks the most ever achieved by the company during a four-week month. The company expects revenue to grow exponentially as newer branches ramp up.

"June has been a banner month for Labor SMART in revenue growth as well as improvement in our goal of achieving overall profitability. We are particularly pleased that our gross margins in June 2014 increased to 23.29%, compared to June 2013 gross margins of 16.12%," said Ryan Schadel, President and CEO of Labor SMART. "We continue to work diligently to increase gross margins and this remains a key goal for the company as we move through the second six months of 2014." Schadel added that the recently announced self-insurance program in 14 states is a huge benefit to the company in reaching this goal, as the addition of this program is expected to add one to three hundred basis points to gross margins going forward.

"Our revenue growth continues to be strong and in line with our expectations for each of our branches," Schadel said. During June 2014 for the 14 branches open for at least one year, the average weekly revenue was $32,043, compared to $25,985 a year ago. Schadel has stated that the company's goal for its branches is that at maturity each branch achieves $1.5 million in annual revenue.

"We expect that going forward for the remainder of 2014 we will open one or two more branch offices, while putting our primary focus on continuing to grow revenue, margins and operating income." Schadel added that the company is presently considering a number of acquisition possibilities as it seeks to meet its acquisition goals for the year.

Labor SMART has been growing its business, both organically through new offices as well as through certain strategic acquisitions. The company recently became self-insured in 14 states. This new large deductible worker's compensation insurance policy will improve cash flow, result in a lower cost of sales in addition to adding the one to three hundred basis points to the company's gross profit margins, all of which should begin to be reflected in third quarter 2014 results.

Labor SMART, Inc. 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. Labor SMART believes it can make a positive contribution each and every day for the benefit of its clients and temporary employees. The Company's mission is to be the provider of choice to its growing portfolio of customers with a service-focused approach that enables Labor SMART to be seen as a resource and partner to its clients.

Safe Harbor Statement
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Labor SMART, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may", "would", "will", "expect", "estimate", "can", "believe", "potential", and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Labor SMART, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Labor SMART, Inc.'s filings with the U.S. Securities and Exchange Commission.

CONTACT:

Beverly Jedynak
Martin E. Janis & Company, Inc.
312-943-1123
[email protected]

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