First Rate Staffing Corp. (OTCQB: FRSI) reported revenue rose 82.6% for the full year last year to $32.9 million. However, gross margin fell and the company posted a net loss.

Net loss for the year was primarily due to a non-recurring, non-cash impairment charge of $641,000 associated with a former client, according to the company. The client was part of its Loyal Staffing Services acquisition in February 2014 and was dismissed due to violation of First Rate Staffing’s risk management standards.

First Rate Staffing provides recruiting and staffing services for temporary positions in light industrial, distribution center, assembly, and clerical businesses. The company is headquartered in Santa Fe Springs, Calif., with offices in Arizona and Nevada.

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“In 2015, we increased our presence in California with the opening of two new offices,” said CEO Cliff Blake. “The offices will support our more than 1,000 employees in the state and address the increasing demand for labor assistance. California recently announced its plans to raise the minimum wage to $15 per hour by 2022, which will provide us a strong tailwind for growth. In addition, bill rates in the US industrial and office/clerical staffing skill segments have risen due to pass-through of new administrative and health insurance costs related to the Affordable Care Act, according to Staffing Industry Analysts.”

Full-year 2015

First Rate is on track to generate revenues between $45 million to $50 million in 2016, which would represent profitable growth of 37 to 52%, according to Blake.