Labor Smart (OTCBB: LTNC), an industrial staffing provider serving primarily the southeastern US, reported first-quarter organic revenue rose 10% year over year to $3.28 million based on adjusted comparable revenue.

However, system-wide unadjusted non-comparable revenue fell to $3.33 million from $4.71 million in the year ago period. This includes operational results from five branches sold in August 2015 in a deal valued at $1.8 million; one branch sold in February 2016 in a deal valued at $677,000; and discontinued operations from underperforming branches.

Gross margin increased to 26.53% from 26.05% in the year-ago period.

“In addition to improving revenues and gross profit margins from the 18 branch locations we operated during the first quarter, the world class sales team at Labor SMART gained nearly 200 new customers during the first thirteen weeks of 2016,” said Chairman and CEO Ryan Schadel. “Our ever-improving operating metrics illustrate the ease at which we will rebuild revenue from branches sold to fund our restructuring initiatives. For FY 2016, we expect revenue from continuing operations to easily exceed prior year comparable revenue.”

Labor Smart operates branch locations in the Southeast and Central US.