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Labor Smart Inc. (OTCBB: LTNC), a provider of industrial staffing, reported third-quarter revenue rose to $5.3 million, up 148.3 percent from revenue of almost $2.2 million in the third quarter of last year. However, the Hiram, Ga.-based firm posted a third-quarter net loss of $419,014 compared to a net loss of $134,589 in the year-ago quarter.
Labor Smart this year has increased its branch count to 15 from six; it acquired three branches and added six branches through organic growth. Labor Smart acquired Qwik Staffing Solutions Inc. on April 29, 2013, for $320,000, according to a filing with the U.S. Securities and Exchange Commission.
Third-quarter gross margin narrowed to 17.0 percent from 17.5 percent in the same quarter last year. Labor Smart also reported in an SEC filing this week that Shannan Manix resigned as a director of the company, effective Nov. 13. The company is preparing for an eventual up-listing to a national exchange and intends to fill the recently vacated board position with an independent, outside director, according to CEO Ryan Schadel.
“Part of this plan will require developing acceptable internal controls and an independent board of directors,” said Schadel. “Our auditors have determined that our previous board makeup could not be confirmed as independent.”