Smart-Tek Solutions, Inc. Reports Sales Increase 187 Percent; Earnings Increase 1,046 Percent Over the Prior Year Period.
NEWPORT BEACH, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Smart-Tek Solutions, Inc. (OTC Bulletin Board: STTN) announced today that its sales increased 187 percent, while its earnings increased 1,046 percent over the prior year period.
In the last three months of 2009, sales and earnings increased 275 percent and 43 percent as compared to the prior year period. Sales, if reported using the gross billing method, would have resulted in an increase of 431 percent and 976 percent for the six and three months ended December 31, 2009. Net earnings would not be affected by the difference in revenue reporting as a corresponding increase in Cost of revenue would have been recorded.
Sales for the three and six months periods ended December 31, 2009 were $5 million and $3 million respectively as compared to sales for the three and six month periods ended for the comparable prior year period of $848,130 and $1.7 million. Sales on using the gross method of revenue reporting would have been $27 million and $19 million for the six and three months ended December 31, 2009.
Brian Bonar, CEO, commented that these results exceeded expectations; however, he expects continued growth with cost control measures in place to maintain this current performance and meet growth expectations.
Complete financial statements (unaudited) with notes thereto are provided with the Company's Form 10Q filed with the Securities and Exchange Commission on this date.
About Smart-tek Solutions, Inc.:
On February 11, 2009, Smart-tek Automated Services Inc., a wholly owned subsidiary of the Company was incorporated in the State of Nevada. Smart-tek Automated Services Inc. will provide integrated and cost-effective management solutions in the area of human resources for public and private companies. The significant growth rate in sales and earnings are primarily a result of Smart-tek Automated Services Inc.
Safe Harbor:
Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully meet the company's future capital needs and other economic factors affecting the Company and its markets and other risks detailed from time to time in the Company's filings with the U.S., Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
SOURCE Smart-Tek Solutions, Inc.
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