Smart-Tek Lands $120 Million in Gross Annual Payroll
NEWPORT BEACH, Calif., July 21 /PRNewswire-FirstCall/ -- Smart-Tek Automated Services, Inc. (OTC Bulletin Board: STTN) announces an agreement signed June 22, 2010 with a Chicago-based broker who is targeting a minimum of $120 million in annual gross payroll with a resulting net reportable revenue (in compliance with GAAP) in excess of $40 million, subject to any adverse market changes. $40 million in annual gross payroll will be processed ($12 million net reportable revenue) by the quarter ending September 30, with the balance placed by quarter ending December 31.
Growing its broker sales network is a strategic priority for Smart-Tek, since brokers serve a critical role in the PEO world as the initial client contact, and the company has signed several new contracts in recent weeks. In addition to offering lucrative broker plans, Smart-Tek's appeal to broker networks results from offering some of the country's most comprehensive PEO offerings. The company's personalized presentations include broker information, submission forms, comparison tools, detailed reports on commissions, detailed reports on variances between booked and actual remarketing processes, and numerous other useful technologies and enhancements.
"We believe the U.S. broker market is critical to the success of PEOs in general and to our company in particular," said Kelly Mowrey, COO of Smart-Tek. "Our strategic plans are targeted right in the sweet spot, and we will continue to build our efforts in attracting them as we expand our market share."
Release clarifications: In the July 16, 2010 release, the $20 million in new revenue is gross annual payroll revenue or $6 million in net reportable annual payroll revenue. In the July 19, 2010 release, the reference to business already placed exceeding $10 million, is $10 million in gross annual payroll revenue or $3 million in net reportable annual payroll revenue. In the July 20, 2010 release, the reference to $40 million in gross annual payroll revenue by year's end is $12 million in net reportable revenue by calendar year-end.
Please visit www.smart-tekservices.com for further information.
About Smart-Tek Solutions, Inc.:
The parent, Smart-Tek Solutions, Inc., generates revenue from the installation of security systems in construction projects. Its board is currently in negotiations to sell its original business and focus entirely on the PEO business of its wholly owned subsidiary, in order to achieve the best value for its shareholders. The original business generated $3.3 million and $3.8 million of revenue in 2009 and 2008 respectively, and $0 and ($3.1) loss of earnings in 2009 and 2008 respectively.
About Smart-Tek Automated Services, Inc.:
Smart-Tek Automated Services, Inc. provides financial services to small and medium-size businesses, relieving its clients from many of the day-to-day tasks that negatively impact their core business operations such as payroll processing, human resources support, workers' compensation insurance, safety programs, employee benefits, and other administrative and aftermarket services predominantly related to staffing: staff leasing, temporary staffing and co-employment. It not only provides core services but a wide selection of employee and employer benefits and aftermarket products.
Safe Harbor:
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones and marketing arrangements and plans. Estimated revenues from its Smart-Tek Solutions, Inc., subsidiary are somewhat subjective and based on information available to the Company at the time of the determination. Also, such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, the continued growth of business as planned including the fruition of new agreements in hand, existing business staying intact, and our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products and services in domestic and potential international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended June 30, 2009, and its subsequent filings with the SEC.
SOURCE Smart-Tek Automated Services, Inc.
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