First Rate Staffing gross profit up more than 100%
First Rate Staffing Corporation has reported results for its first quarter ended March 31st 2016, confirming gross profit of $0.8m, up 118%.
First Rate Staffing, based in the US and specialising in HR, said its gross profit in first quarter of 2016 increased 118% to $0.8 million, versus $0.4 million in the same year-ago quarter.
Revenue for Q1 2016 increased a record 42% to $7.0m, compared to $4.9 million in the same year-ago quarter. The increase in revenues was due to new clients added and organic growth.
Net income in the first quarter of 2016 was $8,308 or $0.00 per share, as compared to a loss of $137,000 or $(0.02) per share in the same year-ago quarter.
Gross margin in the first quarter of 2015 increased 416 basis points to 12.0%, compared to 7.8% in the same year-ago quarter.
The company stated its increase in gross margin was due to lower state and federal unemployment tax rates for the company's staffing employees and increased revenues in the first quarter of 2016, as compared to the same year-ago quarter.
"The first quarter of 2016 was our strongest start yet to a calendar year," said First Rate Staffing chief executive, Cliff Blake. "While it's traditionally the slowest quarter of the year, we experienced strong year-over-year topline growth driven by the addition of new clients and increased billings. The quarter was highlighted by our profitability primarily due to strong growth in California and Nevada while controlling our spending.
"California recently signed into law a bill to phase in a statewide $15-per-hour minimum wage by 2022, which will provide us a strong tailwind for growth. Looking ahead, we plan to support current clients who requested our services in additional locations by opening additional offices in two new states. We remain on track to generate revenues between $45 million to $50 million in 2016, which would represent profitable growth of 37% to 52%."