Where Food Comes From, Inc. Reports Revenue and Earnings Growth for 2016 Second Quarter
(firmenpresse) - CASTLE ROCK, CO -- (Marketwired) -- 08/11/16 -- Where Food Comes From, Inc. (OTCQB: WFCF)
Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced results for its second quarter ended June 30, 2016.
"We continue to deliver double digit revenue and earnings growth in spite of the effects of weak cattle prices and the dampening impact the strong dollar is having on European demand for American Non-hormone Treated Cattle (NHTC)," said John Saunders, chairman and CEO. "Our performance in the face of these beef industry headwinds underscores the strength of our business model, which emphasizes diversity in our services mix in order to better weather downturns in any given market segment. We continue to look for ways to diversify our services mix -- both organically and through M&A -- in order to strengthen and grow our business and further differentiate ourselves from the competition."
Second quarter revenue increased 13% to $2,799,600 from revenue of $2,479,100 in the same quarter last year. Verification services revenue increased 20% to $2,569,200 from $2,146,800 due to the addition of new customers and new verification service offerings. Product revenue (cattle identification tags) decreased 32% to $204,500 from $300,100 due to a stronger US dollar and decreased verification activity associated with lower cattle prices. Other revenue decreased 20% to $25,800 from $32,200 a year ago.
Gross profit in the second quarter increased 10% year over year to $1,317,600 from $1,199,100. Gross margin in the second quarter declined slightly to 47% versus 48% a year ago. Selling, general and administrative expense as a percent of revenue improved to 38% in the second quarter from 40% in the same quarter last year.
Income from operations in the second quarter increased 23% to $248,400 from $202,100 in the same quarter last year. Net income attributable to Where Food Comes From, Inc. increased 18% to $169,600, or $0.01 per share, compared to $144,100, or $0.01 per share, in the same quarter a year ago.
Revenue for the first half of 2016 increased 15% to $5,245,400 from $4,560,400 in the same period last year. Verification revenue increased 20% to $4,716,600 from $3,921,000 year over year. Product revenue decreased 18% to $475,600 from $579,900 a year ago. Other revenue decreased 11% to $53,100 from $59,600 in the same period last year.
Gross profit through six months increased 17% to $2,524,700 from $2,162,400 a year ago. Gross margin was 48% compared to 47% a year ago, reflecting the scalability of the Company's business model combined with the positive impact of services bundling. Selling, general and administrative expense as a percent of revenue improved to 41% from 43% year over year.
Operating income increased 64% year over year to $352,300 from $214,400. Net income attributable to Where Food Comes From, Inc. was up 29% to $256,900, or $0.01 per share, versus $199,000, or $0.01 per share, in the same period last year. The Company generated $765,800 in net cash from operations through the first six months of 2016 versus $872,200 over the same period a year ago.
The Company's cash and cash equivalents balance at June 30, 2016, increased 13% to $4,288,500 from $3,781,400 at 2015 year-end. Working capital increased to $4,534,400 with a current ratio of 4.8:1.
The Company will conduct a conference call today at 10:00 a.m. Mountain Time.
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference ID: 13641561
A telephone replay of the conference call will be available through August 25, 2016, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13641561
Where Food Comes From, Inc. (d.b.a. IMI Global) is America's trusted resource for third party verification of food production practices. The Company supports more than 10,000 farmers, ranchers, processors, retailers, distributors and restaurants with a wide variety of value-added services through its IMI Global, International Certification Services, Validus Verification Services, and Sterling Solutions units. In addition, the Company's Where Food Comes From® retail and restaurant labeling program utilizes the verification of product attributes to connect consumers to the sources of the food they purchase through product labeling and web-based information sharing and education. Visit for additional information.
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about industry leadership; the Company's ability to weather industry downturns and to continue producing financial results similar to those described in this press release; and demand for, and impact and efficacy of, the Company's products and services on the marketplace, are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Financial results for the second quarter are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at .
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
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Datum: 11.08.2016 - 11:00 Uhr
Sprache: Deutsch
News-ID 488545
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CASTLE ROCK, CO
Kategorie:
Farming
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