Core Insights - Where Food Comes From, Inc. (WFCF) reported accelerating growth in its Upcycled Certified® Program, which was acquired one year ago [1] - The Upcycled Certified program is the world's first and largest certification for the upcycled food chain, catering to environmentally conscious consumers [2] Industry Growth - In 2024, 105 companies were certified under the Upcycled Certified standard, diverting approximately 1.2 million tons of food waste, equivalent to 248 million bags of groceries [3][5] - The Upcycled Certified program has seen a 17% year-over-year increase in certified products, totaling 568 products as of 2024 [3][5] - The upcycled food industry is valued at $46 billion and is experiencing rapid growth, with a compound average annual growth rate of 77% for new food and beverage launches with upcycling claims from 2019 to 2023 [6] Consumer Trends - 62% of consumers are willing to pay more for products that combat food waste, and 70% show increased intent to purchase Upcycled Certified foods when the seal is present on packaging [10] - Upcycled Certified snacks grew by 41.6% in 2024, significantly outpacing the overall food and beverage industry's growth of just 1.4% during the same period [6] Company Strategy - WFCF has a first-to-market advantage with the Upcycled Certified program, creating a new revenue stream and aligning with its bundling strategy for certifications [4] - The company supports over 17,500 stakeholders in the food supply chain, providing a variety of certification services [8]

Core Viewpoint - Where Food Comes From, Inc. (WFCF) experienced a decline in share price following its Q3 2024 earnings report, reflecting broader market trends with a modest revenue growth despite challenges in certain segments [1][11]. Q3 Earnings & Revenue Performance - The company reported diluted earnings per share of 9 cents, a decrease of 30.8% from 13 cents in the same quarter last year [2]. - Total revenues for Q3 2024 were $7.1 million, up 1% from $7 million in the prior-year period, driven by a 2% increase in verification and certification services and a 9% rise in product revenues [2]. Segmental Performance - **Verification & Certification Segment**: Revenue grew 2% year over year to $5.5 million, supported by increased consumer demand for food verification, although growth was hindered by challenges in the beef verification market due to herd contraction [3]. - **Product Revenue**: This segment saw a 9% year-over-year increase to $1.3 million, primarily due to higher sales of cattle identification ear tags, although the smaller beef cow herd size limited further growth [4]. - **Professional Services Segment**: Revenues declined 32% to $0.3 million from $0.4 million in the prior-year quarter, reflecting lower demand for consulting and data solutions, but gross margin improved to 30.1% from 20.9% due to operational realignments [5]. Management Commentary - The company acknowledged challenges in the beef verification segment but noted opportunities arising from new USDA regulations requiring electronic tags for certain cattle classes, which could enhance participation in WFCF's programs and support long-term growth [6][7]. Factors Impacting Results - Gross profit decreased to $2.8 million from $2.9 million, with gross margin contracting from 41% to 39%, primarily due to higher costs in product revenues and verification services [8]. - Selling, general and administrative expenses rose 13% year over year to $2.2 million, driven by expanded marketing efforts, higher personnel costs, and increased travel expenses [8]. Cash & Debt - As of September 30, 2024, the company reported cash and cash equivalents of $2.8 million, up from $2.6 million at the end of 2023, with a minimal total debt of $2.71 million, reflecting prudent cash management [9]. Other Developments - In Q3, the company repurchased 66,620 shares of its common stock for $734,000, totaling 216,039 shares bought back in the first nine months of 2024, indicating a commitment to returning value to shareholders [10]. Summary of Performance - WFCF achieved modest revenue growth driven by its verification and product segments, despite facing challenges in professional services and the beef market dynamics. While profitability metrics declined, strategic initiatives and regulatory changes are anticipated to support long-term growth [11].

Financial Data and Key Metrics Changes - Total revenue in Q3 2024 increased slightly to $7.1 million from $7 million, with a 2% increase in verification and certification services to $5.5 million from $5.4 million year-over-year [4] - Gross profit in Q3 declined slightly to $2.8 million from $2.9 million, while SG&A expenses increased 13% year-over-year to $2.2 million from $1.9 million [4] - Net income in Q3 decreased 32% to $0.5 million or $0.09 per diluted share compared to $0.7 million or $0.13 per diluted share last year [4] - Adjusted EBITDA in Q3 was 29% lower at $0.8 million versus $1.2 million [4] Business Line Data and Key Metrics Changes - Verification and certification services revenue increased 9% to $15.2 million from $13.9 million year-over-year, while product revenue decreased 8% to $2.9 million from $3.1 million [5] - Professional services revenue declined to $0.3 million from $0.4 million year-over-year [4] Market Data and Key Metrics Changes - The company reported a solid balance sheet with no long-term debt and cash and cash equivalents increased 4% to $2.8 million from $2.6 million at the end of 2023 [5] - Cash generated from operations through nine months increased 6% to $2.8 million compared to $2.6 million in the same period last year [5] Company Strategy and Development Direction - The company is focusing on diversifying its services mix to compensate for the temporary slowdown in beef-related revenue due to persistent headwinds in the beef verification business [6] - Recent USDA regulations, including the animal disease traceability program, are expected to positively impact the company by increasing the addressable market for RFID tags and related services [8][9] - The strengthening organic enforcement rule is anticipated to enhance the company's organic business by increasing compliance requirements, which the company is well-positioned to address with its SOW Organic technology platform [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential growth phase in the beef business due to the transition to electronic RFID tags, estimating an additional 10 million cattle will be tagged over the next year [8] - The company is confident in its ability to remain at the forefront of the industry, leveraging its innovative solutions to benefit agricultural producers and consumers [10] Other Important Information - The company continued its share buyback program, repurchasing 66,620 shares at a cost of $734,000 in Q3 [4] - Through the first nine months of 2024, the company bought back a total of 216,039 shares, including 135,838 shares as part of the ongoing buyback program [5] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded with a thank you from management and an invitation to the next quarterly call [11][12]

Core Insights - Where Food Comes From, Inc. reported a 1% increase in total revenue for Q3 2024, reaching $7.1 million compared to $7.0 million in Q3 2023, despite a 32% decline in net income to $492,000 from $723,000 [1][4][5] Q3 Highlights - Verification and certification revenue rose 2% to $5.5 million from $5.4 million [1][4] - Product sales increased by 9% to $1.3 million from $1.2 million [1][4] - Adjusted EBITDA decreased by 29% to $0.8 million from $1.2 million [1][5] - The company repurchased 66,620 shares of stock in Q3 at a cost of $734,000 [1][6] Nine Month Highlights - Total revenue for the nine months ended September 30, 2024, increased by 4% to $19.1 million from $18.4 million [1][6] - Verification and certification revenue grew by 9% to $15.2 million from $13.9 million [1][6] - Product sales declined by 8% to $2.9 million from $3.1 million [1][6] - Net income decreased by 16% to $1.2 million, or $0.21 per diluted share, compared to $1.4 million, or $0.24 per diluted share, in the prior year [1][8] - Cash generated from operations increased by 6% to $2.8 million from $2.6 million [1][8] Management Commentary - The CEO noted that while growth rates for beef verification have slowed due to cyclical herd contraction, other service offerings have compensated as consumer demand for verifications across multiple food groups continues to rise [2] - The company is optimistic about enrolling more cattle into its verification programs due to a recent USDA rule requiring electronic tags for certain classes of cattle [3]

CASTLE ROCK, Colo., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced it will release its 2024 third quarter financial results before the market opens on Tuesday November 12, 2024, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Dial-in numbers for the conference call: Domestic Toll Free: 1-877-407- ...

Where Food Comes From Inc. (WFCF) reported mixed financial performance in second-quarter 2024. The company managed to increase its revenues despite challenging market conditions, driven by its diversified services portfolio. However, inflationary effects and cyclical herd contraction in the beef sector presented significant headwinds. CEO John Saunders emphasized the company's strategic focus on diversification and new initiatives. The Upcycled Food Certification initiative emerged as one of the fastest-gro ...

Core Insights - Where Food Comes From, Inc. reported a total revenue increase of 4% in Q2 2024 compared to Q2 2023, reaching $6.4 million, driven primarily by a 10% rise in verification and certification revenue [1][4][6] - The company experienced a decline in product sales by 13% to $0.8 million in Q2 2024, while net income decreased by 8% to $489,000 [1][5][6] - The company has initiated a stock buyback program, repurchasing 33,347 shares in Q2 2024 at a cost of $389,000 [1][6] Financial Performance - Verification and certification revenue for the first half of 2024 increased by 13% to $9.7 million, while product sales declined by 19% to $1.6 million [1][6][7] - Total revenue for the six months ended June 30, 2024, rose by 5% to $12.0 million compared to the same period in 2023 [1][6][7] - Adjusted EBITDA for Q2 2024 was $844,000, down from $917,000 in Q2 2023, indicating an 8% decrease [1][5][6] Operational Highlights - The company generated $1.9 million in cash from operations in the first half of 2024, an increase from $1.3 million in the same period last year [1][8] - Selling, general, and administrative expenses rose to $2.1 million in Q2 2024, reflecting increased marketing, personnel, and travel costs [5][7] - The company has diversified its service offerings, now auditing to nearly 60 different standards, which helps mitigate risks during challenging market conditions [2][3] Strategic Initiatives - The new Upcycled Food Certification initiative has emerged as one of the fastest-growing standards for the company [2] - There is a growing demand for biosecurity offerings, positioning the company to assist customers in managing potential animal disease outbreaks [2] - The company aims to leverage its diversified services portfolio to navigate inflationary pressures and cyclical trends in the beef industry [3]

CASTLE ROCK, Colo, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced it will release its 2024 second quarter financial results before the market opens on Thursday, August 8, 2024, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Dial-in numbers for the conference call: Domestic Toll Free: 1-877-407-82 ...

CASTLE ROCK, Colo, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced it will release its 2024 second quarter financial results before the market opens on Thursday, August 8, 2024, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Dial-in numbers for the conference call: Domestic Toll Free: 1-877-407-82 ...

Where Food Comes From (NASDAQ:WFCF) Q1 2024 Earnings Conference Call May 2, 2024 12:00 PM ET Corporate Participants Jay Pfeiffer - Director, Investor Relations John Saunders - Chief Executive Officer Conference Call Participants Operator Greetings and welcome to the Where Food Comes From First Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being ...