Business
Where Food Comes From, Inc. Reports 2020 Third Quarter and Nine-Month Financial Results
Third Quarter Highlights – 2020 vs. 2019 Revenue nearly flat at $6.2 million despite pandemic-related decline in non-beef verification categories due to
About this update from Where Food Comes From, Inc.
[{"type":"text","content":"Third Quarter Highlights – 2020 vs. 2019\n Revenue nearly flat at $6.2 million despite pandemic-related decline in non-beef verification categories due to restrictions in on-site auditing activityGross margin increased to 44.6% from 41.5% based on growth in higher-margin beef verifications and related tag salesNet income attributable to WFCF increased 35% to $730,000 from $541,000; EPS of $0.03 vs. $0.02Adjusted EBITDA increased 28% to $1.3 million from $1.0 million Nine-Month Highlights – 2020 vs. 2019 Revenue down 4% to $14.5 million from $15.1 millionGross margin increased to 44.6% from 42.1%Net income attributable to WFCF increased 11% to $840,000 from $759,000Adjusted EBITDA increased 5% to $2.0 million from $1.9 millionCash generated from operations of $2.2 million, down from $2.3 million CASTLE ROCK, Colo., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (OTCQB: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced its 2020 third quarter and nine-month financial results. “Customer demand for beef-related products and services remained strong in the third quarter as producers and packers continued to prioritize premium verifications and momentum around our BeefCARE™ program continued to grow,” said John Saunders, chairman and CEO. “The strong growth of our beef business nearly offset the pandemic-related decline in auditing activity for pork, poultry, dairy and egg customers, who are delaying audits due to restrictions on third-party access to their more enclosed production environments. Once restrictions ease as the pandemic is brought under control, we expect these audits to resume in earnest and will be prepared for the expected surge in demand. “Our positive revenue performance, which comes at a time when many companies are reporting sharp declines in revenue year over year, underscores the importance of the diverse revenue mix we have built over the past 10 years through both M&A activity and internal development of new verification services,” Saunders added. “In addition, our focus on higher-margin beef products and services, coupled with a reduction in SG&A expenses year over year, resulted in the most profitable quarter in Company history. Gross margins improved by 310 basis points in the third quarter and net i...