Business
Where Food Comes From, Inc. Reports 2023 First Quarter Financial Results
Revenue of $5.3 million in Q1 compared to $6.2 million a year ago when Company recognized $850,000 in software revenue for one-time consulting project; Q1
About this update from Where Food Comes From, Inc.
[{"type":"text","content":"Revenue of $5.3 million in Q1 compared to $6.2 million a year ago when Company recognized $850,000 in software revenue for one-time consulting project; Q1 2023 revenue also impacted by lower cattle headcounts, inflation-based shift in consumer food preferences and severe weather that delayed verification activity and tag salesNet income of $0.1 million vs. $0.5 million a year ago, reflecting lower gross margins and increased SG&A related to post-Covid re-start of industry trade shows, on-site audit staff training and Nasdaq listing eventAdjusted EBITDA of $0.4 million vs. $0.9 million last year reflects lower net income, income tax expense, depreciation and amortization and stock-based compensation chargesCompany continues share repurchase program, buying back $1.2 million of stock (89,450 shares) in the first quarter CASTLE ROCK, Colo., May 15, 2023 (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 financial results for its first quarter ended March 31, 2023. “In the first quarter we incurred a number of anomalous events and circumstances that impacted both revenue and profitability,” said John Saunders, Chairman and CEO. “Our core verification and certification segment was essentially flat year over year due to several unrelated factors, including shifting consumer preferences due to food inflation and multiple severe winter weather events that delayed on-site audits and delivery of tags to customers across the country. At the same time, drought conditions and cyclical cattle trends resulted in lower cattle head counts that also impacted verification activity and tag sales, a trend that’s expected to persist in the near future. Our year-over-year revenue comparison was further skewed by the large, one-time software consulting contract we executed in the first quarter of 2022 that was not duplicated this year. “The lower revenue and continued inflationary pressures led to a decline in gross margin in the first quarter,” Saunders added. “At the same time, SG&A expense increased as we resumed activities related to industry trade show participation, on-site company-wide training programs and the Nasdaq bell ringing ceremony, all of which had been delayed due to Covid-19 shutdowns. ...