Where Food Comes From, Inc. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights
  • Revenue: $5.1 million, up 16% year-over-year compared to $4.4 million in Q2 2020.
  • Six-month Revenue: $9.6 million, up 15% compared to $8.3 million for the same period in 2020.
  • Net Income: $202,000 (or $0.03 per share), down from $351,000 (or $0.06 per share) in Q2 2020.
  • Six-month Net Income: $1.4 million, up from $110,000. Excluding $1 million in PPP loan forgiveness in Q1, net income was still up ~3x.
  • Adjusted EBITDA: $535,000, down 32% YoY for the quarter; $889,000 for six months, up 22% YoY.
  • Net Cash from Operations: $1.6 million YTD, nearly matching $1.7 million from the same period in 2020.
  • Cash and Cash Equivalents: $5.3 million, up from $4.4 million a year ago.
  • Working Capital: $4.9 million, up from $4.4 million YoY.
Business Updates
  • COVID-19 Operational Impact: Resumption of on-site audits contributed to increased revenue, particularly in Validus and organic segments. However, these segments offer lower margins than the core beef business.
  • Margin Pressures: Caused by increased travel, compensation expenses, and higher SG&A costs due to uplisting to NASDAQ.

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Operator: Greetings. Welcome to the Where Food Comes From Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that the conference is being recorded. I will now turn the conference over to your host Jay Pfeiffer with Investor Relations. You may begin. Jay Pfeiffer: Good morning and welcome to the Where Food Comes From second quarter earnings call. Joining me on the call today are John Saunders, CEO; and Leann Saunders, President. During this call, we'll make forward-looking statements based on current expectations estimates and projections that are subject to risk. Statements about current and future financial performance, growth strategy, customers, business opportunities, market acceptance of our products and services, and potential acquisitions are forward-looking statements. Listeners should not place undue reliance on these statements, as there are many factors that could cause actual results to differ materially from our forward-looking statements. We encourage you to review our publicly filed documents, as well as our news releases and website for more information. Today, we'll also discuss adjusted EBITDA, a non-GAAP financial measure provided as a complement to GAAP results. Please refer to today's earnings release for important disclosures regarding the non-GAAP measures. I'll now turn the call over to John Saunders, C

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