Where Food Comes From, Inc. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (Comparisons to Q3 and 9M 2019)
  • Q3 Revenue: $6.2 million (flat year-over-year)
  • 9M Revenue: $14.5 million (down <4% from $15.1 million)
  • Q3 Operating Income: $956,000 (up 56% from $614,000)
  • Q3 Net Income: $730,000 or $0.03/share (up 35% from $541,000 or $0.02/share)
  • 9M Net Income: $840,000 (up 11% from $759,000)
  • Q3 Adjusted EBITDA: $1.3 million (up 28% from $1 million)
  • 9M Adjusted EBITDA: $2 million (up 5% from $1.9 million)
  • Gross Margin: Improved 310 bps in Q3 and 250 bps YTD
  • SG&A Expense: Down 8% ($167,000) YoY in Q3; Down 4% ($223,000) YTD
  • Operating Cash Flow: $2.2 million YTD (down 7% from $2.3 million)
Operational Highlights
  • Beef verification business continued strong, offsetting pandemic-related declines in pork, poultry, dairy, and egg audits.
  • RFID tag sales up 25% YoY due to premium beef demand.
  • BeefCARE program adoption increased, with Tyson Foods joining as a customer, calling it the largest beef transparency program in the U.S.
  • Launch of CARE initiative for sustainable food production across beef, dairy, poultry, and pork.

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Operator: Greetings, and welcome to Where Food Comes From Third 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, this conference is being recorded. I would now like to turn the conference over to your host, Jay Pfeiffer, Investor Relations. Thank you. You may begin. Jay Pfeiffer: Good morning, and welcome to the Where Food Comes From Third Quarter Earnings Call. Joining me on the call today are John Saunders, CEO; Leann Saunders, President; and Dannette Henning, CFO. 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 metrics, growth strategy, new customer wins, 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 about the company. 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 non-GAAP measur

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