Where Food Comes From, Inc. Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue Growth:
    • Q3 revenue increased 6% year-over-year.
    • Year-to-date revenue up 11% compared to the first nine months of 2020.
  • Profitability:
    • Q3 net income rose 19% to $900,000 ($0.14 per share), compared to $700,000 ($0.12 per share) in Q3 2020.
    • Year-to-date net income grew 164% to $2.2 million from $800,000, including $1 million in PPP loan forgiveness.
    • Excluding loan forgiveness, net income was still up double digits.
    • Year-to-date earnings per share was $0.36, up from $0.13 in the same period last year.
  • Margins & Costs:
    • Margins pressured by return to lower-margin verification (pork, poultry, dairy, egg) and revived performance bonuses.
    • Despite staff additions, SG&A expenses decreased by $111,000 year-to-date.
  • Adjusted EBITDA & Cash Flow:
    • Q3 adjusted EBITDA rose 18% year-over-year to $1.5 million.
    • Year-to-date adjusted EBITDA up 20% to $2.4 million.
    • Net cash from operations rose 39% to $3 million from $2.2 million last year.
    • Working capital increased 15% to $5 million.

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Operator: Greetings. Welcome to the Where Food Comes From Third Quarter Earnings 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. At this time, I'll turn the conference over to Jay Pfeiffer, Investor Relations. Jay, you may begin. Jay Pfeiffer: Good morning and welcome to the Where Food Comes From 2021 third quarter earnings call. Joining me today are CEO, John Saunders; President, Leann Saunders; and Chief Financial Officer, Dannette Henning. 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 non-GAAP measures. I'll now turn the call over to Jo

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