Where Food Comes From Reports Financial Results for Third Quarter of 2024

Where Food Comes From, Inc. (NASDAQ:WFCF) has released its financial results for the third quarter of 2024 through a recent press release and conference call transcript. The company reported total revenue of $7.1 million for the quarter, a slight increase from $7.0 million in the previous year. Within this revenue, verification and certification services saw a 2% rise to $5.5 million, while product revenue increased by 9% to $1.3 million, and professional services revenue declined to $0.3 million.

Despite the revenue increase, gross profit slightly declined to $2.8 million from $2.9 million. Selling, general, and administrative expenses (SG&A) rose by 13% to $2.2 million, resulting in a 32% decrease in net income to $0.5 million, or $0.09 per diluted share, compared to $0.7 million, or $0.13 per diluted share, in the prior year.

Adjusted EBITDA for the quarter was 29% lower at $0.8 million versus $1.2 million in the same period last year. Where Food Comes From also continued its share buyback program, repurchasing 66,620 shares of stock at a cost of $734,000 in the third quarter.

Looking at the nine-month results, total revenue increased by 4% to $19.1 million from $18.4 million in the previous year. Gross profit for the nine months was $7.8 million, up 3% from $7.5 million, while SG&A expenses increased by 10% to $6.3 million. Operating income declined by 18% to $1.5 million, and net income decreased by 16% to $1.2 million, or $0.21 per diluted share, compared to $1.4 million, or $0.24 per diluted share in the prior year period.

Adjusted EBITDA for the nine months was $2.1 million, down from $2.5 million year over year. The company generated $2.8 million in cash from operations, reflecting a 6% increase compared to the same period last year.

Where Food Comes From maintained a solid balance sheet with no long-term debt and increased its cash and cash equivalents balance to $2.8 million through nine months. The company bought back a total of 216,039 shares of stock during this period.

Despite challenges in the beef verification business due to factors like herd downsizing and drought conditions, Where Food Comes From remains optimistic about its overall performance. The company highlighted the impact of recent government regulations, such as the USDA’s Animal Disease Traceability program and the Strengthening Organic Enforcement rule, on its business operations and growth potential.

For further insights and updates, investors are encouraged to refer to the company’s publicly filed documents, news releases, and website.

The company executives expressed confidence in its ability to adapt and innovate, positioning itself as a leader in the industry for years to come. If you wish to delve deeper into the specifics shared during the company’s earnings call, you can refer to the complete transcript available for public viewing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Where Food Comes From’s 8K filing here.

Where Food Comes From Company Profile

Where Food Comes From, Inc, together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education.