/EINPresswire.com/ -- CASTLE ROCK, CO -- (Marketwired) -- 10/29/15 -- Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF)

Third quarter revenue up 18% to $3.1 million from $2.6 million last year

Third quarter net income of $181,600, down from from $245,100 last year

Nine-month revenue up 28% to $7.6 million from $6.0 million last year

Nine-month net income increases 131% to $380,600 from $164,900 last year

Operating cash flow grows 165% for nine-month period, to $1,383,200 from $521,000 last year

Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), the most trusted resource for third-party verification of food production practices, today announced continued profitable growth for its third quarter and nine-month period ended September 30, 2015.

"Where Food Comes From continues to deliver strong financial results, highlighted by our sixth consecutive profitable quarter and 28% revenue growth through the first nine months of the year," said John Saunders, chairman and CEO. "In the third quarter we invested heavily in an initiative to standardize financial and field auditing systems across all of our operating subsidiaries. In the short run, these investments will impact our levels of profitability, but in the long run these improved efficiencies will enable us to better exploit the strengths and synergies of our business units and to more quickly integrate future acquisitions.

"On the operations side, we continue to grow organically with the steady addition of new customers and by expanding our solutions portfolio with innovative auditing standards such as Feed Verified, a new resource that gives livestock producers, feed companies and food brands a means of confirming that a particular ingredient of feed product meets a specific verification or certification requirement. We now audit to more than 30 standards -- by far the most in our industry. This gives us the ability to offer producers bundled services in a one-day audit format that saves them money and reduces the days and man hours they currently devote to audits. We're also pleased to report that our involvement with the McDonald's pilot project for sustainable beef in Canada continues to gain momentum, with more beef producers seeking verification weekly as Canadian ranchers increasingly embrace the program."

Third Quarter Results
Third quarter revenue increased 18% to $3,052,900 from revenue of $2,579,400 in the same quarter last year. Verification services revenue increased 24% year over year to $2,655,800 from $2,139,300. Product revenue (cattle identification tags) decreased 10% to $371,700 from $414,500 due to timing issues involving certain large tag orders. Other revenue, primarily associated with the Company's Where Food Comes From® labeling program, was essentially flat year over year at $25,400. As previously disclosed, labeling revenue has been impacted by a change in beef suppliers at Heinen's Fine Foods, the Company's largest labeling customer. The Company continues to work with Heinen's to bring its new beef supply chain into conformance with labeling program requirements in order to resume beef labeling. In the meantime, labeling of other meat products at Heinen's, in addition to new customers coming onboard throughout 2015, has offset the temporary loss of Heinen's beef labeling revenue.

Gross profit in the third quarter increased 25% year-over-year to $1,473,800 from $1,179,600. Gross margin improved to 48% from 46% year over year. Selling, general and administrative expenses grew by 51% year over year due in part to higher head count, increased sales and marketing costs, bonus accruals related to meeting certain financial milestones, and higher costs related to being a publicly held company. In addition, the Company is making significant investments in IT process redesigns related to the integration and standardization of differing field audit and accounting methodologies used by the IMI Global, ICS and Validus business units.

Net income attributable to Where Food Comes From, Inc. decreased 26% to $181,600, or $0.01 per share, compared with net income of $245,100, or $0.01 per share, in the same quarter a year ago.

Nine-Month Results
Total revenue increased 28% to $7,613,300 from revenue of $5,953,900 in the same period last year. Verification services revenue increased 30% year over year to $6,576,800 from $5,060,400. Product revenue (cattle identification tags) increased 21% to $951,600 from $786,000. Labeling program revenue declined 21% year over year to $85,000 from $107,500 due to the previously mentioned change in beef suppliers at the Company's largest labeling customer. During the first nine months of 2015, the total number of grocery stores and food distributors using the Company's labeling program has increased to more than 220.

Gross profit through nine months increased 39% to $3,636,200 from $2,621,800 a year ago. Gross margin increased to 48% from 44% year over year. Selling, general and administrative expenses grew by 30% year over year.

Net income attributable to Where Food Comes From, Inc. increased 131% to $380,600, or $0.02 per share, from net income of $164,900, or $0.01 per share, a year ago.

The Company generated $1,383,200 in cash from operations through the first nine months of 2015, up 165% from $521,000 in the same period last year.

Balance Sheet
Cash, cash equivalents and restricted cash at September 30, 2015, increased 41% to $3,985,300 from $2,833,100 at 2014 year-end. Working capital increased 27% year over year to $4,294,100 from $3,380,700.

Conference Call
The Company will conduct a conference call today at 10:00 a.m. Mountain Time (12:00 p.m. ET.)

Dial in:
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference ID: 13622853

Phone replay:
A telephone replay of the conference call will be available through November 12, 2015, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13622853

About Where Food Comes From, Inc.
Where Food Comes From, Inc. (d.b.a. IMI Global) is America's trusted resource for third party verification of food production practices. The Company supports more than 10,000 farmers, ranchers, processors, retailers, distributors and restaurants with a wide variety of value-added services through its IMI Global, International Certification Services, Validus Verification Services, and Sterling Solutions units. In addition, the Company's Where Food Comes From® retail and restaurant labeling program utilizes the verification of product attributes to connect consumers to the sources of the food they purchase through product labeling and web-based information sharing and education. Go to www.wherefoodcomesfrom.com for additional information.

CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about expectations for growing labeling revenue; expectations for ADT to positively impact revenue growth; expectations for increased demand for sustainability audits; the demand for, and impact and efficacy of, the Company's and its subsidiaries' products and services on the marketplace; and the Company's ability to generate results in the future that are comparable to better than the results contained herein are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Financial results for the third quarter are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at www.sec.gov.

Where Food Comes From, Inc.
Statements of Income
(Unaudited)

                            Three Months Ended         Nine Months Ended
                               September 30,             September 30,
                             2015         2014         2015         2014
                         -----------  -----------  -----------  -----------

Revenues
  Service revenue        $ 2,655,792  $ 2,139,330  $ 6,576,781  $ 5,060,375
  Product sales              371,699      414,515      951,556      786,009
  Other revenue               25,417       25,580       84,999      107,487
                         -----------  -----------  -----------  -----------
    Total revenue          3,052,908    2,579,425    7,613,336    5,953,871
                         -----------  -----------  -----------  -----------
Costs of revenue
  Labor and other costs
   of services             1,362,800    1,134,043    3,403,398    2,804,361
  Costs of products          216,298      265,740      573,759      527,702
                         -----------  -----------  -----------  -----------
    Total costs of
     revenue               1,579,098    1,399,783    3,977,157    3,332,063
                         -----------  -----------  -----------  -----------
Gross profit               1,473,810    1,179,642    3,636,179    2,621,808
Selling, general and
 administrative expenses   1,171,513      775,020    3,120,379    2,404,776
                         -----------  -----------  -----------  -----------
Income from operations       302,297      404,622      515,800      217,032
Other expense (income):
  Interest expense               380        3,705        1,253        9,325
  Other income, net           (2,242)        (932)      (6,721)      (1,982)
                         -----------  -----------  -----------  -----------
Income before income
 taxes                       304,159      401,849      521,268      209,689
Income tax expense            92,000      143,940      213,285       97,131
                         -----------  -----------  -----------  -----------
Net income                   212,159      257,909      307,983      112,558
Net (income) loss
 attributable to non-
 controlling interest        (30,549)     (12,823)      72,584       52,340
                         -----------  -----------  -----------  -----------
Net income attributable
 to Where Food Comes
 From, Inc.              $   181,610  $   245,086  $   380,567  $   164,898
                         ===========  ===========  ===========  ===========
Net income per share:
Basic                    $      0.01  $      0.01  $      0.02  $      0.01
                         ===========  ===========  ===========  ===========
Diluted                  $      0.01  $      0.01  $      0.02  $      0.01
                         ===========  ===========  ===========  ===========
Weighted average number
 of common shares
 outstanding:
Basic                     23,813,295   23,590,662   23,791,825   22,996,399
                         ===========  ===========  ===========  ===========
Diluted                   23,981,133   23,813,108   23,972,897   23,224,678
                         ===========  ===========  ===========  ===========


Where Food Comes From, Inc.
Balance Sheets

                                               September 30,   December 31,
                                                    2015           2014
                                               -------------  -------------
ASSETS                                          (Unaudited)
Current Assets:
  Cash and cash equivalents                    $   3,985,277  $   2,583,058
  Restricted cash                                          -        250,000
  Accounts receivable, net                         1,083,566        979,532
  Prepaid expenses and other current assets          137,808        126,938
  Deferred tax assets                                240,805        167,805
                                               -------------  -------------
    Total current assets                           5,447,456      4,107,333
Property and equipment, net                          180,187        231,886
Intangible and other assets, net                   1,798,967      1,952,678
Goodwill                                           1,279,762      1,279,762
Long-term deferred tax assets                         86,647        361,797
                                               -------------  -------------
Total assets                                   $   8,793,019  $   7,933,456
                                               =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $     581,118  $     401,131
  Accrued expenses and other current
   liabilities                                       273,927         65,849
  Customer deposits                                   90,272         69,090
  Deferred revenue                                   195,722        178,724
  Short-term debt and current portion of notes
   payable                                             7,739          7,425
  Current portion of capital lease obligations         4,574          4,397
                                               -------------  -------------
    Total current liabilities                      1,153,352        726,616
Capital lease obligations, net of current
 portion                                               2,958          6,410
Notes payable and other long-term debt, net           10,376         16,245
                                               -------------  -------------
Total liabilities                                  1,166,686        749,271
                                               -------------  -------------
Contingently redeemable non-controlling
 interest                                            901,435        974,019
                                               -------------  -------------
Stockholders' equity:
  Common stock                                        23,813         24,266
  Additional paid-in capital                       7,412,523      7,428,754
  Treasury stock                                           -       (150,849)
  Accumulated deficit                               (711,438)    (1,092,005)
                                               -------------  -------------
Total Equity                                       6,724,898      6,210,166
                                               -------------  -------------
Total liabilities and stockholders' equity     $   8,793,019  $   7,933,456
                                               =============  =============

Company Contacts:

John Saunders
Chief Executive Officer
303-895-3002

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044

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