+ All Categories
Home > Documents > Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 ›...

Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 ›...

Date post: 24-Jun-2020
Category:
Upload: others
View: 0 times
Download: 0 times
Share this document with a friend
26
Where Food Comes From, Inc. Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado OTCQB: WFCF October 2015
Transcript
Page 1: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

WhereFoodComesFrom,Inc.

WhereFoodComesFrom,Inc.D.B.A.IMIGlobal,Inc.Headquarters:CastleRock,ColoradoOTCQB:WFCFOctober2015

Page 2: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

Forward-LookingStatements

ThispresentaJoncontains"forward-lookingstatements"withinthemeaningoftheU.S.PrivateSecuriJesLiJgaJonReformActof1995,basedoncurrentexpectaJons,esJmatesandprojecJonsthataresubjecttorisk.Forward-lookingstatementsareinherentlyuncertain,andactualeventscoulddiffermateriallyfromtheCompany’spredicJons.ImportantfactorsthatcouldcauseactualeventstovaryfrompredicJonsincludethosediscussedinourSECfilings.Specifically,statementsinthispresentaJonaboutfinancialperformance,newbusinessdevelopment,growthpotenJal,marketleadership,andtheimpactandpotenJaloftheCompany’sproductsandservicesonthemarketplaceandcustomersareforward-lookingstatementsthataresubjecttoavarietyoffactors,includingavailabilityofcapital,personnelandotherresources;compeJJon,governmentalregulaJonofthebeefindustry,themarketforbeefandotherfactors.Readersshouldnotplaceunduerelianceontheseforward-lookingstatements.TheCompanyassumesnoobligaJontoupdateitsforward-lookingstatementstoreflectnewinformaJonordevelopments.ForamoreextensivediscussionoftheCompany’sbusiness,pleaserefertotheCompany’sSECfilingsatwww.sec.gov.

Page 3: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

TheTrend

“I’veneverseenastrongerdesirefor(consumers)knowingwheretheirfoodiscomingfrom…” --WholeFoodsCEOWalterRobb“Ourcustomerswanttoknowmoreabouthowtheirfoodisgrownandraised,andwhereitcomesfrom.Walmartiscommiaedtousingourstrengthstodrivetransparencyandimprovementacrossthesupplychain….helpingtoputourcustomersinchargeoftheirfoodchoicesbyprovidingclear,accurateinformaJonaboutfoodingredients. --KathleenMcLaughlin,WalmartVP,Sustainability

Page 4: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

CompanyOverview

•  #1providerofindependent,third-partytraceabilityandverificaJonoffoodproducJonpracJces

•  CollectandleverageinformaJononwhen,where,howandbywhomfoodwasraised

•  10,000+customers:ranchers,aucJonbarns,feedyards,dairies,packers,distributors,retailers,restaurants

•  CustomersincludetopJerplayersinfoodindustry•  RecurringrevenuemodelgeneraJngstrongcashflowsto

supportprofitableorganicgrowthandfundM&Aprogram

Page 5: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

2ComplementaryLinesofBusiness

CoreAudiFngBusiness•  On-siteauditsofranches,

farms,feedyardsandpackingplantsin41states

•  Industry’slargestporholioofaudiJngstandards

•  10,000customers&growing

•  Recurringrevenuemodel•  OrganicandM&Agrowth

WFCFLabelingProgram•  Retailersandrestaurants

displaylabelandQRcodethatgivesconsumerssourceinfoonfoodtheypurchase

•  $.01to$.03perpoundfees•  IniJalcustomers:grocery,

restaurant,fooddistribuJon

$2.7B addressable market $100M addressable market

Page 6: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

VerificaJonServices•  SourceandAge•  Non-HormoneTreatedBeef(NHTC)•  HighQualityBeefQuota•  NeverFedBetaAgonists•  USDANeverEver3NaturalBeef•  USDAGrass-FedBeef•  AmericanGrass-FedAlliance•  VegetarianFed•  FlaxFed•  SO100FeedClaims•  TysonNatural•  GlobalAnimalPartnership™•  Non-GMOProjectVerificaJon•  USDANOPOrganic•  FoodAlliance™CerJficaJon•  ProgressiveBeef™Standard•  VerifiedGreen™

•  AnimalWelfareandWorkerCareAudits•  FarmCheck™Program•  BeefQualityAssuranceVerified•  AmericanHumane™CerJfied•  GlutenFreeCerJficaJon•  NaJonalChickenCouncilAudits•  NaJonalTurkeyFederaJonAudits•  WholeFoods®EggLayingHensStandards•  UnitedEggProducersCerJfied•  SafeFeed/SafeFoodProgram•  HazardAnalysisCriJcalControlPoint•  SafeQualityFood(SFQ)•  On-FarmSecurityAudits•  GoodEnvironmentalLivestockProducJon

PracJces•  PorkfortheEuropeanUnion•  FeedVerified–NewinSeptember2015

Page 7: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

FoodGroupCoverage

CurrentCoverage•  Beef•  Pork•  Lamb•  Bison•  Poultry

•  Produce•  Dairy•  Eggs•  Grain

FutureCoverage•  Seafood•  Beverages•  Produce

Page 8: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

OurCustomers

Page 9: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

MarketDrivers

Growthstrategysupportedbylong-termtrends•  Consumerdemandfortransparencyduetofoodsafetyissues•  Increasingconsumerinterestinhumanehandling,organic,glutenfree,

anJbioJcfree,sustainableagricultureandotherstandards•  Producers,packers,distributorsandretailersviewverificaJon,

idenJficaJonandtraceabilityaskeycompeJJvedifferenJators•  MajorQSRandretailchainsadopJngtraceabilityfollowingfoodscandals•  USDA’sAnimalDiseaseTraceabilityprogramwillforce800,000caale

producerstoimplementsourceauditsinnextfewyears•  MandatoryverificaJon,idenJficaJonandtraceabilityforkeyexport

markets-Korea,RussiaandtheEuropeanUnion•  Technologicaladvances,includingRFID,aremakingverificaJon,

idenJficaJonandtraceabilitysoluJonspossiblethroughoutthefoodchainconJnuum

Page 10: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

MarketDrivers-ConJnued

•  BSE–MadCowDisease•  E-coli•  PinkSlime•  Salmonella–Cantaloupes•  Swineflu•  GestaJoncrates•  TacoBellmeatcontent

•  GMOlabeling-CAProp37•  Europeanhorsemeat•  Humanehandlingscandals•  Healthandwellness

awareness•  Mislabeledseafood•  Expiredmeatinsupplychain

Page 11: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

Non-GMOOpportunity

GMO–GeneFcallyModifiedOrganisms•  Non-GMOProjectislargestindustrygroup–commiaedtobuildingnon-GMOfoodsupplywithverifiedproductchoices

•  32USstateshavesomekindofGMOballotiniJaJve•  WholeFoodscommiaedtomandatoryGMOlabelingby2018

•  WhereFoodComesFromisoneofonlythreenon-GMOapprovedauditorsnaJonally

Page 12: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

RecentHighlights

NewServiceOfferingFeedVerified•  Livestockfeedemergingaslatestrisk

infoodsupplychain•  FeedVerifiedgivesfeedproducers

andbuyersaresourcetoconfirmapprovedfeedproductsandingredientstoavoidcostlymistakes

•  GlobalanimalnutriJonleaderAlltechisfirstcustomerfornewservice

•  Revenuemodel:$250-$500perproductorclaim

•  Addressablemarketincludesfoodproducers,feedproducersandtheirsuppliers

NewCustomerMcDonald’sCorporaFon•  WFCFdesignedandisimplemenJng

rolloutofpilotprogramforsustainablebeefinCanada

•  100CanadianranchershaveregisteredtoparJcipate

•  WFCFhasverified20%ofthemascompliantwithMcDonald’ssustainabilityrequirements

•  Targetisupto200compliantbeefproducersbyspringof2016

Page 13: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

GrowthStrategy

•  Cover more food groups than any other provider –  Currently: beef, lamb, pork, poultry, dairy, eggs, produce, grain –  Future: seafood, beverages, produce

•  Offer solutions for ALL players in food supply chain –  Feed and input providers, ranchers, producers, packers, auction

barns, processors, distributors, retailers, consumers

•  Expand on industry’s largest solutions portfolio –  Currently auditing to 32 certification standards – most in industry

•  Continue organic growth –  Leverage ‘bundling’ capability to aggressively pursue new

customers; sustain recurring revenue model, high retention rates

•  Continue M&A growth –  Expand footprint, add new services, food groups and revenue

streams through selective acquisitions

Page 14: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

M&AAcJvity-AudiJng

Page 15: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

M&AResultsSummary

•  3,700newcustomers•  $3.0millioninaddiJonalannualizedrevenue•  6newaudiJngstandards•  4newfoodgroups•  FurtherdistancefromcompeJJon•  LucraJve,highmarginservicesbundling•  AddiJonalM&AacJvityanJcipated

Page 16: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

WhereFoodComesFromSourceVerified®LabelingProgram

Howitworks:PackagedisplaysWhereFoodComesFromSourceVerified®labelindicaJngproduct’soriginhasbeenverifiedbyanindependentthirdparty.ConsumerscansQRcodetoaccessinformaJon

RevenueModel:FooddistributorsorretailerspayWhereFoodComesFromperpoundroyalJes,licensefees,servicefees,WebadverJsingfees.

onthefamiliesthatraisedthefoodandthepracJcesemployedbythosefamilies.

Addressable Market: Estimated at $2.7 billion based on annual beef, pork and chicken production in U.S.

Page 17: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

LabelingCustomers

Heinen’s Fine Foods 26 stores in Ohio and Illinois

Initial WFCF labeling program grocery customer for all products in

meat case

220+ grocery stores and food distributors nationally have adopted the Where Food Comes From Source Verified®

labeling program

Page 18: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

RevenueGrowth

2006 2007 2008 2009 2010 2011 2012 2013 2014

$4M

$6M$5.8M

$8.8M

$1.1M $1.7M

$2.4M $2.7M

$3.3M

$4.2M

$2M

Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in 2008.

$5.3M

$8M

$10M

Page 19: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

GrossProfit

2006 2007 2008 2009 2010 2011 2012 2013 2014

$2.0M

$.7M

$1.2M $1.3M $1.3M

$1.8M

$2.3M

$1.0M

$2.8M

$3.0M

$2.7M

$3.8M

Page 20: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

SG&Aas%ofRevenue

2006 2007 2008 2009 2010 2011 2012 2013 2014

200%

46%

192%

117%

60% 55% 44%

40%

150%

100%

50%

45%

39%

Page 21: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

AdjustedEBITDA

$1.0M

‘06 ‘07 ‘08

‘09 ‘10 ‘11 ‘13

$148,500

$573,600

‘14

$1,470,000

$654,200

$67,700

$112,300

$442,900

$737,800

$0

$1.0M

$601,700

‘12

Page 22: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

Year-to-DateFinancialHighlights

ThirdQuarterHighlights(Yearoveryear)•  Revenueup18%to$3.1millionfrom$2.6million

•  Grossmarginsincreasedto48%from46%

•  Netincomeof$181,600,downfrom$245,100

•  OperaJngcashflowup51%to$0.5millionfrom$0.3million

Nine-MonthHighlights(Yearoveryear)•  Revenueup28%to$7.6millionfrom$6.0million

•  Grossmarginsincreasedto48%from44%

•  Netincomeup131%to$380,600from$164,900

•  OperaJngcashflowup165%to$1.4millionfrom$0.5million

Data presented is for the third quarter and nine-month period ended September 30, 2015.

Page 23: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

BalanceSheetHighlights

AsofSeptember30,2015•  Workingcapital:$4,294,100•  Cash:$3,985,300•  Longtermdebt:$10,400•  Stockholders’equity:$6,724,000

Page 24: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

SelectedStockData•  Traded–OTCQB:WFCF•  52weekstockpricerange–$2.15-$3.83•  Averagedailytradingvolume–7,848•  Commonsharesoutstanding–23,813,295•  Approx.management/boardownership–12,400,000•  MarketCap–$71,400,000•  Fiscalyear–December31

Note: Certain figures are rounded. Valuation and other data is subject to change on a daily basis and is presented as a general reference as of October 2015.

Page 25: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

InvestmentConsideraJons

•  WFCFisthedominantverificaJonindustryplayer–intherightplaceattherightJmewithconsumerdemandfor,andgovernmentinterestin,increasedinformaJonandtransparencyinthefoodchainatanall-Jmehigh

•  CompanyexecuJngonstrategytobeone-stop-shopforallcerJficaJonstandardsinallfoodgroups

•  Scalablerecurringrevenuemodelwithlarge,growingcustomerbaseposiJonscompanyforlong-termprofitgrowth

•  WellcapitalizedcompanywithJghtsharestructureandaccomplishedmanagementteamandboardthatownssignificantstakeinCompany

•  WFCFisonlypubliclytradedpureplayinfoodverificaJonandtraceabilityindustry

Page 26: Where Food Comes From, Inc.wherefoodcomesfrom.com › wp-content › uploads › 2015 › 11 › ... · performance, new business development, growth potenJal, market leadership,

WhereFoodComesFrom

For more information, contact:

Pfeiffer High Investor Relations, Inc. Jay Pfeiffer

303-880-9000 or [email protected]


Recommended