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Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado Trading symbol: OTCQB: WFCF.

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Presentation on theme: "Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado Trading symbol: OTCQB: WFCF."— Presentation transcript:

1 Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado Trading symbol: OTCQB: WFCF

2 Forward-Looking Statements This presentation 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 Companys predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this presentation about financial performance, new business development, growth potential, market leadership, and the impact and potential of the Companys products and services on the marketplace and customers 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 beef industry, the market for beef and other factors. 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 Companys business, please refer to the Companys SEC filings at

3 Company Overview #1 provider of third-party certification services to the food and agricultural industries; 18 year track record Information company: collect & leverage information on when, where, how and by whom food was raised 10,000+ customers: ranchers, auction barns, feed yards, dairies, packers, retailers, restaurants Customers include top tier players in food industry Recurring revenue model generating strong cash flows to support profitable growth and fund M&A program

4 Our Customers

5 The Trend Ive never seen a stronger desire for…..knowing where their food is coming from… -- Whole Foods CEO Walter Robb This trend of the global consumer really wanting to know where their food comes from… -- McDonalds VP Bob Langert Oprah explored the question on todays show, Do you know where your food comes from? --

6 Market Drivers Growth strategy supported by long-term trends Consumer demand for transparency due to food safety issues Increasing consumer interest in humane handling, organic, gluten free, antibiotic free, sustainable agriculture and other standards Producers, packers, distributors and retailers view verification, identification and traceability as key competitive differentiators USDAs Animal Disease Traceability program forcing all cattle producers to comply with source and age verification standards Mandatory verification, identification and traceability for key export markets - Korea, Russia and the European Union Technological advances, including RFID, are making verification, identification and traceability solutions possible throughout the food chain continuum

7 Food Issues in the News BSE – Mad Cow Disease E-coli Pink Slime Salmonella – Cantaloupes Swine flu Gestation crates Taco Bell meat content CA Proposition 37 – GMO labeling European horse meat Humane handling concerns Health and wellness awareness Mislabeled seafood

8 Business Strategy – Part 1 Become one-stop solution for: All players in the food supply chain continuum: feed and input providers, ranchers, producers, packers, auction barns, processors, distributors, retailers, consumers All food groups: beef, lamb, pork, poultry, produce, dairy, seafood, beverages All standards in food industry

9 Business Strategy – Part 2 4 Key Components Grow customer base with high retention rates and recurring revenue Preserve and expand our competitive advantages in products, solutions and customer service Augment organic growth with selective acquisitions Establish Where Food Comes From as industry standard solution for retail/consumer market

10 2 Lines of Business Core Auditing Business Auditors conduct on-site audits of ranches, farms, feed yards and packing plants Verify a wide variety of credence claims Recurring revenue model 10,000 customers & growing $100M addressable market WFCF Labeling Program Retailers and restaurants display label and QR code that gives consumers info on food they purchase $.01 to $.03 per pound fees 3 flagship customers in grocery and restaurant Heinens expanded to entire meat case $2.7B addressable market

11 Core Verification Services Source and Age Verification Non-Hormone Treated Cattle Pork for European Union Verified Natural Beef Verified Green Verified Humane Verified Grassfed Farm Verified Organic Non-GMO Global Animal Partnership Never Fed Beta Agonists Food Alliance Flax Fed Verified 100% Vegetarian Fed EV Program Pork to Russia Gluten Free NOP Organic United Egg Producers National Dairy FARM Program Where Food Comes From® WFCF is the undisputed industry leader in the size and scope of its audit solutions portfolio

12 Audit Bundling Advantage Certification in more than 20 auditing standards enables us to: Cross train auditors in various standards Offer customers one-stop-shop to eliminate audit fatigue 3 audits x $1,500 = $4,500 1 audit x $3,500 = $3,500

13 Food Group Coverage Today Beef Pork Lamb Poultry Dairy Eggs Organic Future Seafood Produce

14 Where Food Comes From® The addressable market for the Where Food Comes From labeling program is estimated by WFCF at $2.7 billion based on annual beef, pork and chicken production in the US. Revenue Model Retailers and distributors who carry products displaying the WFCF brand pay the Company in the following ways: Per pound royalties License fees Service fees Web advertising fees The Company launched its first major WFCF initiative with Heinens fine foods in Northern Ohio.

15 3 Initial Customers Heinens SupermarketsDelmonicos – New York Andersons Restaurant Chain

16 Barriers to Entry 18 year head start on competition Infrastructure, know-how, solutions portfolio, USDA relationship, 10,000 customers, successful track record create significant barriers to entry and support long-term leadership status M&A program strengthening leadership position New entry in industry would need 2 years of investment and infrastructure creation before qualifying to conduct first audit

17 M&A Update International Certification Services Transaction in Q1 2012 60% interest with remaining 40% scheduled for 2014 $350,000 cash, 173,000 shares Farm Verified Organic, Certified Gluten Free, Non-GMO 500 new customers $1.0M in expected annual revenue

18 M&A Update #2 Validus Verification Services Transaction in Q3 2013 60% interest with remaining 40% expected in 2016 $565,000 cash, 709,000 shares Pork, poultry and dairy – animal welfare, sustainability 3,000 new customers $1.4 million in expected annual revenue

19 M&A Update #3 Micro Technologies Transaction in Q4 2013 Assume management of audits for division of MWI 1,000 new customers $600,000 in expected annual revenue

20 M&A Results 4,500 new customers $3.0 million in additional annualized revenue 6 new auditing standards 4 new food groups Further distance from competition Lucrative, high margin services bundling Additional M&A activity expected

21 Revenue Growth $1.1M $1.7 M $2.4M $2.7M $3.3M $4.2M $3M $2M $1M Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in 2008. 30% CAGR since 2006 $5.3M $6M

22 Gross Profit $.7M $1.2M $1.3M $1.8M $2.3M $1.0M $2.8M $3.0M

23 SG&A as % of Revenue 192% 117% 60% 55% 44% 40% 150% 100% 50% 45%

24 Adjusted EBITDA $1,470,000 $654,200 $67,700 $112,300 $442,900 $737,800 $0 $1.0M $601,700 2012

25 Balance Sheet Highlights Working capital: $1.5 million Cash, cash equivalents: $1.0 million Long term debt: $170,000 Stockholders equity: $3.9 million

26 Selected Stock Data Traded – OTCQB: WFCF 52 week stock price range – $0.50 - $2.20 Average daily trading volume – 21,600 Common shares outstanding – 22,700,000 Management/board ownership – 11,500,000 Approximate float – 11,200,000 Market Cap – $42 million Fiscal year – December 31 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 Q3, 2013.

27 Investment Considerations WFCF is the dominant verification industry player in the right place at the right time – consumer demand for food safety and origins has never been higher Executing on our strategy to be one-stop-shop for all certification standards in all food groups Gives us leverage with retailers and restaurants for labeling program Scalable recurring revenue model with large, growing customer base lends itself to long-term profitability growth Investors interested in this space must look at WFCF Initial analyst coverage: Sidoti & Company Close to qualification for NYSE MKT listing

28 Where Food Comes From® OTCQB: WFCF

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