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8-K - CURRENT REPORT - Where Food Comes From, Inc.intgm-8k_110512.htm
EX-99.2 - TRANSCRIPT FOR NOVEMBER 5, 2012 CONFERENCE CALL - Where Food Comes From, Inc.ex-99_2.htm



Integrated Management Information 8-K

Exhibit 99.1


November 5, 2012    OTCQB: WFCF


Integrated Management Information (IMI Global) Reports Continued Profitable Growth for Third Quarter and Nine-Month Period


Third quarter revenue up 24% to a record $1.5 million from $1.3 million


Nine-month revenue up 24% to a record $4.0 million from $3.2 million


Where Food Comes From® program continues to grow with legendary steakhouse Delmonico’s New York the latest to adopt Company’s flagship brand


CASTLE ROCK, Colo. – Integrated Management Information, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), a leading provider of verification and Internet solutions for the agricultural/livestock industry under the Where Food Comes From® brand, today announced record revenue and continued profitability for its third quarter and nine-month period ended September 30, 2012.


“In addition to extending our track record of profitable growth and further strengthening our balance sheet in the third quarter, we are pleased to report continued success with our Where Food Comes From labeling program, which added Delmonico’s as a flagship steakhouse customer during the period,” said John Saunders. “Although a higher expense base impacted our bottom line in the third quarter, we are confident that the investments we are making in ICS and various marketing programs are strengthening our foundation and better positioning the Company for long-term, profitable growth.”


In February of 2012 IMI Global acquired controlling interest in International Certification Services, Inc. (ICS), a leading provider of organic and sustainable certification services to agricultural operations and the food industry. The acquisition strengthened IMI Global’s solutions portfolio and is expected to contribute to continued year-over-year revenue growth. The Company will continue to evaluate opportunities to acquire complementary businesses.


Third Quarter Results

Revenue in the third quarter increased 24% to a record $1,545,200 from revenue of $1,250,100 in the third quarter a year ago. It was the Company’s 11th consecutive quarter of year-over-year revenue growth. Verification services revenue increased 39% to $1,237,200 from $892,400 in the third quarter last year. This increase was attributable to the addition of revenue from ICS’ organic and gluten free services. Age and source verification revenue declined 18% in the third quarter due to uncertainty surrounding Japanese export market requirements, but was partially offset by a 15% increase in revenue from the Company’s Non-Hormone Treated Cattle (NHTC) and Verified Natural Beef (VNB) programs. Hardware revenue consisting primarily of cattle identification tags decreased 19% in the third quarter, to $268,800 from $331,000 in the same quarter last year, due to lower age and source verification activity. Other revenue, primarily consisting of fees from the Where Food Comes From labeling program, grew 47% to $39,200 from $26,700 year over year. 


Gross profit in the third quarter increased to $802,900 from $671,100 in the same quarter last year. As a percent of revenue, third quarter gross margin declined to 52% from 54% year over year.


Selling, general and administrative expense in the third quarter increased 49% year over year to $686,500 from $460,400. This increase was attributable to expenses associated with the Company’s ICS subsidiary, increased investments in promoting the Where Food Comes From program, and increased headcount to support various marketing initiatives.


Net income attributable to IMI Global in the third quarter was $63,600, or less than one cent per share, versus net income of $204,000, or $0.01 per share, in the same quarter last year. It was the Company’s 11th straight profitable quarter. The lower year over year net income was due to slightly lower gross margins combined with increased investments in growth initiatives.


Nine-Month Results

Revenue for the first nine months of 2012 increased 24% to a record $3,971,600 from $3,197,400 in the same period last year. Verification revenue through nine months grew by 30% to $3,255,300 from $2,512,700 in the same period last year due primarily to the addition of ICS services revenue. Hardware revenue declined 4% to $626,000 from $654,000 a year ago. Revenue from Where Food Comes From and other sources grew nearly three-fold to $90,400 from $30,700 year over year.


Gross profit through nine months grew to $2,129,800, or 54% of revenue, from gross profit of $1,800,400, or 56% of revenue, in the same period last year.


Selling, general and administrative expense increased 44% for the year-to-date period to $1,755,900 from $1,220,800, due primarily to investments in the Where Food Comes From program and ICS, as well as to increased headcount to support various marketing initiatives.


Net income attributable to IMI Global through the first nine months of 2012, inclusive of an income tax benefit of $363,000, was $730,200, or $0.04 per basic and $0.03 per diluted share, versus net income of $558,300, or $0.03 per basic and diluted share, in the same period a year ago.


Balance Sheet Highlights

Cash and cash equivalents and short-term investments at September 30, 2012, totaled $1.4 million, up from $1.3 million at 2011 year-end despite the Company having paid $215,000 in cash associated with its acquisition of ICS and having paid down approximately $67,000 in long-term debt year to date.


About IMI Global

Where Food Comes From, Inc. (d.b.a. IMI Global) is America’s leading provider of third-party identification, verification and traceability solutions for the livestock and agricultural industries. The Company supports more than 6,000 ranchers, farmers, feed yards, meatpackers, food retailers and restaurants with a wide range of solutions, including its USVerified™ brand – the industry standard for USDA Process Verified (PVP) programs – which annually verifies marketing claims for approximately one half of all U.S. beef exports; Where Food Comes From®, a unique retail and restaurant labeling program that connects consumers directly to the source of the food they purchase; and various organic and gluten free certification solutions through its International Certification Services (ICS) subsidiary. Go to and for additional information. 



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 revenue and profitability growth, ICS’ revenue and profitability, the Company’s ability to achieve continued success, generate positive financial results, and maintain a strong balance sheet; growth potential; leadership; potential acquisitions; and the demand for, and impact and efficacy of, the Company’s and its subsidiaries’ products and services on the marketplace 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 and nine-month period 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


Company Contacts:


John Saunders

Chief Executive Officer



Jay Pfeiffer

Pfeiffer High Investor Relations, Inc.







Integrated Management Information, Inc.

Statements of Operations


  Three Months Ended    Nine Months Ended
  September 30,   September 30, 
   2012  2011  2012  2011
Service revenues  $1,237,215   $892,360   $3,255,266   $2,512,652 
Product sales   268,750    331,004    625,986    653,999 
Other revenues   39,196    26,707    90,375    30,712 
Total revenues   1,545,161    1,250,071    3,971,627    3,197,363 
Costs of revenues                    
Labor and other costs of services   543,362    329,969    1,387,499    920,594 
Costs of products   198,862    248,959    454,279    476,355 
Total costs of revenue   742,224    578,928    1,841,778    1,396,949 
Gross profit   802,937    671,143    2,129,849    1,800,414 
Selling, general and administrative expenses   686,538    460,357    1,755,873    1,220,839 
Income from operations   116,399    210,786    373,976    579,575 
Other expense (income):                    
Interest expense   6,068    7,046    19,761    22,496 
Gain on sale of marketable securities   (9,581)   —      (12,155)   —   
Other income, net   (556)   (210)   (3,909)   (1,238)
Income before income taxes   120,468    203,950    370,279    558,317 
Income tax expense (benefit)   46,500    —      (362,972)   —   
Net income   73,968    203,950    733,251    558,317 
Net income attributable to                    
non-controlling interest   (10,336)   —      (3,063)   —   
Net income attributable to Integrated                    
Management Information, Inc.  $63,632   $203,950   $730,188   $558,317 
Net income per share:                    
Basic  $—     $0.01   $0.04   $0.03 
Diluted  $—     $0.01   $0.03   $0.03 
Weighted average common shares outstanding:                    
Basic   21,063,153    20,643,862    20,843,311    20,667,409 
Diluted   21,798,484    20,838,047    21,571,396    20,896,852 



Integrated Management Information, Inc.

Balance Sheets

  September 30,   December 31,
   2012  2011
Current Assets:          
Cash and cash equivalents  $1,349,740   $969,020 
Accounts receivable, net   468,831    226,760 
Investment in marketable securities   19,853    283,511 
Prepaid expenses and other current assets   43,677    36,776 
Deferred tax assets   242,944    224,350 
Total current assets   2,125,045    1,740,417 
Property and equipment, net   117,188    57,354 
Intangible assets, net   331,336    9,205 
Goodwill   377,581    —   
Long-term deferred tax assets   376,481    —   
Total assets  $3,327,631   $1,806,976 
Current liabilities:          
Accounts payable  $245,645   $148,384 
Accrued expenses and other current liabilities   97,191    42,960 
Customer deposits   28,533    —   
Deferred revenue   161,517    —   
Short-term debt and current portion of notes payable   20,823    25,644 
Current portion of capital lease obligations   6,975    —   
Total current liabilities   560,684    216,988 
Capital lease obligations, net of current portion   15,990    —   
Notes payable and other long-term debt   164,068    176,201 
Notes payable, related party   200,000    250,000 
Total liabilities  $940,742   $643,189 
Stockholders’ equity:          
Common stock   21,677    21,049 
Additional paid-in capital   3,615,708    3,416,343 
Treasury stock   (111,284)   (109,014)
Accumulated other comprehensive loss   250    (6,693)
Accumulated deficit   (1,427,710)   (2,157,898)
Total stockholders’ equity   2,098,641    1,163,787 
Non-controlling interest   288,248    —   
Total equity   2,386,889    1,163,787 
Total liabilities and stockholders’ equity  $3,327,631   $1,806,976