Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Where Food Comes From Fourth Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Pfeiffer with Investor Relations. Thank you, Mr. Pfeiffer.

begin. may You

Jay Pfeiffer

morning From Good call. to Where the Thank fourth and quarter Comes XXXX earnings and Food you. welcome year end

reliance During not could EBITDA, business a statements. more projections and that forward-looking will these measures. current the there our for cause actual disclosures and and non-GAAP a future on to results news publicly risk. we to services statements growth current place review complement as acceptance differ call on strategy, provided statements. are important of regarding performance, based Please products customers, non-GAAP Statements results. GAAP make website about adjusted materially are expectations, and information. today’s market from financial as measure are Today, Listeners potential We factors that refer our forward-looking you filed and forward-looking undue to acquisitions releases financial well we should subject encourage documents opportunities, will to as for earnings statements as our discuss to estimates many today, release our also

will turn I to call John now over John? Saunders. the

John Saunders

Good morning, This our we ended our extended today. profitable quarter the and of joining growth. for we year And results December to for and full XXXX. once report we call fourth XX, announced again, morning, happy thanks are track record

XX% increased government $X.X revenue was by The large the year $X.X in Product million first of was due million big million $XX.X grew and year-over-year year. million increased completed to full $XX.X $XX.X from The Japanese software from year-over-year the quarter in certification a our revenue up revenue on three XX% last the all million. $X.X to we growth from the to million increase primarily for XX% $X segments. project and increase to to related from consulting year. million. with included year Verification revenue Beginning XX% million services $XX.X and

to very increased Net increase in from year-over-year from labor costs a be X% $X.X expense and general continues to XXXX million. $X million This market. personnel competitive higher what included administrative Selling, to however, $X.X decreased income million $X year in ago. mind, a PPP $X.XX net booked ago income or in year per diluted $X Keep we per share forgiveness. diluted or that in a loan million $X.XX million share of approximately

Adjusted $X.X was the EBITDA of We year. $X year $X.X generated to million a I $X.X $X.X operations same our ago shares, in from in in increased That at prior address year XXXX which the cash in continued our to $X.X last closed million to and compared in and million in just own cash cash a will moment. detail time decline we million XXXX million year. equivalents due in with more the from compared to investment million

in quarter in or the in per fourth year. $X.X $X.XX per services declined Again, Adjusted year-over-year was consulting million, I will revenue to from results. fourth that this $X.X revenue EBITDA and will million. to and year-over-year same the our to and or be XX% million. decreased to share fourth diluted the share $X flat XX% year-over-year million $X.X increased to million revenue $X.X engagements million. services, million evolve. was $X.X choppy software product as year-over-year up product certification you administrative million million, Total the $X.X general was from to offerings to $X.X things quarter related Verification $X.X X% from $X.X year-over-year Turning $X.X X% XX% to $X.X from million to last million income expense from revenue and to $X.XX the Selling, quarter from remind of XX% million. quarter million was diluted continue Net and continue down $X.X up category

will clip January ramping USDA we In announced including disease our our tags of radiofrequency phase well this which demand, and/or XXXX, programs cattle ADT the the the On of metal important tags. investing USDA the ongoing the already the replacement this with the now milestone now visual largest latest requires animal be as strengthening of to provide. have of X in as that adoption the traceability, kind of tags We anticipation the of another IP an to be we or will primary we of identification X, that carrying will next anticipate of the ever beneficiary Accordingly, change, largest in required and capacity certification brand. this million change this the rule up X tags RFID cattle head utilize mean meet estimates This over we $XX years implementation been to as is related rule tags are to industry. our provider our inventory ADT. USDA’s of CARE of to

in It capital value. topic enhance transactions services our in has the program involved investments, the shareholder products of successful portfolio are On this challenged years, past expanded talent very new of the ways to internal also CARE form the to being recent constantly one development M&A of and timely In that new has brought allocate taken that example. company. our and investing programs, our we and

to in in million value years, share Over XXXX investing repurchase we a that have shareholders. begun returned our few approximately the $X.X program past

the of nearly the level share, triple year. repurchased the price of we more and stock at prior shares per stock $XX.XX an average price our level buyback below than XXX,XXX During recent year, well of

million to the years buybacks approximately value we past dividend, fiscal special two Over and between stockholders. $X.X a returned have in

profitability returning flows. historical cash to the our value of by predictability our consistency possible and commitment and is Our made

leader an have in and our business largest a moat undisputed and Today, unique addition, the protein diverse service our most certification and and the use our standards the of of give business. we which represents confidence investment largest the of we of year recent And price solutions. attractive is certifications, product capital. opportunity have that industry’s aspects around In the are and built good portfolio our portfolio in and we us component verification share

transparency this and and cash that then are transparency, generate continue that from the Given consumers our supply are grow we as reputationally providing financially as in producers food value going long long stockholders. benefit to we reward and as to to and advantage, chain competitive confident continue as

As we in have demonstrated consumer throughout the new to trends industry services are response and year, we to with innovate emerging demand. continuing

PaleoFLEX, progress made exclusive rolled January, out of popular time. Company deeply new In Diet. ESG the all first certification Cattle CARE is this tied to FishCARE PaleoFLEX, in introduction over to XXXX, to another solid across including more we called emerging expanded Paleo Legacy Lone certification America new initiative, our aquaculture became program customers Piedmontese And excited and Creek the we recently, be our our standard. certified customer engage program, in are the we Beef proteins, More about movement. in for as to service which North opportunity for the certified brand new adding and this forward body third-party the looking in standard

was and January, community. The well as the on across COVID-related terms in team to on the other in we Twitter closing as well early of we NASDAQ. exposure trip financial Square worth think Live celebration the financial Times Live. bell broadcast the Facebook and with was it uplisting New and gained And traveled York to we and media in live NASDAQ a our to event Tower Also, members of NASDAQ ring

joining the for today. thanks So on again us call

to I’ll with And that, open questions. Camilla? the call

Operator

Brown, [Operator question. your you. first Thank comes Private Chris from Our line the Instructions] Please a question Investor. of is who proceed with

Chris Brown

about me investment, to was just about going you. just took thought the it? you Can surprise. Bitcoin little behind ask Thank bit Thank a a your process bit by I little you. talk

John Saunders

as that questions were how us We and into to Comes And on ask really blockchain had don’t know part the Chris, been going going questions I was data company of most Bitcoin. – probably it’s us is we About a number the to this Yes. not as our cash utilizing for way Food the at related that blockchain in and opposed really, to an that being about to And or I to going – beginning calls going blockchain blockchain, a and prominent a craze the you’ve was they it the eliminate impact the of opportunity developed. to about relatively that long to over to if Food fielded the stored us which it were blockchain with that cryptocurrencies what cryptocurrency number grow. Sure. X our years. years related Trust, position we format. culminated a actually was were new of especially really the to IBM was be the have customers diversifying Where From, really, could on and or continue of small story the it something be ago,

at evaluating Bitcoin. it. I’ve lot a done looked So of We

think and asked larger determination potentially us actually we’ve companies us have was to own to our develop cryptocurrency. I – our had come that

really it. core doing to we accounting So the that business. the We really We understand was of principles, of thought was really, justified that was it a culmination Bitcoin. didn’t us going lot small that felt the amount only a purchasing to the of was be one that something there but

of. less of us to a were it as to really us ask cryptocurrency our of the some was customers any speculation was accounting potential it be ourselves of much that as kind So part positioning understand going into to

strategy. just So was positioning it It long-term wasn’t a really there.

Chris Brown

there. complete appreciate I the measured commend and and of I Because to a do different at in sense, color. opportunities things makes out kind your it’s luck. you. That looking openness think I – Thank different Good Thanks. manner,

Operator

question is Investor. with Please Thank who from is a you. [indiscernible], Josh next our your And proceed question. Private

Unidentified Analyst

have the a I efficient who of again your rare out as as micro-cap Hey, I with thank steward being longer-term vision. It’s very you trust to shareholders company capital you to conservative of you say guys just wanted And are. carry a think respectful that John, earns is that, and capital. to for

John Saunders

you. Thank

Operator

like are Instructions] questions at would over there [Operator this comments. no further closing for time, to to I the turn floor Saunders back John As

John Saunders

reemphasize starting maybe question want event what we’re a want for this the disease in are I been have talking excited ruling to I year. We really about we’ve to ADT. I support, again, us, you. of stuff a this is, a about think, we’d appreciate cattle commitment formalize. big U.S. your thank to your Well, that of about industry, the change do I and lot one figured and long-term to what traceability in related all animal

appreciate talk we you to support, will your appreciate and your soon. So we and we patience

Operator

teleconference. today’s concludes This

may time. You your disconnect have and you Thank at great day. participation, a lines this for your

Where Food Comes From (WFCF) 23 Feb 232022 Q4 Earnings call transcript