Where Food Comes From, Inc. · NASDAQ:WFCF
Where Food Comes From — Investor Presentation (July 2013)
27 slides from Where Food Comes From's investor presentation, July 2013
Slide 1: Where Food Comes From, Inc. Investor Presentation
Where Food Comes From, Inc. Investor Presentation Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado Trading symbol: OTCQB: WFCF
Slide 2: Forward-Looking Statements
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,
Slide 3: Overview
Overview • U.S. leader in third-party identification, verification and traceability solutions for livestock and agricultural industries • USDA approved programs enable beef exports and bring premiums at livestock auctions • Where Food Comes From® program – tremendous upside • M&A opportunities in hi
Slide 4: Industry Leadership
Industry Leadership • Where Food Comes From is recognized as one of the first companies to establish a proven model for providing third-party certification services to the food and agricultural industries • Supports 6,000+ ranchers & feed yards, all major national meatpackers and several high end re
Slide 5: Core Verification Services
Core Verification Services • USVerified™ source and age verification – USDA approved program addresses country of origin labeling and overseas export requirements • Non-Hormone Treated Cattle (NHTC) verification – USDA approved program verifies hormone free claims and qualify cattle for export to Eu
Slide 6: Recurring Revenue Sources
Recurring Revenue Sources • Verification Services – Auditing and program fees from ranches, feed yards, meat packers and sale barns – Consulting fees related to establishment of PVP and QSA programs – Animal Identification Devices – ear tags • Supply Chain Coordination – Per head fees associated wit
Slide 7: Competitive Advantages
Competitive Advantages • Broadest vertical solutions offering in industry with high barriers to entry • Proprietary web-based applications, protocols and procedures • Flagship USVerified™ solution is the industry standard • Large installed base – 6,000+ customers • High customer retention rate – val
Slide 8: WFCF Customers
WFCF Customers • Customers include retailers, restaurants, food distributors, meatpackers, feed yards and auction barns • The company also provides products and services to more than 6,000 farms and ranches
Slide 9: High Customer Retention
High Customer Retention Total Customers 90% plus 7000 retention rate for USDA Process 6000 Verified Programs 5000 4000 New Customers 3000 Repeat Customers 2000 1000 0 2005 2006 2007 2008 2009 2010 2011
Slide 10: Market Opportunity - Core Solutions
Market Opportunity - Core Solutions The revenue opportunity for independent third-party verification, identification and traceability solutions is supported by long-term trends • Mandatory verification, identification and traceability for key export markets - Japan, Korea, Russia and the European Un
Slide 11: Where Food Comes From®
Where Food Comes From® Our Where Food Comes From program extends our services downstream to include national food distributors, retailers and restaurants and holds potential for exponential growth Consumers using smart phones get fast access to source information of products they purchase WFCF produ
Slide 12: Where Food Comes From®
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
Slide 13: Heinen's Supermarket
Heinen’s Supermarket Market research highlights: • 94.5% of respondents reacted positively to WFCF labeling • 51% of respondents “definitely more likely” to purchase product with WFCF brand
Slide 14: Anderson's Frozen Custard
Anderson’s Frozen Custard Anderson’s Frozen Custard becomes first regional restaurant chain to adopt Where Food Comes From • May 2012 rollout in 7 restaurants • Patrons can access information on select farms and families that raised Anderson’s all natural beef
Slide 15: Delmonico's Steak House - NY
Delmonico’s Steak House - NY NY’s oldest steakhouse and one of America’s most renowned restaurants adopts Where Food Comes From • July 2012 rollout in flagship NY location • Menus carry QR code that connects patrons with farms/families that raise premium beef
Slide 16: Business Strategy
Business Strategy Our strategy is to be the leading provider of third-party verification, identification and traceability solutions to the food and agriculture industries • Solutions for all players in the food supply chain continuum, including feed and input providers, ranchers, producers, packers,
Slide 17: International Certification Services
International Certification Services In Q1 2012 Where Food Comes From purchased 60% of the outstanding shares of International Certification Services (ICS) – a leader in organic and gluten free certification Terms: $350,000 cash, 172,840 shares of WFCF common stock; non-dilution provisions; right of
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights • Working capital of $1.7 million • Cash/cash equivalents & short-term investments of $1.5 million • Stockholders’ equity of $2.6 million As of March 31, 2013.
Slide 19: Revenue Growth
Revenue Growth 30% CAGR since 2006 $6M $5.3M $5M $4.2M $4M $3.3M $3M $2.7M $2.4M $2M $1.7 $1.1M M $1M 2006 2007 2008 2009 2010 2011 2012 Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were di
Slide 20: Gross Profit
Gross Profit $3.0M $2.8M $2.3M $2.0M $1.8M $1.3M $1.3M $1.2M $1.0M $.7M 2006 2007 2008 2009 2010 2011 2012
Slide 21: SG&A as % of Revenue
SG&A as % of Revenue 200% 192% 150% 117% 100% 60% 55% 50% 44% 40% 45% 2006 2007 2008 2009 2010 2011 2012
Slide 22: Adjusted EBITDA
Adjusted EBITDA $1.0M $737,800 $601,700 $442,900 $112,300 2006 2007 2008 $0 2009 2010 2011 2012 $67,700 $654,200 $1.0M $1,470,000
Slide 23: Management Team
Management Team John Saunders Chief Executive Officer and Chairman of the Board • Founded IMI Global in 1995; deep background in livestock/agricultural industry • BA History, BS Environmental Studies – Yale University Leann Saunders President • BS Agriculture Business, MS Beef Industry Leadership –
Slide 24: Management Team
Management Team Cara Gerken Vice President Quality • USDA, National Livestock Grading and Marketing Association • Safe Quality Foods (SFQ) Accreditation, BS Animal Science – Kansas State University • MS Food Science – Oklahoma State University Doug Stanton Vice President USVerified and NHTC Programs
Slide 25: Board of Directors
Board of Directors John Saunders - Chairman of the Board Leann Saunders - President Dr. Gary Smith, PhD • Dept. of Animal Science, Colorado State Univ. – Ken & Myra Monfort endowed chair, meat science • PhD Meat Science & Muscle Biology, Texas A&M; Professor, Washington State Univ. & Texas A&M • Ins
Slide 26: Advisors
Advisors Independent Auditors GHP Horwath, P.C. Strategic Advisory Counsel Silvergrove Advisors LLC Investor Relations Counsel Pfeiffer High Investor Relations, Inc.
Slide 27: Selected Stock Data
Selected Stock Data • Traded – OTCQB-WFCF • 52 week stock price range – $0.13 - $1.65 • Average daily trading volume – 24,200 • Common shares outstanding – 21,587,765 • Management/board ownership – 11,500,000 • Approximate float – 10,100,000 • Market Cap – $30 million • Fiscal year – December 31 Not
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