WFCF $1.54.. I don't know what I'm missing here but this stock seems very expensive..
Integrated Management Information (IMI Global) Reports Continued Profitable Growth for Third Quarter and Nine-Month Period
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.
CASTLE ROCK, CO -- (Marketwire) -- 11/05/12 -- Integrated Management Information, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF)
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
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, chairman and CEO of IMI Global. "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 www.IMIGlobal.com and www.wherefoodcomesfrom.com for additional information.
CAUTIONARY STATEMENT
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 www.sec.gov.
Integrated Management Information, Inc.
Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues
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
------------- -------------
ASSETS
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
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
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
============= =============
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
Source: Integrated Management Information (IMI Global)
