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Where Food Comes From, Inc. Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado OTCQB: WFCF October 2017

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Page 1: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhereFoodComesFrom,Inc.

WhereFoodComesFrom,Inc.

D.B.A.IMIGlobal,Inc.

Headquarters:CastleRock,Colorado

OTCQB:WFCF

October2017

Page 2: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

Forward-LookingStatementsandUseofNon-GAAPMeasures

Thispresentationcontains"forward-lookingstatements"withinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995,basedoncurrentexpectations,estimatesandprojectionsthataresubjecttorisk.Forward-lookingstatementsareinherentlyuncertain,andactualeventscoulddiffermateriallyfromtheCompany’spredictions.ImportantfactorsthatcouldcauseactualeventstovaryfrompredictionsincludethosediscussedinourSECfilings.Specifically,statementsinthispresentationaboutfinancialperformance,newbusinessdevelopment,growthpotential,marketleadership,andtheimpactandpotentialoftheCompany’sproductsandservicesonthemarketplaceandcustomersareforward-lookingstatementsthataresubjecttoavarietyoffactors,includingavailabilityofcapital,personnelandotherresources;competition,governmentalregulationofthebeefindustry,themarketforbeefandotherfactors.Readersshouldnotplaceunduerelianceontheseforward-lookingstatements.TheCompanyassumesnoobligationtoupdateitsforward-lookingstatementstoreflectnewinformationordevelopments.ForamoreextensivediscussionoftheCompany’sbusiness,pleaserefertotheCompany’sSECfilingsatwww.sec.gov.Noteonnon-GAAPFinancialMeasuresThis presentation also includes a discussion of adjusted EBITDA, which is a non-GAAP financial measureprovided as a complement to the results provided in accordance with generally accepted accounting principles("GAAP"). Adjusted EBITDA excludes stock-based compensation and, when appropriate, other items thatmanagement does not utilize in assessing the Company's operating performance. None of these non-GAAPfinancial measures are recognized terms under GAAP and do not purport to be an alternative to net income asan indicator of operating performance or any other GAAP measure. We intend to continue to provide thesenon-GAAP financial measures as part of our future earnings discussions because we believe they are useful toinvestors and other external users of our financial statements in evaluating our operating performance.

Page 3: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

HowBigistheTrend?

“I’veneverseenastrongerdesirefor(consumers)knowingwheretheirfoodiscomingfrom…” -- WholeFoodsCEOWalterRobb

“Ourcustomerswanttoknowmoreabouthowtheirfoodisgrownandraised,andwhereitcomesfrom. Walmart iscommittedtousingourstrengthstodrivetransparencyandimprovementacrossthesupplychain….helpingtoputourcustomersinchargeoftheirfoodchoicesbyprovidingclear,accurateinformationaboutfoodingredients.-- KathleenMcLaughlin,Walmart VP,Sustainability

“Wearechangingthewaywesourceandservefoodinourrestaurants.WehaveanimportantroleinhelpingbuildamoresustainablefoodsystemgloballythroughinitiativessuchasthesustainablebeefpilotinCanadaandwe’recommittedtocontinuingthisimportantworkaroundtheworld.”-- SteveEasterbrook,presidentandCEO,McDonald’sCorporation

“Thebeefindustryrecognizesthatconsumersaremoreinterestedinwheretheirfoodcomesfromandtheywanttotellthestory.”-- DerekSchoonbaert,managingdirector,CargillCanada

Page 4: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

CompanyOverview• #1providerofindependent,third-partytraceabilityand

verificationoffoodproductionpractices• Collectandleverageinformationonwhen,where,how

andbywhomfoodwasraised• 12,000+customers:farmers,ranchers,vineyards,

wineries,processors,handlers,retailers,distributors,tradeassociationsandrestaurants

• Customersincludetoptierplayersinfoodandwinespace• Recurringrevenuemodelgeneratingstrongcashflowsto

supportprofitableorganicgrowthandfundM&A• Addressablemarket$200M*andgrowing<5%ofrevenue

*Estimate based on available industry data

Page 5: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

VerificationServices

CommodityGroupCoverage StandardsWeaudittomorethan30standards,includingOrganic,Non-GMO,GlutenFree,SafeQualityFood,ProtectedHarvest,AmericanHumaneCertified™,Sustainability,andmanyothers

Beef Dairy BeesPork Winegrapes HoneyPoultry Nuts SeaweedLamb Mushrooms EggsBison Avocados CutflowersCoffee CitrusFruit StoneFruit

Page 6: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

CompetitiveAdvantage:BundledServices

DifferentialcompetitiveadvantageofbundledservicesmadepossiblebyM&Aactivity&largestportfolioofauditingstandards

• 30%ofnewcustomerwinsduetobenefitsofbundledservices

• Multipleauditsconductedinsinglevisit• Eliminatesauditfatigueandsimplifiesprocess• Lowerscoststoproducersandprocessers• ImprovesWFCFgrossmargins

• Organic/non-GMOismostpopularbundledaudit

Page 7: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

TheWFCFBundlingAdvantage

NSF

Food Chain

CCOF

QAI

Oregon TilthEarth Claims

MLA

WFCF

Page 8: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhereFoodComesFromSourceVerified®

Howitworks:PackagedisplaysWhereFoodComesFromSourceVerified®labelindicatingproduct’soriginhasbeenverifiedbyanindependentthirdparty.MayincludeaQRcodeforconsumertoaccessinformationonpracticesusedbythefamiliesthatraisedthefood.

RevenueModel:• Non-exclusivefooddistributorsorretailerspay

perpoundroyalties,licensefees,servicefees.• Exclusiveverificationcustomersdisplaylabelfor

noadditionalcost.

300+ grocery stores and food distributors nationally carry product displaying aWhere Food Comes From Source Verified® label.

Page 9: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

OurCustomers

Page 10: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

CustomerCaseStudy

Customersince2014

McDonald’shastakenaleadershiproleintheareaofsustainablepracticesforbeefproducers

• In2015and2016WFCFdesignedandimplementedtheMcDonald’spilotprogramforsustainablebeefinCanada

• WFCFwastheexclusiveprovideronthisprogram• Conducted183on-siteauditsofCanadianbeefsupplierswhoarenow

compliantwithMcDonald’ssustainabilityrequirements• Tracked9,000headofcattle=2.4millionhamburgers• CanadianRoundtableforSustainableBeefevaluatingresultstodetermine

pathforward

Page 11: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

CustomerCaseStudy

Customersince2008WholeFoodsMarket(WFM)isaleadingadvocateforfoodtransparency• WFMrequiresitsproteinsupplierstocomplywithGlobalAnimalPartnership

(GAP)standardsaroundhumanehandling• WFCFisthelargestandoneofonlytwocertifiedprovidersofGAPaudits

nationwideforWFMsuppliersofbeef,chicken,porkandlamb• PineManorFarms®chickenproductsnowbearWFCFlabelonpackaging• WFCFnowbundlingnon-GMOandOrganiccertificationsforWFMsupply

chain• Stickycustomerrelationship

Page 12: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

CustomerCaseStudy

Customersince2005Tysonisworld’slargestmeatpackerwith$41Binrevenue

• Industryleaderinphilanthropy,foodsafety,animalwelfare,sustainability

• Long-termcustomerrelationshipisconstantlyexpanding• VerificationsforTyson’sNaturalandOrganicbeef,pork,

poultry• NHTCsourceandageverificationsforEurope• TysonFarmCheck™isWFCFexclusive

Page 13: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhyWFCFintheFuture?MarketDrivers

Growthstrategysupportedbylong-termtrends• Consumerdemandfortransparencyduetofoodsafetyissues• Increasingconsumerinterestinknowingwheretheirfoodcomesfromand

whoraisedit• Producers,packers,distributorsandretailersviewverification,

identificationandtraceabilityaskeycompetitivedifferentiators• FoodscandalsdriveQSRandretailersforward• Newtechnologies:RFID,GPS,drones• USDA’sAnimalDiseaseTraceability(ADT):MandatoryIDin5-10years• Keyexportmarketsrequireverification:EU,SaudiArabia,China

Page 14: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

AbilitytoQuicklyRespondtoNewMarketOpportunities

BeefExportstothePeople’sRepublicofChinabeginning2017

ChinapublisheditsofficialExportVerification(EV)ProgramrequirementsonJune12,2017

• IMIGlobalisanapprovedProcessVerifiedProgramwiththeUSDAallowingallIMIGlobalUSDAcertifiedcustomerstheoptiontoexporttoChina

• CattlemustbetraceablefrombirthusingaProgramComplianceTag(PCT)suchasourIMIEIDsorSterlingSolutionstags

• AllbeefexportstothePeople’sRepublicofChinawillbetestedforgrowthhormonesandbeta-agnosticsuponarrival– WFCFprovidesNHTCandVNBprogramswhichensurescomplianceandcontinuedmarketaccessinthistypeofdestinationtestingenvironment

Page 15: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhereDidNon-GMOComeFrom?TheNon-GMOOpportunity

GMO– GeneticallyModifiedOrganisms• Non-GMOProjectislargestindustrygroup• Majority(32)ofUSstateshaveGMOballotinitiatives• Vermontfirststatetomandatenon-GMOlabelingin2016• WholeFoodscommittedtomandatoryGMOlabelingby2018• WhereFoodComesFromisoneofonlyfournon-GMO

approvedauditorsnationally

Page 16: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

M&AActivityAcquisition Year CommodityGroups Certifications

ICS 2012 Grain,dairy,beef, pork,tobacco Organic,Glutenfree,Non-GMO

Validus 2013 Pork, poultry,dairy Animalwelfare,sustainability

MicroTechnologies 2013 Beef Source &Age,NHTC

Merck(Tri-Merit) 2014 Beef,dairy Source&Age

SterlingSolutions 2014 Beef,dairy Source&Age,NHTC,BQA

SureHarvest 2016 Highvaluespecialtycrops– winegrapes,almonds,hazelnuts,cutflowers,freshproduce

Sustainability

ABeeOrganic 2017 Crops,bees,chickens,honey,eggs,coffee,herbalblends

National OrganicProgram

M&A strategy designed to add new auditing standards, food group coverage and technology to further differentiate the Company from its competition.

Page 17: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

SureHarvest AcquisitionDecember2016

Highlights• ExpandsanddiversifiesWFCF’scommodityreachwithhighvaluespecialty

crops,includingwinegrapes,almonds,hazelnuts,mushrooms,cutflowers,leafygreensandotherfreshproduce

• SureHarvest’s patentedsustainabilitysoftwaresupportsmorethan2,200agri-foodoperations,includinggrowers,packers,shippers,processors,wineriesandtradeassociations

• SaaS businessmodelbundlesannualsoftwaresubscriptionswithprofessionalservicestoprovidepredictable,recurringrevenue

• SureHarvest bringsfiveissuedpatents,eight2016patentallowancesandthreependingapplications

Page 18: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

SureHarvest AcquisitionDecember2016

SureHarvest SolutionsOverview

ServicesandProductsSustainableSourcing

SustainabilityProgramsDiffusionofInnovation

CertificationManagementVerificationServices

ComplianceManagementFarmingInformationManagement

FoodChainCustomersGrowersWineries

PackersandShippersDistributors

FoodProcessorsRetailersandFoodservice

TradeAssociations

SustainabilityandfarmingMISsolutions,certificationandcompliancemanagement,andprofessionalservicesdrivesustainablevaluecreationforcustomersthroughoutthefoodandagriculturevaluechain.

FlagshipSustainabilityManagementInformationSystem(SMIS)supportsagri-foodoperationsmanaging450,000acresofspecialtycropscoveringmultiplecommoditiesandmorethan65%ofthewineproducedinCalifornia.

Page 19: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

ABeeOrganicAcquisitionMay2017

TransactionSummary• WhereFoodComesFromacquired100%ofABeeOrganic,

adding125newcustomers• ThetransactionhasintroducedWFCFtotheemergingniche

industryofhydroponicandaquaponic farming• ABeehydroponic/aquaponic certificationcustomersrangefrom

theU.S.totheUnitedArabEmirates.• TheNOPcertificationtobeekeepersandprocessorsinEastern

EuropeandIndonesiafacilitatestheirexportofhoneytotheWest

• ThetransactionalsobringsWFCFintothemarketforpersonalorganicproductssuchasbodylotionsandbugsprays

Page 20: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

RevenueGrowth

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$4M

$6M$5.8M

$8.8M

$10.4M

$12M

$1.1M$1.7M

$2.4M$2.7M

$3.3M $4.2M

$2M

Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in 2008.

$5.3M

$8M

$10M

26% compounded annual growth rate

$11.6M

Page 21: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

GrossProfit

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$2M

$4M

$5.4M

$.7M$1.2M $1.3M $1.3M

$1.8M$2.3M

$1M

$2.8M$3M $2.7M

$3.8M

$4.9M$5M

$6M

Page 22: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

NetIncome

$1M

‘06 ‘07

‘08

‘09

‘10 ‘11

‘13

$33,600

$229,100

‘14 ‘15

$533,900

’16

$433,200

$1,533,364

$759,600

$149,700

$153,200

$327,800

$864,500

$0

$1M

$870,400

‘12

Page 23: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

SG&Aas%ofRevenue

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

200%

46%

192%

117%

60% 55% 44% 40%

150%

100%

50% 45% 39% 39%

Scalable business model

41%

Page 24: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

AdjustedEBITDA

$1M

‘06 ‘07 ‘08

‘09 ‘10 ‘11 ‘13

$433,100

$870,100

‘14 ‘15

$1,207,600

’16

$1,365,200

$1,116,700

$612,900

$66,300

$140,000

$443,000

$757,700

$0

$1M

$705,900

‘12

Page 25: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

Year-to-DateFinancialHighlights

IncomeStatement• 6-monthrevenueup25%yearoveryear• 6-monthnetincomedown31%yearoveryear• 6-monthadjustedEBITDAup31%yearoveryearBalancesheet• Workingcapital:$3,614,900• Cash:$3,828,800• Longtermdebt:- 0-• Stockholders’equity:$9,799,600

Page 26: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

SelectedStockData• Traded– OTCQB:WFCF• 52weekstockpricerange– $1.83- $2.69• Averagedailytradingvolume– 14,050• Commonsharesoutstanding– 24,958,434• Approx.management/boardownership– 14,800,000• MarketCap– $62,000,000• Fiscalyear– December31

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 October 2017.

Page 27: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhyInvestinWFCF?InvestmentCase

① WFCFisonlypublicplayerinfoodverificationandtraceability② Consumerdemandfor,andgovernmentinterestin,

transparencyinthefoodchainatanall-timehigh③ Companyexecutingonstrategytobeone-stop-shopforall

certificationstandardsinallfoodgroups④ Highprofilecustomers’relianceonWFCFatestamentto

uniquenessandstrengthofourserviceofferings⑤ Scalablerecurringrevenuemodelwithlarge,growingcustomer

basepositionsWFCFforlong-termprofitablegrowth⑥ Wellcapitalized,tightsharestructure,strongmanagementteam

andboardthatownssignificantstakeinCompany

Page 28: Where Food Comes From, Inc.wherefoodcomesfrom.com/.../2017/10/WFCF-October-2017.pdf · practices used by the families that raised the food. Revenue Model: • Non-exclusive food distributors

WhereFoodComesFrom

For more information, contact:

Pfeiffer High Investor Relations, Inc.Jay Pfeiffer

303-880-9000 or [email protected]