Where Food Comes From (WFCF) has reported 23.87 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $0.22 million, or $0.01 a share in the quarter, compared with $0.18 million, or $0.01 a share for the same period last year.
Revenue during the quarter grew 9.54 percent to $3.34 million from $3.05 million in the previous year period. Gross margin for the quarter contracted 39 basis points over the previous year period to 47.89 percent. Total expenses were 89.19 percent of quarterly revenues, down from 90.10 percent for the same period last year. This has led to an improvement of 91 basis points in operating margin to 10.81 percent.
Operating income for the quarter was $0.36 million, compared with $0.30 million in the previous year period.
“Where Food Comes From continues to achieve double-digit, year-over-year revenue and earnings growth and to generate solid cash flows from operations," said John Saunders, chairman and chief executive officer. "Our strategy of positioning the Company as a single-source provider of multiple, complementary verification solutions across a variety of commodities is paying dividends in the form of new customer wins and a widening moat around the business. Our unique ability to offer customers the convenience and cost savings of bundled services represents a critically important competitive advantage for us. Going forward, we intend to build on that advantage through a combination of organic initiatives and M&A activity designed to add new verification standards and commodity coverage and to expand our geographic footprint."
Working capital increasesWhere Food Comes From has recorded an increase in the working capital over the last year. It stood at $4.53 million as at Sep. 30, 2016, up 5.40 percent or $0.23 million from $4.29 million on Sep. 30, 2015. Current ratio was at 4.42 as on Sep. 30, 2016, down from 4.72 on Sep. 30, 2015. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.
At the same time, days payable outstanding went down to 24 days for the quarter from 30 for the same period last year.
Debt comes downWhere Food Comes From has recorded a decline in total debt over the last one year. Total debt was 0.22 percent of total assets as on Sep. 30, 2016, compared with 0.29 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 557.18 for the quarter from 795.52 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
