CASTLE ROCK, CO--(Marketwired - Feb 17, 2015) - Where Food Comes From, Inc. (OTCQB: WFCF)

Full Year revenue up 51% to $8.8 million from $5.8 million last year

Fourth quarter revenue up 41% to $2.6 million from $1.9 million last year

Net income of $64,000 in fourth quarter and $229,000 for full year

Net cash generated from operations up 172% to $590,000 from $217,000

Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), the most trusted resource for third-party verification of food production practices, today announced results for its fourth quarter and full year ended December 31, 2014.

"In 2014, Where Food Comes From achieved strong year-over-year revenue and earnings growth and extended its leadership position in an industry that is still in its infancy," said John Saunders. "Solid growth in our core services and hardware businesses was driven by diverse factors ranging from an increase in the number of consumer-driven verification standards to continued execution of our M&A strategy to initial phase-in of the USDA's mandatory Animal Disease Traceability (ADT) program.

"Over the past several years we have positioned Where Food Comes From as the go-to company for more than 30 verification standards for food industry players ranging from farmers, ranchers and packers to distributors and retailers -- all of which are working hard to meet consumer and regulatory demand for increased transparency in the entire food chain continuum. We look forward to continued growth in 2015 as demand for our core solutions continues to grow and new opportunities such as ADT gain momentum."

Fourth Quarter Results
Fourth quarter revenue increased 41% to $2,614,300 from revenue of $1,856,300 in the same quarter last year. Verification services revenue was up 40% to $2,307,500 from $1,643,000. Product revenue (cattle identification tags) increased 67% to $299,700 from $179,200. Other revenue, primarily associated with the Company's Where Food Comes From® labeling program, decreased 79% to $7,200 from $34,000 year over year. Increased verification and hardware revenue resulted from a combination of organic growth -- driven in part by initial compliance with the USDA's animal disease traceability (ADT) program -- and the effects of the Company's M&A strategy. The reduction in labeling revenue resulted from a change in the beef supplier for the Company's largest labeling customer -- Heinen's fine foods. Heinen's is working to replace that supplier with another supplier whose products can be source verified by Where Food Comes From. In the meantime, the Company continues to generate labeling revenue from other products in the Heinen's meat department.

Gross profit in the fourth quarter increased 43% to $1,141,500 from $798,400 year over year. Selling, general and administrative expenses as a percent of revenue improved to 39% in the fourth quarter from 42% in the same quarter last year.

Operating income in the fourth quarter increased four-fold to $127,700 from $25,300 in the same quarter last year. Net income attributable to Where Food Comes From, Inc. increased to $64,200, or less than one cent per share, compared with a net loss of $11,300, or less than one cent per share, in the same quarter a year ago.

Full Year Results
Revenue for the full year increased 51% to $8,764,900 from $5,798,200 in the same period last year. Verification revenue increased 53% to $7,564,600 from $4,947,400 year over year. Hardware revenue increased 50% to $1,085,700 from $723,400 a year ago. Revenue from Where Food Comes From® labeling decreased 10% to $114,700 from $127,300.

Gross profit for the year increased 39% to $3,763,300 from $2,706,400 a year ago. Selling, general and administrative expense improved to 39% of revenue from 46% of revenue a year ago, reflecting the scalability of the Company's business model.

Operating income increased to $344,700 from $27,300 year over year. Net income attributable to Where Food Comes From, Inc. was $229,095, or $0.01 per share, versus a net loss of $33,600, or less than one cent per share, in the prior year.

Net cash generated from operations increased 172% to $590,000 from $216,900 in the same period last year.

Balance Sheet
The Company's cash balance at December 31, 2014, increased to $2,583,100 from $1,067,500 at 2013 year-end. Working capital increased to $3,380,700 from $1,533,600 over the same period.

Conference Call
The Company will conduct a conference call today at 10:00 a.m. Mountain Time.

Dial in:
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference ID: 13601280

Phone replay:
A telephone replay of the conference call will be available through March 3, 2015, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13601280

About Where Food Comes From, Inc.
Where Food Comes From, Inc. (d.b.a. IMI Global) is America's trusted resource for third party verification of food production practices. The Company supports more than 10,000 farmers, ranchers, processors, retailers, distributors and restaurants with a wide variety of value-added services through its IMI Global, International Certification Services, Validus Verification Services, and Sterling Solutions units. In addition, the Company's Where Food Comes From® retail and restaurant labeling program utilizes the verification of product attributes to connect consumers to the sources of the food they purchase through product labeling and web-based information sharing and education. Go to 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 industry leadership; expectations for continued profitable growth; 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 fourth quarter and full year 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.

Where Food Comes From, Inc.
Statements of Income (Loss)
(Unaudited)
				Three Months Ended								Year Ended
				December 31,								December 31,
				2014				2013				2014				2013
				(Note 1)
Revenues
	Service revenue			$	2,307,457			$	1,642,982			$	7,564,585			$	4,947,430
	Product sales				299,662				179,237				1,085,671				723,449
	Other revenue				7,189				34,043				114,676				127,277
		Total revenue			2,614,308				1,856,262				8,764,932				5,798,156
Costs of revenue
	Labor and other costs of services				1,282,104				934,788				4,283,218				2,572,538
	Costs of products				190,708				123,057				718,410				519,221
		Total costs of revenue			1,472,812				1,057,845				5,001,628				3,091,759
Gross profit					1,141,496				798,417				3,763,304				2,706,397
Selling, general and administrative expenses					1,013,802				773,156				3,418,578				2,679,089
Income from operations					127,694				25,261				344,726				27,308
Other expense (income):
	Interest expense				493				3,716				9,818				33,588
	Other income, net				(1,221	)			(354	)			(3,204	)			(1,469	)
Income (loss) before income taxes					128,422				21,899				338,112				(4,811	)
Income tax expense (benefit)					43,744				10,451				140,876				(1,778	)
Net income (loss)					84,678				11,448				197,236				(3,033	)
Net loss (income) attributable to non-controlling interest					(20,481	)			(22,764	)			31,859				(30,527	)
Net income (loss) attributable to Where Food Comes From, Inc.				$	64,197			$	(11,316	)		$	229,095			$	(33,560	)
Net income (loss) per share:
	Basic			$	*			$	*			$	0.01			$	*
	Diluted			$	*			$	*			$	0.01			$	*
Weighted average number of common shares outstanding:
Basic					21,243,745				20,852,052				23,170,074				21,893,794
Diluted					21,868,596				20,880,391				23,400,068				21,893,794

* Less than a penny ($0.01) per share

Note 1: Certain revenue and cost of revenue amounts presented in prior 2014 quarters and 2013 have been reclassified to conform to fourth quarter 2014 presentation.

Where Food Comes From, Inc.
Balance Sheets
				December 31,				December 31,
				2014				2013
ASSETS
Current Assets:
	Cash			$	2,583,058			$	1,067,537
	Restricted cash				250,000				-
	Accounts receivable, net				979,532				683,800
	Prepaid expenses and other current assets				126,938				143,576
	Deferred tax assets				167,805				190,184
		Total current assets			4,107,333				2,085,097
Property and equipment, net					231,886				253,206
Intangible and other assets, net					1,952,678				1,716,115
Goodwill					1,279,762				1,279,762
Long-term deferred tax assets					361,797				480,294
Total assets				$	7,933,456			$	5,814,474
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	401,131			$	277,633
	Accrued expenses and other current liabilities				65,849				56,091
	Customer deposits				69,090				39,134
	Deferred revenue				178,724				149,660
	Short-term debt and current portion of notes payable				7,425				24,782
	Current portion of capital lease obligations				4,397				4,173
		Total current liabilities			726,616				551,473
Capital lease obligations, net of current portion					6,410				10,808
Notes payable and other long-term debt, net					16,245				165,755
Total liabilities					749,271				728,036
Contingently redeemable non-controlling interest					974,019				1,018,396
Stockholders' equity:
	Common stock				24,266				23,233
	Additional paid-in capital				7,428,754				5,216,327
	Treasury stock				(150,849	)			(150,849	)
	Accumulated deficit				(1,092,005	)			(1,321,100	)
	Total Where Food Comes From, Inc. equity				6,210,166				3,767,611
	Non-controlling interest				-				300,431
Total Equity					6,210,166				4,068,042
Total liabilities and stockholders' equity				$	7,933,456			$	5,814,474