Where Food Comes From, Inc. (WFCF) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.05 million in the quarter, against a net profit of $0.15 million in the last year period.
Revenue during the quarter grew 8.75 percent to $3.03 million from $2.78 million in the previous year period. Gross margin for the quarter contracted 127 basis points over the previous year period to 42.53 percent. Operating margin for the quarter stood at negative 2.63 percent as compared to a positive 10.04 percent for the previous year period.
Operating loss for the quarter was $0.08 million, compared with an operating income of $0.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.33 million compared with $0.34 million in the prior year period. At the same time, adjusted EBITDA margin contracted 111 basis points in the quarter to 11.01 percent from 12.12 percent in the last year period.
"Where Food Comes From achieved another solid year of profitable growth, highlighted by double-digit increases in revenue, adjusted EBITDA and cash generation" all of which reached record highs in 2016," said John Saunders, chairman and chief executive officer. "We closed the year with a clean, strong balance sheet that included $3.2 million in cash, cash equivalents and short-term investments and had no long-term debt, and we are well positioned to continue capitalizing on organic and acquisitive expansion opportunities and extend our leadership position in this high growth industry."
Working capital declines
Where Food Comes From, Inc. has witnessed a decline in the working capital over the last year. It stood at $3.43 million as at Dec. 31, 2016, down 19.34 percent or $0.82 million from $4.25 million on Dec. 31, 2015. Current ratio was at 3.55 as on Dec. 31, 2016, down from 6.35 on Dec. 31, 2015.
Debt comes down
Where Food Comes From, Inc. has recorded a decline in total debt over the last one year. Total debt was 0.15 percent of total assets as on Dec. 31, 2016, compared with 0.27 percent on Dec. 31, 2015.
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