SOURCE: Integrated Management Information (IMI Global)

Integrated Management Information (IMI Global)

August 01, 2012 07:00 ET

Integrated Management Information (IMI Global) Reports Second Quarter and Six-Month Revenue and Net Income*

CASTLE ROCK, CO--(Marketwire - Aug 1, 2012) -  Integrated Management Information, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF) (OTCBB: WFCF)

Q2 revenue up 24% to a record $1.4 million from $1.1 million

Q2 net income* increases to $304,300 from $276,900

6-month revenue up 25% to a record $2.4 million from $1.9 million

6-month net income* increases to $666,400 from $354,400

Integrated Management Information, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF) (OTCBB: 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 net income for its second quarter and six-month period ended June 30, 2012.

"We continue to generate positive financial results and maintain a strong balance sheet, and are looking forward to continued success in the second half of the year," said John Saunders, chairman and CEO of IMI Global. "Our consistent growth is a testament to the strength of our broad solutions portfolio and the hard work and commitment of employees and contractors at all levels of our organization. In addition to our solid financial performance, our second quarter was highlighted by the addition of the Company's first regional restaurant chain -- Anderson's Frozen Custard in western New York -- to our Where Food Comes From program. We now have anchor customers in both the restaurant and grocery segments and are focused on adding new, quality customers in both areas. Also of note in the second quarter, we changed our stock symbol to WFCF to better reflect our Where Food Comes From brand strategy and to raise awareness of Company in the investment community."

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. On an unaudited basis, ICS was profitable on revenue of approximately $1.0 million in 2011. The acquisition strengthened IMI Global's solutions portfolio and is expected to accelerate the Company's revenue growth. The Company will continue to evaluate opportunities to acquire complementary businesses.

Second Quarter Results
Second quarter revenue increased 24% to a record $1,397,200 from revenue of $1,125,500 in the second quarter a year ago. It was the Company's 10th consecutive quarter of year-over-year revenue growth. Revenue from verification services, which includes the Company's industry leading USVerified™ solutions, increased 25% to $1,172,200 from $938,300 in the second quarter last year. Hardware revenue consisting primarily of cattle identification tags increased 8% in the second quarter to $200,300 from $186,000 in the same quarter last year. Other revenue, primarily consisting of fees from the Where Food Comes From labeling program, grew to $24,700 in the second quarter from $1,100 in the same quarter last year.

Gross margin in the second quarter increased to $756,000 from $677,200 in the same quarter last year. As a percent of revenue, second quarter gross margin declined to 54% from 60% year over year.

Selling, general and administrative expense in the second quarter increased 48% year over year to $581,400 from $393,500 due to increased investments in promoting the Where Food Comes From program as well as costs associated with the Company's acquisition of controlling interest in ICS in the first quarter of 2012.

IMI Global recognized a second quarter income tax benefit of $127,400 related to the release of the valuation allowance on its deferred tax assets. Net income attributable to IMI Global in the second quarter was $304,300, or $0.01 per share, versus net income of $276,900, or $0.01 per share, in the same quarter last year.

Six-Month Results
Revenue for the six-month period ended June 30, 2012, increased 25% to a record $2,426,500 from $1,947,300 in the same period last year based on strong market demand for the Company's core verification solutions as well as a growing contribution to revenue from Where Food Comes From and ICS.

Verification revenue grew by 25% to $2,018,100 from $1,620,300 in the same period last year. Hardware revenue grew 11% to $357,200 from $323,000 a year ago. And revenue from Where Food Comes From and other sources increased dramatically to $51,200 from $4,000.

Gross margin through six months grew to 1,326,900, or 55% of revenue, from gross margin of $1,129,300, or 58% of revenue, in the same period of 2011.

Selling, general and administrative expense increased 41% for the year-to-date period to $1,069,500 from $760,500, primarily as a result of increased advertising, marketing and consulting costs associated with promoting Where Food Comes From.

Net income through six months, inclusive of an income tax benefit of $409,500, was $666,400, or $0.03 per share, versus net income of $354,400, or $0.02 per share, in the same period a year ago.

Balance Sheet Highlights
Cash and cash equivalents and short-term investments at June 30, 2012, totaled $1.2 million, down only slightly from $1.3 million at 2011 year-end despite the Company having paid $215,000 in cash associated with the ICS transaction and having paid down $50,000 in long-term debt.

*References to net income in the text of this news release refer to net income attributable to IMI Global stockholders, which includes significant income tax benefits for the 2012 second quarter and six-month period.

About IMI Global
Integrated Management Information, 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, 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; and Where Food Comes From®, a unique retail and restaurant labeling program that connects consumers directly to the source of the food they purchase. 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, expected acceleration of revenue growth, ICS' revenue and profitability, the Company's ability to achieve continued success, generate positive financial results, maintain a strong balance sheet, and build shareholder value; 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 second quarter and six-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   Six Months Ended  
  June 30,   June 30,  
  2012   2011   2012   2011  
                         
Revenues                        
  Service revenues $ 1,172,224   $ 938,315   $ 2,018,051   $ 1,620,291  
  Product sales   200,282     186,024     357,236     322,996  
  Other revenues   24,676     1,133     51,179     4,004  
    Total revenues   1,397,182     1,125,472     2,426,466     1,947,291  
Costs of revenues                        
  Labor and other costs of services   488,684     313,691     844,137     590,625  
  Costs of products   152,545     134,583     255,417     227,396  
    Total costs of revenue   641,229     448,274     1,099,554     818,021  
Gross profit   755,953     677,198     1,326,912     1,129,270  
Selling, general and administrative expenses   581,369     393,475     1,069,506     760,482  
Income from operations   174,584     283,723     257,406     368,788  
Other expense (income):                        
  Interest expense   5,821     7,244     13,693     15,449  
  Gain on sale of marketable securities   (2,574 )   -     (2,574 )   -  
  Other income, net   (691 )   (465 )   (3,353 )   (1,028 )
Income before income taxes   172,028     276,944     249,640     354,367  
Income tax benefit   (127,382 )   -     (409,472 )   -  
Net income   299,410     276,944     659,112     354,367  
Net loss attributable to non-controlling interest   4,842     -     7,273     -  
Net income attributable to Integrated Management Information, Inc. $ 304,252   $ 276,944   $ 666,385   $ 354,367  
Net income per share:                        
  Basic $ 0.01   $ 0.01   $ 0.03   $ 0.02  
  Diluted $ 0.01   $ 0.01   $ 0.03   $ 0.02  
Weighted average common shares outstanding:                        
Basic   20,854,725     20,716,923     20,732,182     20,740,515  
Diluted   21,549,014     21,078,226     21,361,420     20,988,471  
                         
 
Integrated Management Information, Inc.
Balance Sheets
    June 30,   December 31,  
    2012   2011  
ASSETS              
Current Assets:              
  Cash and cash equivalents   $ 907,399   $ 969,020  
  Accounts receivable, net     395,062     226,760  
  Investment in marketable securities     292,368     283,511  
  Prepaid expenses and other current assets     35,713     36,776  
  Deferred tax assets     232,350     224,350  
    Total current assets     1,862,892     1,740,417  
Property and equipment, net     117,193     57,354  
Intangible assets, net     715,468     9,205  
Long-term deferred tax assets     422,981     -  
Total assets   $ 3,118,534   $ 1,806,976  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Current liabilities:              
  Accounts payable   $ 170,006   $ 148,384  
  Accrued expenses and other current liabilities     35,139     42,960  
  Customer deposits     40,885     -  
  Deferred revenue     213,191     -  
  Short-term debt and current portion of notes payable     23,058     25,644  
  Current portion of capital lease obligations     8,424     -  
    Total current liabilities     490,703     216,988  
Capital lease obligations, net of current portion     16,987     -  
Notes payable and other long-term debt     166,101     176,201  
Notes payable, related party     200,000     250,000  
Other long-term liabilities     775     -  
Total liabilities   $ 874,566   $ 643,189  
Stockholders' equity:              
  Common stock     21,422     21,049  
  Additional paid-in capital     3,550,530     3,416,343  
  Treasury stock     (111,284 )   (109,014 )
  Accumulated other comprehensive loss     (3,099 )   (6,693 )
  Accumulated deficit     (1,491,513 )   (2,157,898 )
    Total stockholders' equity     1,966,056     1,163,787  
    Non-controlling interest     277,912     -  
Total equity     2,243,968     1,163,787  
Total liabilities and stockholders' equity   $ 3,118,534   $ 1,806,976  
               

Contact Information

  • Company Contacts:

    John Saunders
    Chief Executive Officer
    303-895-3002

    Jay Pfeiffer
    Pfeiffer High Investor Relations, Inc.
    303-393-7044