First Quarter Highlights – 2024 vs. 2023 Verification and certification revenue up 17% to $4.4 million from $3.8 million Product sales lower at $0.7 million vs. $1.0 million Total revenue increased to $5.6 million from $5.3 million Net income increased 47% to $178,000 from $121,000 Diluted EPS increased to $0.03 from $0.02 Adjusted EBITDA up 8% to $432,000 from $399,000 Company bought back 116,072 shares of its common stock in Q1 at cost of $1.5 million CASTLE ROCK, Colo., May 02, 2024 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (NASDAQ:WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced financial results for its first quarter ended March 31, 2024. "Despite the lingering impact of drought conditions resulting in smaller herd sizes, we reported solid first quarter results, highlighted by 17% growth in core verification revenue and 47% growth in net income year over year," said John Saunders, chairman and CEO. "Our ability to continue delivering profitable growth in the face of persistent headwinds is a testament to the durability and resiliency of our business model, which is predicated on having the industry's deepest solutions portfolio that helps to limit our downside when one or more market segment we serve comes under pressure. We continue to invest in new service offerings to further strengthen our solutions set as evidenced by our December purchase of Upcycled Certified®, a program addressing rapidly growing demand for upcycled food products. We also continued to return value to our shareholders in the form of stock repurchases, which totaled more than 116,000 shares in the first quarter, raising to nearly $11.0 million the total value returned to shareholders via buybacks and a special dividend over the past 13 quarters." First Quarter Results – 2024 vs. 2023Total revenue in the first quarter ended March 31, 2024, increased 6% to $5.6 million from $5.3 million. Revenue mix included: Verification and certification services, up 17% to $4.4 million from $3.8 million. Product revenue, down 25% to $0.7 million from $1.0 million. Professional services revenue of $0.4 million vs. $0.5 million. Gross profit in the third quarter increased 9% to $2.3 million from $2.1 million. Selling, general and administrative expense increased slightly to $2.1 million from $2.0 million. Operating income was 68% higher at $261,000 vs. $155,000. Net income increased 47% to $178,000, or $0.03 per diluted share, from $121,000, or $0.02 per diluted share. Adjusted EBITDA in the first quarter increased 8% to $432,000 from $399,000. Cash provided by operations in the first quarter increased 48% to $0.7 million from $0.5 million. The Company bought back 116,072 shares of its common stock during the first quarter at a cost of $1.5 million. Management will conduct a conference call today at 10:00 a.m. Mountain Time to discuss these financial results. Dial-in numbers for the conference call:Domestic Toll Free: 1-877-407-8289International: 1-201-689-8341Conference Code: 13746431 Phone replay:A telephone replay of the conference call will be available through May 16, 2024, as follows:Domestic Toll Free: 1-877-660-6853International: 1-201-612-7415Conference Code: 13746431 About Where Food Comes From, Inc.Where Food Comes From, Inc. is America's trusted resource for third party verification of food production practices. Through proprietary technology and patented business processes, the Company estimates that it supports more than 17,500 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands and restaurants with a wide variety of value-added services. Through its IMI Global, Validus Verification Services, SureHarvest, WFCF Organic, and Postelsia units, Where Food Comes From solutions are used to verify food claims, optimize production practices and enable food supply chains with analytics and data driven insights. In addition, the Company's Where Food Comes From® retail and restaurant labeling program uses web-based customer education tools to connect consumers to the sources of the food they purchase, increasing meaningful consumer engagement for our clients.  *Note on non-GAAP Financial Measures This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings (net income or loss) plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing WFCF's operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net income in the Consolidated Statements of Income table at the end of this release. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. 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 offsetting industry headwinds, ability to continue expanding on the solutions set, widening the competitive moat and providing customers with convenience and price advantages, and demand for, and impact and efficacy of, the Company's 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 and the Company's pace of stock buybacks 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. Company Contacts: John SaundersChief Executive Officer303-895-3002 Jay PfeifferDirector, Investor Where Food Comes From, Inc.       Statements of Income (Unaudited)                             Three months ended March 31, (Amounts in thousands, except per share amounts)   2024       2023   Revenues:         Verification and certification service revenue $ 4,434     $ 3,806     Product sales   733       971     Professional services   415       490       Total revenues   5,582       5,267   Costs of revenues:         Costs of verification and certification services   2,515       2,196     Costs of products   434       568     Costs of professional services   304       360       Total costs of revenues   3,253       3,124     Gross profit   2,329       2,143   Selling, general and administrative expenses   2,068       1,988   Income from operations   261       155   Other income/(expense):         Dividend income from Progressive Beef   -       50