Profire Energy Reports Financial Results for Fiscal Second Quarter of 2017

Revenue of $5m up 26% from previous quarter and Positive Cash Flow from Operations Amid Difficult Industry Conditions

| Source: Profire Energy

LINDON, Utah, Nov. 09, 2016 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ:PFIE), a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for its fiscal second quarter ended September 30, 2016. A conference call will be held on Thursday, November 10, 2016 at 1:30 p.m. EST to discuss the results.

Fiscal Q2 2017 Highlights

  • Total revenues of $4,990,813
  • Net income of $74,452 or $0.00 per diluted share
  • Cash and liquid investments at period-end totaled $22.7 million
  • Generated positive cash flow from operations of $1,845,355
  • Remained debt-free

Fiscal Second Quarter Financial Results

The second quarter resulted in positive cash flows from operating activities. $11.1m in cash used to invest in low risk, CD’s, bonds and mutual funds. This investment strategy was done to allow liquidity while earning an improved rate of return. Cash and these liquid investments, total $22.7m, which is an increase from $22m in the first quarter. The positive cash flows and substantial cash position have allowed Profire to remain debt free.

Total revenues were just under $5m, representing an increase of 26% from the previous quarter. Net income was $74,452 or $0.00 per diluted share, compared to a net loss of $605,295 or loss of $0.01 per diluted share in the first quarter of this fiscal year.

Gross profit increased to 53% compared to 48% in the previous quarter while total operating expenses decreased slightly. Compared with the same year ago quarter, operating expenses for general and administrative decreased 20%, R&D decreased 11%, and depreciation increased 16%.

Management Commentary

“We remain optimistic for our Company and believe we’ve positioned ourselves well.” Said Brenton Hatch, President and CEO of Profire Energy. “We have invested in R&D, implemented effective cost cutting strategies, taken advantage of the slowdown to more extensively train our personnel, focused on generating positive cash flow, and been able to grow our customer base. We believe these actions will enable us to emerge stronger than before the industry downturn began.”

“In looking at the industry as a whole, we believe there are several positive indicators that oil prices are on the rebound.  The Baker Hughes North American rig count has increased 41% from the historical low point in May 2016 and the significant build up in the number of drilled but uncompleted wells, since 2014, has begun decreasing over the last few months,” stated Ryan Oviatt, CFO of Profire.  “We believe these industry trends will have a positive impact for Profire and our customers in the coming quarters.  Our revenues increased in Q2 while operating costs decreased slightly compared to the previous quarter. Our cost cutting initiatives combined with ongoing cost management have positioned us well to respond to the market in the second half of our fiscal year.”

Conference Call

Profire management will host a conference Thursday, November 10, 2016 to discuss these financial results. Please call the conference telephone number at least five minutes prior to the start time. An operator will register your name and organization.

Date: Thursday, November 10, 2016
Time: 1:30 p.m. EST (11:30 a.m. MST)
Toll-free dial-in number: 1-877-705-6003
International dial-in number: 1-201-493-6725

The conference call will be webcast live and available for replay via this link: The webcast replay will be available for one year.

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting the conference call, please contact Todd Fugal at 1-801-796-5127.

A replay of the call will be available after 5:00 p.m. EST on the same day through November 17, 2016.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13649080

About Profire Energy, Inc.
Profire Energy assists energy production companies in the safe and efficient production and transportation of oil and natural gas. As energy companies seek greater safety for their employees, compliance with more stringent regulatory standards, and enhanced margins with their energy production processes, Profire Energy's burner management and chemical injection systems are increasingly becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Shelocta, Pennsylvania; Greeley, Colorado; and Edmonton, Alberta, Canada. For additional information, visit

Cautionary Note Regarding Forward-Looking Statements. Statements made in this release that are not historical are forward-looking statements. This release contains forward-looking statements, including, but not limited to statements regarding the Company holding a conference call on November 10, 2016 regarding 2017 second fiscal quarter results; the Company’s ability to manage macro-economic conditions; or, the Company’s expectation that industry conditions will improve; or, the Company developing new products, diversifying into new market; and, the decisions made over the past year positioning the Company to capture future opportunities and deliver long-term shareholder value. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business, public market and regulatory risks and factors identified in the company's periodic reports filed with the Securities Exchange Commission. All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances, except as required by law. Readers should not place undue reliance on these forward-looking statements.


Item 1 Financial Information
Condensed Consolidated Balance Sheets
 As of
ASSETS September 30, 2016  March 31, 2016
Cash and cash equivalents$ 11,674,786  $ 21,292,595 
Accounts receivable, net  3,695,422    4,132,137 
Inventories, net  8,921,196    11,046,682 
Income tax receivable  507,526    268,326 
Short term investments  2,172,410    - 
Investments - other  3,000,000    - 
Prepaid expenses & other current assets  463,287    315,757 
Total Current Assets  30,434,627    37,055,497 
Deferred tax asset  455,504    452,431 
Long Term Investments  5,950,473    - 
PROPERTY AND EQUIPMENT, net  7,715,964    8,232,911 
Goodwill  997,701    997,701 
Intangible assets, net of accumulated amortization  508,276    529,300 
Total Other Assets  1,505,977    1,527,001 
TOTAL ASSETS$ 46,062,544  $ 47,267,840 
Accounts payable$ 802,218  $ 893,822 
Accrued liabilities  478,108    620,783 
Income taxes payable  -    335,375 
Total Current Liabilities  1,280,326    1,849,980 
Deferred income tax liability  558,829    632,732 
TOTAL LIABILITIES  1,839,155    2,482,712 
Preferred shares: $0.001 par value, 10,000,000  -    - 
shares authorized:  no shares issued and outstanding    
Common shares: $0.001 par value, 100,000,000 shares authorized:     
53,325,215 issued and 53,109,905 outstanding at September 30, 2016       
and 53,256,296 issued and outstanding at March 31, 2016  53,325    53,256 
Treasury stock, at cost  (261,544)   - 
Additional paid-in capital  26,617,570    26,164,622 
Accumulated other comprehensive loss  (2,505,050)   (2,282,682)
Retained earnings  20,319,089    20,849,932 
Total Stockholders' Equity  44,223,390    44,785,128 

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
 For the Three Months Ended September 30, For the Six Months Ended September 30,
 2016 2015 2016 2015
Sales of goods, net$ 4,507,044  $ 7,291,846  $ 7,969,936  $ 13,503,816 
Sales of services, net  483,769    805,448    994,919    1,470,721 
Total Revenues  4,990,813    8,097,294    8,964,855    14,974,537 
COST OF SALES           
Cost of goods sold-product  1,977,658    3,445,188    3,690,300    6,413,106 
Cost of goods sold-services  388,496    623,992    735,645    1,219,530 
Total Cost of  Sales  2,366,154    4,069,180    4,425,945    7,632,636 
GROSS PROFIT  2,624,659    4,028,114    4,538,910    7,341,901 
General and administrative expenses  2,328,100    2,919,862    4,713,665    6,361,000 
Research and development  263,712    295,146    514,435    599,635 
Depreciation and amortization expense  160,216    137,999    319,455    245,454 
Total Operating Expenses  2,752,028    3,353,007    5,547,555    7,206,090 
INCOME (LOSS) FROM OPERATIONS  (127,369)   675,107    (1,008,645)   135,811 
Gain (Loss) on sale of fixed assets  -    754    (2,592)   19,391 
Other income  82,452    352,310    87,207    243,320 
Interest income  19,667    5,517    47,609    26,640 
Total Other Income  102,119    358,581    132,224    289,351 
NET INCOME (LOSS) BEFORE INCOME TAXES  (25,249)   1,033,689    (876,420)   425,162 
INCOME TAX EXPENSE (BENEFIT)  (99,701)   254,781    (345,578)   105,067 
NET INCOME (LOSS)$ 74,452  $ 778,907  $ (530,843) $ 320,095 
Foreign currency translation loss$ (202,520) $ (1,084,519) $ (201,747) $ (751,147)
Unrealized losses on investments  (20,621)   -    (20,621)   - 
Total Other Comprehensive Loss  (223,141)   (1,084,519)   (222,368)   (751,147)
TOTAL COMPREHENSIVE LOSS$ (148,689) $ (305,612) $ (753,211) $ (431,052)
BASIC EARNINGS PER SHARE$ 0.00  $ 0.01  $ (0.01) $ 0.01 
FULLY DILUTED EARNINGS PER SHARE$ 0.00  $ 0.01  $ (0.01) $ 0.01 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING  53,215,385    53,236,979    53,235,747    53,230,892 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING  54,091,419    53,344,291    53,235,747    53,338,204 

Condensed Consolidated Statements of Cash Flows
   For the Six Month Period Ended,
   September 30, 2016 September 30, 2015
 Net Income (Loss) $ (530,843) $ 320,095 
 Adjustments to reconcile net income to      
 net cash provided by operating activities:      
 Depreciation and amortization expense   505,117    476,548 
 (Gain) Loss on sale of fixed assets   2,592    (19,391)
 Bad debt expense   208,628    86,494 
 Stock options issued for services   447,691    325,334 
 Changes in operating assets and liabilities:      
 Changes in accounts receivable   163,107    2,567,419 
 Changes in income taxes receivable/payable   (577,575)   (253,794)
 Changes in inventories   2,082,532    1,600,797 
 Changes in prepaid expenses   (147,750)   (262,547)
 Changes in deferred tax asset/liability   (76,976)   (73,268)
 Changes in accounts payable and accrued liabilities   (231,168)   373,484 
 Net Cash Provided by Operating Activities   1,845,355    5,141,171 
 Proceeds from sale of equipment   16,896    119,935 
 Purchase of investments   (11,143,504)   - 
 Purchase of fixed assets   (7,140)   (28,572)
 Net Cash Provided by (Used in) Investing Activities   (11,133,748)   91,363 
 Value of equity awards surrendered by employees for tax liability   -    (39,243)
 Purchase of Treasury stock   (261,544)   - 
 Net Cash Used in Financing Activities   (261,544)   (39,243)
 Effect of exchange rate changes on cash   (67,872)   (383,797)
 NET INCREASE (DECREASE) IN CASH   (9,617,809)   4,809,494 
 CASH AT BEGINNING OF PERIOD   21,292,595    14,144,796 
 CASH AT END OF PERIOD $ 11,674,786  $ 18,954,290 
 Interest $ -  $ - 
 Income taxes $ -  $ - 
Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127