Profire Energy Reports Financial Results for First Fiscal Quarter Fiscal 2017

In the First Fiscal Quarter of 2017 Profire Achieved Revenue Growth of 72% Over the Same Quarter of 2016

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| Source: Profire Energy

LINDON, Utah, May 10, 2017 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ:PFIE), a technology company (the “Company”) which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for fiscal quarter March 31, 2017. A conference call will be held on Thursday, May 11, 2017 at 1:00 p.m. EDT to discuss the results.

Fiscal Q1 2017 Highlights

  • Revenues Increased 11% Quarter-Over-Quarter
  • Three Consecutive Quarters of Double-Digit Revenue Growth
  • Net Income of $600,000 or $.01 per diluted share
  • Gross Profit Increased to $4.4 Million or 56% of total revenues
  • Cash at Period End $21.7 million compared to $20 million at the end of the previous quarter
  • Remained debt-free

Transition Period Financial Results

Total revenues increased to $7.8 million in the quarter which is a 72% increase from the same quarter a year ago and an 11% increase from the previous quarter.  

Even with the significant increase in revenues, total operating expenses only increased slightly to $3.3 from $3.0 million in the same quarter last year. This increase in operating expenses is primarily due to a onetime expense in connection with the retirement of the Company’s former CTO.

Gross profit increased to $4.4 million or 56% of total revenues, as compared to $2.3 million or 51% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 10%, R&D increased 29%, and depreciation increased 5%.

Net income was $600,071 or a gain of $0.01 per diluted share, compared to a net loss of $764,617 or a loss of $0.01 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $21.7 million, as compared to $20 million at end of the previous quarter. The Company generated approximately $2 million in net cash provided from operating activities and continues to operate debt-free.

Management Commentary

“The cost- and Company-structures we now have, are fairly scalable. With the substantial increase in revenues of 72% over the same quarter a year ago, and 11% over the prior quarter, our operating cost structure has remained relatively flat when you exclude one-time items,” stated Ryan Oviatt, CFO of Profire.  “Overall, we believe industry trends will have a positive impact for Profire and our customers in the coming quarters. Through strategic planning we expect to continue to respond in a timely way to increased sales as the industry recovery strengthens.”

“We remain a market leader in the burner management industry and are positioning ourselves for continued growth. Our cash position allows us to remain flexible and make strategic investments both internally and externally,” said Brenton Hatch, President and CEO of Profire Energy. “In an effort to continue to deliver reliable and innovative products to our customers, our R&D team is developing products that we believe will add significant future value to Profire. Our first quarter exceeded our expectations as we were able to see an increase in revenue and maintain our cost structure.  The strength of our balance sheet has been a key enabler of the strategic accomplishments of Profire and we believe we are well positioned for future growth.”

Conference Call

Profire Energy President and CEO Brenton Hatch and CFO Ryan Oviatt will host the presentation, followed by a question and answer period.

Date: Thursday, May 11, 2017
Time: 1:00 p.m. EDT (11:00 a.m. MDT)
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: http://public.viavid.com/index.php?id=124318. 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 to 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. EDT on the same day through May 18, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 136661674

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 www.profireenergy.com.

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 May 11, 2017, regarding the financial quarter results; the ability of the Company’s future products to add significant value; the effect the company’s cash position will have on the Company’s ability to maintain future growth; or, the Company’s ability to respond timely to increased customer demand. 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 and 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.



PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
      
      
 As of
ASSETS March 31, 2017  December 31, 2016
  (Unaudited)   
CURRENT ASSETS     
Cash and cash equivalents$  10,459,559  $  9,316,036 
Accounts receivable, net   5,365,159     5,633,802 
Inventories, net   8,024,561     7,839,503 
Income tax receivable   320,717     180,981 
Short term investments   2,221,937     2,965,536 
Investments - other   3,000,000     2,250,000 
Prepaid expenses & other current assets   376,897     410,558 
Total Current Assets   29,768,830     28,596,416 
      
LONG-TERM ASSETS     
Deferred tax asset   110,461     60,940 
Long-term investments   6,035,291     5,504,997 
Property and equipment, net   7,259,078     7,458,723 
Goodwill   997,701     997,701 
Intangible assets, net   486,190     490,082 
Total Long-Term Assets   14,888,721     14,512,443 
      
TOTAL ASSETS$  44,657,551  $  43,108,859 
      
LIABILITIES AND STOCKHOLDERS' EQUITY      
      
CURRENT LIABILITIES     
Accounts payable$  1,453,726  $  1,220,478 
Accrued vacation   177,321     154,307 
Accrued liabilities   293,772     284,214 
Income taxes payable   770,529     61,543 
Total Current Liabilities   2,695,348     1,720,542 
      
  TOTAL LIABILITIES   2,695,348     1,720,542 
      
STOCKHOLDERS' EQUITY      
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:     
53,656,961 issued and 50,539,709 outstanding at March 31, 2017     
and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016   53,656     53,582 
Treasury stock, at cost   (3,901,709)    (3,582,805)
Additional paid-in capital   26,810,227     26,800,298 
Accumulated other comprehensive loss   (2,699,342)    (2,810,743)
Retained earnings   21,699,371     20,927,985 
Total Stockholders' Equity   41,962,203     41,388,317 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$  44,657,551  $  43,108,859 
      
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 

 

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(Unaudited)
      
      
 For the Three Months Ended March 31,
 2017  2016 
REVENUES     
Sales of goods, net$  7,292,228  $  3,972,924 
Sales of services, net   532,267     570,730 
Total Revenues   7,824,495     4,543,654 
      
COST OF SALES     
Cost of goods sold-product   3,055,300     1,780,566 
Cost of goods sold-services   402,022     463,193 
Total Cost of  Goods Sold   3,457,322     2,243,759 
      
GROSS PROFIT   4,367,173     2,299,895 
      
OPERATING EXPENSES     
General and administrative expenses   2,948,089     2,670,101 
Research and development   198,966     153,522 
Depreciation and amortization expense   149,076     142,538 
Total Operating Expenses   3,296,131     2,966,161 
      
INCOME (LOSS) FROM OPERATIONS   1,071,042     (666,265)
      
OTHER INCOME (EXPENSE)     
Gain on sale of fixed assets   2,101     887 
Other expense   (5,414)    (276,313)
Interest income   31,278     5,421 
Total Other Income (Expense)   27,965     (270,005)
      
NET INCOME (LOSS) BEFORE INCOME TAXES   1,099,007     (936,270)
      
Income tax expense (benefit)   498,936     (171,654)
      
NET INCOME (LOSS)$  600,071  $  (764,617)
      
OTHER COMPREHENSIVE INCOME (LOSS)     
Foreign currency translation gain (loss)$  75,113  $  (840,190)
Unrealized gains on investments   36,288     -  
Total Other Comprehensive Income (Loss)   111,401     (840,190)
      
TOTAL COMPREHENSIVE INCOME (LOSS)$  711,472  $  (1,604,806)
      
BASIC EARNINGS (LOSS) PER SHARE$0.01  $  (0.01)
      
FULLY DILUTED EARNINGS (LOSS) PER SHARE$0.01  $  (0.01)
      
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING   50,632,275.00     53,243,151.00 
      
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING   51,287,405.00     53,243,151.00 
      
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 

 

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
    
   For the Three Month Period Ended,
   March 31, 2017 March 31, 2016
OPERATING ACTIVITIES      
 Net Income (Loss) $  600,071  $  (764,617)
 Adjustments to reconcile net income to      
   net cash provided by operating activities:      
 Depreciation and amortization expense    237,116     259,789 
 Gain on sale of fixed assets    (2,101)    (887)
 Bad debt expense    45,313     38,940 
 Stock options issued for services    181,318     12,521 
 Changes in operating assets and liabilities:      
 Changes in accounts receivable    249,844     2,431,450 
 Changes in income taxes receivable/payable    568,065     (207,514)
 Changes in inventories    (399,410)    16,042 
 Changes in prepaid expenses    33,698     28,512 
 Changes in deferred tax asset/liability    (49,520)    217,464 
 Changes in accounts payable and accrued liabilities    500,552     (478,844)
        
   Net Cash Provided by Operating Activities    1,964,946     1,552,856 
        
INVESTING ACTIVITIES      
 Proceeds from sale of equipment    30,451     42,117 
 Purchase of investments    (500,408)    -  
 Purchase of fixed assets    (52,720)    -  
        
 Net Cash Provided by (Used in) Investing Activities    (522,677)    42,117 
        
FINANCING ACTIVITIES      
 Value of equity awards surrendered by employees for tax liability    -      (99)
 Purchase of Treasury stock    (318,904)    -  
        
   Net Cash Used in Financing Activities    (318,904)    (99)
        
 Effect of exchange rate changes on cash    20,158     416,220 
        
 NET INCREASE IN CASH    1,143,523     2,011,094 
 CASH AT BEGINNING OF PERIOD    9,316,036     19,281,501 
        
 CASH AT END OF PERIOD $  10,459,559  $  21,292,595 
        
SUPPLEMENTAL DISCLOSURES OF      
 CASH FLOW INFORMATION      
        
 CASH PAID FOR:      
 Interest  $    $   - 
 Income taxes  $   78   $   - 
        
 These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 

 

Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127