Profire Energy Reports Financial Results for Second Fiscal Quarter Fiscal 2017

Profire Achieved Revenue Growth of 138% and Net Income Growth of 317% Over the Same Quarter of 2016

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| Source: Profire Energy

LINDON, Utah, Aug. 09, 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 June 30, 2017. A conference call will be held on Thursday, August 10, 2017 at 1:00 p.m. EDT to discuss the results.

Fiscal Q2 2017 Highlights

  • Revenues Increased 138% Compared to Same Year-Ago Quarter and 21% Over the Prior Quarter
  • Four Consecutive Quarters of Double-Digit Revenue Growth
  • Net Income of $1.3 Million or $0.03 Per Diluted Share
  • Gross Profit Increased to roughly $5 Million or 53% of Total Revenues
  • Cash and Liquid Investments at Period End $20 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results

Total revenues increased to nearly $9.5 million in the quarter which is a 138% increase from the same quarter a year ago and an 21% increase from the previous quarter.  
                                                                                                             
With a 138% increase in revenues total operating expenses only increased 13% to $3.1 million, over the same quarter last year.

Gross profit increased to roughly $5 million or 53% of total revenues, as compared to $1.9 million or 48% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 15%, R&D increased 10%, and depreciation decreased 18%.

Net income was $1.3 million or a gain of $0.03 per diluted share, compared to a net loss of $605,295 or a loss of $0.01 per diluted share in the same year-ago quarter.

Cash and liquid investments totaled $20 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“With the substantial increase in revenues over the prior year and over the prior quarter, our operating cost structure has remained relatively flat only increasing 13% year over year,” stated Ryan Oviatt, CFO of Profire. “This structure allowed us to achieve a 317% increase in net income when compared to the same quarter a year ago.  We are committed to maintaining an appropriate cost structure as we continue to grow and will remain vigilant in the pursuit of other opportunities that could add value to our Company and its shareholders.”

“We have proven that we can turn a profit and adapt quickly even as the industry continues to struggle. We believe we can take advantage of opportunities as they arise that will help Profire to succeed in the future,” said Brenton Hatch, President and CEO of Profire Energy. “Technology product development remains a key focus for the Company. Particularly we have invested in the 3100 product in order to expand its features and capabilities. Profire is committed to maintaining its position as an industry technology leader.”

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, August 10, 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=125805. 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. EDT on the same day through August 17, 2017.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13668146

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 Spruce Grove, 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 August 10, 2017, regarding the financial quarter results; the ability of the Company’s ability to maintain cost structures; Development of the 3100 product; the Company’s ability to adapt quickly to market changes or, the Company’s ability to remain an industry leader. 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 June 30,
 2017
 December 31,
 2016
  (Unaudited)  
CURRENT ASSETS    
Cash and cash equivalents $9,310,895  $9,316,036 
Accounts receivable, net 6,701,171  5,633,802 
Inventories, net 8,297,245  7,839,503 
Income tax receivable 194,752  180,981 
Short term investments 2,110,602  2,965,536 
Investments - other 2,250,000  2,250,000 
Prepaid expenses & other current assets 622,396  410,558 
Total Current Assets 29,487,061  28,596,416 
     
LONG-TERM ASSETS    
Net deferred tax asset 195,368  60,940 
Long-term investments 6,356,832  5,504,997 
Property and equipment, net 7,166,159  7,458,723 
Goodwill 997,701  997,701 
Intangible assets, net 493,265  490,082 
Total Long-Term Assets 15,209,325  14,512,443 
     
TOTAL ASSETS $44,696,386  $43,108,859 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
CURRENT LIABILITIES    
Accounts payable 1,315,561  1,220,478 
Accrued vacation 192,579  154,307 
Accrued liabilities 601,740  284,214 
Income taxes payable 1,397,462  61,543 
Total Current Liabilities 3,507,342  1,720,542 
     
TOTAL LIABILITIES 3,507,342  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: 53,684,293 issued and 48,662,169 outstanding at June 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 53,684  53,582 
Treasury stock, at cost (6,423,737) (3,582,805)
Additional paid-in capital 26,981,218  26,800,298 
Accumulated other comprehensive loss (2,434,140) (2,810,743)
Retained earnings 23,012,019  20,927,985 
Total Stockholders' Equity 41,189,044  41,388,317 
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $44,696,386  $43,108,859 

These financials 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 June 30, For the Six Months Ended June 30,
  2017 2016 2017 2016
REVENUES        
Sales of goods, net $8,834,650  $3,462,893  $16,126,879  $7,435,817 
Sales of services, net 630,301  511,150  1,162,568  1,081,880 
Total Revenues 9,464,951  3,974,043  17,289,447  8,517,697 
         
COST OF SALES        
Cost of goods sold-product 4,035,528  1,712,643  7,090,828  3,493,209 
Cost of goods sold-services 452,591  347,150  854,613  810,343 
Total Cost of  Goods Sold 4,488,119  2,059,793  7,945,441  4,303,552 
         
GROSS PROFIT 4,976,832  1,914,250  9,344,006  4,214,145 
         
OPERATING EXPENSES        
General and administrative expenses 2,739,055  2,385,567  5,682,368  5,055,668 
Research and development 275,776  250,722  479,520  404,244 
Depreciation and amortization expense 130,838  159,239  279,913  301,777 
Total Operating Expenses 3,145,669  2,795,528  6,441,801  5,761,689 
         
INCOME (LOSS) FROM OPERATIONS 1,831,163  (881,278) 2,902,205  (1,547,544)
         
OTHER INCOME (EXPENSE)        
Gain (loss) on sale of fixed assets 46,374  (2,592) 48,476  (1,705)
Other (expense) income 18,798  4,756  13,385  (271,557)
Interest income 54,840  27,942  86,118  33,363 
Total Other Income (Expense) 120,012  30,106  147,979  (239,899)
         
NET INCOME (LOSS) BEFORE INCOME TAXES 1,951,175  (851,172) 3,050,184  (1,787,443)
         
Income tax expense (benefit) 638,528  (245,877) 1,137,465  (417,531)
         
NET INCOME (LOSS) $1,312,647  $(605,295) $1,912,719  $(1,369,912)
         
OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation gain (loss) $238,543  $773  $313,656  $(839,417)
Unrealized gains on investments, net of tax 26,659    62,947   
Total Other Comprehensive Income (Loss) 265,202  773  376,603  (839,417)
         
TOTAL COMPREHENSIVE INCOME (LOSS) $1,577,849  $(604,522) $2,289,322  $(2,209,329)
         
BASIC EARNINGS PER SHARE $0.03  $(0.01) $0.04  $(0.03)
         
FULLY DILUTED EARNINGS PER SHARE $0.03  $(0.01) $0.04  $(0.03)
         
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 49,678,917  53,256,333  50,152,958  53,274,640 
         
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 50,283,144  53,256,333  50,757,185  53,274,640 

 These financials 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 Six Months Ended June 30, 
  2017 2016 
OPERATING ACTIVITIES     
Net Income (Loss) $1,912,719  $(1,369,912) 
Adjustments to reconcile net income to net cash provided by operating activities:     
Depreciation and amortization expense 458,293  512,703  
Gain on sale of fixed assets (48,255) 1,705  
Bad debt expense 121,015  190,384  
Stock options issued for services 372,086  156,286  
Changes in operating assets and liabilities:     
Changes in accounts receivable (1,107,574) 3,201,882  
Changes in income taxes receivable/payable 1,327,884  (749,358) 
Changes in inventories (646,870) 1,091,372  
Changes in prepaid expenses (205,781) 36,003  
Changes in deferred tax asset/liability (134,427) 232,559  
Changes in accounts payable and accrued liabilities 716,436  (1,014,087) 
      
Net Cash Provided by Operating Activities 2,765,526  2,289,537  
      
INVESTING ACTIVITIES     
Proceeds from sale of equipment 112,183  59,013  
Proceeds from investments 66,045    
Purchase of fixed assets (181,566)   
      
Net Cash Provided by (Used in) Investing Activities (3,338) 59,013  
      
FINANCING ACTIVITIES     
Value of equity awards surrendered by employees for tax liability (20,800) (99) 
Purchase of Treasury stock (2,840,932)   
      
Net Cash Used in Financing Activities (2,861,732) (99) 
      
Effect of exchange rate changes on cash 94,403  413,138  
      
NET INCREASE IN CASH (5,141) 2,761,589  
CASH AT BEGINNING OF PERIOD 9,316,036  19,281,501  
      
CASH AT END OF PERIOD $9,310,895  $22,043,090  
      
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION     
      
CASH PAID FOR:     
Interest   $  
Income taxes $67,078  $  

 These financials should be read in conjunction with the Form 10-Q and accompanying footnotes.

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