Profire Energy Reports Financial Results for Third Fiscal Quarter Fiscal 2017

Company Achieves a 101% Increase in Year-Over-Year Revenues

Print
| Source: Profire Energy, Inc.

LINDON, Utah, Nov. 08, 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 ending September 30, 2017. A conference call will be held on Thursday, November 9, 2017 at 1:00 p.m. EST to discuss the results. 

Fiscal Q3 2017 Highlights

  • Revenues Increased 101% Year-Over-Year
  • Net Income of $1.2 Million or $0.03 Per Share
  • Gross Profit Increased to $5 Million or 50.4% of Total Revenues
  • Cash and Liquid Investments at Period End Equal $21.4 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results

Total revenues increased to $10 million in the quarter which is a 101% increase from the same quarter a year ago. The Company’s quarterly revenues have not exceeded $10 million since the quarter ended December 31, 2014.

While recording a 101% increase in revenues, total operating expenses were up only 16.9% to $3.2 million, over the same quarter last year.

Gross profit increased to roughly $5 million or 50.4% of total revenues, as compared to $2.6 million or 52.6% of total revenues in the year-ago quarter. 

Compared with the same year-ago quarter, operating expenses for general and administrative increased 19%, R&D increased 21%, and depreciation decreased 21%.

Net income was $1.2 million or a gain of $0.03 per share, compared to net income of $74,000 or $0.00 per share in the same year-ago quarter.

Cash and liquid investments totaled $21.4 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“The cost and Company structures we now have, remain scalable and provide us with room to grow. What we have put in place has allowed us to enjoy significant year-over-year increases in revenue,” stated Ryan Oviatt, CFO of Profire. “This quarter we continued our revenue growth trajectory and remained focused on positioning the Company for the future. Profire has been able to manage costs throughout the downturn and initial recovery, and will continue to do so as the Company invests in additional products, technology and people to keep up with demand.”

“With superior products and a dedicated team of employees, Profire has successfully navigated a volatile market. Despite the volatility, we recognized great success during the quarter including our total revenues for the quarter surpassing $10 million,” said Brenton Hatch, President and CEO of Profire Energy. “We continue to add features to the 3100 system in order to offer a competitive product that meets customer expectations and drives innovation within the industry. In addition to the 3100, other new products are presently being developed. We believe that new technologies, like Profire products, are essential parts of our customers’ long-term strategies.” 

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, November 9, 2017
Time: 1:00 p.m. EST (11:00 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 http://public.viavid.com/index.php?id=127078. 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 16, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13672951
 

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 November 16, 2017, regarding the financial quarter results; the ability of the Company’s ability to maintain cost structures; Development of the 3100 and other products;, 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.

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

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
  As of
  September 30,
 2017
 December 31,
 2016
  (Unaudited)  
CURRENT ASSETS    
Cash and cash equivalents $9,784,793  $9,316,036 
Short term investments 854,323  2,965,536 
Investments - other 3,010,000  2,250,000 
Accounts receivable, net 7,644,918  5,633,802 
Inventories, net 6,934,821  7,839,503 
Income tax receivable 55,682  180,981 
Prepaid expenses & other current assets 505,082  410,558 
Total Current Assets 28,789,619  28,596,416 
     
LONG-TERM ASSETS    
Net deferred tax asset 200,239  60,940 
Long-term investments 7,798,848  5,504,997 
Property and equipment, net 7,016,570  7,458,723 
Goodwill 997,701  997,701 
Intangible assets, net 505,875  490,082 
Total Long-Term Assets 16,519,233  14,512,443 
     
TOTAL ASSETS $45,308,852  $43,108,859 
     
CURRENT LIABILITIES    
Accounts payable 794,464  1,220,478 
Accrued vacation 192,579  154,307 
Accrued liabilities 814,404  284,214 
Income taxes payable 774,361  61,543 
Total Current Liabilities 2,575,808  1,720,542 
     
TOTAL LIABILITIES 2,575,808  1,720,542 
     
STOCKHOLDERS' EQUITY    
Preferred shares: $0.001 par value, 10,000,000 shares authorized:  no shares issued or outstanding    
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,692,460 issued and 48,471,890 outstanding
  at September 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016
 53,692  53,582 
Treasury stock, at cost (6,703,521) (3,582,805)
Additional paid-in capital 27,249,628  26,800,298 
Accumulated other comprehensive loss (2,096,731) (2,810,743)
Retained earnings 24,229,976  20,927,985 
Total Stockholders' Equity 42,733,044  41,388,317 
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $45,308,852  $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 September 30, For the Nine Months Ended September 30,
  2017 2016 2017 2016
REVENUES        
Sales of goods, net $9,387,232  $4,507,044  $25,514,149  $11,942,860 
Sales of services, net 662,960  483,769  1,825,528  1,565,649 
Total Revenues 10,050,192  4,990,813  27,339,677  13,508,509 
         
COST OF SALES        
Cost of goods sold-product 4,509,191  1,977,658  11,600,019  5,470,866 
Cost of goods sold-services 479,206  388,496  1,333,819  1,198,838 
Total Cost of  Goods Sold 4,988,397  2,366,154  12,933,838  6,669,704 
         
GROSS PROFIT 5,061,795  2,624,659  14,405,839  6,838,805 
         
OPERATING EXPENSES        
General and administrative expenses 2,771,869  2,328,100  8,454,235  7,383,766 
Research and development 318,621  263,712  798,142  667,957 
Depreciation and amortization expense 125,898  160,216  405,811  461,993 
Total Operating Expenses 3,216,388  2,752,028  9,658,188  8,513,716 
         
INCOME (LOSS) FROM OPERATIONS 1,845,407  (127,369) 4,747,651  (1,674,911)
         
OTHER INCOME (EXPENSE)        
Gain (loss) on sale of fixed assets 14,017    62,492  (1,705)
Other (expense) income 25,991  82,452  39,377  (189,106)
Interest income 41,672  19,668  127,790  53,030 
Total Other Income (Expense) 81,680  102,120  229,659  (137,781)
         
NET INCOME (LOSS) BEFORE INCOME TAXES 1,927,087  (25,249) 4,977,310  (1,812,692)
         
Income tax expense (benefit) 709,169  (99,701) 1,846,634  (517,232)
         
NET INCOME (LOSS) $1,217,918  $74,452  $3,130,676  $(1,295,460)
         
OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation gain (loss) $327,271  $(202,520) $640,927  $(1,041,937)
Unrealized gains (losses) on investments, net of tax 10,138  (20,621) 73,085  (20,621)
Total Other Comprehensive Income (Loss) 337,409  (223,141) 714,012  (1,062,558)
         
TOTAL COMPREHENSIVE INCOME (LOSS) $1,555,327  $(148,689) $3,844,688  $(2,358,018)
         
BASIC EARNINGS (LOSS) PER SHARE $0.03  $  $0.06  $(0.02)
         
FULLY DILUTED EARNINGS (LOSS) PER SHARE $0.02  $  $0.06  $(0.02)
         
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 48,552,770  53,215,385  49,613,704  53,274,855 
         
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 49,369,835  54,091,419  50,346,333  53,274,855 
             

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 Nine Months Ended September 30,
  2017 2016
OPERATING ACTIVITIES    
Net Income (Loss) $3,130,676  $(1,295,460)
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 675,223  764,906 
Loss (Gain) on sale of fixed assets (62,310) 1,705 
Bad debt expense 147,470  247,568 
Stock options issued for services 648,244  460,212 
Changes in operating assets and liabilities:    
Changes in accounts receivable (2,024,858) 2,594,557 
Changes in income taxes receivable/payable 840,343  (785,089)
Changes in inventories 634,646  2,098,574 
Changes in prepaid expenses (93,669) (119,238)
Changes in deferred tax asset/liability (139,298) 140,488 
Changes in accounts payable and accrued liabilities 588,868  (710,012)
     
Net Cash Provided by Operating Activities 4,345,335  3,398,211 
     
INVESTING ACTIVITIES    
Proceeds from sale of equipment 140,198  59,013 
Purchase of investments (869,554) (11,143,504)
Purchase of fixed assets (214,632) (7,140)
     
Net Cash Used in Investing Activities (943,988) (11,091,631)
     
FINANCING ACTIVITIES    
Value of equity awards surrendered by employees for tax liability (25,667) (99)
Purchase of Treasury stock (3,120,716) (261,544)
     
Net Cash Used in Financing Activities (3,146,383) (261,643)
     
Effect of exchange rate changes on cash 213,793  348,348 
     
NET INCREASE IN CASH 468,757  (7,606,715)
CASH AT BEGINNING OF PERIOD 9,316,036  19,281,501 
     
CASH AT END OF PERIOD $9,784,793  $11,674,786 
     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
     
CASH PAID FOR:    
Interest $  $ 
Income taxes $1,282,157  $ 
         

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