LINDON, Utah, Aug. 08, 2018 (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 its fiscal quarter ended June 30, 2018. A conference call will be held on Thursday, August 9, 2018 at 1:00 p.m. EDT to discuss the results.

Fiscal Q2 2018 Highlights

  • Recognized Revenue of $11.3 million, The Second-Best Quarter in 9 Fiscal Quarters
  • Net Income of $1.7 Million or $0.04 Per Share, a 31% Increase From the Same Quarter Last Year
  • Realized Gross Profit of $5.9 Million
  • Cash and Liquid Investments at Period End totaled over $21 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results
               
Total revenues for the period equaled $11.3 million or a 20% increase from the same quarter a year ago. This increase is largely attributed to our ability to leverage our expanding customer base.
               
Total operating expenses were approximately $3.8 million or a 21% increase over the same quarter last year which was highly attributable to the growth in staff and additional R&D spend. Compared with the same year ago quarter, operating expenses for general and administrative increased 23%, R&D increased 15%, and depreciation decreased slightly.

Gross profit increased to $5.9 million or 52.1% of total revenues, as compared to $5 million or 52.6% of total revenues in the year-ago quarter. Gross profit margins fluctuate slightly each quarter due to product mix changes, increased direct labor costs, and adjustments in our inventory and warranty reserves.

Net income was $1.7 million or $0.04 per share, compared to a net income of $1.3 million or $0.03 per share in the same year-ago quarter.

Cash and liquid investments totaled over $21 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“We continually seek opportunities that can help further our strategic goals and currently have the resources and balance sheet to make investments that we believe will be beneficial to Profire and its shareholders,” stated Ryan Oviatt, CFO of Profire. “Our management team remains focused on allocating spending to meet market demand and to accelerate growth potential. We have focused our investment in R&D over the past year as we believe the new SIL certification, which allows us to enter new markets that we could not previously serve, and product enhancements will be significant drivers for future growth.”

“In addition, we continue to look at merger and acquisition opportunities that will complement our existing product offerings and leverage our sales force and customer base,” said Brenton Hatch, President and CEO of Profire Energy. “We have a renewed focus on automation, including the exploration of the internet-of-things capabilities, and other technologies that could be used within our market. These adjacent technologies could allow Profire to become a leader in not only burner management but in a variety of processes within our industry.”

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 9, 2018
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=130900. 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 via the dial-in numbers below after 5:00 p.m. EDT on the same day through August 16, 2018.
 
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 13682308

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; Homer, 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 9,2018, regarding the financial quarter results; and the ability of the Company to support growth. 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

Three Part Advisors
Steven Hooser, Partner
214-872-2710

               

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
  As of
  June 30,
2018
 December 31, 2017
  (Unaudited)  
CURRENT ASSETS    
Cash and cash equivalents $9,298,677  $11,445,799 
Short-term investments 531,248  300,817 
Short-term investments - other 3,788,507  4,009,810 
Accounts receivable, net 7,311,689  8,069,255 
Inventories, net 8,281,125  6,446,083 
Prepaid expenses & other current assets 350,260  437,304 
Income tax receivable 191,369   
Total Current Assets 29,752,875  30,709,068 
     
LONG-TERM ASSETS    
Net deferred tax asset   72,817 
Long-term investments 8,024,247  8,517,182 
Long-term investments - other    
Property and equipment, net 7,801,954  7,197,499 
Goodwill 997,701  997,701 
Intangible assets, net 459,229  494,792 
Total Long-Term Assets 17,283,131  17,279,991 
     
TOTAL ASSETS $47,036,006  $47,989,059 
     
CURRENT LIABILITIES    
Accounts payable 1,872,095  1,780,977 
Accrued vacation 257,149  196,646 
Accrued liabilities 1,048,487  1,044,284 
Income taxes payable 325,272  919,728 
Total Current Liabilities 3,503,003  3,941,635 
     
LONG-TERM LIABILITIES    
Net deferred income tax liability 19,073   
     
TOTAL LIABILITIES 3,522,076  3,941,635 
     
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: 54,685,119 issued and 48,082,423 outstanding at June 30, 2018 and 53,931,167 issued and 48,606,425 outstanding at December 31, 2017 54,685  53,931 
Treasury stock, at cost (10,890,349) (6,890,349)
Additional paid-in capital 27,828,804  27,535,469 
Accumulated other comprehensive loss (2,618,543) (2,200,462)
Retained earnings 29,139,333  25,548,835 
TOTAL STOCKHOLDERS’ EQUITY 43,513,930  44,047,424 
     
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $47,036,006  $47,989,059 
       

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
(Unaudited)
  For the Three Months Ended
June 30,
 For the Six Months Ended
June 30,
  2018 2017 2018 2017
REVENUES        
Sales of goods, net $10,724,409  $8,834,650 $22,179,024  $16,126,879
Sales of services, net 615,352  630,301 1,330,454  1,162,568
Total Revenues 11,339,761  9,464,951 23,509,478  17,289,447
         
COST OF SALES        
Cost of goods sold-product 4,959,539  4,035,528 10,517,249  7,090,828
Cost of goods sold-services 471,555  452,591 953,422  854,613
Total Cost of Goods Sold 5,431,094  4,488,119 11,470,671  7,945,441
         
GROSS PROFIT 5,908,667  4,976,832 12,038,807  9,344,006
         
OPERATING EXPENSES        
General and administrative expenses 3,364,826  2,739,055 6,706,726  5,682,368
Research and development 317,002  275,776 720,221  479,520
Depreciation and amortization expense 129,070  130,838 257,787  279,913
Total Operating Expenses 3,810,898  3,145,669 7,684,734  6,441,801
         
INCOME FROM OPERATIONS 2,097,769  1,831,163 4,354,073  2,902,205
         
OTHER INCOME (EXPENSE)        
Gain on sale of fixed assets 21,254  46,374 86,085  48,476
Other income (expense) (4,164) 18,798 (5,956) 13,385
Interest income 174,771  54,840 225,479  86,118
Total Other Income 191,861  120,012 305,608  147,979
         
INCOME BEFORE INCOME TAXES 2,289,630  1,951,175 4,659,681  3,050,184
         
INCOME TAX EXPENSE 575,363  638,528 1,069,183  1,137,465
         
NET INCOME $1,714,267  $1,312,647 $3,590,498  $1,912,719
         
OTHER COMPREHENSIVE INCOME (LOSS)        
Foreign currency translation gain (loss) $(427,307) $238,543 $(394,072) $313,656
Unrealized gains (losses) on investments 9,226  26,659 (24,009) 62,947
Total Other Comprehensive Income (Loss) (418,081) 265,202 (418,081) 376,603
         
NET COMPREHENSIVE INCOME $1,296,186  $1,577,849 $3,172,417  $2,289,322
         
BASIC EARNINGS PER SHARE $0.04  $0.03 $0.07  $0.04
         
FULLY DILUTED EARNINGS PER SHARE $0.03  $0.03 $0.07  $0.04
         
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 48,266,199  49,678,917 48,467,136  50,152,958
         
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 49,095,575  50,283,144 49,237,938  50,757,185
           

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 Six Months Ended June 30,
  2018 2017
OPERATING ACTIVITIES    
Net income $3,590,498  $1,912,719 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 442,959  458,293 
Gain on sale of fixed assets (76,703) (48,255)
Bad debt expense 141,348  121,015 
Stock awards issued for services 861,189  372,086 
Changes in operating assets and liabilities:    
Changes in accounts receivable 548,419  (1,107,574)
Changes in income taxes receivable/payable (790,946) 1,327,884 
Changes in inventories (2,074,974) (646,870)
Changes in prepaid expenses 114,907  (205,781)
Changes in deferred tax asset/liability 91,890  (134,427)
Changes in accounts payable and accrued liabilities 274,744  716,436 
Net Cash Provided by Operating Activities 3,123,331  2,765,526 
     
INVESTING ACTIVITIES    
Proceeds from sale of equipment 159,449  112,183 
Sale of investments 368,379  66,045 
Purchase of fixed assets (1,184,126) (181,566)
Net Cash Used in Investing Activities (656,298) (3,338)
     
FINANCING ACTIVITIES    
Value of equity awards surrendered by employees for tax liability (736,160) (20,800)
Cash received in exercise of stock options 174,002   
Purchase of Treasury stock (4,000,000) (2,840,932)
Net Cash Used in Financing Activities (4,562,158) (2,861,732)
     
Effect of exchange rate changes on cash (51,997) 94,403 
     
NET DECREASE IN CASH (2,147,122) (5,141)
CASH AT BEGINNING OF PERIOD 11,445,799  7,621,708 
CASH AT END OF PERIOD $9,298,677  $7,616,567 
     
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
     
CASH PAID FOR:    
Interest $—  $— 
Income taxes $1,691,397  $67,078 
       

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