LINDON, Utah, May 09, 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 March 31, 2018. A conference call will be held on Thursday, May 10, 2018 at 1:00 p.m. EDT to discuss the results.

Fiscal Q1 2018 Highlights

  • Revenues Increased to $12.1 million or an Increase of 55% Compared to Same Year-Ago Quarter
  • Net Income of $1.8 Million or $0.04 Per Share, a 213% Increase From the Same Quarter Last Year
  • Gross Profit Increased to roughly $6.1 Million
  • Cash and Liquid Investments at Period End totaled over $25 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results

Total revenues increased to just over $12 million in the quarter which is a 55% increase from the same quarter a year ago and an 11% increase from the previous quarter. Profire has now had seven consecutive quarters of significant revenue growth.

With a 55% increase in revenues, total operating expenses only increased 18% to $3.9 million, over the same quarter last year.

Gross profit increased to roughly $6.1 million or 50% of total revenues, as compared to $4.3 million or 56% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 13%, R&D increased 103%, and depreciation decreased 14%.

Net income was $1.8 million or a gain of $0.04 per share, compared to a net income of $600,000 or $0.01 per share in the same year-ago quarter.

Cash and liquid investments totaled over $25 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“The increases we experienced in the quarter are largely attributed to our ability to leverage our larger customer base while the macro environment continues to improve,” stated Ryan Oviatt, CFO of Profire. “While focusing on increasing revenues we’ve worked to create a solid foundation that can support future growth. In the quarter we continued to manage costs while recognizing growth in both our legacy products and newer product lines. This strategy ensured that our revenue growth significantly outpaced our increase in costs.”

“Our performance is a direct result of our strategic planning and execution. The success we are experiencing is partially enabled by Profire’s standard of remaining debt free. At quarter end, Profire had zero debt and cash and liquid investments in excess of $25 million,” said Brenton Hatch, President and CEO of Profire Energy. “We plan to build on our momentum from 2017, through 2018, as evidenced here in our first quarter. We believe we are well positioned through the groundwork we have laid, and plan to continue with our growth strategy while evaluating new opportunities.”

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 10, 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=129627. 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 May 17, 2018.
 
Toll-free replay number: 1-844-512-2921 
International replay number: 1-412-317-6671
Replay Pin Number: 13679647

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 May 10, 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

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
  As of
  March 31,
 2018
 December 31,
 2017
  (Unaudited)  
CURRENT ASSETS    
Cash and cash equivalents $12,196,578  $11,445,799 
Short-term investments 300,345  300,817 
Short-term investments - other 4,165,493  4,009,810 
Accounts receivable, net 8,717,607  8,069,255 
Inventories, net 7,265,623  6,446,083 
Prepaid expenses & other current assets 357,532  437,304 
Total Current Assets 33,003,178  30,709,068 
     
LONG-TERM ASSETS    
Net deferred tax asset 184,223  72,817 
Long-term investments 8,435,512  8,517,182 
Long-term investments - other 400,000   
Property and equipment, net 7,118,971  7,197,499 
Goodwill 997,701  997,701 
Intangible assets, net 475,133  494,792 
Total Long-Term Assets 17,611,540  17,279,991 
     
TOTAL ASSETS $50,614,718  $47,989,059 
     
CURRENT LIABILITIES    
Accounts payable 1,727,194  1,780,977 
Accrued vacation 230,399  196,646 
Accrued liabilities 927,116  1,044,284 
Income taxes payable 1,512,844  919,728 
Total Current Liabilities 4,397,553  3,941,635 
     
TOTAL LIABILITIES 4,397,553  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: 54,131,158 issued and 48,806,416 outstanding at March 31, 2018 and 53,931,167 issued and 48,606,425 outstanding at December 31, 2017 54,131  53,931 
Treasury stock, at cost (6,890,349) (6,890,349)
Additional paid-in capital 28,101,146  27,535,469 
Accumulated other comprehensive loss (2,472,826) (2,200,462)
Retained earnings 27,425,063  25,548,835 
TOTAL STOCKHOLDERS' EQUITY 46,217,165  44,047,424 
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $50,614,718  $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 (Loss)
(Unaudited)
 
  For the Three Months Ended March 31,
  2018 2017
REVENUES    
Sales of goods, net $11,454,615  $7,292,228 
Sales of services, net 715,103  532,267 
Total Revenues 12,169,718  7,824,495 
     
COST OF SALES    
Cost of goods sold-product 5,557,710  3,055,300 
Cost of goods sold-services 481,867  402,022 
Total Cost of Goods Sold 6,039,577  3,457,322 
     
GROSS PROFIT 6,130,141  4,367,173 
     
OPERATING EXPENSES    
General and administrative expenses 3,341,903  2,948,089 
Research and development 403,220  198,966 
Depreciation and amortization expense 128,717  149,076 
Total Operating Expenses 3,873,840  3,296,131 
     
INCOME FROM OPERATIONS 2,256,301  1,071,042 
     
OTHER INCOME (EXPENSE)    
Gain on sale of fixed assets 64,831  2,101 
Other expense (1,792) (5,414)
Interest income 50,708  31,278 
Total Other Income 113,747  27,965 
     
INCOME BEFORE INCOME TAXES 2,370,048  1,099,007 
     
INCOME TAX EXPENSE 493,820  498,936 
     
NET INCOME $1,876,228  $600,071 
     
OTHER COMPREHENSIVE INCOME (LOSS)    
Foreign currency translation gain (loss) $(239,129) $75,113 
Unrealized gains (losses) on investments (33,235) 36,288 
Total Other Comprehensive Income (Loss) (272,364) 111,401 
     
NET COMPREHENSIVE INCOME $1,603,864  $711,472 
     
BASIC EARNINGS PER SHARE $0.04  $0.01 
     
FULLY DILUTED EARNINGS PER SHARE $0.04  $0.01 
     
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 48,670,305  50,632,275 
     
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 49,744,101  51,287,405 
       

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 Months Ended March 31,
  2018 2017
OPERATING ACTIVITIES    
Net income $1,876,228  $600,071 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization expense 220,245  237,116 
Gain on sale of fixed assets (64,731) (2,101)
Bad debt expense 63,566  45,313 
Stock awards issued for services 581,619  181,318 
Changes in operating assets and liabilities:    
Changes in accounts receivable (746,179) 249,844 
Changes in income taxes receivable/payable 591,277  568,065 
Changes in inventories (863,148) (399,410)
Changes in prepaid expenses 104,008  33,698 
Changes in deferred tax asset/liability (111,406) (49,520)
Changes in accounts payable and accrued liabilities (198,540) 500,552 
     
Net Cash Provided by Operating Activities 1,452,939  1,964,946 
     
INVESTING ACTIVITIES    
Proceeds from sale of equipment 139,763  30,451 
Purchase of investments (484,142) (500,408)
Purchase of fixed assets (234,778) (52,720)
     
Net Cash Used in Investing Activities (579,157) (522,677)
     
FINANCING ACTIVITIES    
Value of equity awards surrendered by employees for tax liability (83,600)  
Cash received in exercise of stock options 74,241   
Purchase of Treasury stock   (318,904)
     
Net Cash Used in Financing Activities (9,359) (318,904)
     
Effect of exchange rate changes on cash (113,644) 20,158 
     
NET INCREASE IN CASH 750,779  1,143,523 
CASH AT BEGINNING OF PERIOD 11,445,799  7,669,644 
     
CASH AT END OF PERIOD $12,196,578  $8,813,167 
     
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.