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Profire Energy Reports Financial Results for Fiscal Year 2016

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LINDON, Utah, March 09, 2017 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ:PFIE), a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for the nine-month transition period ended December 31, 2016. A conference call will be held on Friday, March 10, 2017 at 1:00 p.m. EST to discuss the results.

As previously communicated, due to a change in the Company's fiscal year-end, the Company filed a transition report on Form 10-K covering the transition period from April 1, 2016 to December 31, 2016, which is the period between the closing of the Company's most recent fiscal year and the opening date of the newly selected fiscal year. The results from the quarter ended December 31, 2016 are reflected in the nine-month period covered by the transition report.

Transition Period Highlights

  • Revenues Increased 41% Quarter-Over-Quarter
  • Generated Positive Cash Flows in Each Quarter of the Transition Period
  • Cash and liquid investments at period-end totaled $20 million
  • Remained debt-free    

Transition Period Financial Results
                                                                                                                                       
In the final quarter of the transition period total revenues increased to just over $7 million, which was an increase of 41% as compared to the previous quarter. This was achieved while keeping operating costs under control, which only increased 5% over the same comparable period.

Net income for the transition period was approximately $78,000 or $0.00 per diluted share, compared to a net income of $799,000 or $0.01 per diluted share in the comparable nine-month period of 2015.  Net income in the final quarter of the transition period was $609,000 or $0.01 per diluted share as compared to $75,000 or $0.00 per diluted share in the previous quarter. The net loss in the first quarter of the transition period was $605,000 or a loss of $0.01 per diluted share.  In the transition period the Company's net income increased from -15% of total revenue in the first quarter to 9% of total revenue in the last quarter of the period.

At the end of the transition period cash and cash equivalents totaled $9.3 million, as compared to $21.3 million at the end of the fiscal year ended March 31, 2016. The Company has invested $11 million in low risk, CD's, bonds and mutual funds. Without these investments, the Company's cash position would have been $20 million, despite having repurchased $3.6 million in Profire stock during the transition period.

Management Commentary

"We continue to strategically allocate capital according to the plan we have previously communicated," stated Ryan Oviatt, CFO of Profire.  "We remain focused on the preservation of cash, seeking opportunities to acquire adjacent technologies, conducting our stock repurchase program, and other value creation activities that may be identified from time to time. We believe this plan will continue to drive long-term value for Profire and our shareholders."

"The stabilization of oil prices has had a positive effect on our Company as our customers appear to have gained confidence in the oil markets and have returned to spending their capex budgets," said Brenton Hatch, President and CEO of Profire Energy. "The oil industry is still recovering and while we don't know how oil prices will react throughout our next fiscal year, many analysts believe oil prices will average in the mid $50's price range.  We remain optimistic that the stabilization of commodity prices will allow us to maintain the growth we have achieved in the final two quarters of the period."

Conference Call

Profire Energy President and CEO Brenton Hatch and CFO Ryan Oviatt will host the teleconference. Following the teleconference, they will be joined by Cameron Tibdall, VP of Sales and Marketing, for a question and answer period.

Date: Friday, March 10, 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 telecast live and available for replay via this link: http://public.viavid.com/index.php?id=123227. The telecast 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. ET on the same day through March 17, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 13656825

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 March 10, 2017, regarding the transition period financial results; the effect the stabilization of oil prices will have on the Company's customers spending their capex budgets; the effect the stabilization of oil prices will have on the Company's ability to maintain recent growth; or, the Company's capital allocation plan will be able to deliver long-term shareholder value. 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 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
Consolidated Balance Sheets
           
  As of
ASSETS   December 31, 2016     March 31, 2016
           
CURRENT ASSETS          
Cash and cash equivalents  $  9,316,036     $ 21,292,595  
Accounts receivable, net     5,633,802         4,132,137  
Inventories, net     7,839,503         11,046,682  
Income tax receivable     180,981         268,326  
Short term investments     2,965,536         -   
Investments - other     2,250,000         -   
Prepaid expenses & other current assets     410,558         315,757  
Total Current Assets     28,596,416         37,055,497  
           
LONG-TERM ASSETS          
Deferred tax asset     60,940         -   
Long Term Investments     5,504,997         -   
           
PROPERTY AND EQUIPMENT, net     7,458,723         8,232,911  
           
OTHER ASSETS          
Goodwill     997,701         997,701  
Intangible assets, net     490,082         529,300  
Total Other Assets     1,487,783         1,527,001  
           
TOTAL ASSETS  $    43,108,859     $   46,815,409  
           
LIABILITIES AND STOCKHOLDERS' EQUITY           
           
CURRENT LIABILITIES          
Accounts payable  $    1,220,478     $   893,822  
Accrued vacation     154,307         171,089  
Accrued liabilities     284,214         449,694  
Income taxes payable     61,543         335,375  
Total Current Liabilities     1,720,542         1,849,980  
           
LONG-TERM LIABILITIES          
Deferred income tax liability     -          180,301  
           
TOTAL LIABILITIES     1,720,542         2,030,281  
           
STOCKHOLDERS' EQUITY           
Preferred shares: $0.001 par value, 10,000,000     -          -   
  shares authorized:  no shares issued and outstanding      
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