Market Overview

Profire Energy Reports Financial Results for Second Fiscal Quarter Fiscal 2017

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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    
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