Market Overview

Profire Energy Reports Financial Results for Fiscal Year 2017

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Company Recognizes Second-Best Year in Company History with Revenues up 86% YOY to $38.2 million

Net Income up over 700% to $4.4 Million or $0.09 Per Share

LINDON, Utah, March 07, 2018 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ:PFIE), a technology company (the "Company") which designs, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for fiscal year ending December 31, 2017. A conference call will be held on Thursday, March 8, 2018 at 1:00 p.m. EST to discuss the results.

Fiscal 2017 Highlights

  • Revenues Increased 86% Year-Over-Year to $38.2 Million
  • Net Income of $4.4 Million or $0.09 Per Share
  • Gross Profit Increased to just over $20 Million or 53% of Total Revenues
  • Cash and Liquid Investments at Year End Were in Excess of $24 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results
                                                                                                                                       
Total revenues increased to $38.2 million for the year which is an 86% increase from the previous 12-month period. Total revenues for 2017 mark Profire's second-best revenue year in Company history.

In the year Profire maintained its cost management strategy and total operating expenses were up only 18% to $13.4 million, over the previous 12-month period.  

Gross profit increased to roughly $20 million or 53% of total revenues, as compared to $10.4 million or 51% of total revenues in the prior 12-month period.

Compared with the same 12-month period in the previous year, operating expenses for general and administrative increased 16%, R&D increased 72%, and depreciation decreased 16%.

Net income was $4.4 million or a gain of $0.09 per share, compared to a net loss of $686,000 or a loss of $0.01 per share in the previous 12-month period.

Cash and liquid investments totaled over $24 million at the end of the year and the Company continues to operate debt-free.

Management Commentary

"Many factors contributed to the increase in revenue, including the growing customer base and our focus on providing superior products and solutions to our customers" stated Ryan Oviatt, CFO of Profire. "This significant net income increase is attributable to our staff's hard work to grow revenue while keeping cost growth under control. However, we believe our ongoing committed investment in R&D will ensure we remain a market leader for technology and automation in the oil and gas industry."

"Throughout the year we were able to outpace the industry recovery by almost four times.  In 2017 the average oil price per barrel rose 18% compared to our increased revenues of 86%," said Brenton Hatch, President and CEO of Profire Energy. "With input from our customers we are constantly developing new technologies to bring to the market place and expand automation in the oil field. We will continue to leverage our growing customer base to increase revenues. We remain optimistic for 2018."

Conference Call

Profire Energy's President and CEO Brenton Hatch and CFO Ryan Oviatt will host the presentation, followed by a question and answer period.

Date: Thursday, March 8, 2018
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=128636. 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 March 15, 2018.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 13677179

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 March 8, 2018, regarding the financial year results; the ability of the Company's ability to grow in 2018; and the Company's ability to further invest in R&D.. 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
Consolidated Balance Sheets
    As of
ASSETS   December 31, 2017   December 31, 2016
CURRENT ASSETS        
Cash and cash equivalents   $ 11,445,799     $ 7,679,621  
Accounts receivable, net   8,069,255     5,633,802  
Inventories, net   6,446,083     7,839,503  
Income tax receivable       180,981  
Short term investments   300,817     2,965,536  
Investments - other   4,009,810     2,993,825  
Prepaid expenses & other current assets   437,304     410,558  
Total Current Assets   30,709,068     27,703,826  
         
LONG-TERM ASSETS        
Long term investments - other       892,590  
Long term investments   8,517,182     5,504,997  
Property and equipment, net   7,197,499     7,458,723  
Deferred tax asset, net   72,817     60,940  
Goodwill   997,701     997,701  
Intangible assets, net   494,792     490,082  
Total Long-Term Assets   17,279,991     15,405,033  
         
TOTAL ASSETS   $ 47,989,059     $ 43,108,859  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
         
CURRENT LIABILITIES        
Accounts payable   1,780,977     1,220,478  
Income taxes payable   919,728     61,543  
Accrued vacation   196,646     154,307  
Accrued liabilities   1,044,284     284,214  
Total Current Liabilities   3,941,635     1,720,542  
         
TOTAL LIABILITIES   3,941,635     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: 53,931,167 issued and 48,606,425 outstanding at December 31, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016   53,931     53,582  
Treasury stock, at cost   (6,890,349 )   (3,582,805 )
Additional paid-in capital   27,535,469     26,628,983  
Accumulated other comprehensive loss   (2,200,462 )   (2,810,743 )
Retained earnings   25,548,835     21,099,300  
Total Stockholders' Equity   44,047,424     41,388,317  
         
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 47,989,059     $ 43,108,859  

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

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
    For the Year
Ended December
31, 2017
  For the Nine-Month
Transition Period
Ended December 31, 2016
REVENUES        
Sales of goods, net   $ 35,502,510     $ 14,336,618  
Sales of services, net   2,783,866     1,650,568  
Total Revenues   38,286,376     15,987,186  
         
COST OF SALES        
Cost of goods sold-product   16,116,161     6,732,822  
Cost of goods sold-services   1,906,308    
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