Market Overview

Profire Energy Reports Financial Results for Second Quarter Fiscal 2018

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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  
       
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