Profire Energy Reports Financial Results for First Fiscal Quarter Fiscal 2017

In the First Fiscal Quarter of 2017 Profire Achieved Revenue Growth of 72% Over the Same Quarter of 2016

LINDON, Utah, May 10, 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 March 31, 2017. A conference call will be held on Thursday, May 11, 2017 at 1:00 p.m. EDT to discuss the results.

Fiscal Q1 2017 Highlights

  • Revenues Increased 11% Quarter-Over-Quarter
  • Three Consecutive Quarters of Double-Digit Revenue Growth
  • Net Income of $600,000 or $.01 per diluted share
  • Gross Profit Increased to $4.4 Million or 56% of total revenues
  • Cash at Period End $21.7 million compared to $20 million at the end of the previous quarter
  • Remained debt-free

Transition Period Financial Results

Total revenues increased to $7.8 million in the quarter which is a 72% increase from the same quarter a year ago and an 11% increase from the previous quarter.  

Even with the significant increase in revenues, total operating expenses only increased slightly to $3.3 from $3.0 million in the same quarter last year. This increase in operating expenses is primarily due to a onetime expense in connection with the retirement of the Company’s former CTO.

Gross profit increased to $4.4 million or 56% of total revenues, as compared to $2.3 million or 51% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 10%, R&D increased 29%, and depreciation increased 5%.

Net income was $600,071 or a gain of $0.01 per diluted share, compared to a net loss of $764,617 or a loss of $0.01 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $21.7 million, as compared to $20 million at end of the previous quarter. The Company generated approximately $2 million in net cash provided from operating activities and continues to operate debt-free.

Management Commentary

“The cost- and Company-structures we now have, are fairly scalable. With the substantial increase in revenues of 72% over the same quarter a year ago, and 11% over the prior quarter, our operating cost structure has remained relatively flat when you exclude one-time items,” stated Ryan Oviatt, CFO of Profire.  “Overall, we believe industry trends will have a positive impact for Profire and our customers in the coming quarters. Through strategic planning we expect to continue to respond in a timely way to increased sales as the industry recovery strengthens.”

“We remain a market leader in the burner management industry and are positioning ourselves for continued growth. Our cash position allows us to remain flexible and make strategic investments both internally and externally,” said Brenton Hatch, President and CEO of Profire Energy. “In an effort to continue to deliver reliable and innovative products to our customers, our R&D team is developing products that we believe will add significant future value to Profire. Our first quarter exceeded our expectations as we were able to see an increase in revenue and maintain our cost structure.  The strength of our balance sheet has been a key enabler of the strategic accomplishments of Profire and we believe we are well positioned for future growth.”

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 11, 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: 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 to 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 May 18, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 136661674

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

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 11, 2017, regarding the financial quarter results; the ability of the Company’s future products to add significant value; the effect the company’s cash position will have on the Company’s ability to maintain future growth; or, the Company’s ability to respond timely to increased customer demand. 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.

Condensed Consolidated Balance Sheets
  As of
ASSETS   March 31, 2017     December 31, 2016
Cash and cash equivalents $   10,459,559     $   9,316,036  
Accounts receivable, net     5,365,159         5,633,802  
Inventories, net     8,024,561         7,839,503  
Income tax receivable     320,717         180,981  
Short term investments     2,221,937         2,965,536  
Investments - other     3,000,000         2,250,000  
Prepaid expenses & other current assets     376,897         410,558  
Total Current Assets     29,768,830         28,596,416  
Deferred tax asset     110,461         60,940  
Long-term investments     6,035,291         5,504,997  
Property and equipment, net     7,259,078         7,458,723  
Goodwill     997,701         997,701  
Intangible assets, net     486,190         490,082  
Total Long-Term Assets     14,888,721         14,512,443  
TOTAL ASSETS $   44,657,551     $   43,108,859  
Accounts payable $   1,453,726     $   1,220,478  
Accrued vacation     177,321         154,307  
Accrued liabilities     293,772         284,214  
Income taxes payable     770,529         61,543  
Total Current Liabilities     2,695,348         1,720,542  
  TOTAL LIABILITIES     2,695,348         1,720,542  
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:          
53,656,961 issued and 50,539,709 outstanding at March 31, 2017          
and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016     53,656         53,582  
Treasury stock, at cost     (3,901,709 )       (3,582,805 )
Additional paid-in capital     26,810,227         26,800,298  
Accumulated other comprehensive loss     (2,699,342 )       (2,810,743 )
Retained earnings     21,699,371         20,927,985  
Total Stockholders' Equity     41,962,203         41,388,317  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   44,657,551     $   43,108,859  
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 


Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
  For the Three Months Ended March 31,
  2017     2016  
Sales of goods, net $   7,292,228     $   3,972,924  
Sales of services, net     532,267         570,730  
Total Revenues     7,824,495         4,543,654  
COST OF SALES          
Cost of goods sold-product     3,055,300         1,780,566  
Cost of goods sold-services     402,022         463,193  
Total Cost of  Goods Sold     3,457,322         2,243,759  
GROSS PROFIT     4,367,173         2,299,895  
General and administrative expenses     2,948,089         2,670,101  
Research and development     198,966         153,522  
Depreciation and amortization expense     149,076         142,538  
Total Operating Expenses     3,296,131         2,966,161  
INCOME (LOSS) FROM OPERATIONS     1,071,042         (666,265 )
Gain on sale of fixed assets     2,101         887  
Other expense     (5,414 )       (276,313 )
Interest income     31,278         5,421  
Total Other Income (Expense)     27,965         (270,005 )
NET INCOME (LOSS) BEFORE INCOME TAXES     1,099,007         (936,270 )
Income tax expense (benefit)     498,936         (171,654 )
NET INCOME (LOSS) $   600,071     $   (764,617 )
Foreign currency translation gain (loss) $   75,113     $   (840,190 )
Unrealized gains on investments     36,288         -   
Total Other Comprehensive Income (Loss)     111,401         (840,190 )
TOTAL COMPREHENSIVE INCOME (LOSS) $   711,472     $   (1,604,806 )
BASIC EARNINGS (LOSS) PER SHARE $ 0.01     $   (0.01 )
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING     50,632,275.00         53,243,151.00  
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING     51,287,405.00         53,243,151.00  
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 


Condensed Consolidated Statements of Cash Flows
      For the Three Month Period Ended,
      March 31, 2017   March 31, 2016
  Net Income (Loss)   $   600,071     $   (764,617 )
  Adjustments to reconcile net income to            
    net cash provided by operating activities:            
  Depreciation and amortization expense       237,116         259,789  
  Gain on sale of fixed assets       (2,101 )       (887 )
  Bad debt expense       45,313         38,940  
  Stock options issued for services       181,318         12,521  
  Changes in operating assets and liabilities:            
  Changes in accounts receivable       249,844         2,431,450  
  Changes in income taxes receivable/payable       568,065         (207,514 )
  Changes in inventories       (399,410 )       16,042  
  Changes in prepaid expenses       33,698         28,512  
  Changes in deferred tax asset/liability       (49,520 )       217,464  
  Changes in accounts payable and accrued liabilities       500,552         (478,844 )
    Net Cash Provided by Operating Activities       1,964,946         1,552,856  
  Proceeds from sale of equipment       30,451         42,117  
  Purchase of investments       (500,408 )       -   
  Purchase of fixed assets       (52,720 )       -   
  Net Cash Provided by (Used in) Investing Activities       (522,677 )       42,117  
  Value of equity awards surrendered by employees for tax liability       -          (99 )
  Purchase of Treasury stock       (318,904 )       -   
    Net Cash Used in Financing Activities       (318,904 )       (99 )
  Effect of exchange rate changes on cash       20,158         416,220  
  NET INCREASE IN CASH       1,143,523         2,011,094  
  CASH AT BEGINNING OF PERIOD       9,316,036         19,281,501  
  CASH AT END OF PERIOD   $   10,459,559     $   21,292,595  
  CASH PAID FOR:            
  Interest    $       $    -  
  Income taxes    $    78      $    -  
  These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. 


Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127

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Source: Profire Energy