Profire Energy Reports Financial Results for Third Fiscal Quarter Fiscal 2017
Company Achieves a 101% Increase in Year-Over-Year Revenues
LINDON, Utah, Nov. 08, 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 ending September 30, 2017. A conference call will be held on Thursday, November 9, 2017 at 1:00 p.m. EST to discuss the results.
Fiscal Q3 2017 Highlights
- Revenues Increased 101% Year-Over-Year
- Net Income of $1.2 Million or $0.03 Per Share
- Gross Profit Increased to $5 Million or 50.4% of Total Revenues
- Cash and Liquid Investments at Period End Equal $21.4 Million
- Remained Debt-Free
Fiscal Quarter Financial Results
Total revenues increased to $10 million in the quarter which is a 101% increase from the same quarter a year ago. The Company’s quarterly revenues have not exceeded $10 million since the quarter ended December 31, 2014.
While recording a 101% increase in revenues, total operating expenses were up only 16.9% to $3.2 million, over the same quarter last year.
Gross profit increased to roughly $5 million or 50.4% of total revenues, as compared to $2.6 million or 52.6% of total revenues in the year-ago quarter.
Compared with the same year-ago quarter, operating expenses for general and administrative increased 19%, R&D increased 21%, and depreciation decreased 21%.
Net income was $1.2 million or a gain of $0.03 per share, compared to net income of $74,000 or $0.00 per share in the same year-ago quarter.
Cash and liquid investments totaled $21.4 million at the end of the quarter and the Company continues to operate debt-free.
Management Commentary
“The cost and Company structures we now have, remain scalable and provide us with room to grow. What we have put in place has allowed us to enjoy significant year-over-year increases in revenue,” stated Ryan Oviatt, CFO of Profire. “This quarter we continued our revenue growth trajectory and remained focused on positioning the Company for the future. Profire has been able to manage costs throughout the downturn and initial recovery, and will continue to do so as the Company invests in additional products, technology and people to keep up with demand.”
“With superior products and a dedicated team of employees, Profire has successfully navigated a volatile market. Despite the volatility, we recognized great success during the quarter including our total revenues for the quarter surpassing $10 million,” said Brenton Hatch, President and CEO of Profire Energy. “We continue to add features to the 3100 system in order to offer a competitive product that meets customer expectations and drives innovation within the industry. In addition to the 3100, other new products are presently being developed. We believe that new technologies, like Profire products, are essential parts of our customers’ long-term strategies.”
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, November 9, 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 webcast live and available for replay via this link http://public.viavid.com/index.php?id=127078. 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 November 16, 2017.
| Toll-free replay number: 1-844-512-2921 |
| International replay number: 1-412-317-6671 |
| Replay ID: 13672951 |
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 November 16, 2017, regarding the financial quarter results; the ability of the Company’s ability to maintain cost structures; Development of the 3100 and other products;, 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.
Contact:
Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| As of | ||||||||
| September 30, 2017 |
December 31, 2016 |
|||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 9,784,793 | $ | 9,316,036 | ||||
| Short term investments | 854,323 | 2,965,536 | ||||||
| Investments - other | 3,010,000 | 2,250,000 | ||||||
| Accounts receivable, net | 7,644,918 | 5,633,802 | ||||||
| Inventories, net | 6,934,821 | 7,839,503 | ||||||
| Income tax receivable | 55,682 | 180,981 | ||||||
| Prepaid expenses & other current assets | 505,082 | 410,558 | ||||||
| Total Current Assets | 28,789,619 | 28,596,416 | ||||||
| LONG-TERM ASSETS | ||||||||
| Net deferred tax asset | 200,239 | 60,940 | ||||||
| Long-term investments | 7,798,848 | 5,504,997 | ||||||
| Property and equipment, net | 7,016,570 | 7,458,723 | ||||||
| Goodwill | 997,701 | 997,701 | ||||||
| Intangible assets, net | 505,875 | 490,082 | ||||||
| Total Long-Term Assets | 16,519,233 | 14,512,443 | ||||||
| TOTAL ASSETS | $ | 45,308,852 | $ | 43,108,859 | ||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | 794,464 | 1,220,478 | ||||||
| Accrued vacation | 192,579 | 154,307 | ||||||
| Accrued liabilities | 814,404 | 284,214 | ||||||
| Income taxes payable | 774,361 | 61,543 | ||||||
| Total Current Liabilities | 2,575,808 | 1,720,542 | ||||||
| TOTAL LIABILITIES | 2,575,808 | 1,720,542 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | — | — | ||||||
| Common shares: $0.001 par value, 100,000,000 shares authorized: 53,692,460 issued and 48,471,890 outstanding at September 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 |
53,692 | 53,582 | ||||||
| Treasury stock, at cost | (6,703,521 | ) | (3,582,805 | ) | ||||
| Additional paid-in capital | 27,249,628 | 26,800,298 | ||||||
| Accumulated other comprehensive loss | (2,096,731 | ) | (2,810,743 | ) | ||||
| Retained earnings | 24,229,976 | 20,927,985 | ||||||
| Total Stockholders' Equity | 42,733,044 | 41,388,317 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 45,308,852 | $ | 43,108,859 | ||||
These financial statements 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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| REVENUES | ||||||||||||||||
| Sales of goods, net | $ | 9,387,232 | $ | 4,507,044 | $ | 25,514,149 | $ | 11,942,860 | ||||||||
| Sales of services, net | 662,960 | 483,769 | 1,825,528 | 1,565,649 | ||||||||||||
| Total Revenues | 10,050,192 | 4,990,813 | 27,339,677 | 13,508,509 | ||||||||||||
| COST OF SALES | ||||||||||||||||
| Cost of goods sold-product | 4,509,191 | 1,977,658 | 11,600,019 | 5,470,866 | ||||||||||||
| Cost of goods sold-services | 479,206 | 388,496 | 1,333,819 | 1,198,838 | ||||||||||||
| Total Cost of Goods Sold | 4,988,397 | 2,366,154 | 12,933,838 | 6,669,704 | ||||||||||||
| GROSS PROFIT | 5,061,795 | 2,624,659 | 14,405,839 | 6,838,805 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative expenses | 2,771,869 | 2,328,100 | 8,454,235 | 7,383,766 | ||||||||||||
| Research and development | 318,621 | 263,712 | 798,142 | 667,957 | ||||||||||||
| Depreciation and amortization expense | 125,898 | 160,216 | 405,811 | 461,993 | ||||||||||||
| Total Operating Expenses | 3,216,388 | 2,752,028 | 9,658,188 | 8,513,716 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 1,845,407 | (127,369 | ) | 4,747,651 | (1,674,911 | ) | ||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Gain (loss) on sale of fixed assets | 14,017 | — | 62,492 | (1,705 | ) | |||||||||||
| Other (expense) income | 25,991 | 82,452 | 39,377 | (189,106 | ) | |||||||||||
| Interest income | 41,672 | 19,668 | 127,790 | 53,030 | ||||||||||||
| Total Other Income (Expense) | 81,680 | 102,120 | 229,659 | (137,781 | ) | |||||||||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | 1,927,087 | (25,249 | ) | 4,977,310 | (1,812,692 | ) | ||||||||||
| Income tax expense (benefit) | 709,169 | (99,701 | ) | 1,846,634 | (517,232 | ) | ||||||||||
| NET INCOME (LOSS) | $ | 1,217,918 | $ | 74,452 | $ | 3,130,676 | $ | (1,295,460 | ) | |||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| Foreign currency translation gain (loss) | $ | 327,271 | $ | (202,520 | ) | $ | 640,927 | $ | (1,041,937 | ) | ||||||
| Unrealized gains (losses) on investments, net of tax | 10,138 | (20,621 | ) | 73,085 | (20,621 | ) | ||||||||||
| Total Other Comprehensive Income (Loss) | 337,409 | (223,141 | ) | 714,012 | (1,062,558 | ) | ||||||||||
| TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 1,555,327 | $ | (148,689 | ) | $ | 3,844,688 | $ | (2,358,018 | ) | ||||||
| BASIC EARNINGS (LOSS) PER SHARE | $ | 0.03 | $ | — | $ | 0.06 | $ | (0.02 | ) | |||||||
| FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ | 0.02 | $ | — | $ | 0.06 | $ | (0.02 | ) | |||||||
| BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 48,552,770 | 53,215,385 | 49,613,704 | 53,274,855 | ||||||||||||
| FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 49,369,835 | 54,091,419 | 50,346,333 | 53,274,855 | ||||||||||||
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| For the Nine Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net Income (Loss) | $ | 3,130,676 | $ | (1,295,460 | ) | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 675,223 | 764,906 | ||||||
| Loss (Gain) on sale of fixed assets | (62,310 | ) | 1,705 | |||||
| Bad debt expense | 147,470 | 247,568 | ||||||
| Stock options issued for services | 648,244 | 460,212 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Changes in accounts receivable | (2,024,858 | ) | 2,594,557 | |||||
| Changes in income taxes receivable/payable | 840,343 | (785,089 | ) | |||||
| Changes in inventories | 634,646 | 2,098,574 | ||||||
| Changes in prepaid expenses | (93,669 | ) | (119,238 | ) | ||||
| Changes in deferred tax asset/liability | (139,298 | ) | 140,488 | |||||
| Changes in accounts payable and accrued liabilities | 588,868 | (710,012 | ) | |||||
| Net Cash Provided by Operating Activities | 4,345,335 | 3,398,211 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Proceeds from sale of equipment | 140,198 | 59,013 | ||||||
| Purchase of investments | (869,554 | ) | (11,143,504 | ) | ||||
| Purchase of fixed assets | (214,632 | ) | (7,140 | ) | ||||
| — | ||||||||
| Net Cash Used in Investing Activities | (943,988 | ) | (11,091,631 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Value of equity awards surrendered by employees for tax liability | (25,667 | ) | (99 | ) | ||||
| Purchase of Treasury stock | (3,120,716 | ) | (261,544 | ) | ||||
| Net Cash Used in Financing Activities | (3,146,383 | ) | (261,643 | ) | ||||
| Effect of exchange rate changes on cash | 213,793 | 348,348 | ||||||
| NET INCREASE IN CASH | 468,757 | (7,606,715 | ) | |||||
| CASH AT BEGINNING OF PERIOD | 9,316,036 | 19,281,501 | ||||||
| CASH AT END OF PERIOD | $ | 9,784,793 | $ | 11,674,786 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| CASH PAID FOR: | ||||||||
| Interest | $ | — | $ | — | ||||
| Income taxes | $ | 1,282,157 | $ | — | ||||
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
Source: Profire Energy, Inc.Released November 8, 2017