Profire Energy Reports Financial Results for First Fiscal Quarter Fiscal 2018

Profire Increased Net Income by 213% Over the Same Quarter in 2017

LINDON, Utah, May 09, 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 March 31, 2018. A conference call will be held on Thursday, May 10, 2018 at 1:00 p.m. EDT to discuss the results.

Fiscal Q1 2018 Highlights

  • Revenues Increased to $12.1 million or an Increase of 55% Compared to Same Year-Ago Quarter
  • Net Income of $1.8 Million or $0.04 Per Share, a 213% Increase From the Same Quarter Last Year
  • Gross Profit Increased to roughly $6.1 Million
  • Cash and Liquid Investments at Period End totaled over $25 Million
  • Remained Debt-Free

Fiscal Quarter Financial Results

Total revenues increased to just over $12 million in the quarter which is a 55% increase from the same quarter a year ago and an 11% increase from the previous quarter. Profire has now had seven consecutive quarters of significant revenue growth.

With a 55% increase in revenues, total operating expenses only increased 18% to $3.9 million, over the same quarter last year.

Gross profit increased to roughly $6.1 million or 50% of total revenues, as compared to $4.3 million or 56% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 13%, R&D increased 103%, and depreciation decreased 14%.

Net income was $1.8 million or a gain of $0.04 per share, compared to a net income of $600,000 or $0.01 per share in the same year-ago quarter.

Cash and liquid investments totaled over $25 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“The increases we experienced in the quarter are largely attributed to our ability to leverage our larger customer base while the macro environment continues to improve,” stated Ryan Oviatt, CFO of Profire. “While focusing on increasing revenues we’ve worked to create a solid foundation that can support future growth. In the quarter we continued to manage costs while recognizing growth in both our legacy products and newer product lines. This strategy ensured that our revenue growth significantly outpaced our increase in costs.”

“Our performance is a direct result of our strategic planning and execution. The success we are experiencing is partially enabled by Profire’s standard of remaining debt free. At quarter end, Profire had zero debt and cash and liquid investments in excess of $25 million,” said Brenton Hatch, President and CEO of Profire Energy. “We plan to build on our momentum from 2017, through 2018, as evidenced here in our first quarter. We believe we are well positioned through the groundwork we have laid, and plan to continue with our growth strategy while evaluating new opportunities.”

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 10, 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: 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 May 17, 2018.
Toll-free replay number: 1-844-512-2921 
International replay number: 1-412-317-6671
Replay Pin Number: 13679647

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

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 10, 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.

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

Condensed Consolidated Balance Sheets
    As of
    March 31,
  December 31,
Cash and cash equivalents   $ 12,196,578     $ 11,445,799  
Short-term investments   300,345     300,817  
Short-term investments - other   4,165,493     4,009,810  
Accounts receivable, net   8,717,607     8,069,255  
Inventories, net   7,265,623     6,446,083  
Prepaid expenses & other current assets   357,532     437,304  
Total Current Assets   33,003,178     30,709,068  
Net deferred tax asset   184,223     72,817  
Long-term investments   8,435,512     8,517,182  
Long-term investments - other   400,000      
Property and equipment, net   7,118,971     7,197,499  
Goodwill   997,701     997,701  
Intangible assets, net   475,133     494,792  
Total Long-Term Assets   17,611,540     17,279,991  
TOTAL ASSETS   $ 50,614,718     $ 47,989,059  
Accounts payable   1,727,194     1,780,977  
Accrued vacation   230,399     196,646  
Accrued liabilities   927,116     1,044,284  
Income taxes payable   1,512,844     919,728  
Total Current Liabilities   4,397,553     3,941,635  
TOTAL LIABILITIES   4,397,553     3,941,635  
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: 54,131,158 issued and 48,806,416 outstanding at March 31, 2018 and 53,931,167 issued and 48,606,425 outstanding at December 31, 2017   54,131     53,931  
Treasury stock, at cost   (6,890,349 )   (6,890,349 )
Additional paid-in capital   28,101,146     27,535,469  
Accumulated other comprehensive loss   (2,472,826 )   (2,200,462 )
Retained earnings   27,425,063     25,548,835  
TOTAL STOCKHOLDERS' EQUITY   46,217,165     44,047,424  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 50,614,718     $ 47,989,059  

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,
    2018   2017
Sales of goods, net   $ 11,454,615     $ 7,292,228  
Sales of services, net   715,103     532,267  
Total Revenues   12,169,718     7,824,495  
Cost of goods sold-product   5,557,710     3,055,300  
Cost of goods sold-services   481,867     402,022  
Total Cost of Goods Sold   6,039,577     3,457,322  
GROSS PROFIT   6,130,141     4,367,173  
General and administrative expenses   3,341,903     2,948,089  
Research and development   403,220     198,966  
Depreciation and amortization expense   128,717     149,076  
Total Operating Expenses   3,873,840     3,296,131  
INCOME FROM OPERATIONS   2,256,301     1,071,042  
Gain on sale of fixed assets   64,831     2,101  
Other expense   (1,792 )   (5,414 )
Interest income   50,708     31,278  
Total Other Income   113,747     27,965  
INCOME BEFORE INCOME TAXES   2,370,048     1,099,007  
INCOME TAX EXPENSE   493,820     498,936  
NET INCOME   $ 1,876,228     $ 600,071  
Foreign currency translation gain (loss)   $ (239,129 )   $ 75,113  
Unrealized gains (losses) on investments   (33,235 )   36,288  
Total Other Comprehensive Income (Loss)   (272,364 )   111,401  
NET COMPREHENSIVE INCOME   $ 1,603,864     $ 711,472  
BASIC EARNINGS PER SHARE   $ 0.04     $ 0.01  

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 Months Ended March 31,
    2018   2017
Net income   $ 1,876,228     $ 600,071  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization expense   220,245     237,116  
Gain on sale of fixed assets   (64,731 )   (2,101 )
Bad debt expense   63,566     45,313  
Stock awards issued for services   581,619     181,318  
Changes in operating assets and liabilities:        
Changes in accounts receivable   (746,179 )   249,844  
Changes in income taxes receivable/payable   591,277     568,065  
Changes in inventories   (863,148 )   (399,410 )
Changes in prepaid expenses   104,008     33,698  
Changes in deferred tax asset/liability   (111,406 )   (49,520 )
Changes in accounts payable and accrued liabilities   (198,540 )   500,552  
Net Cash Provided by Operating Activities   1,452,939     1,964,946  
Proceeds from sale of equipment   139,763     30,451  
Purchase of investments   (484,142 )   (500,408 )
Purchase of fixed assets   (234,778 )   (52,720 )
Net Cash Used in Investing Activities   (579,157 )   (522,677 )
Value of equity awards surrendered by employees for tax liability   (83,600 )    
Cash received in exercise of stock options   74,241      
Purchase of Treasury stock       (318,904 )
Net Cash Used in Financing Activities   (9,359 )   (318,904 )
Effect of exchange rate changes on cash   (113,644 )   20,158  
NET INCREASE IN CASH   750,779     1,143,523  
CASH AT BEGINNING OF PERIOD   11,445,799     7,669,644  
CASH AT END OF PERIOD   $ 12,196,578     $ 8,813,167  
CASH PAID FOR:        
Interest   $     $  
Income taxes   $     $ 78  

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

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Source: Profire Energy, Inc.