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: http://public.viavid.com/index.php?id=129627. 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 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 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.
Contact:
Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| As of | ||||||||
| March 31, 2018 |
December 31, 2017 |
|||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS | ||||||||
| 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 | ||||||
| LONG-TERM ASSETS | ||||||||
| 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 | ||||
| CURRENT LIABILITIES | ||||||||
| 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 | ||||||
| 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: 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.
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) | ||||||||
| (Unaudited) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| REVENUES | ||||||||
| 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 SALES | ||||||||
| 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 | ||||||
| OPERATING EXPENSES | ||||||||
| 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 | ||||||
| OTHER INCOME (EXPENSE) | ||||||||
| 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 | ||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
| 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 | ||||
| FULLY DILUTED EARNINGS PER SHARE | $ | 0.04 | $ | 0.01 | ||||
| BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 48,670,305 | 50,632,275 | ||||||
| FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 49,744,101 | 51,287,405 | ||||||
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 Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| OPERATING ACTIVITIES | ||||||||
| 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 | ||||||
| INVESTING ACTIVITIES | ||||||||
| 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 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| 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 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| CASH PAID FOR: | ||||||||
| Interest | $ | — | $ | — | ||||
| Income taxes | $ | — | $ | 78 | ||||
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
Released May 9, 2018