Profire Energy Reports Financial Results for First Quarter 2024

Company Reports Strong Performance on Revenue Diversification

LINDON, Utah, May 08, 2024 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ: PFIE), a technology company (the "Company") that provides solutions which enhance the efficiency, safety, and reliability of industrial combustion appliances, today reported financial results for its first quarter ending March 31, 2024. A conference call will be held on Thursday, May 9, 2024 at 8:30 a.m. ET to discuss the results.

First Quarter Summary (comparisons to prior-year quarter)

  • Revenue of $13.6 million, compared to $14.7 million
  • Gross profit of $6.8 million, compared to $7.8 million
  • Gross margin of 49.5%, compared to 53.3%
  • Net income of $1.4 million, or $0.03 per diluted share, versus $2.6 million and $0.05
  • Generated EBITDA of $2.0 million, versus $3.6 million
  • Cash and investments of $16.2 million with no debt

"Our first quarter results reflect the continued underlying strength of our legacy business and expansion of our diversification efforts, despite lapping the third best quarterly revenue in company history and a significant decline in natural gas prices during the quarter," said Ryan Oviatt, co-CEO and Chief Financial Officer of Profire Energy. "Our overall balance sheet remains strong, with cash in the bank, zero debt, and sufficient inventory to ensure on-time product deliveries to our customers."

First Quarter 2024 Financial Results                       

Total revenues for the period equaled $13.6 million, compared to $14.5 million in the fourth quarter of 2023 and $14.7 million in the prior-year quarter. The sequential and year-over-year increase was partially driven by the timing of certain that orders moved into the second quarter of this year due to changes in customer timing and preparation.

Gross profit was $6.8 million, compared to $7.8 million in both the fourth quarter and same quarter of 2023. Gross margin was 49.5% of revenues, compared to 53.9% of revenues in the prior quarter and 53.3% of revenues in the prior-year quarter. The sequential and year-over-year decrease is related to product mix, the typical fluctuations in inventory and warranty reserves and inflation.

Total operating expenses were $5.0 million, compared to $5.0 million in the final quarter of 2023 and $4.5 million in the year-ago quarter. The increase year-over-year is primarily due to ongoing inflation pressure on our business as well as increased headcount to support strategic growth and increased business activity.

Compared with the same quarter last year, operating expenses for G&A increased 12%, R&D decreased 11% and depreciation increased by 5%.

Net income was $1.4 million, or $0.03 per diluted share, compared to net income of $3.3 million or $0.07 per diluted share in the fourth quarter of 2023 and $2.6 million or $0.05 per diluted share in the same quarter last year.

"The underlying fundamentals of our business remain strong. We recorded our best two sequential quarters in Company history of total value of sales orders received thanks to the strength of our brand and revenue diversification efforts. We have multiple favorable industry tailwinds including forecasts related to LNG and renewable natural gas expansion coupled with the growing demand for global electrification." said Cameron Tidball, co-CEO of Profire Energy. "Our diversification strategy continues to attract interest from existing and new customers. We remain very optimistic about the outlook for Profire and our ability to deliver long-term value to our shareholders."

Conference Call

Profire Energy Executives will host the call, followed by a question-and-answer period.

Date: Thursday, May 9, 2024
Time: 8:30 a.m. ET (6:30 a.m. MT)
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304

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 Athena Kefalas at 1-801-796-8969.

A replay of the call will be available via the dial-in numbers below after 1:00 p.m. ET on the same day through May 23, 2024.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 10022992

About Profire Energy, Inc.
Profire Energy is a technology company providing solutions that enhance the efficiency, safety, and reliability of industrial combustion appliances while mitigating potential environmental impacts related to the operation of these devices. It is primarily focused in the upstream, midstream, and downstream transmission segments of the oil and gas industry. However, in recent years, we have completed many installations of our burner-management solutions in other industries that we believe will be applicable as we expand our addressable market over time. Profire specializes in the engineering and design of burner and combustion management systems and solutions used on a variety of natural and forced draft applications. Its products and services are sold primarily throughout North America. It has an experienced team of sales and service professionals that are strategically positioned across the United States and Canada. Profire has offices in Lindon, Utah; Victoria, Texas; Midland-Odessa, Texas; Homer, Pennsylvania; Greeley, Colorado; Millersburg, Ohio; and Acheson, 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’s expected growth, delivery of Company product, and the Company’s expected revenues from diversification opportunities. 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, Co-CEO & CFO
(801) 796-5127

Three Part Advisors
Steven Hooser, Partner
John Beisler, Managing Director

About Non-GAAP Financial Measures 

To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measure of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 

We use this non-GAAP financial measure for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. We believe this non-GAAP financial measure is useful to investors both because it allows for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The Following is a tabular presentation of EBITDA, including a reconciliation to net income which the Company believes to be the most directly comparable US GAAP financial measure.

  3/31/2024 3/31/2023
EBITDA Calculation: 3 months 3 months
Net Income $1,434,375   $2,589,621  
add back net income tax expense $393,148   $816,815  
add back net interest expense $(68,952)   $(57,114)  
add back depreciation and amortization $267,654   $262,039  
EBITDA calculated $2,026,225   $3,611,361  

Condensed Consolidated Balance Sheets
    As of
    March 31,
  December 31,
ASSETS   (Unaudited)    
Cash and cash equivalents   $ 7,196,424     $ 10,767,519  
Short-term investments     2,750,324       2,799,539  
Accounts receivable, net     14,226,321       14,013,740  
Inventories, net (note 3)     15,747,817       14,059,656  
Prepaid expenses and other current assets (note 4)     3,357,009       2,832,262  
Total Current Assets     43,277,895       44,472,716  
Net deferred tax asset     497,263       496,785  
Long-term investments     6,286,599       6,425,582  
Lease right-of-use asset (note 6)     395,267       432,907  
Property and equipment, net     11,233,795       10,782,372  
Intangible assets, net     1,064,724       1,104,102  
Goodwill     2,579,381       2,579,381  
Total Long-Term Assets     22,057,029       21,821,129  
     TOTAL ASSETS   $ 65,334,924     $ 66,293,845  
Accounts payable   $ 2,985,177     $ 2,699,556  
Accrued liabilities (note 5)     2,733,161       4,541,820  
Current lease liability (note 6)     121,386       130,184  
Income taxes payable     916,469       1,723,910  
Total Current Liabilities     6,756,193       9,095,470  
Net deferred income tax liability     44,876       52,621  
Long-term lease liability (note 6)     280,371       307,528  
TOTAL LIABILITIES     7,081,440       9,455,619  
STOCKHOLDERS' EQUITY (note 7)        
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding            
Common stock: $0.001 par value, 100,000,000 shares authorized: 53,337,589 issued and 47,094,226 outstanding at March 31, 2024, and 53,047,231 issued and 46,803,868 outstanding at December 31, 2023     53,340       53,048  
Treasury stock, at cost     (9,324,272 )     (9,324,272 )
Additional paid-in capital     32,966,075       32,751,749  
Accumulated other comprehensive loss     (3,078,437 )     (2,844,702 )
Retained earnings     37,636,778       36,202,403  
TOTAL STOCKHOLDERS' EQUITY     58,253,484       56,838,226  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 65,334,924     $ 66,293,845  

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

Condensed Consolidated Statements of Income and Comprehensive Income
    For the Three Months Ended March 31,
     2024     2023 
        (See Note 1)
REVENUES (note 8)        
Sales of products, net   $ 12,691,804     $ 13,759,679  
Sales of services, net     949,336       924,949  
Total Revenues     13,641,140       14,684,628  
Cost of sales - products     6,095,004       6,105,506  
Cost of sales - services     789,364       746,014  
Total Cost of Sales     6,884,368       6,851,520  
GROSS PROFIT     6,756,772       7,833,108  
General and administrative     4,604,766       4,110,032  
Research and development     265,058       274,389  
Depreciation and amortization     149,859       142,887  
Total Operating Expenses     5,019,683       4,527,308  
INCOME FROM OPERATIONS     1,737,089       3,305,800  
Gain on sale of assets     44,821       53,075  
Other expense     (23,339 )     (9,553 )
Interest income     71,897       58,047  
Interest expense     (2,945 )     (933 )
Total Other Income     90,434       100,636  
INCOME BEFORE INCOME TAXES     1,827,523       3,406,436  
INCOME TAX EXPENSE     (393,148 )     (816,815 )
NET INCOME   $ 1,434,375     $ 2,589,621  
Foreign currency translation loss   $ (244,801 )   $ (5,524 )
Unrealized gains on investments     11,066       76,287  
Total Other Comprehensive Income (Loss)     (233,735 )     70,763  
COMPREHENSIVE INCOME   $ 1,200,640     $ 2,660,384  
BASIC EARNINGS PER SHARE   $ 0.03     $ 0.05  

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,
   2024     2023 
Net income $ 1,434,375     $ 2,589,621  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization expense   267,654       262,039  
Gain on sale of property and equipment   (44,821 )     (53,075 )
Bad debt expense   61,684       41,792  
Stock awards issued for services   197,443       223,047  
Changes in operating assets and liabilities:      
Accounts receivable   (23,969 )     (1,108,889 )
Income taxes receivable/payable   (804,057 )     629,371  
Inventories   (1,741,768 )     (292,119 )
Prepaid expenses and other current assets   (564,253 )     (335,832 )
Deferred tax asset/liability   (7,112 )     212,548  
Accounts payable and accrued liabilities   (1,467,314 )     (1,646,723 )
     Net Cash Provided by (Used in) Operating Activities   (2,692,138 )     521,780  
Proceeds from sale of property and equipment   46,097       97,886  
Sale (purchase) of investments   199,357       (390,548 )
Purchase of property and equipment   (776,721 )     (153,755 )
     Net Cash Used in Investing Activities   (531,267 )     (446,417 )
Value of equity awards surrendered by employees for tax liability   (307,933 )     (242,506 )
Principal paid toward lease liability   (10,875 )     (6,947 )
     Net Cash Used in Financing Activities   (318,808 )     (249,453 )
Effect of exchange rate changes on cash   (28,882 )     8,868  
NET DECREASE IN CASH   (3,571,095 )     (165,222 )
CASH AT BEGINNING OF PERIOD   10,767,519       7,384,578  
CASH AT END OF PERIOD $ 7,196,424     $ 7,219,356  
Interest $ 2,945     $ 933  
Income taxes $ 1,056,844     $  
Common stock issued in settlement of accrued bonuses $ 324,415     $ 378,526  
Common stock issued for stock options $ 850     $  

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


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Source: Profire Energy, Inc.