Profire Energy Files Annual 10-K Report
Company Meets Revenue and Net Income Forecasts, Sees Significant U.S. Growth, and Prepares to Leverage Operational Investments in Fiscal 2014
LINDON, Utah, July 1, 2013 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (OTCBB:PFIE), a technology company which manufactures, installs and services burner management systems and other combustion technologies for the oil and gas industry, today announced that it has filed its annual 10-K report for the fiscal year ending March 31, 2013.
The Company reported record revenues for fiscal year 2013 totaling $16,887,267 (a 6% increase from $15,925,213 in fiscal 2012), and net income before income taxes of $2,163,560 (a 50% decrease from $4,351,222 in fiscal 2012). Total assets increased 22% to $12,385,873 in fiscal 2013 from $10,125,758 in fiscal 2012, and total liabilities increased 28% to $1,923,226 in fiscal 2013 from $1,494,182 in fiscal 2012.
The year-end figures were consistent with the forecasts released by the company earlier this year. $16.8 million in revenue was realized with $16.7 million in revenue estimated, while after-tax net income realized was $1.4 million with $1.4 million estimated.
The annual report comes at the end of a year that entailed a number of significant accomplishments for the company, according to Profire's chief financial officer Andrew Limpert:
"We made a number of key investments in ourselves during fiscal 2013, which began to yield returns. We expect those returns to continue in fiscal 2014," said Limpert. "We saw significant growth in U.S. revenues this year, growing 503% from FY2012 Q3 to FY2013 Q3. We also released a number of new products that have already been received well in the Canadian and U.S. markets, and filed multiple patent applications to protect our innovations."
Limpert also discussed the nature of the Company's investments:
"We made significant investments in personnel, quality control, and infrastructure to prepare for anticipated sales growth in fiscal 2014. While these investments foreseeably impacted net margins, they are expected to create long-term value for the Company. Even during fiscal 2013, while investing significant resources to prepare for growth, we realized record revenues as these investments were leveraged. We intend to continue executing strategically on our commitment to revenue growth."
Profire's chief executive officer, Brenton Hatch, described the year in light of the Company's long-term strategic plans:
"Throughout fiscal year 2013, our focus as a management team was preparing the Company to execute on our future corporate objectives. We've experienced significant growth in past years, and we determined that a number of key investments needed to be made if we were to increase our sales and distribution capacities, expand our shareholder base, and deliver the kind of long-term stakeholder value that we're committed to as a Company. We believe the investments we made in fiscal 2013 will pay off in fiscal 2014 as we focus on capitalizing on these investments."
Some of the Company's major announcements during the fiscal year included a distribution agreement with Fortune-500 company Cameron, a new flare-ignition system, a new patent-pending airplate product, a number of new research and development initiatives, a new Company website, multiple office-expansions, as well as multiple awards for financial management and corporate growth.
The Company continued to report no debt.
The Company's annual report can be obtained from the Securities and Exchange Commission's website www.SEC.gov. To learn more about Profire Energy or its products, please contact Profire Energy, or visit www.ProfireEnergy.com.
Financial statements from the Company's report are provided below:
| PROFIRE ENERGY, INC. AND SUBSIDIARY | ||||
| Consolidated Balance Sheets | ||||
| ASSETS | ||||
| March 31, | March 31, | |||
| 2013 | 2012 | |||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | $ 808,772 | $ 1,914,877 | ||
| Accounts receivable, net | 5,879,165 | 4,236,240 | ||
| Marketable securities-available for sale | -- | 840 | ||
| Inventories | 3,463,614 | 1,968,740 | ||
| Deferred tax asset | -- | 12,569 | ||
| Prepaid expenses | 1,967 | 10,202 | ||
| Total Current Assets | 10,153,518 | 8,143,468 | ||
| PROPERTY AND EQUIPMENT, net | 2,232,355 | 1,982,290 | ||
| TOTAL ASSETS | $ 12,385,873 | $ 10,125,758 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | $ 1,499,330 | $ 645,215 | ||
| Accrued liabilities | 189,489 | 251,137 | ||
| Deferred income tax liability | 72,857 | -- | ||
| Income taxes payable | 161,550 | 597,830 | ||
| Total Current Liabilities | 1,923,226 | 1,494,182 | ||
| TOTAL LIABILITIES | 1,923,226 | 1,494,182 | ||
| STOCKHOLDERS' EQUITY | ||||
| 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: 45,250,000 and 45,000,000 shares issued and outstanding, respectively | 45,250 | 45,000 | ||
| Additional paid-in capital | 585,735 | 74,343 | ||
| Accumulated other comprehensive income | 371,466 | 484,692 | ||
| Retained earnings | 9,460,196 | 8,027,541 | ||
| Total Stockholders' Equity | 10,462,647 | 8,631,576 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,385,873 | $ 10,125,758 | ||
| PROFIRE ENERGY, INC. AND SUBSIDIARY | ||
| Consolidated Statements of Operations and Other Comprehensive Income | ||
| For the Years Ended | ||
| March 31, | ||
| 2013 | 2012 | |
| REVENUES | ||
| Sales of goods, net | $ 15,740,546 | $ 14,875,652 |
| Sales of services, net | 1,146,721 | 1,049,561 |
| Total Revenues | 16,887,267 | 15,925,213 |
| COST OF SALES | ||
| Cost of goods sold | 7,034,703 | 6,170,073 |
| Cost of goods sold-services | 1,043,294 | 717,796 |
| Total Cost of Goods Sold | 8,077,997 | 6,887,869 |
| GROSS PROFIT | 8,809,270 | 9,037,344 |
| OPERATING EXPENSES | ||
| General and administrative expenses | 3,798,075 | 2,752,451 |
| Payroll expenses | 2,656,762 | 1,757,855 |
| Loss on sale of fixed assets | 13,936 | -- |
| Depreciation expense | 195,070 | 159,421 |
| Total Operating Expenses | 6,663,843 | 4,669,727 |
| INCOME FROM OPERATIONS | 2,145,427 | 4,367,617 |
| OTHER INCOME (EXPENSE) | ||
| Interest expense | -- | (20,370) |
| Permanent impairment of available for sale securities | (8,438) | |
| Rental income | 629 | 3,600 |
| Interest income | 25,942 | 375 |
| Total Other Income (Expense) | 18,133 | (16,395) |
| NET INCOME BEFORE INCOME TAXES | 2,163,560 | 4,351,222 |
| INCOME TAX EXPENSE | 730,905 | 1,163,451 |
| NET INCOME | $ 1,432,655 | $ 3,187,771 |
| OTHER COMPREHENSIVE INCOME | ||
| UNREALIZED HOLDING LOSS ON AVAILABLE FOR SALE SECURITIES | $ -- | $ (2,445) |
| LESS: RECLASSIFICATION ADJUSTMENT FOR NET LOSS INCLUDED IN NET INCOME | 8,438 | -- |
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (121,664) | (147,061) |
| TOTAL COMPREHENSIVE INCOME | $ 1,319,429 | $ 3,038,265 |
| BASIC EARNINGS PER SHARE | $ 0.03 | $ 0.07 |
| FULLY DILUTED EARNINGS PER SHARE | $ 0.03 | $ 0.07 |
| BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 45,109,767 | 45,000,000 |
| FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 45,371,956 | 45,218,238 |
| PROFIRE ENERGY, INC. AND SUBSIDIARY | ||||||
| Consolidated Statements of Stockholders' Equity | ||||||
| Additional | Other | Total | ||||
| Common Stock | Paid-In | Comprehensive | Retained | Stockholders' | ||
| Shares | Amount | Capital | Income | Earnings | Equity | |
| Balance, March 31, 2011 | 45,000,000 | 45,000 | (6,187) | 634,198 | 4,839,770 | 5,512,781 |
| Fair value of options vested | -- | -- | 80,530 | -- | -- | 80,530 |
| Unrealized holding losses on available for sale securities | -- | -- | -- | (2,445) | -- | (2,445) |
| Foreign currency translation | -- | -- | -- | (147,061) | -- | (147,061) |
| Net Income for the year ended March 31, 2012 | -- | -- | -- | -- | 3,187,771 | 3,187,771 |
| Balance, March 31, 2012 | 45,000,000 | 45,000 | 74,343 | 484,692 | 8,027,541 | 8,631,576 |
| Fair value of options vested | -- | -- | 166,187 | -- | -- | 166,187 |
| Stock issued for services | 250,000 | 250 | 345,205 | -- | -- | 345,455 |
| Reclassification for net loss included in net income | -- | -- | -- | 8,438 | 8,438 | |
| Foreign currency translation adjustment | -- | -- | -- | (121,664) | -- | (121,664) |
| Net Income for the year ended March 31, 2013 | -- | -- | -- | -- | 1,432,655 | 1,432,655 |
| Balance, March 31, 2013 | 45,250,000 | $ 45,250 | $ 585,735 | $ 371,466 | $ 9,460,196 | $10,462,647 |
About Profire Energy, Inc.
Profire Energy assists energy production companies in the safe and efficient transportation, refinement and production of oil and natural gas. As energy companies seek greater safety for their employees, compliance with more stringent EPA standards and enhanced margins with their energy production processes, Profire Energy's burner management systems are increasingly becoming part of their solution. To learn more about the company's products and services, please visit www.ProfireEnergy.com. Profire Energy has offices in Lindon, Utah; Houston, Texas; and Edmonton, Alberta, Canada.
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 anticipated returns on the Company's investments, the execution of the Company's goals for revenue growth, the execution of the Company's plans to create long-term stakeholder value, the Company's ability to increase sales or distribution capacities, or the Company's ability to expand its shareholder base. All such forward-looking statements are subject to uncertainty and changes in circumstances. 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 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. Readers should not place undue reliance on these forward-looking statements.
CONTACT: Profire Energy, Inc.
Andrew Limpert, CFO
(801) 796-5127
Profire Energy, Inc.
Nathan McBride, Finance & Communications
(801) 796-5127
RedChip Companies, Inc.
Brendan Hopkins
1-900-RED-CHIP (733-2447), ext. 134
Released July 1, 2013