Profire Energy Reports Financial Results for Fiscal Year 2015: Beats Revenue Guidance & Meets Net Income Guidance

2015 Revenues Up 45% to Record $51.2 Million, Net Income Up 3% to Record $5.7 Million or $0.11 Per Share

LINDON, Utah, June 15, 2015 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (Nasdaq:PFIE), a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for its fiscal year ended March 31, 2015. A conference call will be held on Monday, June 15, 2015 at 5:00 p.m. EDT to discuss the results.

Fiscal 2015 Highlights vs. Same Year-ago Period

  • Total revenues increased 45% to record $51.2 million
  • Gross profit up 36% to record $27.2 million
  • Net income up 3% to record $5.7 million or $0.11 cents per share
  • Cash at year-end totaled $14.1 million (cash balance as of June 2015 is $18.1 million)
  • Completed an equity raise, netting the Company $16.4 million
  • Extended product line with the development of the Profire Flare Stack Igniter and acquisition of Chemical Management System; accelerated R&D investment for future products
  • Completed expansion of Utah warehouse, increasing efficiency and scalability of product inventory and delivery.
  • PFIE added to Russell 2000®, Russell 3000®, and Russell Microcap® Indices.

Fiscal Year 2015 Financial Results
Our total revenues during the year ended March 31, 2015 increased 45% to $51.2 million from $35.4 million in the year ended March 31, 2014.  Increased equipment-purchasing activity in oil and gas for the first half of the fiscal year, combined with our opening of multiple offices, increased hiring of sales and service personnel, and an expansion of our product line helped contribute to our increased sales—especially in the United States.

Gross profit increased to $27.2 million or 53% of total revenues, compared to $20.0 million or 57% of total revenues in the prior year.
Total operating expenses increased to $18.7 million or 37% of total revenues from $11.4 million or 32% of total revenues in the prior year. Compared to the prior fiscal year, operating expenses for research and development increased 161%, payroll increased 53%, and depreciation increased 102%. With the Company’s growth focus during much of the fiscal year, the increased operational costs were expected.

Net income was $5.7 million or $0.11 per diluted share, compared to net income of $5.6 million or $0.12 per diluted share in the prior year.

Cash and cash equivalents totaled $14.1 million at March 31, 2015, as compared to $4.5 million in the year ago period, the increase being largely attributable to the equity raise completed during our second fiscal quarter. The Company continues to operate debt-free.

Management Commentary
“This was a record year for Profire and we are very pleased with what we were able to accomplish,” said Brenton Hatch, president and CEO of Profire Energy. “The baseline driver of growth continues to be the unique ability of our products to make oil and gas production safer, more efficient, and more compliant with industry regulations. Our amazing employees, customers, and suppliers each played an important role in helping the Company reach these new heights.

“Although we are in the midst of a very difficult environment, we believe the Company is well positioned to manage through this downturn and grow again when the market improves. We have no debt, and as of this past week, we had $18.1 million in cash reserves, which gives the Company a lot of options moving forward. While we know that the next couple quarters will be challenging for us, we are still very optimistic about the market opportunity and future of Profire. As we manage through this volatile period, we anticipate that, with time, our strategic investments and significant cost reductions will help us improve our operational leverage and strengthen our industry leadership over the long-term.”

Fiscal 2016 Guidance
Based on the current industry environment and its expected continued impact on the Company we are expecting a difficult year. For fiscal 2016, we are guiding for total revenues of $25.0-30.0 million and net income of $(1.0)-2.0 million. One of the biggest challenges that the Company faces is the lack of visibility into sales in the short term. We expect the latter half of the fiscal year to present a better sales environment than the first half, which we expect to coincide with an improved Company capability to sell products into the current environment.

Profire management will host a conference call later today to discuss these financial results. Please call the conference telephone number at least five minutes prior to the start time. An operator will register your name and organization.

Date: Monday June 15, 2015
Time: 5:00 p.m. EDT (3:00 p.m. MDT) 
Toll-free dial-in number: 1-855-327-6837 
International dial-in number: 1-778-327-3988

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 to the conference call, please contact Tanner Lamb at 1-801-796-5127.

A replay of the call will be available after 8:00 p.m. EDT on the same day through June 22, 2015.
Toll-free replay number: 1-877-870-5176 
International replay number: 1-858-384-5517 
Replay ID: 112870

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 systems are increasingly becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Victoria, Texas; Oklahoma City, Oklahoma; Tioga, Pennsylvania; Greeley, Colorado; and Edmonton, 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 its sales, marketing, and operational advancements/expansions, including, but not limited to, the increased activity from a larger sales force, strengthened customer relationships, and increased sales efficacy; the company’s ability to leverage their cash position; statements regarding the market difficulties facing the company for the next couple of quarters; the industry impact on the Company's growth; the Company's long-term outlook and market opportunity of the Company; the curtailing of the Company's aggressive-growth initiatives; the intention of the Company to reduce costs and be wise about future costs, and the effects of such actions; the effects of the Company’s strategic investments, the company’s financial expectations, including revenue and net income, for fiscal year 2016; the company’s sales performance in the upcoming fiscal year; and the ability of the Company to successfully navigate the volatile industry conditions. 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.

Consolidated Balance Sheets    
          March 31,   March 31,    
            2015     2014    
CURRENT ASSETS                
  Cash and cash equivalents    $      14,144,796     $     4,456,674      
  Accounts receivable, net         9,462,378           8,873,471      
  Inventories         11,766,535           6,579,858      
  Prepaid expenses & other current assets         112,741           32,263      
    Total Current Assets         35,486,450           19,942,266      
LONG-TERM ASSETS                
  Deferred tax asset         501,921           420,978      
PROPERTY AND EQUIPMENT, net         9,275,965           4,385,881      
OTHER ASSETS                
  Goodwill         997,701           -      
  Intangible assets, net of accumulated amortization         594,019           -      
    Total Other Assets         1,591,720           -      
    TOTAL ASSETS    $      46,856,056     $     24,749,125      
  Accounts payable    $      1,040,530     $     1,461,138      
  Accrued liabilities         332,229           193,727      
  Income taxes payable         347,486           1,605,133      
    Total Current Liabilities         1,720,245           3,259,998      
  Deferred income tax liability         631,353           107,857      
TOTAL LIABILITIES         2,351,598           3,367,855      
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: 53,199,136 and                 
    47,836,543 shares issued and outstanding, respectively       53,199         47,836      
  Additional paid-in capital         25,525,052           6,496,980      
  Accumulated other comprehensive income         (1,888,981 )         (231,051 )    
  Retained earnings         20,815,188           15,067,505      
    Total Stockholders' Equity         44,504,458           21,381,270      
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $      46,856,056     $     24,749,125      
These financial statements should be read in conjunction with form 10K as well as the accompanying footnotes    


Consolidated Statements of Operations and Other Comprehensive Income
       For the Years Ended 
      March 31,
      2015     2014  
  Sales of goods, net  $     47,768,556        $     33,646,158    
  Sales of services, net       3,410,836             1,745,950    
    Total Revenues      51,179,392            35,392,108    
COST OF SALES                
  Cost of goods sold-product      21,240,363            14,131,527    
  Cost of goods sold-services       2,716,272             1,221,410    
    Total Cost of  Goods Sold      23,956,635            15,352,937    
GROSS PROFIT        27,222,757            20,039,171    
  General and administrative expenses      10,287,493             6,466,177    
  Research and development       1,832,671             703,266    
  Payroll expenses       6,008,663             3,921,174    
  Depreciation and amortization expense       558,231             276,661    
    Total Operating Expenses      18,687,058            11,367,278    
INCOME FROM OPERATIONS       8,535,699             8,671,893    
OTHER INCOME (EXPENSE)              
  Interest expense       -              (2,692 )  
  Gain on disposal of fixed assets       8,014             2,867    
  Other income       21,865             3,990    
  Interest income       26,010             5,863    
    Total Other Income (Expense)       55,889             10,028    
NET INCOME BEFORE INCOME TAXES       8,591,588             8,681,921    
INCOME TAX EXPENSE       2,843,905             3,074,612    
NET INCOME   $     5,747,683       $     5,607,309    
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) $     (1,657,930 )     $     (602,517 )  
TOTAL COMPREHENSIVE INCOME $     4,089,753       $     5,004,792    
BASIC EARNINGS PER SHARE $     0.11       $     0.12    
FULLY DILUTED EARNINGS PER SHARE $     0.11       $     0.12    
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING      51,609,760            46,230,669    
These financial statements should be read in conjunction with form 10K as well as the accompanying footnotes


Consolidated Statements of Stockholders' Equity   
            Additional   Other        Total  
  Common Stock   Paid-In   Comprehensive   Retained   Stockholders'  
  Shares   Amount   Capital   Income   Earnings   Equity  
Balance, March 31, 2013   45,250,000    $    45,250    $    585,735    $      371,466      $    9,460,196         10,462,647    
Fair value of options vested   -       -       1,433,984         -         -         1,433,984    
Stock issued for services   20,000       20       28,340         -         -         28,360    
Stock Issuance   2,259,393       2,259       4,330,716                     4,332,975    
Exercised options   307,150       307       118,205             -         118,512    
Foreign currency translation adjustment   -       -       -         (602,517 )       -         (602,517 )  
Net Income for the year                                  
  ended March 31, 2014   -       -       -         -       5,607,309         5,607,309    
Balance, March 31, 2014   47,836,543       47,836       6,496,980         (231,051 )       15,067,505         21,381,270    
Exercised Options   596,635       597       327,365         -         -         327,962    
Stock issuance, less offering costs of $1,529,057   4,500,000       4,500       16,420,188         -         -         16,424,688    
Stock issued for asset acquisition   265,958       266       999,734         -         -         1,000,000    
Fair value of options vested    -       -       1,280,785         -         -         1,280,785    
Foreign currency translation    -       -       -         (1,657,930 )       -         (1,657,930 )  
Net Income for the year                                  
  ended March 31, 2015   -       -       -         -         5,747,683         5,747,683    
Balance, March 31, 2015   53,199,136       53,199       25,525,052         (1,888,981 )       20,815,188         44,504,458    
These financial statements should be read in conjunction with form 10K as well as the accompanying footnotes  


Consolidated Statements of Cash Flows  
        For the Years Ended  
        March 31,  
        2015   2014  
  Net Income    $     5,747,683     $     5,607,309    
  Adjustments to reconcile net income to              
    net cash provided by operating activities:              
    Depreciation and amortization expense         1,140,319           359,305    
    Gain on disposal of fixed assets         (8,014 )         (2,867 )  
    Common stock issued for services         -           28,360    
    Bad debt expense         (7,577 )         (605 )  
    Stock options issued for services         1,280,785           1,433,984    
  Changes in operating assets and liabilities:              
    Changes in accounts receivable         (912,606 )         (3,264,108 )  
    Changes in inventories         (5,472,869 )         (3,249,235 )  
    Changes in prepaid expenses         (80,770 )         (30,296 )  
    Changes in deferred tax asset/liability         (80,943 )         (420,978 )  
    Changes in accounts payable and accrued liabilities         (302,782 )         77,785    
    Changes in income taxes payable         (618,146 )         1,488,619    
      Net Cash Provided by Operating Activities         685,080           2,027,273    
  Proceeds from disposal of equipment         7,867           33,910    
  Cash paid for asset acquisition         (750,000 )         -    
  Purchase of fixed assets         (6,167,945 )         (2,659,295 )  
    Net Cash Used in Investing Activities         (6,910,078 )         (2,625,385 )  
  Proceeds from stock issued for cash, net of stock offering costs       16,424,688           118,512    
  Proceeds from stock issued in exercise of stock options         327,961           4,332,975    
      Net Cash Provided by Financing Activities         16,752,649           4,451,487    
  Effect of exchange rate changes on cash         (839,529 )         (205,473 )  
    NET INCREASE IN CASH         9,688,122           3,647,902    
    CASH AT BEGINNING OF PERIOD         4,456,674           808,772    
    CASH AT END OF PERIOD   $     14,144,796     $     4,456,674    
  CASH PAID FOR:              
    Interest    $      17,043      $      2,692    
    Income taxes    $      3,471,027      $      1,585,993    
    Stock issued for acquisition    $      1,000,000      $      -    
These financial statements should be read in conjunction with form 10K as well as the accompanying footnotes  
Profire Energy, Inc.
Nathan McBride, VP Strategy & Finance
(801) 796-5127

Profire Energy, Inc.
Tanner Lamb, Investor Relations Manager

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Source: Profire Energy