Profire Energy Reports Financial Results for Fiscal Third Quarter of 2016

Company Recognizes Quarterly Profit and Positive Cash Flow Amid Difficult Industry Conditions; Fiscal 2016 Guidance Reiterated

LINDON, Utah, Feb. 08, 2016 (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 third quarter ended December 31, 2015. A conference call will be held on Tuesday, February 9, 2016 at 1:00 p.m. EST to discuss the results.

Fiscal Q3 2016 Highlights

  • Total revenues of $7.6 million
  • Net income of $478,799 or $0.01 per diluted share
  • Cash at period-end totaled $19.3 million
  • Generated positive cash flow
  • Remained debt-free

Fiscal Q3 2016 Financial Results                                                                                
Total revenues in the third fiscal quarter of 2016 decreased 40%, compared to the same quarter last year. The decline was a result of decreased oilfield purchasing which could persist for some time. Based on the current industry environment, and near-term commodity price expectations, the Company does not anticipate improvement in customer purchasing in the short-term. Although facing a difficult market, the Company is determined to position itself to capture the greatest amount of revenue in both the short- and long-terms.

Gross profit decreased during the quarter to $4.0 million or 53% of total revenues, compared to $6.5 million or 52% of total revenues in the same year-ago quarter.

Total operating expenses decreased to $3.5 million or 46% of total revenues from $4.7 million or 38% of total revenues in the same year-ago quarter. Cost management has been a significant Company focus over the last few periods and will continue to be an emphasis for the foreseeable future. The Company has been successful in its expense-reduction measures and will continue to work toward maximizing efficiency.

Net income was $478,799 or $0.01 per diluted share, compared to net income of $1.9 million or $0.04 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $19.3 million, an increase of more than $5.1 million compared to prior year-end. The Company continues to generate cash flow from operating activities, which will remain a focus in future periods.

First Nine-Months of Fiscal 2016 Financial Results

Total revenues in the first nine-months of fiscal 2016 decreased 46% to $22.5 million from $41.4 million in the same year-ago period.

Gross profit decreased to $11.3 million or 50% of total revenues, compared to $22.5 million or 55% of total revenues in the same period last year.

Total operating expenses decreased to $10.7 million or 48% of total revenues from $14.1 million or 34% of total revenues in the first nine-months of fiscal 2016.

Net income was $0.8 million or $0.01 per diluted share, compared to a net income of $6.2 million or $0.12 per diluted share in the same year-ago period.

Management Commentary

“Unquestionably the industry is enduring a period of significant volatility,” said Brenton Hatch, President and CEO of Profire Energy. “We continue to anticipate a challenging calendar year. However, I’m pleased with our ability to remain profitable amid the difficult market headwinds. Our focus continues to be on improving cost management. We have made momentous changes to our cost structure over the last several periods and will continue to look for opportunities to reduce expenses without damaging the long-term strategy of the Company. We believe this strategic approach, coupled with the internal talent and resources we have, will position us to weather the storm and become a flexible, more efficient Company.”

“In addition to our strong balance sheet, we continue to operate debt-free,” said Ryan Oviatt, CFO of Profire Energy. “Our team is resilient and has refocused their energies on cost management and cash flow generation. Despite industry trends, we believe we have demonstrated that even in volatile times, the Company has the potential to remain profitable and generate positive cash flow.”

Fiscal 2016 Outlook

The Company maintains its fiscal 2016 guidance. For fiscal 2016, total revenues are expected between $25.0-30.0 million with net income of $(1.0)-2.0 million.

Conference Call

Profire management will host a conference Tuesday, February 9, 2016 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: Tuesday, February 9, 2016
Time: 1:00 p.m. EST (11:00 a.m. MST)
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304

The conference call will also be webcast live and available for replay via this link:

If you have any difficulty connecting with the call, please contact Tanner Lamb at 1-801-796-5127.

A telephone replay of the call will be available after 8:00 p.m. EST on the same day through February 16, 2016

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 10000631

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 and chemical management systems are 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 the Fiscal 2016 Guidance being reiterated; or, the Company holding a conference call on February 9, 2016 regarding Q3 fiscal results; or, the Company’s ability to remain profitable; or, the Company finding ways to reduce expenses without damaging the long-term strategy of the Company; or, the Company being able to weather the industry’s current volatility and become a flexible, more efficient Company; or, the Company being able to continue operating debt-free; or, the Company being able to generate positive cash flow; or, the conference call being available for replay until February 16, 2016. 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.

Item 1 Financial Information  
Consolidated Balance Sheets  
          December 31,   March 31,  
            2015     2015  
CURRENT ASSETS              
  Cash and cash equivalents   $     19,281,501     $     14,144,796    
  Accounts receivable, net         6,515,543           9,462,378    
  Inventories         10,840,598           11,766,535    
  Income tax receivable         113,978           -    
  Prepaid expenses & other current assets         312,547           112,741    
    Total Current Assets         37,064,167           35,486,450    
LONG-TERM ASSETS              
  Deferred tax asset         669,895           501,921    
PROPERTY AND EQUIPMENT, net         8,449,492           9,275,965    
OTHER ASSETS              
  Goodwill         997,701           997,701    
  Intangible assets, net of accumulated amortization         501,490           594,019    
    Total Other Assets         1,499,191           1,591,720    
    TOTAL ASSETS   $     47,682,745     $     46,856,056    
  Accounts payable   $     1,379,019     $     1,040,530    
  Accrued liabilities         594,236           332,229    
  Income taxes payable         396,089           347,486    
    Total Current Liabilities         2,369,344           1,720,245    
  Deferred income tax liability         616,735           631,353    
TOTAL LIABILITIES         2,986,079           2,351,598    
  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: 53,255,275 and              
    53,199,136 shares issued and outstanding, respectively       53,255         53,199    
  Additional paid-in capital       26,152,201           25,525,052    
  Accumulated other comprehensive income (loss)       (3,122,872 )         (1,888,981 )  
  Retained earnings         21,614,082           20,815,188    
    Total Stockholders' Equity         44,696,666           44,504,458    
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $     47,682,745     $     46,856,056    
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.  


Consolidated Statements of Operations and Other Comprehensive Income (Loss)  
       For the Three Months Ended   For the Nine Months Ended   
      December 31,    December 31,   
      2015     2014   2015   2014  
  Sales of goods, net  $      6,515,584        $      11,695,016      $      20,019,400      $      38,640,246    
  Sales of services, net       1,038,671             821,683           2,509,392           2,742,219    
    Total Revenues       7,554,255             12,516,699           22,528,792           41,382,465    
COST OF SALES                                           
  Cost of goods sold-product       2,833,909             5,299,912           9,247,014           16,837,531    
  Cost of goods sold-services       722,288             674,192           1,941,819           2,015,796    
    Total Cost of  Goods Sold       3,556,197             5,974,104           11,188,833           18,853,327    
GROSS PROFIT        3,998,058             6,542,595           11,339,959           22,529,138    
OPERATING EXPENSES                                          
  General and administrative expenses       1,800,491             2,446,896           5,439,067           7,722,366    
  Research and development       348,874             521,814           948,508           1,331,834    
  Payroll expenses       1,230,022             1,591,397           3,952,447           4,624,826    
  Depreciation and amortization expense       128,793             176,371           374,247           424,014    
    Total Operating Expenses       3,508,180             4,736,478           10,714,269           14,103,040    
INCOME FROM OPERATIONS       489,878             1,806,117           625,690           8,426,098    
OTHER INCOME (EXPENSE)                                          
  Interest expense       -              (14,222 )         -            (14,222 )  
  Gain on disposal of fixed assets       -              9,052           19,391           9,052    
  Other (expense) income       177,931             (910 )         421,251           1,954    
  Interest income       5,217             6,687           31,857           14,467    
    Total Other Income (Expense)       183,148             607           472,499           11,251    
NET INCOME BEFORE INCOME TAXES       673,026             1,806,724           1,098,189           8,437,349    
INCOME TAX EXPENSE (BENEFIT)       194,227             (110,426 )         299,295           2,221,292    
NET INCOME   $     478,799       $     1,917,150     $     798,895     $     6,216,057    
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) $     (482,744 )     $     (381,099 )   $     (1,233,891 )   $     (539,777 )  
TOTAL COMPREHENSIVE INCOME (LOSS) $     (3,945 )     $     1,536,051     $     (434,997 )   $     5,676,280    
BASIC EARNINGS PER SHARE $     0.01       $     0.04     $   0.02     $   0.12    
FULLY DILUTED EARNINGS PER SHARE $     0.01       $     0.04     $   0.01     $   0.12    
BASIC WEIGHTED AVERAGE NUMBER                                          
  OF SHARES OUTSTANDING       53,255,275             52,884,358         53,239,087         51,112,924    
  OF SHARES OUTSTANDING       53,523,081             53,161,058         53,506,778         51,389,624    
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.  


Consolidated Statements of Cash Flows  
        For the Nine Months Ended  
        December 31,  
        2015   2014  
  Net Income    $     798,895     $     6,216,057    
  Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization expense         729,695           784,193    
    Gain on disposal of fixed assets         (19,391 )         (9,052 )  
    Bad debt expense         104,252           (14,832 )  
    Stock options issued for services         666,450           1,031,301    
  Changes in operating assets and liabilities:              
    Changes in accounts receivable         2,683,035           (3,035,929 )  
    Changes in income tax receivable         (113,978 )         -    
    Changes in inventories         625,368           (4,533,903 )  
    Changes in prepaid expenses         (199,923 )         (345,977 )  
    Changes in deferred tax asset         (167,974 )         (246,016 )  
    Changes in accounts payable and accrued liabilities         627,765           1,831,277    
    Changes in income taxes payable         45,417           (478,480 )  
      Net Cash Provided by Operating Activities         5,779,611           1,198,639    
  Proceeds from disposal of equipment         116,524           9,052    
  Cash paid for asset acquisition         -           (750,000 )  
  Purchase of fixed assets         (62,465 )         (5,941,953 )  
    Net Cash Provided by (Used in) Investing Activities         54,059           (6,682,901 )  
  Proceeds from stock issued for cash, net of stock offering costs         -           16,424,688    
  Value of equity awards surrendered by employees for tax liability         (39,243 )         -    
  Stock issued in exercise of stock options         -           197,961    
      Net Cash Provided by (Used in) Financing Activities         (39,243 )         16,622,649    
  Effect of exchange rate changes on cash         (657,722 )         (209,454 )  
    NET INCREASE IN CASH         5,136,705           10,928,933    
    CASH AT BEGINNING OF PERIOD         14,144,796           4,456,674    
    CASH AT END OF PERIOD   $     19,281,501     $     15,385,607    
  CASH FLOW INFORMATION                      
  CASH PAID FOR:                      
    Interest    $      -      $      14,222    
    Income taxes    $      402,417      $      2,890,769    
    Stock issued for acquisition    $      -      $      1,000,000    
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.  


Profire Energy, Inc.
Tanner Lamb, Finance and Investor Relations
(801) 796-5127

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Source: Profire Energy