Exhibit 99.2
 
 

PROFIRE ENERGY REPORTS RECORD REVENUES, CASH IN Q3 FY2014;
RAISES REVENUE AND NET INCOME GUIDANCE FOR FY2014

FY2014 Guidance Raised to $34.0-35.0M Revenue, $5.3-5.8M Net Income;
Multiple Non-Cash Expenses bring Fiscal Q3 Net Margin below Historical Norm of 20%

LINDON, Utah, February 14, 2014- 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 Quarterly Report on Form 10-Q for its fiscal quarter ended December 31, 2013 with the U.S. Securities and Exchange Commission, and updated its guidance for the 2014 fiscal year, available on the Company’s website.

The Company reported record quarterly revenue for the three months ended December 31, 2013 of $9,530,837, and net income (after-tax) of $1,206,306, respectively. These figures represent a 169% increase in revenue and a 470% increase in net income (after-tax) compared to the same period of the prior fiscal year.  Earnings per share increased to $0.03 for the quarter, compared to ($0.01) for the same period of the prior fiscal year. As a percentage of revenues, total operating expenses fell from 75% to 33%. The Company reported total assets of $23,767,322 (with cash and cash equivalents of $5,732,530) and total liabilities of $3,484,285.

“Our third fiscal quarter showed significant growth over the same period in fiscal 2013,” said Andrew Limpert, Chief Financial Officer of Profire. “With the expansion of our sales team, the opening of new territories, and the continued development of the U.S. market, we saw increased execution from our sales team. As we stay active in training new personnel and improving our current product offering—as well as developing new technologies—we hope to improve our sales effectiveness over the coming quarters. With the sales expansions we recently announced, there will be some time and resources required to realize the potential of these expansions.”

The Company reported a 183% increase in the sales of goods (net), as well as a 46% increase in the sales of services (net), while total operating expenses increased 19%.

“We have adjusted our guidance to reflect our expectations for the fourth quarter of fiscal 2014,” said Nathan McBride, Finance & Communications at Profire. “We are raising our revenue guidance from $22.5 million to between $34.0 and $35.0 million in revenue, and also raising our net income guidance from $4.2 million to between $5.3 and $5.8 million.”

“As we look back at this recent quarter, we are largely pleased with the efforts and results from our team,” said Brenton Hatch, Chief Executive Officer of Profire. “Revenues improved quite strongly over last year, though we hope to improve quarter-after-quarter growth in the coming quarter and fiscal year. While we had some non-cash option-related expenses—which are largely non-recurring—that reduced our net income for the quarter, our normal operating profitability remained at approximately historical levels. We appreciate the hard work of our employees, as well as the patience and trust of our stockholders, as we prepare to finish the fiscal year and enter another year of exciting possibilities for Profire and the industry.”

The Company remains debt-free.

The Company’s financial statements (as filed with the Securities and Exchange Commission) are provided below.
 
 
 
 
 
 
 
PROFIRE ENERGY, INC. AND SUBSIDIARY
  
Condensed Consolidated Balance Sheets
  
             
 
December 31
  
March 31,
  
 
2013
  
2013
  
 
(Unaudited)
      
  ASSETS
  
CURRENT ASSETS
            
             
Cash and cash equivalents
  
$
5,732,530
    
$
808,772
  
Accounts receivable, net
    
8,481,074
      
5,879,165
  
Inventories
    
6,963,230
      
3,463,614
  
Prepaid expenses
    
46,937
      
1,967
  
                 
Total Current Assets
    
21,223,771
      
10,153,518
  
                 
PROPERTY AND EQUIPMENT, net
    
2,543,551
      
2,232,355
  
                 
TOTAL ASSETS
  
$
23,767,322
    
$
12,385,873
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
  
                 
CURRENT LIABILITIES
                
                 
Accounts payable
  
$
2,050,748
    
$
1,499,330
  
Accrued liabilities
    
96,213
      
189,489
  
Deferred income tax liability
    
116,607
      
72,857
  
Income taxes payable
    
1,220,717
      
161,550
  
                 
Total Current Liabilities
    
3,484,285
      
1,923,226
  
                 
TOTAL LIABILITIES
    
3,484,285
      
1,923,226
  
                 
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: 47,836,428 and 45,250,000 shares issued and outstanding, respectively
    
47,837
      
45,250
  
Additional paid-in capital
    
5,912,516
      
585,735
  
Accumulated other comprehensive income/(loss)
    
(7,351
)
    
371,466
  
Retained earnings
    
14,330,035
      
9,460,196
  
                 
Total Stockholders' Equity
    
20,283,037
      
10,462,647
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
23,767,322
    
$
12,385,873
  

The accompanying notes are a integral part of these condensed consolidated financials statements.
 
 
 
 
 
 
 
PROFIRE ENERGY, INC. AND SUBSIDIARY
  
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
  
(Unaudited)
  
                         
   
For the Three Months Ended
    
For the Nine Months Ended
  
   
December
    
December
  
   
2013
    
2012
    
2013
    
2012
  
REVENUES
                        
Sales of goods, net
  
$
8,999,070
    
$
3,176,627
    
$
24,778,093
    
$
10,724,586
  
Sales of services, net
    
531,767
      
364,434
      
1,276,780
      
873,341
  
Total Revenues
    
9,530,837
      
3,541,061
      
26,054,873
      
11,597,927
  
                                 
COST OF SALES
                                
Cost of goods sold-product
    
3,894,002
      
1,050,966
      
10,169,122
      
4,329,037
  
Cost of goods sold-services
    
418,594
      
313,442
      
919,041
      
697,474
  
Total Cost of  Goods Sold
    
4,312,596
      
1,364,408
      
11,088,163
      
5,026,511
  
                                 
GROSS PROFIT
    
5,218,241
      
2,176,653
      
14,966,710
      
6,571,416
  
                                 
OPERATING EXPENSES
                                
General and administrative expenses
    
1,977,911
      
1,339,676
      
4,076,226
      
3,135,668
  
Research and development
    
139,691
      
38,472
      
390,710
      
148,865
  
Payroll expenses
    
946,878
      
1,144,024
      
2,712,947
      
1,845,679
  
Depreciation expense
    
78,685
      
116,678
      
205,610
      
227,604
  
                                 
Total Operating Expenses
    
3,143,165
      
2,638,850
      
7,385,493
      
5,357,816
  
                                 
INCOME FROM OPERATIONS
    
2,075,076
      
(462,197
)
    
7,581,217
      
1,213,600
  
                                 
OTHER INCOME (EXPENSE)
                                
Interest expense
    
-
      
(4,493
)
    
(10,567
)
    
(13,171
)
Gain on disposal of fixed assets
    
-
      
-
      
1,617
      
-
  
Rental income
    
311
      
-
      
2,501
      
-
  
Interest income
    
1,544
      
13,074
      
9,910
      
21,389
  
                                 
Total Other Income (Expense)
    
1,855
      
8,581
      
3,461
      
8,218
  
                                 
NET INCOME BEFORE INCOME TAXES
    
2,076,931
      
(453,616
)
    
7,584,678
      
1,221,818
  
                                 
INCOME TAX EXPENSE
    
870,625
      
(127,347
)
    
2,714,839
      
337,222
  
                                 
NET INCOME
  
$
1,206,306
    
$
(326,269
)
  
$
4,869,839
    
$
884,596
  
                                 
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
  
$
(178,593
)
  
$
(449,470
)
    
(378,817
)
    
(229,852
)
                                 
TOTAL COMPREHENSIVE INCOME
  
$
1,027,713
    
$
(775,739
)
  
$
4,491,022
    
$
654,744
  
                                 
BASIC EARNINGS PER SHARE
  
$
0.03
    
$
(0.01
)
  
$
0.11
    
$
0.02
  
                                 
FULLY DILUTED EARNINGS PER SHARE
  
$
0.03
    
$
(0.01
)
  
$
0.11
    
$
0.02
  
                                 
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
    
46,560,913
      
45,155,000
      
45,705,105
      
45,088,400
  
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
    
46,973,885
      
45,155,000
      
46,118,077
      
45,357,724
  
 
 
The accompanying notes are a integral part of these condensed consolidated financials statements.

 
 
 
 

PROFIRE ENERGY, INC. AND SUBSIDIARY
  
Condensed Consolidated Statements of Cash Flows
  
(unaudited)
  
             
             
   
For the Nine Months Ended
  
   
December 31
  
   
2013
    
2012
  
OPERATING ACTIVITIES
            
             
Net Income
  
$
4,869,839
    
$
884,596
  
Adjustments to reconcile net income to
                
  net cash provided by operating activities:
                
Depreciation expense
    
246,542
      
225,076
  
Gain on the disposal of fixed assets
    
(1,617
)
    
-
  
Common stock issued for services
    
28,350
      
208,750
  
Bad debt expense
    
-
      
69,995
  
Stock options issued for services
    
849,531
      
148,648
  
Changes in operating assets and liabilities:
                
Changes in accounts receivable
    
(2,749,328
)
    
(642,358
)
Changes in inventories
    
(3,572,120
)
    
(1,493,076
)
Changes in prepaid expenses
    
(44,970
)
    
8,231
  
Changes in accounts payable and accrued liabilities
    
519,060
      
1,031,985
  
Changes in income taxes payable
    
1,190,648
      
(132,932
)
                 
   Net Cash Provided by Operating Activities
    
1,335,935
      
308,915
  
                 
INVESTING ACTIVITIES
                
                 
Proceeds from disposal of equipment
    
33,910
      
-
  
Purchase of fixed assets
    
(654,057
)
    
(474,381
)
                 
Net Cash Used in Investing Activities
    
(620,147
)
    
(474,381
)
                 
FINANCING ACTIVITIES
                
Stock issued
    
4,332,975
      
-
  
Stock issued in exercise of stock options
    
118,512
      
-
  
                 
   Net Cash Used in Financing Activities
    
4,451,487
      
-
  
                 
Effect of exchange rate changes on cash
    
(161,257
)
    
(264,802
)
                 
NET INCREASE IN CASH
    
5,006,018
      
(430,268
)
CASH AT BEGINNING OF PERIOD
    
808,772
      
1,914,877
  
                 
CASH AT END OF PERIOD
  
$
5,814,790
    
$
1,484,609
  
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
                
                 
CASH PAID FOR:
                
                 
Interest
  
$
10,567
    
$
13,171
  
Income taxes
  
$
1,655,672
    
$
513,245
  
 
 
The accompanying notes are a integral part of these condensed consolidated financials statements.

 
 
 
To learn more about Profire Energy or its products, please contact Profire Energy or visit www.ProfireEnergy.com.

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; Oklahoma City, Oklahoma; 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 increased execution from our sales team; improvement in sales efficacy over coming quarters, derived from training activity, product improvement, or technology development; the Company’s expectations regarding its 2014 fiscal year, or the fourth quarter of the same; the strength of improvement in Company revenues; the recurring nature of various non-cash expenses; the Company’s preparations to finish the fiscal year and enter another exciting year of possibilities for the industry or Company.  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, market, political, 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.
 Profire Energy, Inc.  Nathan McBride, Finance & Communications
 Andrew Limpert, CFO  (801) 796-5127
 (801) 796-5127  
   RedChip Companies, Inc.
   Brendan Hopkins
   1-800-RED-CHIP (733-2447), ext. 134