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