·
|
Total revenues up 18% from Q1 FY2016
|
·
|
Net income of $778,907, or $0.01 per diluted share
|
·
|
Cash at period-end totaled $19.0 million
|
·
|
Net cash provided from operating activities during the six-month period totaled $5.1 million
|
·
|
Appointed Ryan Oviatt as new CFO
|
·
|
Announced next-generation burner management system, the PF3100
|
·
|
Completed significant cost reductions during the period; Operating Expenses reduced to $3.4 million for the quarter, a reduction of over $500,000 from Q1 FY2016
|
PART I. FINANCIAL INFORMATION
|
||||||||
Item 1 Financial Information
|
||||||||
PROFIRE ENERGY, INC. AND SUBSIDIARIES
|
||||||||
Consolidated Balance Sheets
|
||||||||
ASSETS | ||||||||
September 30,
2015 |
March 31,
2015 |
|||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
18,954,290
|
$
|
14,144,796
|
||||
Accounts receivable, net
|
6,706,532
|
9,462,378
|
||||||
Inventories
|
9,954,358
|
11,766,535
|
||||||
Income tax receivable
|
59,886
|
-
|
||||||
Prepaid expenses & other current assets
|
395,385
|
112,741
|
||||||
Total Current Assets
|
36,070,451
|
35,486,450
|
||||||
LONG-TERM ASSETS
|
||||||||
Deferred tax asset
|
575,189
|
501,921
|
||||||
PROPERTY AND EQUIPMENT, net
|
8,697,175
|
9,275,965
|
||||||
OTHER ASSETS
|
||||||||
Goodwill
|
997,701
|
997,701
|
||||||
Intangible assets, net of accumulated amortization
|
525,527
|
594,019
|
||||||
Total Other Assets
|
1,523,228
|
1,591,720
|
||||||
TOTAL ASSETS
|
$
|
46,866,043
|
$
|
46,856,056
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable
|
$
|
909,115
|
$
|
1,040,530
|
||||
Accrued liabilities
|
819,775
|
332,229
|
||||||
Income taxes payable
|
148,426
|
347,486
|
||||||
Total Current Liabilities
|
1,877,316
|
1,720,245
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Deferred income tax liability
|
629,232
|
631,353
|
||||||
TOTAL LIABILITIES
|
2,506,548
|
2,351,598
|
||||||
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: 53,255,275 53,199,136 shares issued and outstanding, respectively
|
53,255
|
53,199
|
||||||
Additional paid-in capital
|
25,811,085
|
25,525,050
|
||||||
Accumulated other comprehensive income (loss)
|
(2,640,128
|
)
|
(1,888,981
|
)
|
||||
Retained earnings
|
21,135,283
|
20,815,188
|
||||||
Total Stockholders' Equity
|
44,359,495
|
44,504,457
|
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
46,866,043
|
$
|
46,856,056
|
PROFIRE ENERGY, INC. AND SUBSIDIARIES
|
||||||||||||||||
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
|
||||||||||||||||
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
|
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUES
|
||||||||||||||||
Sales of goods, net
|
$
|
7,291,846
|
$
|
14,628,718
|
$
|
13,503,816
|
$
|
26,945,230
|
||||||||
Sales of services, net
|
805,448
|
1,092,214
|
1,470,721
|
1,920,536
|
||||||||||||
Total Revenues
|
8,097,294
|
15,720,932
|
14,974,537
|
28,865,766
|
||||||||||||
COST OF SALES
|
||||||||||||||||
Cost of goods sold-product
|
3,445,188
|
6,469,992
|
6,413,106
|
11,537,619
|
||||||||||||
Cost of goods sold-services
|
623,992
|
701,497
|
1,219,530
|
1,341,604
|
||||||||||||
Total Cost of Goods Sold
|
4,069,180
|
7,171,489
|
7,632,636
|
12,879,223
|
||||||||||||
GROSS PROFIT
|
4,028,114
|
8,549,443
|
7,341,901
|
15,986,543
|
||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
General and administrative expenses
|
1,660,092
|
2,866,401
|
3,638,576
|
5,275,470
|
||||||||||||
Research and development
|
295,146
|
538,793
|
599,635
|
810,020
|
||||||||||||
Payroll expenses
|
1,259,770
|
1,767,730
|
2,722,425
|
3,033,429
|
||||||||||||
Depreciation and amortization expense
|
137,999
|
122,928
|
245,454
|
247,643
|
||||||||||||
Total Operating Expenses
|
3,353,007
|
5,295,852
|
7,206,090
|
9,366,562
|
||||||||||||
INCOME FROM OPERATIONS
|
675,107
|
3,253,591
|
135,811
|
6,619,981
|
||||||||||||
OTHER INCOME (EXPENSE)
|
||||||||||||||||
Gain on disposal of fixed assets
|
754
|
-
|
19,391
|
-
|
||||||||||||
Other (expense) income
|
352,310
|
(257
|
)
|
243,320
|
2,864
|
|||||||||||
Interest income
|
5,517
|
7,543
|
26,640
|
7,780
|
||||||||||||
Total Other Income (Expense)
|
358,581
|
7,286
|
289,351
|
10,644
|
||||||||||||
NET INCOME BEFORE INCOME TAXES
|
1,033,688
|
3,260,877
|
425,162
|
6,630,625
|
||||||||||||
INCOME TAX EXPENSE
|
254,781
|
1,182,676
|
105,067
|
2,331,718
|
||||||||||||
NET INCOME
|
$
|
778,907
|
$
|
2,078,201
|
$
|
320,095
|
$
|
4,298,907
|
||||||||
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
|
$
|
(1,084,519
|
)
|
$
|
(455,114
|
)
|
$
|
(751,147
|
)
|
$
|
(158,678
|
)
|
||||
TOTAL COMPREHENSIVE INCOME (LOSS)
|
$
|
(305,612
|
)
|
$
|
1,623,087
|
$
|
(431,052
|
)
|
$
|
4,140,229
|
||||||
BASIC EARNINGS PER SHARE
|
$
|
0.01
|
$
|
0.04
|
$
|
0.01
|
$
|
0.09
|
||||||||
FULLY DILUTED EARNINGS PER SHARE
|
$
|
0.01
|
$
|
0.04
|
$
|
0.01
|
$
|
0.08
|
||||||||
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
53,236,979
|
52,482,823
|
53,230,892
|
50,222,367
|
||||||||||||
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
53,344,291
|
53,126,287
|
53,338,204
|
50,865,831
|
PROFIRE ENERGY, INC. AND SUBSIDIARIES
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
For the Six Months Ended
|
||||||||
September 30,
|
||||||||
|
2015 | 2014 | ||||||
OPERATING ACTIVITIES
|
||||||||
Net Income
|
$
|
320,095
|
$
|
4,298,907
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization expense
|
476,548
|
247,643
|
||||||
Gain on disposal of fixed assets
|
(19,391
|
)
|
-
|
|||||
Common stock issued for services
|
-
|
168,004
|
||||||
Bad debt expense
|
86,494
|
-
|
||||||
Stock options issued for services
|
325,334
|
712,820
|
||||||
Unrealized foreign exchange gain
|
-
|
(128,429
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Changes in accounts receivable
|
2,567,419
|
(5,961,481
|
)
|
|||||
Changes in income tax receivable
|
(59,886
|
)
|
-
|
|||||
Changes in inventories
|
1,600,797
|
(1,634,627
|
)
|
|||||
Changes in prepaid expenses
|
(262,547
|
)
|
(200,631
|
)
|
||||
Changes in deferred tax asset
|
(73,268
|
)
|
79,208
|
|||||
Changes in accounts payable and accrued liabilities
|
373,484
|
2,329,740
|
||||||
Changes in income taxes payable
|
(193,908
|
)
|
1,448,850
|
|||||
Net Cash Provided by Operating Activities
|
5,141,171
|
1,360,004
|
||||||
INVESTING ACTIVITIES
|
||||||||
Proceeds from disposal of equipment
|
119,935
|
-
|
||||||
Purchase of fixed assets
|
(28,572
|
)
|
(3,720,259
|
)
|
||||
Net Cash Provided by (Used in) Investing Activities
|
91,363
|
(3,720,259
|
)
|
|||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from stock issued for cash
|
-
|
18,000,000
|
||||||
Stock offering costs
|
-
|
(1,529,057
|
)
|
|||||
Value of equity awards surrendered by employees for tax liability
|
(39,243
|
)
|
-
|
|||||
Stock issued in exercise of stock options
|
-
|
134,711
|
||||||
Net Cash Provided by (Used in) Financing Activities
|
(39,243
|
)
|
16,605,654
|
|||||
Effect of exchange rate changes on cash
|
(383,797
|
)
|
(30,249
|
)
|
||||
NET INCREASE IN CASH
|
4,809,494
|
14,215,150
|
||||||
CASH AT BEGINNING OF PERIOD
|
14,144,796
|
4,456,674
|
||||||
CASH AT END OF PERIOD
|
$
|
18,954,290
|
$
|
18,671,824
|
||||
SUPPLEMENTAL DISCLOSURES OF
|
||||||||
CASH FLOW INFORMATION
|
||||||||
CASH PAID FOR:
|
||||||||
Income taxes
|
$
|
292,082
|
$
|
-
|