Exhibit 99.1
 
 

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, February 8, 2016 - 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: http://public.viavid.com/index.php?id=118100.

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 www.profireenergy.com.

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 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.

Contact:
Profire Energy, Inc.
Tanner Lamb, Finance and Investor Relations
(801) 796-5127
PART I. FINANCIAL INFORMATION
 
Item 1 Financial Information
 
         
PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Consolidated Balance Sheets
 
         
ASSETS
        
         
   
December 31,
    
March 31,
  
   
2015
     2015  
   
(unaudited)
      
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
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES
                
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
  
                 
LONG-TERM LIABILITIES
                
Deferred income tax liability
    
616,735
      
631,353
  
                 
TOTAL LIABILITIES
    
2,986,079
      
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 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.

 PROFIRE ENERGY, INC. AND SUBSIDIARIES        
Consolidated Statements of Operations and Other Comprehensive Income (Loss)     
(unaudited)        
                 
   
For the Three Months Ended
    
For the Nine Months Ended  
  
   
December 31,
    
December 31,  
  
 
   2015     2014     2015     2014  
REVENUES
                
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 NUMBEROF SHARES OUTSTANDING
    
53,255,275
      
52,884,358
      
53,239,087
      
51,112,924
  
                               
FULLY DILUTED WEIGHTED AVERAGE NUMBER 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.
PROFIRE ENERGY, INC. AND SUBSIDIARIES    
Consolidated Statements of Cash Flows    
(unaudited)    
     
For the Nine Months Ended   
     
December 31,   
  2015     2014  
OPERATING ACTIVITIES
        
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
  
                 
INVESTING ACTIVITIES
                
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
)
                 
FINANCING ACTIVITIES
                
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
  
                 
SUPPLEMENTAL DISCLOSURES OF
                
CASH FLOW INFORMATION
                
                 
CASH PAID FOR:
                
Interest
  
$
-
    
$
14,222
  
Income taxes
  
$
402,417
    
$
2,890,769
  
NON CASH INVESTING AND FINANCING ACTIVITIES:
                
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.