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.