Exhibit 99.1

 

Profire Energy Reports Financial Results for Fiscal Year 2016
Company Meets Guidance, Recognizes Annual Profit and Positive Cash Flow Amid Difficult Industry Conditions

LINDON, Utah, June 13, 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 year ended March 31, 2016. A conference call will be held on Tuesday, June 14, 2016 at 1:00 p.m. EDT to discuss the results.

Fiscal 2016 Highlights

·
Total revenues of $27.1 million
·
Generated significant positive operating cash flow
·
Positive net income for the year
·
Remained debt-free
·
Increased customer base to more than 300 customers

Fiscal Year 2016 Financial Results

Total revenues for the year ended March 31, 2016, decreased 47% to $27.1 million from $51.2 million in the year ended March 31, 2015. Decreased production and capital investment activity in the oil and gas industry was the primary factor in decreased sales. 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. Profire will continue to focus on developing new products, diversifying into new markets and industries, and enhancing marketing and sales efforts with key customers and prospects. As the Company does so, the expectation is that sales can stabilize in the short-term and Profire will be able to increase revenues and revenue stability over the long-term.

Gross profit decreased to $13.6 million or 50% of total revenues, as compared to $27.2 million or 53% of total revenues in the prior year.

Total operating expenses decreased to $13.7 million or 51% of total revenues from $18.7 million or 37% of total revenues compared to the prior year. Cost management has been a significant Company focus over the last year 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 towards maximizing efficiency and eliminating unnecessary cost wherever possible.
 
Net income was approximately $35 thousand or $0.00 per diluted share, compared to net income of $5.7 million or $0.11 per diluted share in the prior year.

Cash and cash equivalents totaled $21.3 million, an increase of more than $7.1 million compared to the year ended March 31, 2015. The Company continues to generate cash flow from operating activities and operates debt free.


Management Commentary
"Frankly, it's been a tough year for Profire, as with all other companies in our industry," said Brenton Hatch, President and CEO of Profire Energy. "Customers just haven't had the budgets to spend and each sale has been difficult to capture. However, when we look at the big picture, we feel that our performance relative to the industry and our peers, is evidence of Management's ability to steer the Company in the right direction, and position Profire well for the future. The fact that we were able to turn a profit and generate as much positive cash flow as we did, especially in this market, is quite impressive."
"We have gone to great lengths to reduce overall costs at Profire, and feel that we have been very effective in these efforts," said Ryan Oviatt, CFO of Profire Energy. "Our ability to generate positive net earnings and cash flow is evidence of the Company's commitment to scaling with the market. We anticipate that it's still going to be tough for a little while this year, but we are confident that the decisions we have made over the past year have positioned the Company to capture future opportunities and deliver long-term shareholder value."

Conference Call

Profire management will host a conference Tuesday, June 13, 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. EDT (11:00 a.m. MDT)
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=119837.

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. EDT on the same day through June 21, 2016

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 10001269

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 management and chemical injection systems are increasingly becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Oklahoma City, Oklahoma; Shelocta, 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 Company holding a conference call on June 14, 2016 regarding 2016 fiscal year results; or, the Company's ability to capture the greatest amount of revenue in both the short- and long-term; or, the Company developing new products, diversifying into new markets and industries, and enhancing marketing and sales efforts with key customers and prospects; and, the decisions made over the past year positioning the Company to capture future opportunities and deliver long-term shareholder value. 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

PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Consolidated Balance Sheets
 
         
   
For the Years Ending March 31,
 
ASSETS
 
2016
   
2015
 
         
CURRENT ASSETS
       
Cash and cash equivalents
 
$
21,292,595
   
$
14,144,796
 
Accounts receivable, net
   
4,132,137
     
9,462,378
 
Inventories
   
11,046,682
     
11,766,535
 
Income tax receivable
   
268,326
     
 
Prepaid expenses & other current assets
   
315,757
     
112,741
 
                 
Total Current Assets
   
37,055,497
     
35,486,450
 
                 
LONG-TERM ASSETS
               
Deferred tax asset
   
452,431
     
501,921
 
                 
PROPERTY AND EQUIPMENT, net
   
8,232,911
     
9,275,965
 
                 
OTHER ASSETS
               
Goodwill
   
997,701
     
997,701
 
Intangible assets, net of accumulated amortization
   
529,300
     
594,019
 
                 
Total Other Assets
   
1,527,001
     
1,591,720
 
                 
TOTAL ASSETS
 
$
47,267,840
   
$
46,856,056
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES
               
Accounts payable
 
$
893,822
   
$
1,040,530
 
Accrued liabilities
   
620,783
     
332,229
 
Income taxes payable
   
335,375
     
347,486
 
                 
Total Current Liabilities
   
1,849,980
     
1,720,245
 
                 
LONG-TERM LIABILITIES
               
Deferred income tax liability
   
632,732
     
631,353
 
                 
TOTAL LIABILITIES
   
2,482,712
     
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: 53,256,296 and 53,199,136 shares issued and outstanding, respectively
   
53,256
     
53,199
 
Additional paid-in capital
   
26,164,622
     
25,525,052
 
Accumulated other comprehensive loss
   
(2,282,682
)
   
(1,888,981
)
Retained earnings
   
20,849,932
     
20,815,188
 
                 
Total Stockholders' Equity
   
44,785,128
     
44,504,458
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
47,267,840
   
$
46,856,056
 
                 
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
 


 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Consolidated Statements of Income and Other Comprehensive Income
 
         
   
For the Years Ending March 31,
 
   
2016
   
2015
 
REVENUES
       
Sales of goods, net
 
$
23,992,324
   
$
47,768,556
 
Sales of services, net
   
3,080,122
     
3,410,836
 
Total Revenues
   
27,072,446
     
51,179,392
 
                 
COST OF SALES
               
Cost of goods sold-product
   
11,027,114
     
21,240,363
 
Cost of goods sold-services
   
2,405,012
     
2,716,272
 
Total Cost of  Goods Sold
   
13,432,126
     
23,956,635
 
                 
GROSS PROFIT
   
13,640,320
     
27,222,757
 
                 
OPERATING EXPENSES
               
General and administrative expenses
   
12,264,442
     
16,296,156
 
Research and development
   
899,013
     
1,832,671
 
Depreciation and amortization expense
   
516,786
     
558,231
 
                 
Total Operating Expenses
   
13,680,241
     
18,687,058
 
                 
INCOME FROM OPERATIONS
   
(39,921
)
   
8,535,699
 
                 
OTHER INCOME (EXPENSE)
               
Gain on sale of fixed assets
   
20,278
     
8,014
 
Other (expense) income
   
144,937
     
21,865
 
Interest income
   
37,278
     
26,010
 
                 
Total Other Income (Expense)
   
202,493
     
55,889
 
                 
NET INCOME BEFORE INCOME TAXES
   
162,572
     
8,591,588
 
                 
INCOME TAX EXPENSE
   
127,828
     
2,843,905
 
                 
NET INCOME
 
$
34,744
   
$
5,747,683
 
                 
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)
 
$
(393,701
)
 
$
(1,657,930
)
                 
TOTAL COMPREHENSIVE INCOME (LOSS)
 
$
(358,957
)
 
$
4,089,753
 
                 
BASIC EARNINGS PER SHARE
 
$
0.00
   
$
0.11
 
                 
FULLY DILUTED EARNINGS PER SHARE
 
$
0.00
   
$
0.11
 
                 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
   
53,243,151
     
51,609,760
 
                 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
   
53,558,942
     
51,680,775
 
                 
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
 

PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Consolidated Statements of Stockholders' Equity
 
                         
           
Additional
   
Other
       
Total
 
   
Common Stock
   
Paid-In
   
Comprehensive
   
Retained
   
Stockholders'
 
   
Shares
   
Amount
   
Capital
   
Loss
   
Earnings
   
Equity
 
                         
Balance, March 31, 2014
   
47,836,543
   
$
47,836
   
$
6,496,980
   
$
(231,051
)
 
$
15,067,505
     
21,381,270
 
                                                 
Stock issued in exercise of stock options
   
596,635
     
597
     
327,365
     
-
     
-
     
327,962
 
                                                 
Stock issuance, less offering costs of $1,529,057
   
4,500,000
     
4,500
     
16,420,188
     
-
     
-
     
16,424,688
 
                                                 
Stock issued for asset acquisition
   
265,958
     
266
     
999,734
     
-
     
-
     
1,000,000
 
                                                 
Fair value of options vested
   
-
     
-
     
1,280,785
     
-
     
-
     
1,280,785
 
                                                 
Foreign currency translation
   
-
     
-
     
-
     
(1,657,930
)
   
-
     
(1,657,930
)
                                                 
Net income for the year ended March 31, 2015
   
-
     
-
     
-
     
-
     
5,747,683
     
5,747,683
 
                                                 
Balance, March 31, 2015
   
53,199,136
   
$
53,199
   
$
25,525,052
   
$
(1,888,981
)
 
$
20,815,188
     
44,504,458
 
                                                 
Fair value of options vested
   
-
     
-
     
565,646
     
-
     
-
     
565,646
 
                                                 
Stock issued in exercise of stock options
   
57,160
     
57
     
73,924
     
-
     
-
     
73,981
 
                                                 
Foreign currency translation
   
-
     
-
     
-
     
(393,701
)
   
-
     
(393,701
)
                                                 
Net income for the year ended March 31, 2016
   
-
     
-
     
-
     
-
     
34,744
     
34,744
 
                                                 
Balance, March 31, 2016
   
53,256,296
   
$
53,256
   
$
26,164,622
   
$
(2,282,682
)
 
$
20,849,932
     
44,785,128
 
                                                 
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
 

PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Consolidated Statements of Cash Flows
 
         
   
For the Years Ending March 31,
 
   
2016
   
2015
 
OPERATING ACTIVITIES
       
Net Income
 
$
34,744
   
$
5,747,683
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization expense
   
989,484
     
1,140,319
 
Gain on sale of fixed assets
   
(20,278
)
   
(8,014
)
Bad debt expense
   
143,192
     
(7,577
)
Stock options issued for services
   
678,971
     
1,280,785
 
Changes in operating assets and liabilities:
               
Changes in accounts receivable
   
5,114,485
     
(912,606
)
Changes in income tax receivable
   
(268,327
)
   
-
 
Changes in inventories
   
641,410
     
(5,472,869
)
Changes in prepaid expenses
   
(171,411
)
   
(80,770
)
Changes in deferred tax asset/liability
   
49,490
     
(80,943
)
Changes in accounts payable and accrued liabilities
   
148,921
     
(302,782
)
Changes in income taxes payable
   
(7,748
)
   
(618,146
)
                 
   Net Cash Provided by Operating Activities
   
7,332,933
     
685,080
 
                 
INVESTING ACTIVITIES
               
Proceeds from sale of equipment
   
158,641
     
7,867
 
Cash paid for asset acquisition
   
-
     
(750,000
)
Purchase of fixed assets
   
(62,465
)
   
(6,167,945
)
                 
Net Cash Provided by (Used in) Investing Activities
   
96,176
     
(6,910,078
)
                 
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
   
(39,342
)
   
-
 
Stock issued in exercise of stock options
   
-
     
327,961
 
                 
   Net Cash Provided by (Used in) Financing Activities
   
(39,342
)
   
16,752,649
 
                 
Effect of exchange rate changes on cash
   
(241,968
)
   
(839,529
)
                 
NET CHANGE IN CASH
   
7,147,799
     
9,688,122
 
CASH AT BEGINNING OF PERIOD
   
14,144,796
     
4,456,674
 
                 
CASH AT END OF PERIOD
 
$
21,292,595
   
$
14,144,796
 
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
               
                 
CASH PAID FOR:
               
Interest
 
$
-
   
$
17,043
 
Income taxes
 
$
127,828
   
$
3,471,027
 
NON CASH INVESTING AND FINANCING ACTIVITIES:
               
Stock issued for Asset acquisition
 
$
-
   
$
1,000,000
 
                 
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.