Exhibit 99.1



 



Profire Energy Reports Financial Results for First Fiscal Quarter Fiscal 2017
In the First Fiscal Quarter of 2017 Profire Achieved Revenue Growth of 72% Over the Same Quarter of 2016

LINDON, Utah May 10, 2017 - Profire Energy, Inc. (NASDAQ: PFIE), a technology company (the "Company") which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for fiscal quarter March 31, 2017. A conference call will be held on Friday, May 11, 2017 at 1:00 p.m. EDT to discuss the results.

Fiscal Q1 2017 Highlights

·
Revenues Increased 11% Quarter-Over-Quarter
·
Three Consecutive Quarters of Double-Digit Revenue Growth
·
Net Income of $600,000 or $.01 per diluted share
·
Gross Profit Increased to $4.4 Million or 56% of total revenues
·
Cash at Period End $21.7 million compared to $20 million at the end of the previous quarter
·
Remained debt-free

Transition Period Financial Results

Total revenues increased to $7.8 million in the quarter which is a 72% increase from the same quarter a year ago and an 11% increase from the previous quarter.

Even with the significant increase in revenues, total operating expenses only increased slightly to $3.3 from $3.0 million in the same quarter last year. This increase in operating expenses is primarily due to a onetime expense in connection with the retirement of the Company's former CTO.

Gross profit increased to $4.4 million or 56% of total revenues, as compared to $2.3 million or 51% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 10%, R&D increased 29%, and depreciation increased 5%.

Net income was $600,071 or a gain of $0.01 per diluted share, compared to a net loss of $764,617 or a loss of $0.01 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $21.7 million, as compared to $20 million at end of the previous quarter. The Company generated approximately $2 million in net cash provided from operating activities and continues to operate debt-free.


Management Commentary
"The cost- and Company-structures we now have, are fairly scalable. With the substantial increase in revenues of 72% over the same quarter a year ago, and 11% over the prior quarter, our operating cost structure has remained relatively flat when you exclude one-time items," stated Ryan Oviatt, CFO of Profire. "Overall, we believe industry trends will have a positive impact for Profire and our customers in the coming quarters. Through strategic planning we expect to continue to respond in a timely way to increased sales as the industry recovery strengthens."

"We remain a market leader in the burner management industry and are positioning ourselves for continued growth. Our cash position allows us to remain flexible and make strategic investments both internally and externally," said Brenton Hatch, President and CEO of Profire Energy. "In an effort to continue to deliver reliable and innovative products to our customers, our R&D team is developing products that we believe will add significant future value to Profire. Our first quarter exceeded our expectations as we were able to see an increase in revenue and maintain our cost structure.  The strength of our balance sheet has been a key enabler of the strategic accomplishments of Profire and we believe we are well positioned for future growth."

Conference Call

Profire Energy President and CEO Brenton Hatch and CFO Ryan Oviatt will host the presentation, followed by a question and answer period.
 
Date: Thursday, May 11, 2017
Time: 1:00 p.m. EDT (11:00 a.m. MDT)
Toll-free dial-in number: 1-877-705-6003
International dial-in number: 1-201-493-6725
 
The conference call will be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=124318. The webcast replay will be available for one year.
 
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting to the conference call, please contact Todd Fugal at 1-801-796-5127.
 
A replay of the call will be available after 5:00 p.m. EDT on the same day through May 18, 2017.
 
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 136661674

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; 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 May 11, 2017, regarding the financial quarter results; the ability of the Company's future products to add significant value; the effect the company's cash position will have on the Company's ability to maintain future growth; or, the Company's ability to respond timely to increased customer demand. 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.
Ryan Oviatt, CFO
(801) 796-5127

PROFIRE ENERGY, INC. AND SUBSIDIARIES     
 
Condensed Consolidated Balance Sheets     
 
             
             
   
As of   
 
ASSETS
 
March 31,
2017
   
December 31,
2016
 
   
(Unaudited)
       
CURRENT ASSETS
           
Cash and cash equivalents
 
$
10,459,559
   
$
9,316,036
 
Accounts receivable, net
   
5,365,159
     
5,633,802
 
Inventories, net
   
8,024,561
     
7,839,503
 
Income tax receivable
   
320,717
     
180,981
 
Short term investments
   
2,221,937
     
2,965,536
 
Investments - other
   
3,000,000
     
2,250,000
 
Prepaid expenses & other current assets
   
376,897
     
410,558
 
Total Current Assets
   
29,768,830
     
28,596,416
 
                 
LONG-TERM ASSETS
               
Deferred tax asset
   
110,461
     
60,940
 
Long-term investments
   
6,035,291
     
5,504,997
 
Property and equipment, net
   
7,259,078
     
7,458,723
 
Goodwill
   
997,701
     
997,701
 
Intangible assets, net
   
486,190
     
490,082
 
Total Long-Term Assets
   
14,888,721
     
14,512,443
 
                 
TOTAL ASSETS
 
$
44,657,551
   
$
43,108,859
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES
               
Accounts payable
 
$
1,453,726
   
$
1,220,478
 
Accrued vacation
   
177,321
     
154,307
 
Accrued liabilities
   
293,772
     
284,214
 
Income taxes payable
   
770,529
     
61,543
 
Total Current Liabilities
   
2,695,348
     
1,720,542
 
                 
   TOTAL LIABILITIES
   
2,695,348
     
1,720,542
 
                 
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: 53,656,961 issued and 50,539,709 outstanding at March 31, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016
   
53,656
     
53,582
 
Treasury stock, at cost
   
(3,901,709
)
   
(3,582,805
)
Additional paid-in capital
   
26,810,227
     
26,800,298
 
Accumulated other comprehensive loss
   
(2,699,342
)
   
(2,810,743
)
Retained earnings
   
21,699,371
     
20,927,985
 
Total Stockholders' Equity
   
41,962,203
     
41,388,317
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
44,657,551
   
$
43,108,859
 
 
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.


PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
 
(Unaudited)
 
             
    For the Three Months Ended March 31,  
  2017     2016  
REVENUES
           
Sales of goods, net
 
$
7,292,228
   
$
3,972,924
 
Sales of services, net
   
532,267
     
570,730
 
Total Revenues
   
7,824,495
     
4,543,654
 
                 
COST OF SALES
               
Cost of goods sold-product
   
3,055,300
     
1,780,566
 
Cost of goods sold-services
   
402,022
     
463,193
 
Total Cost of  Goods Sold
   
3,457,322
     
2,243,759
 
                 
GROSS PROFIT
   
4,367,173
     
2,299,895
 
                 
OPERATING EXPENSES
               
General and administrative expenses
   
2,948,089
     
2,670,101
 
Research and development
   
198,966
     
153,522
 
Depreciation and amortization expense
   
149,076
     
142,538
 
Total Operating Expenses
   
3,296,131
     
2,966,161
 
                 
INCOME (LOSS) FROM OPERATIONS
   
1,071,042
     
(666,265
)
                 
OTHER INCOME (EXPENSE)
               
Gain on sale of fixed assets
   
2,101
     
887
 
Other expense
   
(5,414
)
   
(276,313
)
Interest income
   
31,278
     
5,421
 
Total Other Income (Expense)
   
27,965
     
(270,005
)
                 
NET INCOME (LOSS) BEFORE INCOME TAXES
   
1,099,007
     
(936,270
)
                 
Income tax expense (benefit)
   
498,936
     
(171,654
)
                 
NET INCOME (LOSS)
 
$
600,071
   
$
(764,617
)
                 
OTHER COMPREHENSIVE INCOME (LOSS)
               
Foreign currency translation gain (loss)
 
$
75,113
   
$
(840,190
)
Unrealized gains on investments
   
36,288
     
-
 
Total Other Comprehensive Income (Loss)
   
111,401
     
(840,190
)
                 
TOTAL COMPREHENSIVE INCOME (LOSS)
 
$
711,472
   
$
(1,604,806
)
                 
BASIC EARNINGS (LOSS) PER SHARE
 
$
0.01
   
$
(0.01
)
                 
FULLY DILUTED EARNINGS (LOSS) PER SHARE
 
$
0.01
   
$
(0.01
)
                 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
   
50,632,275.00
     
53,243,151.00
 
                 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
   
51,287,405.00
     
53,243,151.00
 

These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
 
Condensed Consolidated Statements of Cash Flows
 
(Unaudited)
 
             
    
For the Three Month Period Ended,
 
    
March 31,
2017
   
March 31,
2016
 
OPERATING ACTIVITIES
           
Net Income (Loss)
 
$
600,071
   
$
(764,617
)
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization expense
   
237,116
     
259,789
 
Gain on sale of fixed assets
   
(2,101
)
   
(887
)
Bad debt expense
   
45,313
     
38,940
 
Stock options issued for services
   
181,318
     
12,521
 
Changes in operating assets and liabilities:
               
Changes in accounts receivable
   
249,844
     
2,431,450
 
Changes in income taxes receivable/payable
   
568,065
     
(207,514
)
Changes in inventories
   
(399,410
)
   
16,042
 
Changes in prepaid expenses
   
33,698
     
28,512
 
Changes in deferred tax asset/liability
   
(49,520
)
   
217,464
 
Changes in accounts payable and accrued liabilities
   
500,552
     
(478,844
)
                 
   Net Cash Provided by Operating Activities
   
1,964,946
     
1,552,856
 
                 
INVESTING ACTIVITIES
               
Proceeds from sale of equipment
   
30,451
     
42,117
 
Purchase of investments
   
(500,408
)
   
-
 
Purchase of fixed assets
   
(52,720
)
   
-
 
                 
Net Cash Provided by (Used in) Investing Activities
   
(522,677
)
   
42,117
 
                 
FINANCING ACTIVITIES
               
Value of equity awards surrendered by employees for tax liability
   
-
     
(99
)
Purchase of Treasury stock
   
(318,904
)
   
-
 
                 
   Net Cash Used in Financing Activities
   
(318,904
)
   
(99
)
                 
Effect of exchange rate changes on cash
   
20,158
     
416,220
 
                 
NET INCREASE IN CASH
   
1,143,523
     
2,011,094
 
CASH AT BEGINNING OF PERIOD
   
9,316,036
     
19,281,501
 
                 
CASH AT END OF PERIOD
 
$
10,459,559
   
$
21,292,595
 
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
               
                 
CASH PAID FOR:
               
Interest
  $      
$
-
 
Income taxes
 
$
78
   
$
-
 


These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.