Exhibit 99.1
fy2017q2financialresu_image1.jpg

Profire Energy Reports Financial Results for Second Fiscal Quarter Fiscal 2017
Profire Achieved Revenue Growth of 138% and Net Income Growth of 317% Over the Same Quarter of 2016

LINDON, Utah August 9, 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 June 30, 2017. A conference call will be held on Thursday, August 10, 2017 at 1:00 p.m. EDT to discuss the results.

Fiscal Q2 2017 Highlights
 
Revenues Increased 138% Compared to Same Year-Ago Quarter and 21% Over the Prior Quarter
Four Consecutive Quarters of Double-Digit Revenue Growth
Net Income of $1.3 Million or $0.03 Per Diluted Share
Gross Profit Increased to roughly $5 Million or 53% of Total Revenues
Cash and Liquid Investments at Period End $20 Million
Remained Debt-Free

Fiscal Quarter Financial Results
    
Total revenues increased to nearly $9.5 million in the quarter which is a 138% increase from the same quarter a year ago and an 21% increase from the previous quarter.
    
With a 138% increase in revenues total operating expenses only increased 13% to $3.1 million, over the same quarter last year.

Gross profit increased to roughly $5 million or 53% of total revenues, as compared to $1.9 million or 48% of total revenues in the year-ago quarter.

Compared with the same year ago quarter, operating expenses for general and administrative increased 15%, R&D increased 10%, and depreciation decreased 18%.

Net income was $1.3 million or a gain of $0.03 per diluted share, compared to a net loss of $605,295 or a loss of $0.01 per diluted share in the same year-ago quarter.
 
Cash and liquid investments totaled $20 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

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“With the substantial increase in revenues over the prior year and over the prior quarter, our operating cost structure has remained relatively flat only increasing 13% year over year,” stated Ryan Oviatt, CFO of Profire. “This structure allowed us to achieve a 317% increase in net income when compared to the same quarter a year ago. We are committed to maintaining an appropriate cost structure as we continue to grow and will remain vigilant in the pursuit of other opportunities that could add value to our Company and its shareholders.”

“We have proven that we can turn a profit and adapt quickly even as the industry continues to struggle. We believe we can take advantage of opportunities as they arise that will help Profire to succeed in the future,” said Brenton Hatch, President and CEO of Profire Energy. “Technology product development remains a key focus for the Company. Particularly we have invested in the 3100 product in order to expand its features and capabilities. Profire is committed to maintaining its position as an industry technology leader.”


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, August 10, 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=125805. 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 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 August 17, 2017. 
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13668146

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 Spruce Grove, 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 August 10, 2017, regarding the financial quarter results; the ability of the Company’s ability to maintain cost structures; Development of the 3100 product; the Company’s ability to adapt quickly to market changes or, the Company’s ability to

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remain an industry leader. 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











    

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PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
 
As of
ASSETS
 
June 30,
2017
 
December 31,
2016
 
 
(Unaudited)
 
 
CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
9,310,895

 
 
$
9,316,036

 
Accounts receivable, net
 
6,701,171
 
 
 
5,633,802
 
 
Inventories, net
 
8,297,245
 
 
 
7,839,503
 
 
Income tax receivable
 
194,752
 
 
 
180,981
 
 
Short term investments
 
2,110,602
 
 
 
2,965,536
 
 
Investments - other
 
2,250,000
 
 
 
2,250,000
 
 
Prepaid expenses & other current assets
 
622,396
 
 
 
410,558
 
 
Total Current Assets
 
29,487,061
 
 
 
28,596,416
 
 
 
 
 
 
 
LONG-TERM ASSETS
 
 
 
 
Net deferred tax asset
 
195,368
 
 
 
60,940
 
 
Long-term investments
 
6,356,832
 
 
 
5,504,997
 
 
Property and equipment, net
 
7,166,159
 
 
 
7,458,723
 
 
Goodwill
 
997,701
 
 
 
997,701
 
 
Intangible assets, net
 
493,265
 
 
 
490,082
 
 
Total Long-Term Assets
 
15,209,325
 
 
 
14,512,443
 
 
 
 
 
 
 
TOTAL ASSETS
 
$
44,696,386

 
 
$
43,108,859

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
Accounts payable
 
1,315,561
 
 
 
1,220,478
 
 
Accrued vacation
 
192,579
 
 
 
154,307
 
 
Accrued liabilities
 
601,740
 
 
 
284,214
 
 
Income taxes payable
 
1,397,462
 
 
 
61,543
 
 
Total Current Liabilities
 
3,507,342
 
 
 
1,720,542
 
 
 
 
 
 
 
TOTAL LIABILITIES
 
3,507,342
 
 
 
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: 53,684,293 issued and 48,662,169 outstanding at June 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016
 
53,684
 
 
 
53,582
 
 
Treasury stock, at cost
 
(6,423,737)
 
 
 
(3,582,805)
 
 
Additional paid-in capital
 
26,981,218
 
 
 
26,800,298
 
 
Accumulated other comprehensive loss
 
(2,434,140)
 
 
 
(2,810,743)
 
 
Retained earnings
 
23,012,019
 
 
 
20,927,985
 
 
Total Stockholders' Equity
 
41,189,044
 
 
 
41,388,317
 
 
 
 
 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
44,696,386

 
 
$
43,108,859

 

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

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PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(Unaudited)
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
REVENUES
 
 
 
 
 
 
 
 
Sales of goods, net
 
$
8,834,650
 
 
$
3,462,893

 
 
$
16,126,879
 
 
$
7,435,817

 
Sales of services, net
 
630,301
 
 
511,150
 
 
 
1,162,568
 
 
1,081,880
 
 
Total Revenues
 
9,464,951
 
 
3,974,043
 
 
 
17,289,447
 
 
8,517,697
 
 
 
 
 
 
 
 
 
 
 
COST OF SALES
 
 
 
 
 
 
 
 
Cost of goods sold-product
 
4,035,528
 
 
1,712,643
 
 
 
7,090,828
 
 
3,493,209
 
 
Cost of goods sold-services
 
452,591
 
 
347,150
 
 
 
854,613
 
 
810,343
 
 
Total Cost of  Goods Sold
 
4,488,119
 
 
2,059,793
 
 
 
7,945,441
 
 
4,303,552
 
 
 
 
 
 
 
 
 
 
 
GROSS PROFIT
 
4,976,832
 
 
1,914,250
 
 
 
9,344,006
 
 
4,214,145
 
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
General and administrative expenses
 
2,739,055
 
 
2,385,567
 
 
 
5,682,368
 
 
5,055,668
 
 
Research and development
 
275,776
 
 
250,722
 
 
 
479,520
 
 
404,244
 
 
Depreciation and amortization expense
 
130,838
 
 
159,239
 
 
 
279,913
 
 
301,777
 
 
Total Operating Expenses
 
3,145,669
 
 
2,795,528
 
 
 
6,441,801
 
 
5,761,689
 
 
 
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM OPERATIONS
 
1,831,163
 
 
(881,278)
 
 
 
2,902,205
 
 
(1,547,544)
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
 
Gain (loss) on sale of fixed assets
 
46,374
 
 
(2,592)
 
 
 
48,476
 
 
(1,705)
 
 
Other (expense) income
 
18,798
 
 
4,756
 
 
 
13,385
 
 
(271,557)
 
 
Interest income
 
54,840
 
 
27,942
 
 
 
86,118
 
 
33,363
 
 
Total Other Income (Expense)
 
120,012
 
 
30,106
 
 
 
147,979
 
 
(239,899)
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) BEFORE INCOME TAXES
 
1,951,175
 
 
(851,172)
 
 
 
3,050,184
 
 
(1,787,443)
 
 
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
 
638,528
 
 
(245,877)
 
 
 
1,137,465
 
 
(417,531)
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
$
1,312,647
 
 
$
(605,295)

 
 
$
1,912,719
 
 
$
(1,369,912)

 
 
 
 
 
 
 
 
 
 
OTHER COMPREHENSIVE INCOME (LOSS)
 
 
 
 
 
 
 
 
Foreign currency translation gain (loss)
 
$
238,543
 
 
$
773

 
 
$
313,656
 
 
$
(839,417)

 
Unrealized gains on investments, net of tax
 
26,659
 
 
 
 
 
62,947
 
 
 
 
Total Other Comprehensive Income (Loss)
 
265,202
 
 
773
 
 
 
376,603
 
 
(839,417)
 
 
 
 
 
 
 
 
 
 
 
TOTAL COMPREHENSIVE INCOME (LOSS)
 
$
1,577,849
 
 
$
(604,522)

 
 
$
2,289,322
 
 
$
(2,209,329)

 
 
 
 
 
 
 
 
 
 
BASIC EARNINGS PER SHARE
 
$
0.03
 
 
$
(0.01)

 
 
$
0.04
 
 
$
(0.03)

 
 
 
 
 
 
 
 
 
 
FULLY DILUTED EARNINGS PER SHARE
 
$
0.03
 
 
$
(0.01)

 
 
$
0.04
 
 
$
(0.03)

 
 
 
 
 
 
 
 
 
 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
 
49,678,917
 
 
53,256,333
 
 
 
50,152,958
 
 
53,274,640
 
 
 
 
 
 
 
 
 
 
 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
 
50,283,144
 
 
53,256,333
 
 
 
50,757,185
 
 
53,274,640
 
 
 These financials should be read in conjunction with the Form 10-Q and accompanying footnotes.

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PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
 
For the Six Months Ended June 30,
 
 
 
2017
 
2016
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
Net Income (Loss)
 
$
1,912,719
 
 
$
(1,369,912)

 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization expense
 
458,293
 
 
512,703
 
 
 
 
Gain on sale of fixed assets
 
(48,255)
 
 
1,705
 
 
 
 
Bad debt expense
 
121,015
 
 
190,384
 
 
 
 
Stock options issued for services
 
372,086
 
 
156,286
 
 
 
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
Changes in accounts receivable
 
(1,107,574)
 
 
3,201,882
 
 
 
 
Changes in income taxes receivable/payable
 
1,327,884
 
 
(749,358)
 
 
 
 
Changes in inventories
 
(646,870)
 
 
1,091,372
 
 
 
 
Changes in prepaid expenses
 
(205,781)
 
 
36,003
 
 
 
 
Changes in deferred tax asset/liability
 
(134,427)
 
 
232,559
 
 
 
 
Changes in accounts payable and accrued liabilities
 
716,436
 
 
(1,014,087)
 
 
 
 
 
 
 
 
 
 
 
Net Cash Provided by Operating Activities
 
2,765,526
 
 
2,289,537
 
 
 
 
 
 
 
 
 
 
 
INVESTING ACTIVITIES
 
 
 
 
 
 
Proceeds from sale of equipment
 
112,183
 
 
59,013
 
 
 
 
Proceeds from investments
 
66,045
 
 
 
 
 
 
Purchase of fixed assets
 
(181,566)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Cash Provided by (Used in) Investing Activities
 
(3,338)
 
 
59,013
 
 
 
 
 
 
 
 
 
 
 
FINANCING ACTIVITIES
 
 
 
 
 
 
Value of equity awards surrendered by employees for tax liability
 
(20,800)
 
 
(99)
 
 
 
 
Purchase of Treasury stock
 
(2,840,932)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Cash Used in Financing Activities
 
(2,861,732)
 
 
(99)
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
94,403
 
 
413,138
 
 
 
 
 
 
 
 
 
 
 
NET INCREASE IN CASH
 
(5,141)
 
 
2,761,589
 
 
 
 
CASH AT BEGINNING OF PERIOD
 
9,316,036
 
 
19,281,501
 
 
 
 
 
 
 
 
 
 
 
CASH AT END OF PERIOD
 
$
9,310,895
 
 
$
22,043,090

 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
CASH PAID FOR:
 
 
 
 
 
 
Interest
 
 
 
$

 
 
 
Income taxes
 
$
67,078
 
 
$

 
 
 

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

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