Profire Energy Reports Financial Results for Third Fiscal Quarter Fiscal 2017
Company Achieves a 101% Increase in Year-Over-Year Revenues

LINDON, Utah November 8, 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 ending September 30, 2017. A conference call will be held on Thursday, November 9, 2017 at 1:00 p.m. EST to discuss the results.

Fiscal Q3 2017 Highlights
 
•
Revenues Increased 101% Year-Over-Year
•
Net Income of $1.2 Million or $0.03 Per Share
•
Gross Profit Increased to $5 Million or 50.4% of Total Revenues
•
Cash and Liquid Investments at Period End Equal $21.4 Million
•
Remained Debt-Free

Fiscal Quarter Financial Results
    
Total revenues increased to $10 million in the quarter which is a 101% increase from the same quarter a year ago. The Company’s quarterly revenues have not exceeded $10 million since the quarter ended December 31, 2014.
    
While recording a 101% increase in revenues, total operating expenses were up only 16.9% to $3.2 million, over the same quarter last year.

Gross profit increased to roughly $5 million or 50.4% of total revenues, as compared to $2.6 million or 52.6% of total revenues in the year-ago quarter.

Compared with the same year-ago quarter, operating expenses for general and administrative increased 19%, R&D increased 21%, and depreciation decreased 21%.

Net income was $1.2 million or a gain of $0.03 per share, compared to net income of $74,000 or $0.00 per share in the same year-ago quarter.
 
Cash and liquid investments totaled $21.4 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary
“The cost and Company structures we now have, remain scalable and provide us with room to grow. What we have put in place has allowed us to enjoy significant year-over-year increases in revenue,” stated Ryan Oviatt, CFO of Profire. “This quarter we continued our revenue growth trajectory and remained focused on




positioning the Company for the future. Profire has been able to manage costs throughout the downturn and initial recovery, and will continue to do so as the Company invests in additional products, technology and people to keep up with demand.”

“With superior products and a dedicated team of employees, Profire has successfully navigated a volatile market. Despite the volatility, we recognized great success during the quarter including our total revenues for the quarter surpassing $10 million,” said Brenton Hatch, President and CEO of Profire Energy. “We continue to add features to the 3100 system in order to offer a competitive product that meets customer expectations and drives innovation within the industry. In addition to the 3100, other new products are presently being developed. We believe that new technologies, like Profire products, are essential parts of our customers’ long-term strategies.”


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, November 9, 2017
Time: 1:00 p.m. EST (11:00 a.m. MST)
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=127078. 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. EST on the same day through November 16, 2017.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13672951

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 November 16, 2017, regarding the financial quarter results; the ability of the Company’s ability to maintain cost structures; Development of the 3100 and other products;, the Company’s ability to 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

























PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
 
 
As of
 
 
September 30,
2017
 
December 31,
2016
 
 
(Unaudited)

 
 

CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
9,784,793

 
$
9,316,036

Short term investments
 
854,323

 
2,965,536

Investments - other
 
3,010,000

 
2,250,000

Accounts receivable, net
 
7,644,918

 
5,633,802

Inventories, net
 
6,934,821

 
7,839,503

Income tax receivable
 
55,682

 
180,981

Prepaid expenses & other current assets
 
505,082

 
410,558

Total Current Assets
 
28,789,619

 
28,596,416

 
 
 
 
 
LONG-TERM ASSETS
 
 

 
 

Net deferred tax asset
 
200,239

 
60,940

Long-term investments
 
7,798,848

 
5,504,997

Property and equipment, net
 
7,016,570

 
7,458,723

Goodwill
 
997,701

 
997,701

Intangible assets, net
 
505,875

 
490,082

Total Long-Term Assets
 
16,519,233

 
14,512,443

 
 
 
 
 
TOTAL ASSETS
 
$
45,308,852

 
$
43,108,859

 
 
 
 
 
CURRENT LIABILITIES
 
 

 
 

Accounts payable
 
794,464

 
1,220,478

Accrued vacation
 
192,579

 
154,307

Accrued liabilities
 
814,404

 
284,214

Income taxes payable
 
774,361

 
61,543

Total Current Liabilities
 
2,575,808

 
1,720,542

 
 
 
 
 
TOTAL LIABILITIES
 
2,575,808

 
1,720,542

 
 
 
 
 
STOCKHOLDERS' EQUITY
 
 

 
 

Preferred shares: $0.001 par value, 10,000,000 shares authorized:  no shares issued or outstanding
 
—

 
—

Common shares: $0.001 par value, 100,000,000 shares authorized: 53,692,460 issued and 48,471,890 outstanding at September 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016
 
53,692

 
53,582

Treasury stock, at cost
 
(6,703,521
)
 
(3,582,805
)
Additional paid-in capital
 
27,249,628

 
26,800,298

Accumulated other comprehensive loss
 
(2,096,731
)
 
(2,810,743
)
Retained earnings
 
24,229,976

 
20,927,985

Total Stockholders' Equity
 
42,733,044

 
41,388,317

 
 
 
 
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
45,308,852

 
$
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 September 30,
 
For the Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
REVENUES
 
 
 
 
 
 
 
 
Sales of goods, net
 
$
9,387,232

 
$
4,507,044

 
$
25,514,149

 
$
11,942,860

Sales of services, net
 
662,960

 
483,769

 
1,825,528

 
1,565,649

Total Revenues
 
10,050,192

 
4,990,813

 
27,339,677

 
13,508,509

 
 
 
 
 
 
 
 
 
COST OF SALES
 
 

 
 

 
 
 
 
Cost of goods sold-product
 
4,509,191

 
1,977,658

 
11,600,019

 
5,470,866

Cost of goods sold-services
 
479,206

 
388,496

 
1,333,819

 
1,198,838

Total Cost of  Goods Sold
 
4,988,397

 
2,366,154

 
12,933,838

 
6,669,704

 
 
 
 
 
 
 
 
 
GROSS PROFIT
 
5,061,795

 
2,624,659

 
14,405,839

 
6,838,805

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES
 
 

 
 

 
 
 
 
General and administrative expenses
 
2,771,869

 
2,328,100

 
8,454,235

 
7,383,766

Research and development
 
318,621

 
263,712

 
798,142

 
667,957

Depreciation and amortization expense
 
125,898

 
160,216

 
405,811

 
461,993

Total Operating Expenses
 
3,216,388

 
2,752,028

 
9,658,188

 
8,513,716

 
 
 
 
 
 
 
 
 
INCOME (LOSS) FROM OPERATIONS
 
1,845,407

 
(127,369
)
 
4,747,651

 
(1,674,911
)
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 

 
 

 
 
 
 
Gain (loss) on sale of fixed assets
 
14,017

 
—

 
62,492

 
(1,705
)
Other (expense) income
 
25,991

 
82,452

 
39,377

 
(189,106
)
Interest income
 
41,672

 
19,668

 
127,790

 
53,030

Total Other Income (Expense)
 
81,680

 
102,120

 
229,659

 
(137,781
)
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS) BEFORE INCOME TAXES
 
1,927,087

 
(25,249
)
 
4,977,310

 
(1,812,692
)
 
 
 
 
 
 
 
 
 
Income tax expense (benefit)
 
709,169

 
(99,701
)
 
1,846,634

 
(517,232
)
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
$
1,217,918

 
$
74,452

 
$
3,130,676

 
$
(1,295,460
)
 
 
 
 
 
 
 
 
 
OTHER COMPREHENSIVE INCOME (LOSS)
 
 

 
 

 
 
 
 
Foreign currency translation gain (loss)
 
$
327,271

 
$
(202,520
)
 
$
640,927

 
$
(1,041,937
)
Unrealized gains (losses) on investments, net of tax
 
10,138

 
(20,621
)
 
73,085

 
(20,621
)
Total Other Comprehensive Income (Loss)
 
337,409

 
(223,141
)
 
714,012

 
(1,062,558
)
 
 
 
 
 
 
 
 
 
TOTAL COMPREHENSIVE INCOME (LOSS)
 
$
1,555,327

 
$
(148,689
)
 
$
3,844,688

 
$
(2,358,018
)
 
 
 
 
 
 
 
 
 
BASIC EARNINGS (LOSS) PER SHARE
 
$
0.03

 
$
—

 
$
0.06

 
$
(0.02
)
 
 
 
 
 
 
 
 
 
FULLY DILUTED EARNINGS (LOSS) PER SHARE
 
$
0.02

 
$
—

 
$
0.06

 
$
(0.02
)
 
 
 
 
 
 
 
 
 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
 
48,552,770

 
53,215,385

 
49,613,704

 
53,274,855

 
 
 
 
 
 
 
 
 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
 
49,369,835

 
54,091,419

 
50,346,333

 
53,274,855

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 Nine Months Ended September 30,
  
 
2017
 
2016
OPERATING ACTIVITIES
 
 
 
 
Net Income (Loss)
 
$
3,130,676

 
$
(1,295,460
)
Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 
Depreciation and amortization expense
 
675,223

 
764,906

Loss (Gain) on sale of fixed assets
 
(62,310
)
 
1,705

Bad debt expense
 
147,470

 
247,568

Stock options issued for services
 
648,244

 
460,212

Changes in operating assets and liabilities:
 
 
 
 
Changes in accounts receivable
 
(2,024,858
)
 
2,594,557

Changes in income taxes receivable/payable
 
840,343

 
(785,089
)
Changes in inventories
 
634,646

 
2,098,574

Changes in prepaid expenses
 
(93,669
)
 
(119,238
)
Changes in deferred tax asset/liability
 
(139,298
)
 
140,488

Changes in accounts payable and accrued liabilities
 
588,868

 
(710,012
)
 
 
 
 
 
Net Cash Provided by Operating Activities
 
4,345,335

 
3,398,211

 
 
 
 
 
INVESTING ACTIVITIES
 
 
 
 
Proceeds from sale of equipment
 
140,198

 
59,013

Purchase of investments
 
(869,554
)
 
(11,143,504
)
Purchase of fixed assets
 
(214,632
)
 
(7,140
)
 
 
 
 
—

Net Cash Used in Investing Activities
 
(943,988
)
 
(11,091,631
)
 
 
 
 
 
FINANCING ACTIVITIES
 
 
 
 
Value of equity awards surrendered by employees for tax liability
 
(25,667
)
 
(99
)
Purchase of Treasury stock
 
(3,120,716
)
 
(261,544
)
 
 
 
 
 
Net Cash Used in Financing Activities
 
(3,146,383
)
 
(261,643
)
 
 
 
 
 
Effect of exchange rate changes on cash
 
213,793

 
348,348

 
 
 
 
 
NET INCREASE IN CASH
 
468,757

 
(7,606,715
)
CASH AT BEGINNING OF PERIOD
 
9,316,036

 
19,281,501

 
 
 
 
 
CASH AT END OF PERIOD
 
$
9,784,793

 
$
11,674,786

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

 
$
—

Income taxes
 
$
1,282,157

 
$
—

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