Profire Energy Executives will host the call, followed by a question and answer period. | ||
Date: Thursday, May 7, 2020 | ||
Time: 1:00 p.m. ET (11:00 a.m. MT) | ||
Toll-free dial-in number: 1-877-300-8521 | ||
International dial-in number: 1-412-317-6026 | ||
The conference call will be webcast live and available for replay via this link:http://public.viavid.com/index.php?id=139637. 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 via the dial-in numbers below after 4:00 p.m. ET on the same day through May 21, 2020.Toll-free replay number: 1-844-512-2921 | ||
International replay number: 1-412-317-6671 | ||
Replay Pin Number: 10143655 | ||
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
ASSETS | (Unaudited) | |||||||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 7,230,330 | $ | 7,358,856 | ||||||||||||||||||||||
Short-term investments | 1,727,483 | 1,222,053 | ||||||||||||||||||||||||
Short-term investments - other | 2,400,000 | 2,600,000 | ||||||||||||||||||||||||
Accounts receivable, net | 4,410,935 | 5,597,701 | ||||||||||||||||||||||||
Inventories, net | 8,815,111 | 9,571,807 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 1,398,596 | 1,672,422 | ||||||||||||||||||||||||
Income tax receivable | — | 77,385 | ||||||||||||||||||||||||
Total Current Assets | 25,982,455 | 28,100,224 | ||||||||||||||||||||||||
LONG-TERM ASSETS | ||||||||||||||||||||||||||
Long-term investments | 6,552,150 | 7,399,963 | ||||||||||||||||||||||||
Financing right-of-use asset | 88,035 | 107,991 | ||||||||||||||||||||||||
Property and equipment, net | 11,913,754 | 12,071,019 | ||||||||||||||||||||||||
Intangible assets, net | 1,938,919 | 1,989,782 | ||||||||||||||||||||||||
Goodwill | 2,579,381 | 2,579,381 | ||||||||||||||||||||||||
Total Long-Term Assets | 23,072,239 | 24,148,136 | ||||||||||||||||||||||||
TOTAL ASSETS | $ | 49,054,694 | $ | 52,248,360 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||||
Accounts payable | $ | 1,460,159 | $ | 2,633,520 | ||||||||||||||||||||||
Accrued liabilities \ | 1,296,997 | 2,089,391 | ||||||||||||||||||||||||
Current financing lease liability | 50,067 | 59,376 | ||||||||||||||||||||||||
Income taxes payable | 439,592 | 403,092 | ||||||||||||||||||||||||
Total Current Liabilities | 3,246,815 | 5,185,379 | ||||||||||||||||||||||||
LONG-TERM LIABILITIES | ||||||||||||||||||||||||||
Net deferred income tax liability | 324,711 | 439,275 | ||||||||||||||||||||||||
Long-term financing lease liability | 40,761 | 52,120 | ||||||||||||||||||||||||
TOTAL LIABILITIES | 3,612,287 | 5,676,774 | ||||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | — | — | ||||||||||||||||||||||||
Common stock: $0.001 par value, 100,000,000 shares authorized: 51,098,039 issued and 47,685,661 outstanding at March 31, 2020, and 50,824,355 issued and 47,411,977 outstanding at December 31, 2019 | 51,098 | 50,824 | ||||||||||||||||||||||||
Treasury stock, at cost | (5,353,019) | (5,353,019) | ||||||||||||||||||||||||
Additional paid-in capital | 29,922,760 | 29,584,172 | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (3,518,237) | (2,415,460) | ||||||||||||||||||||||||
Retained earnings | 24,339,805 | 24,705,069 | ||||||||||||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 45,442,407 | 46,571,586 | ||||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 49,054,694 | $ | 52,248,360 |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Sales of goods, net | $ | 6,860,958 | $ | 10,198,635 | |||||||||||||||||||
Sales of services, net | 586,184 | 634,423 | |||||||||||||||||||||
Total Revenues | 7,447,142 | 10,833,058 | |||||||||||||||||||||
COST OF SALES | |||||||||||||||||||||||
Cost of goods sold-product | 3,833,682 | 4,570,988 | |||||||||||||||||||||
Cost of goods sold-services | 448,784 | 497,198 | |||||||||||||||||||||
Total Cost of Goods Sold | 4,282,466 | 5,068,186 | |||||||||||||||||||||
GROSS PROFIT | 3,164,676 | 5,764,872 | |||||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
General and administrative expenses | 3,272,538 | 3,161,530 | |||||||||||||||||||||
Research and development | 409,726 | 349,058 | |||||||||||||||||||||
Depreciation and amortization expense | 147,472 | 116,223 | |||||||||||||||||||||
Total Operating Expenses | 3,829,736 | 3,626,811 | |||||||||||||||||||||
INCOME (LOSS) FROM OPERATIONS | (665,060) | 2,138,061 | |||||||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
Gain on sale of fixed assets | — | 16,930 | |||||||||||||||||||||
Other income (expense) | 347 | (551) | |||||||||||||||||||||
Interest income | 74,393 | 91,703 | |||||||||||||||||||||
Total Other Income | 74,740 | 108,082 | |||||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (590,320) | 2,246,143 | |||||||||||||||||||||
INCOME TAX BENEFIT (EXPENSE) | 225,056 | (577,525) | |||||||||||||||||||||
NET INCOME (LOSS) | $ | (365,264) | $ | 1,668,618 | |||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
Foreign currency translation gain (loss) | $ | (945,423) | $ | 149,415 | |||||||||||||||||||
Unrealized gains (losses) on investments | (157,354) | 68,752 | |||||||||||||||||||||
Total Other Comprehensive Income (Loss) | (1,102,777) | 218,167 | |||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | (1,468,041) | $ | 1,886,785 | |||||||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE | $ | (0.01) | $ | 0.04 | |||||||||||||||||||
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ | (0.01) | $ | 0.03 | |||||||||||||||||||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 47,492,441 | 47,437,424 | |||||||||||||||||||||
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 47,492,441 | 48,084,390 |
ROFIRE ENERGY, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||||
Net income (loss) | $ | (365,264) | $ | 1,668,618 | |||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization expense | 259,801 | 249,889 | |||||||||||||||||||||
Gain on sale of fixed assets | — | (16,930) | |||||||||||||||||||||
Bad debt expense | 133,803 | 177,906 | |||||||||||||||||||||
Stock awards issued for services | 66,348 | 66,714 | |||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | 1,314,939 | 654,710 | |||||||||||||||||||||
Income taxes receivable/payable | 107,561 | (234,042) | |||||||||||||||||||||
Inventories | 537,668 | 656,988 | |||||||||||||||||||||
Prepaid expenses | 168,546 | (239,395) | |||||||||||||||||||||
Deferred tax asset/liability | (114,564) | 123,764 | |||||||||||||||||||||
Accounts payable and accrued liabilities | (1,837,760) | (499,721) | |||||||||||||||||||||
Net Cash Provided by Operating Activities | 271,078 | 2,608,501 | |||||||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||
Proceeds from sale of equipment | — | 18,400 | |||||||||||||||||||||
Sale of investments | 387,326 | 647,739 | |||||||||||||||||||||
Purchase of fixed assets | (525,384) | (443,883) | |||||||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | (138,058) | 222,256 | |||||||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||
Value of equity awards surrendered by employees for tax liability | (148,879) | (143,022) | |||||||||||||||||||||
Cash received in exercise of stock options | 2,020 | — | |||||||||||||||||||||
Purchase of treasury stock | — | (1,333,578) | |||||||||||||||||||||
Principal paid towards lease liability | (19,089) | (15,718) | |||||||||||||||||||||
Net Cash Used in Financing Activities | (165,948) | (1,492,318) | |||||||||||||||||||||
Effect of exchange rate changes on cash | (95,598) | 16,507 | |||||||||||||||||||||
NET CHANGE IN CASH | (128,526) | 1,354,946 | |||||||||||||||||||||
CASH AT BEGINNING OF PERIOD | 7,358,856 | 10,101,932 | |||||||||||||||||||||
CASH AT END OF PERIOD | $ | 7,230,330 | $ | 11,456,878 | |||||||||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||||||||||
CASH PAID FOR: | |||||||||||||||||||||||
Interest | $ | 872 | $ | 1,411 | |||||||||||||||||||
Income taxes | $ | — | $ | 711,524 | |||||||||||||||||||
NON-CASH FINANCING AND INVESTING ACTIVITIES: | |||||||||||||||||||||||
Common stock issued in settlement of accrued bonuses | $ | 419,373 | $ | 379,861 |