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Profire Energy Reports Financial Results for Third Quarter 2024
Company Reports Highest Quarterly Revenue in Company History


LINDON, Utah November 6, 2024 - Profire Energy, Inc. (NASDAQ: PFIE), a technology company (the "Company") that provides solutions which enhance the efficiency, safety, and reliability of industrial combustion appliances, today reported financial results for its third quarter ending September 30, 2024.

Third Quarter Summary (comparisons to prior-year quarter)
•Revenue of $17.2 million, compared to $14.9 million
•Gross profit of $8.3 million, compared to $7.5 million
•Gross margin of 48.2%, compared to 50.0%
•Net income of $2.2 million, or $0.04 per diluted share, versus $2.0 million and $0.04
•Generated EBITDA of $3.1 million, versus $2.9 million
•Cash and investments of $16.9 million with no debt

Pending Acquisition and Conference Call Update
On October 29, 2024, Profire Energy announced it agreed to be acquired by CECO Environmental in an all cash transaction for $2.55 a share. The transaction is anticipated to close in Q1 2025.

As a result of the pending transaction, and as is common during the pendency of such transactions, Profire will not hold an earnings conference call in connection with its third quarter financial results.


Third Quarter 2024 Financial Results
Total revenues for the period equaled $17.2 million, compared to $15.2 million in the second quarter of 2024 and $14.9 million in the prior-year quarter. The sequential and year-over-year increase was partially driven by strong activity in our diversification business.

Gross profit was $8.3 million, compared to $7.9 million in the second quarter and $7.5 million in the third quarter of 2023. Gross margin was 48% of revenues, compared to 52% of revenues in the prior quarter and 50% of revenues in the prior-year quarter. The sequential and year-over-year decrease is partially related to inflationary pressures across the business as well as the increase in diversification business, driven by critical energy infrastructure and non-oil and gas projects, which can have lower overall project margins.



Total operating expenses were $5.5 million, compared to $5.3 million in the second quarter of 2024 and $4.9 million in the year-ago quarter. The sequential increase is primarily due to ongoing inflation pressure on our business as well as increased headcount to support strategic growth and increased business activity.

Compared with the same quarter last year, operating expenses for G&A increased 10%, R&D increased 85% and depreciation decreased by 7%. The increase in R&D has been driven by inflation, headcount increases and increased new product development and certification activities.

Net income was $2.2 million, or $0.04 per diluted share, compared to net income of $2.1 million or $0.04 per diluted share in the second quarter of 2024 and $2.0 million or $0.04 per diluted share in the same quarter last year.

About Profire Energy, Inc.
Profire Energy is a technology company providing solutions that enhance the efficiency, safety, and reliability of industrial combustion appliances while mitigating potential environmental impacts related to the operation of these devices. It is primarily focused in the upstream, midstream, and downstream transmission segments of the oil and gas industry. However, in recent years, we have completed many installations of our burner-management solutions in other industries that we believe will be applicable as we expand our addressable market over time. Profire specializes in the engineering and design of burner and combustion management systems and solutions used on a variety of natural and forced draft applications. Its products and services are sold primarily throughout North America. It has an experienced team of sales and service professionals that are strategically positioned across the United States and Canada. Profire has offices in Lindon, Utah; Victoria, Texas; Midland-Odessa, Texas; Homer, Pennsylvania; Greeley, Colorado; Millersburg, Ohio; and Acheson, 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’s expected growth and the Company’s expected revenues from diversification opportunities. 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 and 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, Co-CEO & CFO
(801) 796-5127

Three Part Advisors
Steven Hooser, Partner
John Beisler, Managing Director
(214) 872-2710


About Non-GAAP Financial Measures 
To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measure of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 
We use this non-GAAP financial measure for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. We believe this non-GAAP financial measure is useful to investors both because it allows for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The Following is a tabular presentation of EBITDA, including a reconciliation to net income which the Company believes to be the most directly comparable US GAAP financial measure.

 9/30/20249/30/2023
EBITDA Calculation:3 months3 months
Net Income
$2,182,637$2,039,390
add back net income tax expense
$752,400$611,008
add back net interest expense
$(90,941)$(69,727)
add back depreciation and amortization
$263,751$274,208
EBITDA calculated
$3,107,847$2,854,879







PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
As of
September 30, 2024December 31, 2023
ASSETS(Unaudited)
CURRENT ASSETS
Cash and cash equivalents$7,963,892 $10,767,519 
Short-term investments2,338,259 2,799,539 
Accounts receivable, net16,431,559 14,013,740 
Inventories, net (note 3)17,188,656 14,059,656 
Prepaid expenses and other current assets (note 4)3,379,650 2,832,262 
Total Current Assets47,302,016 44,472,716 
LONG-TERM ASSETS
Net deferred tax asset436,578 496,785 
Long-term investments6,584,919 6,425,582 
Lease right-of-use asset (note 6)369,549 432,907 
Property and equipment, net11,330,713 10,782,372 
Intangible assets, net998,736 1,104,102 
Goodwill2,579,381 2,579,381 
Total Long-Term Assets22,299,876 21,821,129 
TOTAL ASSETS$69,601,892 $66,293,845 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$2,166,969 $2,699,556 
Accrued liabilities (note 5)4,728,919 4,541,820 
Current lease liability (note 6)136,739 130,184 
Income taxes payable542,393 1,723,910 
Total Current Liabilities7,575,020 9,095,470 
LONG-TERM LIABILITIES
Net deferred income tax liability53,318 52,621 
Long-term lease liability (note 6)241,793 307,528 
TOTAL LIABILITIES7,870,131 9,455,619 
STOCKHOLDERS' EQUITY (note 7)
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: 53,687,955 issued and 46,379,557 outstanding at September 30, 2024, and 53,047,231 issued and 46,803,868 outstanding at December 31, 202353,690 53,048 
Treasury stock, at cost(10,976,706)(9,324,272)
Additional paid-in capital33,675,391 32,751,749 
Accumulated other comprehensive loss(2,902,754)(2,844,702)
Retained earnings41,882,140 36,202,403 
TOTAL STOCKHOLDERS' EQUITY61,731,761 56,838,226 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$69,601,892 $66,293,845 


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 Income and Comprehensive Income
(Unaudited)     
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2024202320242023
(See Note 1)(See Note 1)
REVENUES (note 8)
Sales of products, net$16,017,224 $14,085,028 $42,435,024 $41,562,935 
Sales of services, net1,180,729 858,871 3,564,582 2,624,514 
Total Revenues17,197,953 14,943,899 45,999,606 44,187,449 
COST OF SALES
Cost of sales - products7,881,956 6,666,949 20,418,350 19,157,973 
Cost of sales - services1,034,242 799,866 2,683,156 2,304,838 
Total Cost of Sales8,916,198 7,466,815 23,101,506 21,462,811 
GROSS PROFIT8,281,755 7,477,084 22,898,100 22,724,638 
OPERATING EXPENSES
General and administrative5,058,465 4,605,566 14,431,441 12,573,171 
Research and development337,597 182,253 952,666 649,506 
Depreciation and amortization135,541 145,662 435,209 428,644 
Total Operating Expenses5,531,603 4,933,481 15,819,316 13,651,321 
INCOME FROM OPERATIONS2,750,152 2,543,603 7,078,784 9,073,317 
OTHER INCOME (EXPENSE)
Gain on sale of property and equipment84,971 17,350 221,860 251,768 
Other expense8,973 19,718 (11,322)(26,704)
Interest income93,299 74,165 248,543 255,865 
Interest expense(2,358)(4,438)(7,960)(6,226)
Total Other Income184,885 106,795 451,121 474,703 
INCOME BEFORE INCOME TAXES2,935,037 2,650,398 7,529,905 9,548,020 
INCOME TAX EXPENSE(752,400)(611,008)(1,850,168)(2,061,851)
NET INCOME$2,182,637 $2,039,390 $5,679,737 $7,486,169 
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation loss$139,211 $(301,642)$(231,674)$(28,838)
Unrealized gains (losses) on investments107,924 (71,193)173,622 (25,322)
Total Other Comprehensive Loss247,135 (372,835)(58,052)(54,160)
COMPREHENSIVE INCOME$2,429,772 $1,666,555 $5,621,685 $7,432,009 
BASIC EARNINGS PER SHARE$0.05 $0.04 $0.12 $0.16 
FULLY DILUTED EARNINGS PER SHARE$0.04 $0.04 $0.12 $0.15 
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING46,809,342 47,521,238 46,937,404 47,364,445 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING48,739,900 49,504,024 48,867,962 49,314,304 
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,
20242023
OPERATING ACTIVITIES
Net income$5,679,737 $7,486,169 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense802,842 822,204 
Gain on sale of property and equipment(221,860)(251,768)
Bad debt expense209,177 420,883 
Stock awards issued for services815,295 878,392 
Changes in operating assets and liabilities:
Accounts receivable(2,353,006)(2,360,696)
Income taxes receivable/payable(1,178,904)464,256 
Inventories(3,167,889)(3,245,588)
Prepaid expenses and other current assets(583,976)(437,023)
Deferred tax asset/liability61,953 466,398 
Accounts payable and accrued liabilities(286,109)(1,574,995)
Net Cash Provided by (Used in) Operating Activities(222,740)2,668,232 
INVESTING ACTIVITIES
Proceeds from sale of property and equipment316,095 328,350 
Sale (purchase) of investments476,281 (383,520)
Purchase of property and equipment(1,403,525)(974,070)
Net Cash Used in Investing Activities(611,149)(1,029,240)
FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability(336,833)(502,307)
Cash received in exercise of stock options96,476 178,195 
Purchase of treasury stock(1,652,434)(339,313)
Principal paid toward lease liability(33,499)(26,617)
Net Cash Used in Financing Activities(1,926,290)(690,042)
Effect of exchange rate changes on cash(43,448)5,335 
NET CHANGE IN CASH(2,803,627)954,285 
CASH AT BEGINNING OF PERIOD10,767,519 7,384,578 
CASH AT END OF PERIOD$7,963,892 $8,338,863 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest$7,960 $6,227 
Income taxes$3,107,899 $1,126,750 
NON-CASH FINANCING AND INVESTING ACTIVITIES
Common stock issued in settlement of accrued bonuses$324,415 $378,526 
Common stock issued for stock options$120,860 $— 
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.