Profire Energy Reports Financial Results for Second Fiscal Quarter Fiscal 2017
August 09 2017 - 4:40PM
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
“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 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 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.
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.
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.
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.
Contact:
Profire Energy, Inc.
Ryan Oviatt, CFO
(801) 796-5127
Profire Energy (NASDAQ:PFIE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Profire Energy (NASDAQ:PFIE)
Historical Stock Chart
From Apr 2023 to Apr 2024