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Profire Energy Reports Financial Results for Fiscal Third Quarter of 2016

LINDON, Utah, Feb. 08, 2016 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ:PFIE), a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for its fiscal third quarter ended December 31, 2015. A conference call will be held on Tuesday, February 9, 2016 at 1:00 p.m. EST to discuss the results.

Fiscal Q3 2016 Highlights

  • Total revenues of $7.6 million
  • Net income of $478,799 or $0.01 per diluted share
  • Cash at period-end totaled $19.3 million
  • Generated positive cash flow
  • Remained debt-free

Fiscal Q3 2016 Financial Results
Total revenues in the third fiscal quarter of 2016 decreased 40%, compared to the same quarter last year. The decline was a result of decreased oilfield purchasing which could persist for some time. Based on the current industry environment, and near-term commodity price expectations, the Company does not anticipate improvement in customer purchasing in the short-term. Although facing a difficult market, the Company is determined to position itself to capture the greatest amount of revenue in both the short- and long-terms.

Gross profit decreased during the quarter to $4.0 million or 53% of total revenues, compared to $6.5 million or 52% of total revenues in the same year-ago quarter.

Total operating expenses decreased to $3.5 million or 46% of total revenues from $4.7 million or 38% of total revenues in the same year-ago quarter. Cost management has been a significant Company focus over the last few periods and will continue to be an emphasis for the foreseeable future. The Company has been successful in its expense-reduction measures and will continue to work toward maximizing efficiency.

Net income was $478,799 or $0.01 per diluted share, compared to net income of $1.9 million or $0.04 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $19.3 million, an increase of more than $5.1 million compared to prior year-end. The Company continues to generate cash flow from operating activities, which will remain a focus in future periods.

First Nine-Months of Fiscal 2016 Financial Results

Total revenues in the first nine-months of fiscal 2016 decreased 46% to $22.5 million from $41.4 million in the same year-ago period.

Gross profit decreased to $11.3 million or 50% of total revenues, compared to $22.5 million or 55% of total revenues in the same period last year.

Total operating expenses decreased to $10.7 million or 48% of total revenues from $14.1 million or 34% of total revenues in the first nine-months of fiscal 2016.

Net income was $0.8 million or $0.01 per diluted share, compared to a net income of $6.2 million or $0.12 per diluted share in the same year-ago period.

Management Commentary

“Unquestionably the industry is enduring a period of significant volatility,” said Brenton Hatch, President and CEO of Profire Energy. “We continue to anticipate a challenging calendar year. However, I’m pleased with our ability to remain profitable amid the difficult market headwinds. Our focus continues to be on improving cost management. We have made momentous changes to our cost structure over the last several periods and will continue to look for opportunities to reduce expenses without damaging the long-term strategy of the Company. We believe this strategic approach, coupled with the internal talent and resources we have, will position us to weather the storm and become a flexible, more efficient Company.”

“In addition to our strong balance sheet, we continue to operate debt-free,” said Ryan Oviatt, CFO of Profire Energy. “Our team is resilient and has refocused their energies on cost management and cash flow generation. Despite industry trends, we believe we have demonstrated that even in volatile times, the Company has the potential to remain profitable and generate positive cash flow.”

Fiscal 2016 Outlook

The Company maintains its fiscal 2016 guidance. For fiscal 2016, total revenues are expected between $25.0-30.0 million with net income of $(1.0)-2.0 million.

Conference Call

Profire management will host a conference Tuesday, February 9, 2016 to discuss these financial results. Please call the conference telephone number at least five minutes prior to the start time. An operator will register your name and organization.

Date: Tuesday, February 9, 2016
Time: 1:00 p.m. EST (11:00 a.m. MST)
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304

The conference call will also be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=118100.

If you have any difficulty connecting with the call, please contact Tanner Lamb at 1-801-796-5127.

A telephone replay of the call will be available after 8:00 p.m. EST on the same day through February 16, 2016

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 10000631

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 and chemical management systems are becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Victoria, Texas; Oklahoma City, Oklahoma; Tioga, Pennsylvania; Greeley, Colorado; and Edmonton, 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 Fiscal 2016 Guidance being reiterated; or, the Company holding a conference call on February 9, 2016 regarding Q3 fiscal results; or, the Company’s ability to remain profitable; or, the Company finding ways to reduce expenses without damaging the long-term strategy of the Company; or, the Company being able to weather the industry’s current volatility and become a flexible, more efficient Company; or, the Company being able to continue operating debt-free; or, the Company being able to generate positive cash flow; or, the conference call being available for replay until February 16, 2016. 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.

PART I. FINANCIAL INFORMATION
Item 1 Financial Information
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
ASSETS
December 31, March 31,
2015 2015
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 19,281,501 $ 14,144,796
Accounts receivable, net 6,515,543 9,462,378
Inventories 10,840,598 11,766,535
Income tax receivable 113,978 -
Prepaid expenses & other current assets 312,547 112,741
Total Current Assets 37,064,167 35,486,450
LONG-TERM ASSETS
Deferred tax asset 669,895 501,921
PROPERTY AND EQUIPMENT, net 8,449,492 9,275,965
OTHER ASSETS
Goodwill 997,701 997,701
Intangible assets, net of accumulated amortization 501,490 594,019
Total Other Assets 1,499,191 1,591,720
TOTAL ASSETS $ 47,682,745 $ 46,856,056
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,379,019 $ 1,040,530
Accrued liabilities 594,236 332,229
Income taxes payable 396,089 347,486
Total Current Liabilities 2,369,344 1,720,245
LONG-TERM LIABILITIES
Deferred income tax liability 616,735 631,353
TOTAL LIABILITIES 2,986,079 2,351,598
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: 53,255,275 and
53,199,136 shares issued and outstanding, respectively 53,255 53,199
Additional paid-in capital 26,152,201 25,525,052
Accumulated other comprehensive income (loss) (3,122,872) (1,888,981)
Retained earnings 21,614,082 20,815,188
Total Stockholders' Equity 44,696,666 44,504,458
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 47,682,745 $ 46,856,056
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(unaudited)
For the Three Months Ended For the Nine Months Ended
December 31, December 31,
2015 2014 2015 2014
REVENUES
Sales of goods, net $ 6,515,584 $ 11,695,016 $ 20,019,400 $ 38,640,246
Sales of services, net 1,038,671 821,683 2,509,392 2,742,219
Total Revenues 7,554,255 12,516,699 22,528,792 41,382,465
COST OF SALES
Cost of goods sold-product 2,833,909 5,299,912 9,247,014 16,837,531
Cost of goods sold-services 722,288 674,192 1,941,819 2,015,796
Total Cost of Goods Sold 3,556,197 5,974,104 11,188,833 18,853,327
GROSS PROFIT 3,998,058 6,542,595 11,339,959 22,529,138
OPERATING EXPENSES
General and administrative expenses 1,800,491 2,446,896 5,439,067 7,722,366
Research and development 348,874 521,814 948,508 1,331,834
Payroll expenses 1,230,022 1,591,397 3,952,447 4,624,826
Depreciation and amortization expense 128,793 176,371 374,247 424,014
Total Operating Expenses 3,508,180 4,736,478 10,714,269 14,103,040
INCOME FROM OPERATIONS 489,878 1,806,117 625,690 8,426,098
OTHER INCOME (EXPENSE)
Interest expense - (14,222) - (14,222)
Gain on disposal of fixed assets - 9,052 19,391 9,052
Other (expense) income 177,931 (910) 421,251 1,954
Interest income 5,217 6,687 31,857 14,467
Total Other Income (Expense) 183,148 607 472,499 11,251
NET INCOME BEFORE INCOME TAXES 673,026 1,806,724 1,098,189 8,437,349
INCOME TAX EXPENSE (BENEFIT) 194,227 (110,426) 299,295 2,221,292
NET INCOME $ 478,799 $ 1,917,150 $ 798,895 $ 6,216,057
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)$ (482,744) $ (381,099) $ (1,233,891) $ (539,777)
TOTAL COMPREHENSIVE INCOME (LOSS)$ (3,945) $ 1,536,051 $ (434,997) $ 5,676,280
BASIC EARNINGS PER SHARE$ 0.01 $ 0.04 $ 0.02 $ 0.12
FULLY DILUTED EARNINGS PER SHARE$ 0.01 $ 0.04 $ 0.01 $ 0.12
BASIC WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 53,255,275 52,884,358 53,239,087 51,112,924
FULLY DILUTED WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 53,523,081 53,161,058 53,506,778 51,389,624
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)
For the Nine Months Ended
December 31,
2015 2014
OPERATING ACTIVITIES
Net Income $ 798,895 $ 6,216,057
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 729,695 784,193
Gain on disposal of fixed assets (19,391) (9,052)
Bad debt expense 104,252 (14,832)
Stock options issued for services 666,450 1,031,301
Changes in operating assets and liabilities:
Changes in accounts receivable 2,683,035 (3,035,929)
Changes in income tax receivable (113,978) -
Changes in inventories 625,368 (4,533,903)
Changes in prepaid expenses (199,923) (345,977)
Changes in deferred tax asset (167,974) (246,016)
Changes in accounts payable and accrued liabilities 627,765 1,831,277
Changes in income taxes payable 45,417 (478,480)
Net Cash Provided by Operating Activities 5,779,611 1,198,639
INVESTING ACTIVITIES
Proceeds from disposal of equipment 116,524 9,052
Cash paid for asset acquisition - (750,000)
Purchase of fixed assets (62,465) (5,941,953)
Net Cash Provided by (Used in) Investing Activities 54,059 (6,682,901)
FINANCING ACTIVITIES
Proceeds from stock issued for cash, net of stock offering costs - 16,424,688
Value of equity awards surrendered by employees for tax liability (39,243) -
Stock issued in exercise of stock options - 197,961
Net Cash Provided by (Used in) Financing Activities (39,243) 16,622,649
Effect of exchange rate changes on cash (657,722) (209,454)
NET INCREASE IN CASH 5,136,705 10,928,933
CASH AT BEGINNING OF PERIOD 14,144,796 4,456,674
CASH AT END OF PERIOD $ 19,281,501 $ 15,385,607
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
CASH PAID FOR:
Interest $ - $ 14,222
Income taxes $ 402,417 $ 2,890,769
NON CASH INVESTING AND FINANCING ACTIVITIES:
Stock issued for acquisition $ - $ 1,000,000
These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.



Contact: Profire Energy, Inc. Tanner Lamb, Finance and Investor Relations (801) 796-5127

Source:Profire Energy