Profire Energy Reports Financial Results for Fiscal Second Quarter of 2017

LINDON, Utah, Nov. 09, 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 second quarter ended September 30, 2016. A conference call will be held on Thursday, November 10, 2016 at 1:30 p.m. EST to discuss the results.

Fiscal Q2 2017 Highlights

  • Total revenues of $4,990,813
  • Net income of $74,452 or $0.00 per diluted share
  • Cash and liquid investments at period-end totaled $22.7 million
  • Generated positive cash flow from operations of $1,845,355
  • Remained debt-free

Fiscal Second Quarter Financial Results

The second quarter resulted in positive cash flows from operating activities. $11.1m in cash used to invest in low risk, CD’s, bonds and mutual funds. This investment strategy was done to allow liquidity while earning an improved rate of return. Cash and these liquid investments, total $22.7m, which is an increase from $22m in the first quarter. The positive cash flows and substantial cash position have allowed Profire to remain debt free.

Total revenues were just under $5m, representing an increase of 26% from the previous quarter. Net income was $74,452 or $0.00 per diluted share, compared to a net loss of $605,295 or loss of $0.01 per diluted share in the first quarter of this fiscal year.

Gross profit increased to 53% compared to 48% in the previous quarter while total operating expenses decreased slightly. Compared with the same year ago quarter, operating expenses for general and administrative decreased 20%, R&D decreased 11%, and depreciation increased 16%.

Management Commentary

“We remain optimistic for our Company and believe we’ve positioned ourselves well.” Said Brenton Hatch, President and CEO of Profire Energy. “We have invested in R&D, implemented effective cost cutting strategies, taken advantage of the slowdown to more extensively train our personnel, focused on generating positive cash flow, and been able to grow our customer base. We believe these actions will enable us to emerge stronger than before the industry downturn began.”

“In looking at the industry as a whole, we believe there are several positive indicators that oil prices are on the rebound. The Baker Hughes North American rig count has increased 41% from the historical low point in May 2016 and the significant build up in the number of drilled but uncompleted wells, since 2014, has begun decreasing over the last few months,” stated Ryan Oviatt, CFO of Profire. “We believe these industry trends will have a positive impact for Profire and our customers in the coming quarters. Our revenues increased in Q2 while operating costs decreased slightly compared to the previous quarter. Our cost cutting initiatives combined with ongoing cost management have positioned us well to respond to the market in the second half of our fiscal year.”

Conference Call

Profire management will host a conference Thursday, November 10, 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: Thursday, November 10, 2016
Time: 1:30 p.m. EST (11:30 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: 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 17, 2016.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13649080

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 Edmonton, Alberta, Canada. For additional information, visit

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 10, 2016 regarding 2017 second fiscal quarter results; the Company’s ability to manage macro-economic conditions; or, the Company’s expectation that industry conditions will improve; or, the Company developing new products, diversifying into new market; and, the decisions made over the past year positioning the Company to capture future opportunities and deliver long-term shareholder value. 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.

Item 1 Financial Information
Condensed Consolidated Balance Sheets
As of
ASSETS September 30, 2016 March 31, 2016
Cash and cash equivalents$ 11,674,786 $ 21,292,595
Accounts receivable, net 3,695,422 4,132,137
Inventories, net 8,921,196 11,046,682
Income tax receivable 507,526 268,326
Short term investments 2,172,410 -
Investments - other 3,000,000 -
Prepaid expenses & other current assets 463,287 315,757
Total Current Assets 30,434,627 37,055,497
Deferred tax asset 455,504 452,431
Long Term Investments 5,950,473 -
PROPERTY AND EQUIPMENT, net 7,715,964 8,232,911
Goodwill 997,701 997,701
Intangible assets, net of accumulated amortization 508,276 529,300
Total Other Assets 1,505,977 1,527,001
TOTAL ASSETS$ 46,062,544 $ 47,267,840
Accounts payable$ 802,218 $ 893,822
Accrued liabilities 478,108 620,783
Income taxes payable - 335,375
Total Current Liabilities 1,280,326 1,849,980
Deferred income tax liability 558,829 632,732
TOTAL LIABILITIES 1,839,155 2,482,712
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:
53,325,215 issued and 53,109,905 outstanding at September 30, 2016
and 53,256,296 issued and outstanding at March 31, 2016 53,325 53,256
Treasury stock, at cost (261,544) -
Additional paid-in capital 26,617,570 26,164,622
Accumulated other comprehensive loss (2,505,050) (2,282,682)
Retained earnings 20,319,089 20,849,932
Total Stockholders' Equity 44,223,390 44,785,128

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
For the Three Months Ended September 30, For the Six Months Ended September 30,
2016 2015 2016 2015
Sales of goods, net$ 4,507,044 $ 7,291,846 $ 7,969,936 $ 13,503,816
Sales of services, net 483,769 805,448 994,919 1,470,721
Total Revenues 4,990,813 8,097,294 8,964,855 14,974,537
Cost of goods sold-product 1,977,658 3,445,188 3,690,300 6,413,106
Cost of goods sold-services 388,496 623,992 735,645 1,219,530
Total Cost of Sales 2,366,154 4,069,180 4,425,945 7,632,636
GROSS PROFIT 2,624,659 4,028,114 4,538,910 7,341,901
General and administrative expenses 2,328,100 2,919,862 4,713,665 6,361,000
Research and development 263,712 295,146 514,435 599,635
Depreciation and amortization expense 160,216 137,999 319,455 245,454
Total Operating Expenses 2,752,028 3,353,007 5,547,555 7,206,090
INCOME (LOSS) FROM OPERATIONS (127,369) 675,107 (1,008,645) 135,811
Gain (Loss) on sale of fixed assets - 754 (2,592) 19,391
Other income 82,452 352,310 87,207 243,320
Interest income 19,667 5,517 47,609 26,640
Total Other Income 102,119 358,581 132,224 289,351
NET INCOME (LOSS) BEFORE INCOME TAXES (25,249) 1,033,689 (876,420) 425,162
INCOME TAX EXPENSE (BENEFIT) (99,701) 254,781 (345,578) 105,067
NET INCOME (LOSS)$ 74,452 $ 778,907 $ (530,843) $ 320,095
Foreign currency translation loss$ (202,520) $ (1,084,519) $ (201,747) $ (751,147)
Unrealized losses on investments (20,621) - (20,621) -
Total Other Comprehensive Loss (223,141) (1,084,519) (222,368) (751,147)
TOTAL COMPREHENSIVE LOSS$ (148,689) $ (305,612) $ (753,211) $ (431,052)
BASIC EARNINGS PER SHARE$ 0.00 $ 0.01 $ (0.01) $ 0.01
FULLY DILUTED EARNINGS PER SHARE$ 0.00 $ 0.01 $ (0.01) $ 0.01
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 53,215,385 53,236,979 53,235,747 53,230,892
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 54,091,419 53,344,291 53,235,747 53,338,204

Condensed Consolidated Statements of Cash Flows
For the Six Month Period Ended,
September 30, 2016 September 30, 2015
Net Income (Loss) $ (530,843) $ 320,095
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization expense 505,117 476,548
(Gain) Loss on sale of fixed assets 2,592 (19,391)
Bad debt expense 208,628 86,494
Stock options issued for services 447,691 325,334
Changes in operating assets and liabilities:
Changes in accounts receivable 163,107 2,567,419
Changes in income taxes receivable/payable (577,575) (253,794)
Changes in inventories 2,082,532 1,600,797
Changes in prepaid expenses (147,750) (262,547)
Changes in deferred tax asset/liability (76,976) (73,268)
Changes in accounts payable and accrued liabilities (231,168) 373,484
Net Cash Provided by Operating Activities 1,845,355 5,141,171
Proceeds from sale of equipment 16,896 119,935
Purchase of investments (11,143,504) -
Purchase of fixed assets (7,140) (28,572)
Net Cash Provided by (Used in) Investing Activities (11,133,748) 91,363
Value of equity awards surrendered by employees for tax liability - (39,243)
Purchase of Treasury stock (261,544) -
Net Cash Used in Financing Activities (261,544) (39,243)
Effect of exchange rate changes on cash (67,872) (383,797)
NET INCREASE (DECREASE) IN CASH (9,617,809) 4,809,494
CASH AT BEGINNING OF PERIOD 21,292,595 14,144,796
CASH AT END OF PERIOD $ 11,674,786 $ 18,954,290
Interest $ - $ -
Income taxes $ - $ -

Contact: Profire Energy, Inc. Ryan Oviatt, CFO (801) 796-5127

Source:Profire Energy