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Profire Energy Reports Record Revenues & Net Income in Q1 FY2014

LINDON, Utah, Aug. 13, 2013 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (OTCBB:PFIE), a technology company which manufactures, installs and services burner management systems and other combustion technologies for the oil and gas industry, today announced that it has filed its Quarterly Report on Form 10-Q for its fiscal quarter ended June 30, 2013 with the U.S. Securities and Exchange Commission.



The Company reported record quarterly revenue and net income (after-tax) for the three months ended June 30, 2013 of $7,181,580 and $1,613,984, respectively. These figures represent a 95% increase in revenue and a 185% increase in net income (after-tax) compared to the same period of the prior fiscal year. Earnings per share increased to $0.04 for the quarter, compared to $0.01 for the same period of the prior fiscal year. As a percentage of revenues, cost of goods sold increased slightly from 41% to 42%.

"For some time, we have emphasized the need to invest in future growth," said Andrew Limpert, chief financial officer of Profire. "We are seeing revolutionary energy developments taking place in North America—like improved fracking, horizontal drilling, and expanded shale development. With these new technological developments in the industry, we believe our opportunity to bring value-focused innovation to the burner management space is significant—and growing. I believe this past quarter shows our ability to capitalize on this opportunity."

The Company reported a 98% increase in the sales of goods (net), as well as a 52% increase in the sales of services (net), while total operating expenses increased 29%. Profire remains debt free, and continues to finance its growth through organic cash flow.

"Our sales team has done a tremendous job of educating the industry of the value of using burner management systems," said Brenton Hatch, chief executive officer of Profire. "I believe this past quarter says as much about our people as it does about the opportunity in the industry. We estimate there are currently about 1.3 million wells in North America, with between 45,000 and 50,000 new wells for oil and natural gas being drilled this year, and the overwhelming majority of those wells do not yet use sophisticated burner management technology. We are focused both on improving the industry's burner management technologies and maintaining our financial discipline as we do so."

The Company's financial statements (as filed with the Securities and Exchange Commission), as well as an illustration of the Company's quarterly revenues, are both provided below.

PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
ASSETS
June 30, March 31,
2013 2013
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 1,791,153 $ 808,772
Accounts receivable, net 5,937,473 5,879,165
Inventories 4,518,817 3,463,614
Prepaid expenses 29,037 1,967
Total Current Assets 12,276,480 10,153,518
PROPERTY AND EQUIPMENT, net 2,133,758 2,232,355
TOTAL ASSETS $ 14,410,238 $ 12,385,873
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 1,288,298 $ 1,499,330
Accrued liabilities 249,404 189,489
Deferred income tax liability 61,313 72,857
Income taxes payable 781,199 161,550
Total Current Liabilities 2,380,214 1,923,226
TOTAL LIABILITIES 2,380,214 1,923,226
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: 45,250,000 and 45,250,000 shares issued and outstanding, respectively 45,250 45,250
Additional paid-in capital 649,161 585,735
Accumulated other comprehensive income 261,433 371,466
Retained earnings 11,074,180 9,460,196
Total Stockholders' Equity 12,030,024 10,462,647
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,410,238 $ 12,385,873
The accompanying notes are a integral part of these condensed consolidated financials statements.
PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(Unaudited)
For the Three Months Ended
June 30,
2013 2012
REVENUES
Sales of goods, net $ 6,838,961 $ 3,451,507
Sales of services, net 342,619 225,766
Total Revenues 7,181,580 3,677,273
COST OF SALES
Cost of goods sold-product 2,724,480 1,327,716
Cost of goods sold-services 268,197 172,720
Total Cost of Goods Sold 2,992,677 1,500,436
GROSS PROFIT 4,188,903 2,176,837
OPERATING EXPENSES
General and administrative expenses 839,123 993,880
Research and development 95,930 39,780
Payroll expenses 835,076 341,853
Depreciation expense 61,328 46,458
Total Operating Expenses 1,831,457 1,421,971
INCOME FROM OPERATIONS 2,357,446 754,866
OTHER INCOME (EXPENSE)
Interest expense (10,467) (1,252)
Rental income 615 -
Interest income 801 69
Total Other Income (Expense) (9,051) (1,183)
NET INCOME BEFORE INCOME TAXES 2,348,395 753,683
INCOME TAX EXPENSE 734,411 187,948
NET INCOME $ 1,613,984 $ 565,735
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) $ (110,033) $ (162,820)
TOTAL COMPREHENSIVE INCOME $ 1,503,951 $ 402,915
BASIC EARNINGS PER SHARE $ 0.04 $ 0.01
FULLY DILUTED EARNINGS PER SHARE $ 0.04 $ 0.01
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 45,250,000 45,030,989
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 45,727,737 45,128,972
The accompanying notes are a integral part of these condensed consolidated financials statements.
PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Three Months Ended
June 30,
2013 2012
OPERATING ACTIVITIES
Net Income $ 1,613,984 $ 565,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 81,771 52,143
Common stock issued for services - 90,000
Bad debt expense - 9,951
Stock options issued for services 63,427 20,133
Changes in operating assets and liabilities:
Changes in accounts receivable (170,636) 472,239
Changes in inventories (1,110,448) (207,320)
Changes in prepaid expenses (27,070) (33,659)
Changes in accounts payable and accrued liabilities (104,699) (80,160)
Changes in income taxes payable 612,273 26,565
Net Cash Provided by Operating Activities 958,602 915,627
INVESTING ACTIVITIES
Purchase of fixed assets (33,150) (150,999)
Net Cash Used in Investing Activities (33,150) (150,999)
FINANCING ACTIVITIES - -
Effect of exchange rate changes on cash 56,929 50,806
NET INCREASE IN CASH 982,381 815,434
CASH AT BEGINNING OF PERIOD 808,772 1,914,877
CASH AT END OF PERIOD $ 1,791,153 $ 2,730,311
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
CASH PAID FOR:
Interest $ 10,467 $ 1,252
Income taxes $ 114,762 $ 171,025
The accompanying notes are an integral part of these condensed consolidated financial statements.

A chart accompanying this release is available at http://media.globenewswire.com/cache/20898/file/21409.pdf

To learn more about Profire Energy or its products, please contact Profire Energy or visit www.ProfireEnergy.com.

About Profire Energy, Inc.

Profire Energy assists energy production companies in the safe and efficient transportation, refinement and production of oil and natural gas. As energy companies seek greater safety for their employees, compliance with more stringent EPA standards and enhanced margins with their energy production processes, Profire Energy's burner management systems are increasingly becoming part of their solution. To learn more about the company's products and services, please visit www.ProfireEnergy.com. Profire Energy has offices in Lindon, Utah; Houston, Texas; and Edmonton, Alberta, Canada.

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 future plans, expectations, beliefs, intentions and prospects, including estimates of the potential size of the market for our products, the nature of the products being used in the market, new and anticipated developments in our industry, our ability to bring innovation to the market and maintain financial discipline and any inference that past results of operations may provide any indication of future results. All such forward-looking statements are subject to uncertainty and changes in circumstances. 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, market, political, 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. Readers should not place undue reliance on these forward-looking statements.

CONTACT: Profire Energy, Inc. Andrew Limpert, CFO (801) 796-5127 Profire Energy, Inc. Nathan McBride, Finance & Communications (801) 796-5127 RedChip Companies, Inc. Brendan Hopkins 1-900-RED-CHIP (733-2447), ext. 134

Source:Profire Energy