LINDON, Utah, March 09, 2017 (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 the nine-month transition period ended December 31, 2016. A conference call will be held on Friday, March 10, 2017 at 1:00 p.m. EST to discuss the results.
As previously communicated, due to a change in the Company’s fiscal year-end, the Company filed a transition report on Form 10-K covering the transition period from April 1, 2016 to December 31, 2016, which is the period between the closing of the Company's most recent fiscal year and the opening date of the newly selected fiscal year. The results from the quarter ended December 31, 2016 are reflected in the nine-month period covered by the transition report.
Transition Period Highlights
- Revenues Increased 41% Quarter-Over-Quarter
- Generated Positive Cash Flows in Each Quarter of the Transition Period
- Cash and liquid investments at period-end totaled $20 million
- Remained debt-free
Transition Period Financial Results
In the final quarter of the transition period total revenues increased to just over $7 million, which was an increase of 41% as compared to the previous quarter. This was achieved while keeping operating costs under control, which only increased 5% over the same comparable period.
Net income for the transition period was approximately $78,000 or $0.00 per diluted share, compared to a net income of $799,000 or $0.01 per diluted share in the comparable nine-month period of 2015. Net income in the final quarter of the transition period was $609,000 or $0.01 per diluted share as compared to $75,000 or $0.00 per diluted share in the previous quarter. The net loss in the first quarter of the transition period was $605,000 or a loss of $0.01 per diluted share. In the transition period the Company’s net income increased from -15% of total revenue in the first quarter to 9% of total revenue in the last quarter of the period.
At the end of the transition period cash and cash equivalents totaled $9.3 million, as compared to $21.3 million at the end of the fiscal year ended March 31, 2016. The Company has invested $11 million in low risk, CD’s, bonds and mutual funds. Without these investments, the Company’s cash position would have been $20 million, despite having repurchased $3.6 million in Profire stock during the transition period.
Management Commentary
“We continue to strategically allocate capital according to the plan we have previously communicated,” stated Ryan Oviatt, CFO of Profire. “We remain focused on the preservation of cash, seeking opportunities to acquire adjacent technologies, conducting our stock repurchase program, and other value creation activities that may be identified from time to time. We believe this plan will continue to drive long-term value for Profire and our shareholders.”
“The stabilization of oil prices has had a positive effect on our Company as our customers appear to have gained confidence in the oil markets and have returned to spending their capex budgets,” said Brenton Hatch, President and CEO of Profire Energy. “The oil industry is still recovering and while we don’t know how oil prices will react throughout our next fiscal year, many analysts believe oil prices will average in the mid $50’s price range. We remain optimistic that the stabilization of commodity prices will allow us to maintain the growth we have achieved in the final two quarters of the period.”
Conference Call
Profire Energy President and CEO Brenton Hatch and CFO Ryan Oviatt will host the teleconference. Following the teleconference, they will be joined by Cameron Tibdall, VP of Sales and Marketing, for a question and answer period.
Date: Friday, March 10, 2017
Time: 1:00 p.m. EST (11:00 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 telecast live and available for replay via this link: http://public.viavid.com/index.php?id=123227. The telecast 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. ET on the same day through March 17, 2017.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 13656825
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 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 March 10, 2017, regarding the transition period financial results; the effect the stabilization of oil prices will have on the Company’s customers spending their capex budgets; the effect the stabilization of oil prices will have on the Company’s ability to maintain recent growth; or, the Company’s capital allocation plan will be able to 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.
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | |||||||
| Consolidated Balance Sheets | |||||||
| As of | |||||||
| ASSETS | December 31, 2016 | March 31, 2016 | |||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 9,316,036 | $ | 21,292,595 | |||
| Accounts receivable, net | 5,633,802 | 4,132,137 | |||||
| Inventories, net | 7,839,503 | 11,046,682 | |||||
| Income tax receivable | 180,981 | 268,326 | |||||
| Short term investments | 2,965,536 | - | |||||
| Investments - other | 2,250,000 | - | |||||
| Prepaid expenses & other current assets | 410,558 | 315,757 | |||||
| Total Current Assets | 28,596,416 | 37,055,497 | |||||
| LONG-TERM ASSETS | |||||||
| Deferred tax asset | 60,940 | - | |||||
| Long Term Investments | 5,504,997 | - | |||||
| PROPERTY AND EQUIPMENT, net | 7,458,723 | 8,232,911 | |||||
| OTHER ASSETS | |||||||
| Goodwill | 997,701 | 997,701 | |||||
| Intangible assets, net | 490,082 | 529,300 | |||||
| Total Other Assets | 1,487,783 | 1,527,001 | |||||
| TOTAL ASSETS | $ | 43,108,859 | $ | 46,815,409 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 1,220,478 | $ | 893,822 | |||
| Accrued vacation | 154,307 | 171,089 | |||||
| Accrued liabilities | 284,214 | 449,694 | |||||
| Income taxes payable | 61,543 | 335,375 | |||||
| Total Current Liabilities | 1,720,542 | 1,849,980 | |||||
| LONG-TERM LIABILITIES | |||||||
| Deferred income tax liability | - | 180,301 | |||||
| TOTAL LIABILITIES | 1,720,542 | 2,030,281 | |||||
| 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: | |||||||
| 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 | |||||||
| and 53,256,296 issued and outstanding at March 31, 2016 | 53,582 | 53,256 | |||||
| Treasury stock, at cost | (3,582,805 | ) | - | ||||
| Additional paid-in capital | 26,800,298 | 26,164,622 | |||||
| Accumulated other comprehensive loss | (2,810,743 | ) | (2,282,682 | ) | |||
| Retained earnings | 20,927,985 | 20,849,932 | |||||
| Total Stockholders' Equity | 41,388,317 | 44,785,128 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 43,108,859 | $ | 46,815,409 | |||
| These financial statements should be read in conjunction with the Form 10-KT and accompanying footnotes. | |||||||
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | |||||||
| Consolidated Statements of Operations and Other Comprehensive Income (Loss) | |||||||
| For the Nine-Month Ended December 31, 2016 | For the Year Ended March 31, 2016 | ||||||
| REVENUES | |||||||
| Sales of goods, net | $ | 14,336,618 | $ | 23,992,324 | |||
| Sales of services, net | 1,650,568 | 3,080,122 | |||||
| Total Revenues | 15,987,186 | 27,072,446 | |||||
| COST OF SALES | |||||||
| Cost of goods sold-product | 6,732,822 | 11,027,114 | |||||
| Cost of goods sold-services | 1,154,326 | 2,405,012 | |||||
| Total Cost of Goods Sold | 7,887,148 | 13,432,126 | |||||
| GROSS PROFIT | 8,100,038 | 13,640,320 | |||||
| OPERATING EXPENSES | |||||||
| General and administrative expenses | 7,198,081 | 12,264,442 | |||||
| Research and development | 757,880 | 899,013 | |||||
| Depreciation and amortization expense | 482,311 | 516,786 | |||||
| Total Operating Expenses | 8,438,272 | 13,680,241 | |||||
| LOSS FROM OPERATIONS | (338,234 | ) | (39,921 | ) | |||
| OTHER INCOME (EXPENSE) | |||||||
| Gain (Loss) on sale of fixed assets | (2,680 | ) | 20,278 | ||||
| Other income | 102,206 | 144,937 | |||||
| Interest income | 90,028 | 37,278 | |||||
| Total Other Income | 189,554 | 202,493 | |||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | (148,680 | ) | 162,572 | ||||
| INCOME TAX EXPENSE (BENEFIT) | (226,733 | ) | 127,828 | ||||
| NET INCOME | $ | 78,053 | $ | 34,744 | |||
| OTHER COMPREHENSIVE LOSS | |||||||
| Foreign Currency Translation Loss | $ | (415,698 | ) | $ | (393,701 | ) | |
| Unrealized Losses on Investments | (112,363 | ) | - | ||||
| Total Other Comprehensive Loss | (528,061 | ) | (393,701 | ) | |||
| TOTAL COMPREHENSIVE LOSS | $ | (450,008 | ) | $ | (358,957 | ) | |
| BASIC EARNINGS PER SHARE | $ | 0.00 | $ | 0.00 | |||
| FULLY DILUTED EARNINGS PER SHARE | $ | 0.00 | $ | 0.00 | |||
| BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 52,857,299 | 53,243,151 | |||||
| FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 53,483,110 | 53,558,942 | |||||
| These financial statements should be read in conjunction with the Form 10-KT and accompanying footnotes. | |||||||
| PROFIRE ENERGY, INC. AND SUBSIDIARY | |||||||||||||||||||||||
| Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||
| Additional | Other | Total | |||||||||||||||||||||
| Common Stock | Paid-In | Comprehensive | Treasury | Retained | Stockholders' | ||||||||||||||||||
| Shares | Amount | Capital | Income | Stock | Earnings | Equity | |||||||||||||||||
| Balance, March 31, 2015 | 53,199,136 | $ | 53,199 | $ | 25,525,052 | $ | (1,888,981 | ) | $ | - | $ | 20,815,188 | $ | 44,504,458 | |||||||||
| Fair value of options vested | - | - | 565,646 | - | - | - | 565,646 | ||||||||||||||||
| Stock issued in exercise of stock options | 57,160 | 57 | 73,924 | - | - | - | 73,981 | ||||||||||||||||
| Foreign currency translation | - | - | - | (393,701 | ) | - | - | (393,701 | ) | ||||||||||||||
| Net Income for the year ended December 31, 2015 | - | - | - | - | - | 34,744 | 34,744 | ||||||||||||||||
| Balance, March 31, 2016 | 53,256,296 | 53,256 | 26,164,622 | (2,282,682 | ) | - | 20,849,932 | 44,785,128 | |||||||||||||||
| Fair value of options vested | 242,801 | 242,801 | |||||||||||||||||||||
| Stock issued in exercise of stock options | 86,808 | 87 | 112,913 | 113,000 | |||||||||||||||||||
| Stock issued in settlement of RSUs | 239,146 | 239 | 279,962 | 280,201 | |||||||||||||||||||
| Treasury stock repurchased | (2,876,317 | ) | (3,582,805 | ) | (3,582,805 | ) | |||||||||||||||||
| Foreign currency translation | (415,698 | ) | (415,698 | ) | |||||||||||||||||||
| Unrealized Losses on Investments | (112,363 | ) | (112,363 | ) | |||||||||||||||||||
| Net income for the nine-months ended December 31, 2016 | 78,053 | 78,053 | |||||||||||||||||||||
| Balance, December 31, 2016 | 50,705,933 | $ | 53,582 | $ | 26,800,298 | $ | (2,810,743 | ) | $ | (3,582,805 | ) | $ | 20,927,985 | $ | 41,388,317 | ||||||||
| These financial statements should be read in conjunction with the Form 10-KT and accompanying footnotes. | |||||||||||||||||||||||
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | |||||||||
| Consolidated Statements of Cash Flows | |||||||||
| For the Nine Months Ended | For the Year Ended | ||||||||
| December 31, 2016 | March 31, 2016 | ||||||||
| OPERATING ACTIVITIES | |||||||||
| Net Income | $ | 78,053 | $ | 34,744 | |||||
| Adjustments to reconcile net income to | |||||||||
| net cash provided by operating activities: | |||||||||
| Depreciation and amortization expense | 756,927 | 989,484 | |||||||
| (Gain) Loss on sale of fixed assets | 3,480 | (20,278 | ) | ||||||
| Bad debt expense | 272,807 | 143,192 | |||||||
| Stock options issued for services | 616,802 | 678,971 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Changes in accounts receivable | (2,063,449 | ) | 5,114,485 | ||||||
| Changes in income taxes receivable/payable | (190,746 | ) | (276,075 | ) | |||||
| Changes in inventories | 3,304,972 | 641,410 | |||||||
| Changes in prepaid expenses | (95,156 | ) | (171,411 | ) | |||||
| Changes in deferred tax asset/liability | (241,241 | ) | 49,490 | ||||||
| Changes in accounts payable and accrued liabilities | (58,736 | ) | 148,921 | ||||||
| Net Cash Provided by Operating Activities | 2,383,713 | 7,332,933 | |||||||
| INVESTING ACTIVITIES | |||||||||
| Proceeds from sale of equipment | 16,896 | 158,641 | |||||||
| Purchase of investments | (10,685,553 | ) | - | ||||||
| Purchase of fixed assets | (18,485 | ) | (62,465 | ) | |||||
| Purchase of Intangible assets | - | - | |||||||
| Net Cash Provided by (Used in) Investing Activities | (10,687,142 | ) | 96,176 | ||||||
| FINANCING ACTIVITIES | |||||||||
| Value of equity awards surrendered by employees for tax liability | (30,000 | ) | (39,342 | ) | |||||
| Cash received in exercise of stock options | 15,000 | - | |||||||
| Purchase of Treasury stock | (3,582,805 | ) | - | ||||||
| Net Cash Used in Financing Activities | (3,597,805 | ) | (39,342 | ) | |||||
| Effect of exchange rate changes on cash | (75,325 | ) | (241,968 | ) | |||||
| NET INCREASE (DECREASE) IN CASH | (11,976,559 | ) | 7,147,799 | ||||||
| CASH AT BEGINNING OF PERIOD | 21,292,595 | 14,144,796 | |||||||
| CASH AT END OF PERIOD | $ | 9,316,036 | $ | 21,292,595 | |||||
| SUPPLEMENTAL DISCLOSURES OF | |||||||||
| CASH FLOW INFORMATION | |||||||||
| CASH PAID FOR: | |||||||||
| Interest | $ | - | $ | - | |||||
| Income taxes | $ | 255,769 | $ | 127,828 | |||||
| These financial statements should be read in conjunction with the Form 10-KT and accompanying footnotes. | |||||||||
| Profire Energy, Inc. And Subsidiaries Quarterly Financial Result for Nine-Months Ended December 31, 2016 | |||||||||||||||
| For the Quarters Ending | |||||||||||||||
| Transition Period | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | ||||||||||||
| Total revenues | $ | 3,974,043 | $ | 4,990,813 | $ | 7,022,330 | |||||||||
| Gross profit | 1,914,250 | 2,624,659 | 3,561,129 | ||||||||||||
| Income (loss) from operations | (881,278 | ) | (127,369 | ) | 670,413 | ||||||||||
| Income tax expense (benefit) | (245,877 | ) | (99,701 | ) | 118,845 | ||||||||||
| Net income (loss) | (605,295 | ) | 74,452 | 608,896 | |||||||||||
| Basic earnings per common share | $ | (0.01 | ) | $ | 0.00 | 0.01 | |||||||||
| Diluted earnings per common share | $ | (0.01 | ) | $ | 0.00 | 0.01 | |||||||||
| For the Quarters Ending | |||||||||||||||
| Fiscal Year 2016 | Jun 30, 2015 | Sep 30, 2015 | Dec 31, 2015 | Mar 31, 2016 | |||||||||||
| Total revenues | $ | 6,877,243 | $ | 8,097,294 | $ | 7,554,255 | $ | 4,543,654 | |||||||
| Gross profit | 3,313,519 | 4,028,403 | 3,998,502 | 2,299,895 | |||||||||||
| Income (loss) from operations | (539,374 | ) | 675,396 | 490,322 | (666,265 | ) | |||||||||
| Income tax expense (benefit) | (149,525 | ) | 254,781 | 194,227 | (171,654 | ) | |||||||||
| Net income (loss) | (459,079 | ) | 779,195 | 479,243 | (764,617 | ) | |||||||||
| Basic earnings per common share | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | |||||
| Diluted earnings per common share | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | |||||
| These financial statements should be read in conjunction with the Form 10-KT and accompanying footnotes. | |||||||||||||||