OREANDA-NEWS. June 14, 2016. 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 year ended March 31, 2016. A conference call will be held on Tuesday, June 14, 2016 at 1:00 p.m. EDT to discuss the results.

Fiscal 2016 Highlights

  • Total revenues of \\$27.1 million
  • Generated significant positive operating cash flow
  • Positive net income for the year
  • Remained debt-free
  • Increased customer base to more than 300 customers

Fiscal Year 2016 Financial Results 

Total revenues for the year ended March 31, 2016, decreased 47% to \\$27.1 million from \\$51.2 million in the year ended March 31, 2015. Decreased production and capital investment activity in the oil and gas industry was the primary factor in decreased sales. 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. Profire will continue to focus on developing new products, diversifying into new markets and industries, and enhancing marketing and sales efforts with key customers and prospects. As the Company does so, the expectation is that sales can stabilize in the short-term and Profire will be able to increase revenues and revenue stability over the long-term.

Gross profit decreased to \\$13.6 million or 50% of total revenues, as compared to \\$27.2 million or 53% of total revenues in the prior year.

Total operating expenses decreased to \\$13.7 million or 51% of total revenues from \\$18.7 million or 37% of total revenues compared to the prior year. Cost management has been a significant Company focus over the last year 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 towards maximizing efficiency and eliminating unnecessary cost wherever possible.

Net income was approximately \\$35 thousand or \\$0.00 per diluted share, compared to net income of \\$5.7 million or \\$0.11 per diluted share in the prior year.

Cash and cash equivalents totaled \\$21.3 million, an increase of more than \\$7.1 million compared to the year ended March 31, 2015. The Company continues to generate cash flow from operating activities and operates debt free.

Management Commentary

“Frankly, it’s been a tough year for Profire, as with all other companies in our industry,” said Brenton Hatch, President and CEO of Profire Energy. “Customers just haven’t had the budgets to spend and each sale has been difficult to capture. However, when we look at the big picture, we feel that our performance relative to the industry and our peers, is evidence of Management’s ability to steer the Company in the right direction, and position Profire well for the future. The fact that we were able to turn a profit and generate as much positive cash flow as we did, especially in this market, is quite impressive.”

“We have gone to great lengths to reduce overall costs at Profire, and feel that we have been very effective in these efforts,” said Ryan Oviatt, CFO of Profire Energy. “Our ability to generate positive net earnings and cash flow is evidence of the Company’s commitment to scaling with the market. We anticipate that it’s still going to be tough for a little while this year, but we are confident that the decisions we have made over the past year have positioned the Company to capture future opportunities and deliver long-term shareholder value.”

Conference Call

Profire management will host a conference Tuesday, June 14, 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, June 14, 2016
Time: 1:00 p.m. EDT (11:00 a.m. MDT)
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=119837.

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. EDT on the same day through June 21, 2016

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 10001269

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; Oklahoma City, Oklahoma; 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 June 14, 2016 regarding 2016 fiscal year results; or, the Company’s ability to capture the greatest amount of revenue in both the short- and long-term; or, the Company developing new products, diversifying into new markets and industries, and enhancing marketing and sales efforts with key customers and prospects; 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 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
Consolidated Balance Sheets
      
  For the Years Ending March 31,
ASSETS  2016    2015 
      
CURRENT ASSETS     
Cash and cash equivalents\\$   21,292,595  \\$   14,144,796 
Accounts receivable, net    4,132,137      9,462,378 
Inventories    11,046,682      11,766,535 
Income tax receivable    268,326    — 
Prepaid expenses & other current assets    315,757      112,741 
      
Total Current Assets    37,055,497      35,486,450 
      
LONG-TERM ASSETS     
Deferred tax asset    452,431      501,921 
      
PROPERTY AND EQUIPMENT, net    8,232,911      9,275,965 
      
OTHER ASSETS     
Goodwill    997,701      997,701 
Intangible assets, net of accumulated amortization    529,300      594,019 
      
Total Other Assets    1,527,001      1,591,720 
      
      
TOTAL ASSETS\\$   47,267,840  \\$   46,856,056 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
CURRENT LIABILITIES     
Accounts payable\\$   893,822  \\$   1,040,530 
Accrued liabilities    620,783      332,229 
Income taxes payable    335,375      347,486 
      
Total Current Liabilities    1,849,980      1,720,245 
      
LONG-TERM LIABILITIES     
Deferred income tax liability    632,732      631,353 
      
TOTAL LIABILITIES    2,482,712      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:     
  53,256,296 and 53,199,136 shares issued and outstanding, respectively      53,256    53,199 
Additional paid-in capital    26,164,622      25,525,052 
Accumulated other comprehensive loss    (2,282,682)     (1,888,981)
Retained earnings    20,849,932      20,815,188 
      
Total Stockholders' Equity    44,785,128      44,504,458 
      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\\$   47,267,840  \\$   46,856,056 
      
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
      

 

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Income and Other Comprehensive Income
      
   For the Years Ending March 31, 
   2016    2015 
REVENUES     
Sales of goods, net\\$   23,992,324  \\$   47,768,556 
Sales of services, net    3,080,122      3,410,836 
Total Revenues    27,072,446      51,179,392 
      
COST OF SALES     
Cost of goods sold-product    11,027,114      21,240,363 
Cost of goods sold-services    2,405,012      2,716,272 
Total Cost of Goods Sold    13,432,126      23,956,635 
      
GROSS PROFIT    13,640,320      27,222,757 
      
OPERATING EXPENSES     
General and administrative expenses    12,264,442      16,296,156 
Research and development    899,013      1,832,671 
Depreciation and amortization expense    516,786      558,231 
      
Total Operating Expenses    13,680,241      18,687,058 
      
INCOME FROM OPERATIONS    (39,921)     8,535,699 
      
OTHER INCOME (EXPENSE)     
Gain on sale of fixed assets    20,278      8,014 
Other (expense) income    144,937      21,865 
Interest income    37,278      26,010 
      
Total Other Income (Expense)    202,493      55,889 
      
NET INCOME BEFORE INCOME TAXES    162,572      8,591,588 
      
INCOME TAX EXPENSE    127,828      2,843,905 
      
NET INCOME\\$   34,744  \\$   5,747,683 
      
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)\\$   (393,701) \\$   (1,657,930)
      
TOTAL COMPREHENSIVE INCOME (LOSS)\\$   (358,957) \\$   4,089,753 
      
BASIC EARNINGS PER SHARE\\$   0.00  \\$   0.11 
      
FULLY DILUTED EARNINGS PER SHARE\\$   0.00  \\$   0.11 
      
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING    53,243,151      51,609,760 
      
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING      53,558,942      51,680,775 
      
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
      

 

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity 
                 
       Additional  Other      Total
 Common Stock  Paid-In  Comprehensive  Retained  Stockholders'
 Shares   Amount   Capital  Loss  Earnings  Equity
                 
Balance, March 31, 2014  47,836,543 \\$  47,836 \\$  6,496,980 \\$   (231,051) \\$  15,067,505     21,381,270 
                 
Stock issued in exercise of stock options  596,635    597    327,365     -     -     327,962 
                 
Stock issuance, less offering costs of \\$1,529,057    4,500,000    4,500    16,420,188     -     -     16,424,688 
                 
Stock issued for asset acquisition  265,958    266    999,734     -     -     1,000,000 
                 
Fair value of options vested  -    -    1,280,785     -     -     1,280,785 
                 
Foreign currency translation  -    -    -     (1,657,930)    -     (1,657,930)
                 
Net income for the year ended March 31, 2015  -    -    -     -     5,747,683     5,747,683 
                 
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 March 31, 2016  -     -     -      -      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 
                 
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.
                 

 

 
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
      
  For the Years Ending March 31, 
   2016    2015 
OPERATING ACTIVITIES     
Net Income \\$   34,744  \\$   5,747,683 
Adjustments to reconcile net income to     
  net cash provided by operating activities:     
Depreciation and amortization expense    989,484      1,140,319 
Gain on sale of fixed assets    (20,278)     (8,014)
Bad debt expense    143,192      (7,577)
Stock options issued for services    678,971      1,280,785 
Changes in operating assets and liabilities:     
Changes in accounts receivable    5,114,485      (912,606)
Changes in income tax receivable    (268,327)     - 
Changes in inventories    641,410      (5,472,869)
Changes in prepaid expenses    (171,411)     (80,770)
Changes in deferred tax asset/liability    49,490      (80,943)
Changes in accounts payable and accrued liabilities    148,921      (302,782)
Changes in income taxes payable    (7,748)     (618,146)
      
  Net Cash Provided by Operating Activities  7,332,933    685,080 
      
INVESTING ACTIVITIES     
Proceeds from sale of equipment    158,641      7,867 
Cash paid for asset acquisition    -      (750,000)
Purchase of fixed assets    (62,465)     (6,167,945)
      
Net Cash Provided by (Used in) Investing Activities  96,176    (6,910,078)
      
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      (39,342)     - 
Stock issued in exercise of stock options    -      327,961 
      
  Net Cash Provided by (Used in) Financing Activities    (39,342)     16,752,649 
      
Effect of exchange rate changes on cash    (241,968)     (839,529)
      
NET CHANGE IN CASH    7,147,799      9,688,122 
CASH AT BEGINNING OF PERIOD    14,144,796      4,456,674 
      
CASH AT END OF PERIOD\\$   21,292,595  \\$   14,144,796 
      
SUPPLEMENTAL DISCLOSURES OF     
  CASH FLOW INFORMATION     
      
CASH PAID FOR:     
Interest\\$   -  \\$   17,043 
Income taxes\\$   127,828  \\$   3,471,027 
NON CASH INVESTING AND FINANCING ACTIVITIES:     
Stock issued for Asset acquisition\\$   -  \\$   1,000,000 
      
These financial statements should be read in conjunction with Form 10-K and accompanying footnotes.