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 February 8, 2016 - 4:15 PM EST
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Profire Energy Reports Financial Results for Fiscal Third Quarter of 2016

Company Recognizes Quarterly Profit and Positive Cash Flow Amid Difficult Industry Conditions; Fiscal 2016 Guidance Reiterated

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:

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

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.

Item 1 Financial Information 
Consolidated Balance Sheets 
     December 31, March 31, 
      2015  2015 
 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  
 Deferred tax asset     669,895      501,921  
PROPERTY AND EQUIPMENT, net     8,449,492      9,275,965  
 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  
 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  
 Deferred income tax liability     616,735      631,353  
TOTAL LIABILITIES     2,986,079      2,351,598  
 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. 


Consolidated Statements of Operations and Other Comprehensive Income (Loss) 
    For the Three Months Ended  For the Nine Months Ended  
   December 31,  December 31,  
   2015  2014 2015 2014 
 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  
  OF SHARES OUTSTANDING    53,255,275       52,884,358    53,239,087    51,112,924  
  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. 


Consolidated Statements of Cash Flows 
    For the Nine Months Ended 
    December 31, 
    2015 2014 
 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  
 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) 
 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  
 CASH PAID FOR:           
  Interest  $    -   $    14,222  
  Income taxes  $    402,417   $    2,890,769  
  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. 


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

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Source: GlobeNewswire (February 8, 2016 - 4:15 PM EST)

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