• Profire Energy Reports Financial Results for Second Quarter Fiscal Year 2022

    Источник: Nasdaq GlobeNewswire / 04 авг 2022 16:10:00   America/New_York

    LINDON, Utah, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ: PFIE), a technology company (the "Company") that provides solutions which enhance the efficiency, safety, and reliability of industrial combustion appliances, today reported financial results for its second quarter ending June 30, 2022. A conference call will be held on Friday, August 5, 2022, at 8:30 a.m. ET to discuss the results.

    Second Quarter Summary

    • Revenue of $9.6 million, a 60% increase from prior-year quarter
    • Gross margin improved 170 basis points year-over-year to 45.7%
    • Net income of $284,829 or $0.01 per diluted share
    • Generated EBITDA of $569,4121
    • Repurchased 451,590 shares of stock
    • Non-Oil and Gas revenue is on track to exceed $1 million for the fiscal year, more than tripling our previous year's results

    “Our second quarter results reflect continued progress within our historical business segments and into new markets. Revenues increased sequentially for the fifth consecutive quarter, and we reported another quarterly net profit despite product shortages and significant cost pressures across our business,” said Ryan Oviatt, Co-Chief Executive Officer and CFO of Profire Energy. “The initiatives implemented in 2021 and earlier this year made inventory more readily available late in the quarter which allowed us to start to work down sales backorders and to begin replenishing product on the shelf. Our balance sheet remains strong, which affords us the flexibility to respond to additional opportunities within our core business, as well as new markets for our products.”

    Second Quarter 2022 Financial Results

    Total revenues for the period equaled $9.6 million, compared to $9.5 million in the first quarter and $6.0 million in the second quarter of 2021. The sequential and year-over-year increases were primarily driven by improving demand from the COVID-19 pandemic recovery and higher oil prices.

    Gross profit was $4.4 million, compared to $4.6 million in the first quarter of 2022 and $2.7 million in the prior-year quarter. Gross margin was 45.7% of revenues, compared to 47.9% of revenues in the prior quarter and 44.0% of revenues in the second quarter of 2021. The year-over-year increase in gross profit and margin reflect higher revenue, while the sequential decrease in gross profit and margin reflects the inflation impact on direct labor, shipping and freight costs.

    Total operating expenses were $4.4 million, compared to $3.9 million in the first quarter and $3.3 million in the year-ago quarter. The increase is related to higher direct labor costs, headcount increases, and increases in travel and automobile expenses.

    Compared with the same quarter last year, operating expenses for G&A increased 36% and R&D increased 20%, while depreciation decreased 4% from the second quarter of 2021.

    Net income was $284,829 or $0.01 per diluted share, compared to $627,161 or $0.01 per diluted share in the first quarter and a net loss of ($397,166) or ($0.01) per share in the second quarter last year.

    “We continue to experience increased levels of interest in our solutions related to new activity, retrofit programs, and other capital projects that were deferred during the pandemic, due primarily to elevated oil prices,” stated Cameron Tidball, Co-CEO of Profire Energy. “Our initiatives outside our traditional oil and gas business continue to gain traction. We received our largest order in this growth area during the quarter and we are on track to exceed our internal revenue target related to this segment. In addition, we are evaluating potential new products, acquisitions and partnership opportunities to further extend Profire’s offerings. We look forward to building on our momentum through the latter half of 2022 and delivering long-term value to our shareholders,”

    Conference Call

    Profire Energy Executives will host the call, followed by a question-and-answer period.
    Date: Friday, August 5, 2022
    Time: 8:30 a.m. ET (6:30 a.m. MT)
    Toll-free dial-in number: 1-855-327-6837
    International dial-in number: 1-631-891-4304

    The conference call will be webcast live and available for replay via this link: https://viavid.webcasts.com/starthere.jsp?ei=1560935&tp_key=08abf64d02
    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 via the dial-in numbers below after 12:30 p.m. ET on the same day through August 19, 2022.

    Toll-free replay number: 1-844-512-2921
    International replay number: 1-412-317-6671
    Replay Pin Number: 10019852

    About Profire Energy, Inc.
    Profire Energy is a technology company providing solutions that enhance the efficiency, safety, and reliability of industrial combustion appliances while mitigating potential environmental impacts related to the operation of these devices. It is primarily focused in the upstream, midstream, and downstream transmission segments of the oil and gas industry; however, the Company has commenced identifying applications in other industries where their solutions can likely add value. Profire specializes in the engineering and design of burner and combustion management systems and solutions used on a variety of natural and forced draft applications. Its products and services are sold primarily throughout North America. It has an experienced team of sales and service professionals that are strategically positioned across the United States and Canada. Profire has offices in Lindon, Utah; Victoria, Texas; Homer, Pennsylvania; Millersburg, Ohio; and Acheson, 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’s expected growth, the Company’s expected revenues from recent acquisitions, the Company’s plans to make internal and external investments, and the availability of Company resources to make beneficial investments in 2022 and beyond. 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.

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

    Three Part Advisors
    Steven Hooser, Partner
    (214) 872-2710

    About Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measure of earnings before interest, taxes, depreciation and amortization (“EBITDA”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

    We use this non-GAAP financial measure for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. We believe this non-GAAP financial measure is useful to investors both because it allows for greater transparency with respect to key metrics used by management in its financial and operational decision making.

    The Following is a tabular presentation of EBITDA, including a reconciliation to net income which the Company believes to be the most directly comparable US GAAP financial measure.

    For the three Months Ended June 30,2022 
    EBITDA Calculation 
    Net Income$284,829 
    Add back net income tax expense$27,177 
    Add back net interest expense$(20,307)
    Add back depreciation and amortization$277,713 
    EBITDA calculated$569,412 


    PROFIRE ENERGY, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
      As of
      June 30, 2022 December 31, 2021
    ASSETS (Unaudited)  
    CURRENT ASSETS    
    Cash and cash equivalents $7,418,827  $8,188,270 
    Short-term investments  463,027   1,013,683 
    Accounts receivable, net  7,311,562   6,262,799 
    Inventories, net (note 3)  9,256,684   7,185,248 
    Prepaid expenses and other current assets (note 4)  1,156,314   1,025,276 
    Income tax receivable  25,994   560,445 
    Total Current Assets  25,632,408   24,235,721 
    LONG-TERM ASSETS    
    Net deferred tax asset  160,877   163,254 
    Long-term investments  8,619,410   8,259,809 
    Financing right-of-use asset  146,100   65,280 
    Property and equipment, net  10,799,084   11,185,539 
    Intangible assets, net  1,438,467   1,549,138 
    Goodwill  2,579,381   2,579,381 
    Total Long-Term Assets  23,743,319   23,802,401 
        TOTAL ASSETS $49,375,727  $48,038,122 
         
    LIABILITIES AND STOCKHOLDERS' EQUITY    
    CURRENT LIABILITIES    
    Accounts payable $2,945,957  $1,822,559 
    Accrued liabilities (note 5)  2,322,683   1,872,348 
    Current financing lease liability (note 6)  53,269   30,214 
    Total Current Liabilities  5,321,909   3,725,121 
    LONG-TERM LIABILITIES    
    Net deferred income tax liability  135,698   136,106 
    Long-term financing lease liability (note 6)  94,958   35,912 
    TOTAL LIABILITIES  5,552,565   3,897,139 
         
    STOCKHOLDERS' EQUITY (note 7)    
    Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding      
    Common stock: $0.001 par value, 100,000,000 shares authorized: 52,071,283 issued and 47,033,153 outstanding at June 30, 2022, and 51,720,142 issued and 47,643,233 outstanding at December 31, 2021  52,072   51,720 
    Treasury stock, at cost  (7,336,323)  (6,107,593)
    Additional paid-in capital  31,371,682   30,819,394 
    Accumulated other comprehensive loss  (2,654,188)  (2,100,467)
    Retained earnings  22,389,919   21,477,929 
    TOTAL STOCKHOLDERS' EQUITY  43,823,162   44,140,983 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $49,375,727  $48,038,122 

    These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.

    PROFIRE ENERGY, INC. AND SUBSIDIARIES     
    Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
    (Unaudited)     
      For the Three Months Ended June 30, For the Six Months Ended June 30,
       2022   2021   2022   2021 
    REVENUES (note 8)        
    Sales of products, net $8,860,682  $5,374,539  $17,739,105  $10,032,074 
    Sales of services, net  772,465   659,744   1,397,182   1,094,558 
    Total Revenues  9,633,147   6,034,283   19,136,287   11,126,632 
             
    COST OF SALES        
    Cost of sales - product  4,530,065   2,910,879   8,912,764   5,448,513 
    Cost of sales - services  699,937   465,672   1,263,674   845,700 
    Total Cost of Sales  5,230,002   3,376,551   10,176,438   6,294,213 
             
    GROSS PROFIT  4,403,145   2,657,732   8,959,849   4,832,419 
             
    OPERATING EXPENSES        
    General and administrative  3,786,561   2,783,872   7,178,938   5,338,408 
    Research and development  362,197   301,445   670,512   558,336 
    Depreciation and amortization  159,580   166,852   326,597   334,337 
    Total Operating Expenses  4,308,338   3,252,169   8,176,047   6,231,081 
             
    INCOME (LOSS) FROM OPERATIONS  94,807   (594,437)  783,802   (1,398,662)
             
    OTHER INCOME (EXPENSE)        
    Gain on sale of property and equipment  214,841   38,492   310,683   112,393 
    Other income (expense)  (17,949)  4,836   (36,728)  4,739 
    Interest income  20,307   28,569   41,852   49,631 
    Total Other Income  217,199   71,897   315,807   166,763 
             
    INCOME (LOSS) BEFORE INCOME TAXES  312,006   (522,540)  1,099,609   (1,231,899)
             
    INCOME TAX BENEFIT (EXPENSE)  (27,177)  125,374   (187,619)  233,233 
             
    NET INCOME (LOSS) $284,829  $(397,166) $911,990  $(998,666)
             
    OTHER COMPREHENSIVE INCOME (LOSS)        
    Foreign currency translation gain (loss) $(290,291) $163,485  $(131,933) $303,091 
    Unrealized gains (losses) on investments  (134,662)  55,529   (421,788)  47,555 
    Total Other Comprehensive Income (Loss)  (424,953)  219,014   (553,721)  350,646 
             
    COMPREHENSIVE INCOME (LOSS) $(140,124) $(178,152) $358,269  $(648,020)
             
    BASIC EARNINGS (LOSS) PER SHARE $0.01  $(0.01) $0.02  $(0.02)
    FULLY DILUTED EARNINGS (LOSS) PER SHARE $0.01  $(0.01) $0.02  $(0.02)
             
    BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING  47,092,275   48,054,136   47,285,782   48,022,295 
    FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING  48,699,208   48,054,136   48,865,186   48,022,295 

    These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.


    PROFIRE ENERGY, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     For the Six Months Ended June 30,
      2022   2021 
    OPERATING ACTIVITIES   
    Net income (loss)$911,990  $(998,666)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
    Depreciation and amortization expense 558,832   683,597 
    Gain on sale of property and equipment (310,683)  (112,393)
    Bad debt expense 28,474   (32,463)
    Stock awards issued for services 412,893   332,127 
    Changes in operating assets and liabilities:   
    Accounts receivable (877,417)  (7,313)
    Income taxes receivable/payable 534,456   (299,436)
    Inventories (2,097,471)  577,341 
    Prepaid expenses and other current assets (140,352)  988,464 
    Deferred tax asset/liability (408)  78,746 
    Accounts payable and accrued liabilities 1,601,376   345,818 
      Net Cash Provided by Operating Activities 621,690   1,555,822 
        
    INVESTING ACTIVITIES   
    Proceeds from sale of property and equipment 412,339   69,484 
    Purchase of investments (231,032)  (719,817)
    Purchase of property and equipment (223,215)  (93,049)
      Net Cash Used in Investing Activities (41,908)  (743,382)
        
    FINANCING ACTIVITIES   
    Value of equity awards surrendered by employees for tax liability (93,527)  (42,829)
    Cash received in exercise of stock options 25,106    
    Purchase of treasury stock (1,228,731)   
    Principal paid towards lease liability (19,787)  (21,749)
      Net Cash Used in Financing Activities (1,316,939)  (64,578)
        
    Effect of exchange rate changes on cash (32,286)  25,201 
        
    NET CHANGE IN CASH (769,443)  773,063 
    CASH AT BEGINNING OF PERIOD 8,188,270   9,148,312 
    CASH AT END OF PERIOD$7,418,827  $9,921,375 
        
    SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION   
        
    CASH PAID FOR:   
    Interest$1,253  $2,353 
    Income taxes$21,000  $17,150 
    NON-CASH FINANCING AND INVESTING ACTIVITIES   
    Common stock issued in settlement of accrued bonuses$212,787  $ 

    These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.


    1 See “About Non-GAAP Financial Measures” below

     


    Primary Logo

Опубликовать