EX-99.1 2 exh991.htm PRESS RELEASE ANNOUNCING FINANCIAL RESULTS
Exhibit 99.1
 

Profire Energy Reports Financial Results for Fiscal Year 2016
Company Meets Guidance, Recognizes Annual Profit and Positive Cash Flow Amid Difficult Industry Conditions

LINDON, Utah, June 13, 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 13, 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. 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 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.
Tanner Lamb, Finance and Investor Relations
(801) 796-5127
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.