• Profire Energy Reports Financial Results for Second Quarter Fiscal Year 2021

    المصدر: Nasdaq GlobeNewswire / 04 أغسطس 2021 16:15:01   America/New_York

    LINDON, Utah, Aug. 04, 2021 (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 fiscal 2021 ending June 30, 2021. A conference call will be held on Thursday, August 5, 2021 at 1:00 p.m. ET to discuss the results.

    Second Quarter Summary

    • Revenue increased 18.5% sequentially to $6.0 million
    • Realized gross profit of $2.7 million
    • Gross margin increased 130 basis points sequentially to 44.0% of total revenues
    • Net loss of ($397,166) or ($0.01) per share
    • EBITDA improvement of $453,546 year-over-year to ($161,127)
    • Cash and liquid investments of $19.1 million while remaining debt-free

    “The continued reopening of most global economies during the second quarter resulted in increased demand and higher commodity prices across the oil and gas markets. Our sequential and year-over-year revenue growth reflects increased product sales and resumption of equipment maintenance that was largely deferred during the pandemic. We continued to reinvest in our company in response to the increased demand and improved industry outlook. Additionally, I am pleased that we were able to generate operating cash flow and increase our cash and liquid investments in the first six months of this year while remaining debt free,” said Ryan Oviatt, Co-Chief Executive Officer and CFO of Profire Energy.

    Second Quarter 2021 Financial Results
                            
    Total revenues for the period equaled $6.0 million, compared to $5.1 million in the first quarter of 2021 and $4.4 million in the prior-year quarter. The sequential and year-over-year increases reflect improved customer demand for product sales and services.

    Gross profit was $2.7 million, compared to $2.2 million in the first quarter of 2021 and $2.1 million in the prior-year quarter. Gross margin was 44.0% of revenues, compared to 42.7% of revenues in the prior quarter and 47.9% of revenues in the second quarter of 2020. The year-over-year decrease was due to revenue mix and the ongoing impact of COVID-19.

    Total operating expenses were $3.3 million, compared to $3.0 million in the first quarter of 2021 and $3.2 million in the year-ago quarter. The sequential increase reflects the reinvestment within sales and product development in response to the increased demand as well as cost pressure in the labor market.

    Compared with the same quarter last year, operating expenses for G&A increased 1%, R&D increased 31% and depreciation decreased by 8%.

    Net loss for the first quarter was ($397,000) or ($0.01) per share, compared to a net loss of ($602,000) or ($0.01) per share in the first quarter of 2021 and a net loss of ($809,000) or ($0.02) per share in the same quarter last year.

    Cash and liquid investments totaled $19.1 million at June 30, 2021 compared to $17.6 million at the end of 2020, and the Company continues to operate debt-free.

    “We are encouraged by our Q2 results, despite the challenges that remain in the petroleum industry. Our team has performed well on our strategy to further our excellent brand reputation and product performance in the upstream, midstream and downstream utility space,” stated Cameron Tidball, Co-CEO of Profire Energy. “We continue to demonstrate suitability in a wide variety of burner and combustion management applications across North America. We remain focused on supporting our channel partners, driving organic growth, and continued product development and enhancement.”

    Conference Call

    Profire Energy Executives will host the call, followed by a question and answer period.
    Date: Thursday, August 5, 2021
    Time: 1:00 p.m. ET (11:00 a.m. MT)
    Toll-free dial-in number: 1-877-705-6003
    International dial-in number: 1-201-493-6725
    The conference call will be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=145937. 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 4:00 p.m. ET on the same day through August 19, 2021.

    Toll-free replay number: 1-844-512-2921
    International replay number: 1-412-317-6671
    Replay Pin Number: 13721878
     

    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 products are continuing to be a key part of their solutions. Profire Energy has offices in Lindon, Utah; Victoria, Texas; Homer, Pennsylvania; Greeley, Colorado; 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, product development, and the Company’s plans to make internal and external investments. 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, Co-President and CFO
    (801) 796-5127

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

    PROFIRE ENERGY, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
      As of
      June 30, 2021 December 31, 2020
    ASSETS (Unaudited)  
    CURRENT ASSETS    
    Cash and cash equivalents $9,921,375  $9,148,312 
    Short-term investments 2,087,332  2,388,601 
    Accounts receivable, net 3,787,084  3,719,508 
    Inventories, net (note 3) 7,911,996  8,414,772 
    Prepaid expenses and other current assets (note 4) 773,146  1,678,428 
    Income tax receivable 785,590  486,154 
    Total Current Assets 25,266,523  25,835,775 
    LONG-TERM ASSETS    
    Long-term investments 7,132,675  6,064,294 
    Financing right-of-use asset 28,758  50,094 
    Property and equipment, net 11,721,692  12,021,811 
    Intangible assets, net 1,660,504  1,771,870 
    Goodwill 2,579,381  2,579,381 
    Total Long-Term Assets 23,123,010  22,487,450 
    TOTAL ASSETS $48,389,533  $48,323,225 
         
    LIABILITIES AND STOCKHOLDERS' EQUITY    
    CURRENT LIABILITIES    
    Accounts payable $1,257,437  $1,178,979 
    Accrued liabilities (note 5) 1,486,578  1,196,870 
    Current financing lease liability (note 6) 30,238  39,451 
    Total Current Liabilities 2,774,253  2,415,300 
    LONG-TERM LIABILITIES    
    Net deferred income tax liability 601,616  522,870 
    Long-term financing lease liability (note 6)   12,669 
    TOTAL LIABILITIES 3,375,869  2,950,839 
         
    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: 51,651,386 issued and 48,239,008 outstanding at June 30, 2021, and 51,384,961 issued and 47,972,583 outstanding at December 31, 2020 51,651  51,385 
    Treasury stock, at cost (5,353,019) (5,353,019)
    Additional paid-in capital 30,582,504  30,293,472 
    Accumulated other comprehensive loss (1,798,278) (2,148,924)
    Retained earnings 21,530,806  22,529,472 
    TOTAL STOCKHOLDERS' EQUITY 45,013,664  45,372,386 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $48,389,533  $48,323,225 

    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 Loss
    (Unaudited)     
     For the Three Months Ended June 30, For the Six Months Ended June 30,
     2021 2020 2021 2020
    REVENUES (note 8)       
    Sales of goods, net$5,374,539  $3,999,139  $10,032,074  $10,860,097 
    Sales of services, net659,744  360,340  1,094,558  946,524 
    Total Revenues6,034,283  4,359,479  11,126,632  11,806,621 
            
    COST OF SALES       
    Cost of goods sold-product2,910,879  1,944,389  5,448,513  5,778,071 
    Cost of goods sold-services465,672  328,225  845,700  777,009 
    Total Cost of Goods Sold3,376,551  2,272,614  6,294,213  6,555,080 
            
    GROSS PROFIT2,657,732  2,086,865  4,832,419  5,251,541 
            
    OPERATING EXPENSES       
    General and administrative expenses2,783,872  2,753,773  5,338,408  6,026,311 
    Research and development301,445  229,548  558,336  639,274 
    Depreciation and amortization expense166,852  180,997  334,337  328,469 
    Total Operating Expenses3,252,169  3,164,318  6,231,081  6,994,054 
            
    LOSS FROM OPERATIONS(594,437) (1,077,453) (1,398,662) (1,742,513)
            
    OTHER INCOME (EXPENSE)       
    Gain on sale of fixed assets38,492  157,455  112,393  157,455 
    Other income (expense)4,836  (1,665) 4,739  (1,318)
    Interest income28,569  77,532  49,631  151,925 
    Total Other Income71,897  233,322  166,763  308,062 
            
    LOSS BEFORE INCOME TAXES(522,540) (844,131) (1,231,899) (1,434,451)
            
    INCOME TAX BENEFIT125,374  35,628  233,233  260,684 
            
    NET LOSS$(397,166) $(808,503) $(998,666) $(1,173,767)
            
    OTHER COMPREHENSIVE INCOME (LOSS)       
    Foreign currency translation gain (loss)$163,485  $375,267  $303,091  $(570,156)
    Unrealized gains (losses) on investments55,529  72,875  47,555  (84,479)
    Total Other Comprehensive Income (Loss)219,014  448,142  350,646  (654,635)
            
    COMPREHENSIVE LOSS$(178,152) $(360,361) $(648,020) $(1,828,402)
            
    BASIC LOSS PER SHARE (note 9)$(0.01) $(0.02) $(0.02) $(0.02)
    FULLY DILUTED LOSS PER SHARE (note 9)$(0.01) $(0.02) $(0.02) $(0.02)
            
    BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING48,054,136  47,723,208  48,022,295  47,607,825 
    FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING48,054,136  47,723,208  48,022,295  47,607,825 

    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,
     2021 2020
    OPERATING ACTIVITIES   
    Net loss$(998,666) $(1,173,767)
    Adjustments to reconcile net loss to net cash provided by operating activities:   
    Depreciation and amortization expense683,597  566,791 
    Gain on sale of fixed assets(112,393) (153,973)
    Bad debt expense(32,463) 236,005 
    Stock awards issued for services332,127  250,198 
    Changes in operating assets and liabilities:   
    Accounts receivable(7,313) 3,248,693 
    Income taxes receivable/payable(299,436) (1,761)
    Inventories577,341  445,634 
    Prepaid expenses and other current assets988,464  168,718 
    Deferred tax asset/liability78,746  104,166 
    Accounts payable and accrued liabilities345,818  (2,843,685)
    Net Cash Provided by Operating Activities1,555,822  847,019 
        
    INVESTING ACTIVITIES   
    Proceeds from sale of property and equipment69,484   
    Sale (purchase) of investments(719,817) 1,057,404 
    Purchase of property and equipment(93,049) (994,410)
    Net Cash Provided by (Used in) Investing Activities(743,382) 62,994 
        
    FINANCING ACTIVITIES   
    Value of equity awards surrendered by employees for tax liability(42,829) (148,879)
    Cash received in exercise of stock options  2,020 
    Principal paid towards lease liability(21,749) (34,267)
    Net Cash Used in Financing Activities(64,578) (181,126)
        
    Effect of exchange rate changes on cash25,201  (65,506)
        
    NET INCREASE IN CASH773,063  663,381 
    CASH AT BEGINNING OF PERIOD9,148,312  7,358,856 
    CASH AT END OF PERIOD$9,921,375  $8,022,237 
        
    SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION   
        
    CASH PAID FOR:   
    Interest$2,353  $4,247 
    Income taxes$17,150  $ 
    NON-CASH FINANCING AND INVESTING ACTIVITIES   
    Common stock issued in settlement of accrued bonuses$  $419,373 

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


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