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Profire Energy Reports Financial Results for First Quarter 2024
ソース: Nasdaq GlobeNewswire / 08 5 2024 15:10:00 America/Chicago
LINDON, Utah, May 08, 2024 (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 first quarter ending March 31, 2024. A conference call will be held on Thursday, May 9, 2024 at 8:30 a.m. ET to discuss the results.
First Quarter Summary (comparisons to prior-year quarter)
- Revenue of $13.6 million, compared to $14.7 million
- Gross profit of $6.8 million, compared to $7.8 million
- Gross margin of 49.5%, compared to 53.3%
- Net income of $1.4 million, or $0.03 per diluted share, versus $2.6 million and $0.05
- Generated EBITDA of $2.0 million, versus $3.6 million
- Cash and investments of $16.2 million with no debt
"Our first quarter results reflect the continued underlying strength of our legacy business and expansion of our diversification efforts, despite lapping the third best quarterly revenue in company history and a significant decline in natural gas prices during the quarter," said Ryan Oviatt, co-CEO and Chief Financial Officer of Profire Energy. "Our overall balance sheet remains strong, with cash in the bank, zero debt, and sufficient inventory to ensure on-time product deliveries to our customers."
First Quarter 2024 Financial Results
Total revenues for the period equaled $13.6 million, compared to $14.5 million in the fourth quarter of 2023 and $14.7 million in the prior-year quarter. The sequential and year-over-year increase was partially driven by the timing of certain that orders moved into the second quarter of this year due to changes in customer timing and preparation.
Gross profit was $6.8 million, compared to $7.8 million in both the fourth quarter and same quarter of 2023. Gross margin was 49.5% of revenues, compared to 53.9% of revenues in the prior quarter and 53.3% of revenues in the prior-year quarter. The sequential and year-over-year decrease is related to product mix, the typical fluctuations in inventory and warranty reserves and inflation.
Total operating expenses were $5.0 million, compared to $5.0 million in the final quarter of 2023 and $4.5 million in the year-ago quarter. The increase year-over-year is primarily due to ongoing inflation pressure on our business as well as increased headcount to support strategic growth and increased business activity.
Compared with the same quarter last year, operating expenses for G&A increased 12%, R&D decreased 11% and depreciation increased by 5%.
Net income was $1.4 million, or $0.03 per diluted share, compared to net income of $3.3 million or $0.07 per diluted share in the fourth quarter of 2023 and $2.6 million or $0.05 per diluted share in the same quarter last year.
"The underlying fundamentals of our business remain strong. We recorded our best two sequential quarters in Company history of total value of sales orders received thanks to the strength of our brand and revenue diversification efforts. We have multiple favorable industry tailwinds including forecasts related to LNG and renewable natural gas expansion coupled with the growing demand for global electrification." said Cameron Tidball, co-CEO of Profire Energy. "Our diversification strategy continues to attract interest from existing and new customers. We remain very optimistic about the outlook for Profire and our ability to deliver long-term value to our shareholders."
Conference Call
Profire Energy Executives will host the call, followed by a question-and-answer period.
Date: Thursday, May 9, 2024
Time: 8:30 a.m. ET (6:30 a.m. MT)
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304The conference call will be webcast live and available for replay via this link: https://viavid.webcasts.com/starthere.jsp?ei=1653742&tp_key=c7e5f7d333
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 Athena Kefalas at 1-801-796-8969.
A replay of the call will be available via the dial-in numbers below after 1:00 p.m. ET on the same day through May 23, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 10022992About 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, in recent years, we have completed many installations of our burner-management solutions in other industries that we believe will be applicable as we expand our addressable market over time. 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; Midland-Odessa, 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, delivery of Company product, and the Company’s expected revenues from diversification opportunities. 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) 796-5127Three Part Advisors
Steven Hooser, Partner
John Beisler, Managing Director
214-872-2710About 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.
3/31/2024 3/31/2023 EBITDA Calculation: 3 months 3 months Net Income $1,434,375 $2,589,621 add back net income tax expense $393,148 $816,815 add back net interest expense $(68,952) $(57,114) add back depreciation and amortization $267,654 $262,039 EBITDA calculated $2,026,225 $3,611,361 PROFIRE ENERGY, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets As of March 31,
2024December 31,
2023ASSETS (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 7,196,424 $ 10,767,519 Short-term investments 2,750,324 2,799,539 Accounts receivable, net 14,226,321 14,013,740 Inventories, net (note 3) 15,747,817 14,059,656 Prepaid expenses and other current assets (note 4) 3,357,009 2,832,262 Total Current Assets 43,277,895 44,472,716 LONG-TERM ASSETS Net deferred tax asset 497,263 496,785 Long-term investments 6,286,599 6,425,582 Lease right-of-use asset (note 6) 395,267 432,907 Property and equipment, net 11,233,795 10,782,372 Intangible assets, net 1,064,724 1,104,102 Goodwill 2,579,381 2,579,381 Total Long-Term Assets 22,057,029 21,821,129 TOTAL ASSETS $ 65,334,924 $ 66,293,845 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 2,985,177 $ 2,699,556 Accrued liabilities (note 5) 2,733,161 4,541,820 Current lease liability (note 6) 121,386 130,184 Income taxes payable 916,469 1,723,910 Total Current Liabilities 6,756,193 9,095,470 LONG-TERM LIABILITIES Net deferred income tax liability 44,876 52,621 Long-term lease liability (note 6) 280,371 307,528 TOTAL LIABILITIES 7,081,440 9,455,619 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: 53,337,589 issued and 47,094,226 outstanding at March 31, 2024, and 53,047,231 issued and 46,803,868 outstanding at December 31, 2023 53,340 53,048 Treasury stock, at cost (9,324,272 ) (9,324,272 ) Additional paid-in capital 32,966,075 32,751,749 Accumulated other comprehensive loss (3,078,437 ) (2,844,702 ) Retained earnings 37,636,778 36,202,403 TOTAL STOCKHOLDERS' EQUITY 58,253,484 56,838,226 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 65,334,924 $ 66,293,845 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 Income and Comprehensive Income (Unaudited) For the Three Months Ended March 31, 2024 2023 (See Note 1) REVENUES (note 8) Sales of products, net $ 12,691,804 $ 13,759,679 Sales of services, net 949,336 924,949 Total Revenues 13,641,140 14,684,628 COST OF SALES Cost of sales - products 6,095,004 6,105,506 Cost of sales - services 789,364 746,014 Total Cost of Sales 6,884,368 6,851,520 GROSS PROFIT 6,756,772 7,833,108 OPERATING EXPENSES General and administrative 4,604,766 4,110,032 Research and development 265,058 274,389 Depreciation and amortization 149,859 142,887 Total Operating Expenses 5,019,683 4,527,308 INCOME FROM OPERATIONS 1,737,089 3,305,800 OTHER INCOME (EXPENSE) Gain on sale of assets 44,821 53,075 Other expense (23,339 ) (9,553 ) Interest income 71,897 58,047 Interest expense (2,945 ) (933 ) Total Other Income 90,434 100,636 INCOME BEFORE INCOME TAXES 1,827,523 3,406,436 INCOME TAX EXPENSE (393,148 ) (816,815 ) NET INCOME $ 1,434,375 $ 2,589,621 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation loss $ (244,801 ) $ (5,524 ) Unrealized gains on investments 11,066 76,287 Total Other Comprehensive Income (Loss) (233,735 ) 70,763 COMPREHENSIVE INCOME $ 1,200,640 $ 2,660,384 BASIC EARNINGS PER SHARE $ 0.03 $ 0.05 FULLY DILUTED EARNINGS PER SHARE $ 0.03 $ 0.05 BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 46,884,875 47,174,518 FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 48,482,704 48,612,833 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 Three Months Ended March 31, 2024 2023 OPERATING ACTIVITIES Net income $ 1,434,375 $ 2,589,621 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 267,654 262,039 Gain on sale of property and equipment (44,821 ) (53,075 ) Bad debt expense 61,684 41,792 Stock awards issued for services 197,443 223,047 Changes in operating assets and liabilities: Accounts receivable (23,969 ) (1,108,889 ) Income taxes receivable/payable (804,057 ) 629,371 Inventories (1,741,768 ) (292,119 ) Prepaid expenses and other current assets (564,253 ) (335,832 ) Deferred tax asset/liability (7,112 ) 212,548 Accounts payable and accrued liabilities (1,467,314 ) (1,646,723 ) Net Cash Provided by (Used in) Operating Activities (2,692,138 ) 521,780 INVESTING ACTIVITIES Proceeds from sale of property and equipment 46,097 97,886 Sale (purchase) of investments 199,357 (390,548 ) Purchase of property and equipment (776,721 ) (153,755 ) Net Cash Used in Investing Activities (531,267 ) (446,417 ) FINANCING ACTIVITIES Value of equity awards surrendered by employees for tax liability (307,933 ) (242,506 ) Principal paid toward lease liability (10,875 ) (6,947 ) Net Cash Used in Financing Activities (318,808 ) (249,453 ) Effect of exchange rate changes on cash (28,882 ) 8,868 NET DECREASE IN CASH (3,571,095 ) (165,222 ) CASH AT BEGINNING OF PERIOD 10,767,519 7,384,578 CASH AT END OF PERIOD $ 7,196,424 $ 7,219,356 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR: Interest $ 2,945 $ 933 Income taxes $ 1,056,844 $ — NON-CASH FINANCING AND INVESTING ACTIVITIES Common stock issued in settlement of accrued bonuses $ 324,415 $ 378,526 Common stock issued for stock options $ 850 $ — These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
