SOURCE: Profire Energy, Inc.

November 14, 2011 14:57 ET

Profire Energy Inc., Announces Record Financial Results for the 2012 Second Fiscal Quarter

LINDON, UT and EDMONTON, AB--(Marketwire - Nov 14, 2011) - Profire Energy, Inc. (OTCBB: PFIE) reported net income before income taxes for the quarter ending September 30, 2011 of $1,646,575 on total revenues of $4,522,521. By comparison, during the Company's prior-year second fiscal quarter, it realized net income before taxes of $894,093 and total revenues of $2,137,022. Earnings per share for the second fiscal quarter 2012 were $.03.

Year-over-year revenue and net income growth were 112% and 104%, respectively.

Total revenue for the six month period ended September 30, 2011 was $7,206,245 compared to $2,908,646 for the comparable prior year period, a 147% increase. For the same period, net income before taxes totaled $2,715,156 compared to $777,247, a 249% increase. The following is certain information excerpted from the Company's Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)(Unaudited) for the three and six month periods ended September 30, 2011 and 2010, the full text of which is also included elsewhere in this press release.

For the three months ended
September 30,
For the six months ended
September 30,
Profire Energy, Inc. 2011 2010 % Change 2011 2010 % Change
Total Revenues 4,522,521 2,137,022 112 % 7,206,245 2,908,646 148 %
Total Cost of Goods Sold (1,775,655 ) (693,454 ) 156 % (2,758,368 ) (1,022,674 ) 170 %
Gross Profit 2,746,866 1,443,568 90 % 4,447,877 1,885,972 136 %
Total Operating Expenses (1,095,161 ) (543,952 ) 101 % (1,727,721 ) (1,101,396 ) 57 %
Income From Operations 1,651,705 899,616 83 % 2,720,156 784,576 247 %
Total Other (Expense) (5,130 ) (5,523 ) 7 % (4,871 ) (7,329 ) 34 %
Net Income (Loss) Before Income Taxes 1,646,575 894,093 84 % 2,715,285 777,247 249 %

"The Company continues to grow at an accelerating rate. The products, specifically the PF 2100, are being well-received by existing and new clients. Further, we are encouraged by the increase of energy development activity in many areas of the US and Canada, and will continue to execute our strategic growth plan to address this expansion in the energy sector," said Andrew Limpert, Chief Financial Officer of Profire Energy.

The Company manufactures, installs and services oilfield combustion management systems and related burner products. Its products and services aid oil and natural gas producers in the safe and efficient development and transportation of carbon-based fuels. The Company's lead products are the Profire 2100 and the Profire 1100, which are burner management systems that oil and gas producers rely on to provide reliable management and ignition of combustion burners and associated vessels such as separators, dehydrators, line heaters, incinerators, etc.

To learn more about Profire Energy's products and services, please visit www.profireenergy.com. Profire has offices in Lindon, Utah, U.S.A and Edmonton, Alberta, Canada

Cautionary Note Regarding Forward-Looking Statements

This release may contain statements that are "forward-looking," as that term is defined by the Private Securities Litigation Reform Act of 1995 or the Securities and Exchange Commission ("SEC") in its rules, regulations and releases. The Company intends such forward-looking statement be subject to the safe harbors created thereby. Such forward-looking statements may include statements regarding our expectations for business growth, product acceptance, economic and market conditions and outlook and our ability to execute our business plans. All such forward-looking statements are subject to uncertainty and changes in circumstances. 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 SEC. 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. Readers should not place undue reliance on these forward-looking statements. For a more complete understanding of the Company's results of operations for the periods discussed in this press release you should carefully review the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed with the SEC on November 14, 2011, which may be viewed on the SEC's website located at www.sec.gov.

PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
ASSETS
September 30, March 31,
2011 2011
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 747,270 $ 1,689,386
Accounts receivable, net 4,379,695 2,294,780
Marketable securities-avaliable for sale 681 3,306
Inventories 1,352,136 1,300,047
Prepaid expenses 832 885
Total Current Assets 6,480,614 5,288,404
PROPERTY AND EQUIPMENT, net 1,582,899 710,460
TOTAL ASSETS $ 8,063,513 $ 5,998,864
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 372,238 $ 206,582
Accrued liabilities 66,163 36,137
Income taxes payable 558,048 243,364
Total Current Liabilities 996,449 486,083
TOTAL LIABILITIES 996,449 486,083
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: 45,000,000 shares issued and outstanding 45,000 45,000
Additional paid-in capital 34,076 (6,187 )
Accumulated other comprehensive income 187,982 634,198
Retained earnings 6,800,006 4,839,770
Total Stockholders' Equity 7,067,064 5,512,781
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,063,513 $ 5,998,864

PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(Unaudited)
For the Three Months Ended For the Six Months Ended
September 30, 2011 September 30, 2011
2011 2010 2011 2010
REVENUES
Sales of goods, net $ 4,275,276 $ 1,925,420 $ 6,683,556 $ 2,561,811
Sales of services, net 247,245 211,602 522,689 346,835
Total Revenues 4,522,521 2,137,022 7,206,245 2,908,646
COST OF SALES
Cost of goods sold 1,597,356 632,922 2,373,425 755,498
Cost of goods sold-services 178,299 60,532 384,943 267,176
Total Cost of Goods Sold 1,775,655 693,454 2,758,368 1,022,674
GROSS PROFIT 2,746,866 1,443,568 4,447,877 1,885,972
OPERATING EXPENSES
General and administrative expenses 702,104 287,305 985,787 647,944
Payroll expenses 349,905 236,055 655,220 413,988
Depreciation expense 43,152 20,592 86,714 39,464
Total Operating Expenses 1,095,161 543,952 1,727,721 1,101,396
INCOME FROM OPERATIONS 1,651,705 899,616 2,720,156 784,576
OTHER INCOME (EXPENSE)
Interest expense (5,179 ) (8,138 ) (8,796 ) (10,762 )
Rental income - - 3,600 -
Interest income 49 2,615 325 3,433
Total Other Income (Expense) (5,130 ) (5,523 ) (4,871 ) (7,329 )
NET INCOME BEFORE INCOME TAXES 1,646,575 894,093 2,715,285 777,247
INCOME TAX EXPENSE 460,917 311,797 755,049 286,377
NET INCOME $ 1,185,658 $ 582,296 $ 1,960,236 $ 490,870
UNREALIZED HOLDING GAIN (LOSS) ON AVALIABLE FOR SALE SECURITIES $ (2,823 ) $ 1,920 $ (2,400 ) $ (554 )
FOREIGN CURRENCY TRANSLATION GAIN (LOSS) (404,083 ) 59,033 (443,816 ) (32,307 )
TOTAL COMPREHENSIVE INCOME $ 778,752 $ 643,249 $ 1,514,020 $ 458,009
BASIC EARNINGS PER SHARE $ 0.03 $ 0.01 $ 0.04 $ 0.01
FULLY DILUTED EARNINGS PER SHARE $ 0.03 $ 0.01 $ 0.04 $ 0.01
BASIC WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 45,000,000 45,000,000 45,000,000 45,000,000
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 45,173,247 45,122,667 45,173,247 45,122,667

PROFIRE ENERGY, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Six Months Ended
September 30,
2011 2010
OPERATING ACTIVITIES
Net Income (loss) $ 1,960,236 $ 490,870
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation expense 86,714 39,464
Bad debt expense - 4,840
Stock options issued for services 40,263 20,112
Changes in operating assets and liabilities:
Accounts receivable (2,233,953 ) (795,294 )
Inventories (130,794 ) (144,965 )
Prepaid expenses - (4,365 )
Accounts payable and accrued liabilities 209,961 156,519
Income taxes payable 330,989 (218,816 )
Net Cash Provided by Operating Activities 263,416 (451,635 )
INVESTING ACTIVITIES
Purchase of fixed assets (1,000,053 ) (147,385 )
Net Cash Used in Investing Activities (1,000,053 ) (147,385 )
FINANCING ACTIVITIES - -
Effect of exchange rate changes on cash (205,479 ) (20,730 )
NET INCREASE (DECREASE) IN CASH (942,116 ) (619,750 )
CASH AT BEGINNING OF PERIOD 1,689,386 1,931,757
CASH AT END OF PERIOD $ 747,270 $ 1,312,007
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
CASH PAID FOR:
Interest $ 8,796 $ 10,762
Income taxes $ 405,537 $ 505,080

Contact Information

  • Contacts:
    For inquiries please contact:
    Andrew Limpert
    (801) 796-5127
    E-mail: Email Contact