|Bid||0.8101 x 1200|
|Ask||0.9299 x 4000|
|Day's Range||0.8600 - 0.9000|
|52 Week Range||0.6250 - 1.5300|
|Beta (5Y Monthly)||1.36|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.27|
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Profire Energy, Inc...
NEW YORK, NY / ACCESSWIRE / November 10, 2020 / Profire Energy, Inc.
LINDON, Utah, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ: PFIE), a technology company which engineers, install and services burner and combustions management solutions in the oil and gas and other industries, today reported financial results for its third quarter ending September 30, 2020. A conference call will be held on Tuesday, November 10, 2020 at 1:00 p.m. ET to discuss the results. Third Quarter Summary * Recognized revenue of $4.0 million * Realized gross profit of $1.5 million or 38.0% of total revenues * Net loss of $1.1 million or ($0.02) per share * Cash and liquid investments of $17.2 million and remained debt-free“Our early response to the COVID-19 pandemic has resulted in significant reductions in our operating cost structure and lower G&A expense, all while maintaining our debt-free balance sheet,” said Ryan Oviatt, Co-CEO and CFO of Profire Energy. “These efforts continue to be outweighed by lower demand and global consumption of oil and gas, combined with lower commodity prices due to a supply imbalance in the markets. However, we remain hopeful in our ability to find new and innovative ways to continue to drive long-term shareholder return.” Third Quarter 2020 Financial ResultsTotal revenues for the period equaled $4.0 million, compared to $4.4 million in the second quarter of 2020, and $9.9 million in the same period a year ago. The third quarter’s results reflect the continued impact of COVID-19 on consumer demand, as well as a 27% drop in the average oil price during the same period, due in part to excess supply in the market from global producers.Gross profit was $1.5 million, compared to $2.1 million in the second quarter of 2020 and $5.2 million in the year-ago quarter. Gross margin was 38.0% of revenues, compared to 47.9% of revenues in the previous quarter and 52.2% of revenues in the third quarter of 2019. The sequential gross margin decline was primarily related to product mix and related reserves, and the significant decline in revenue pushed the fixed cost impact on costs of goods and services above historical levels.Total operating expenses were $2.8 million, compared to $3.2 million in prior quarter and $4.0 million in the same period a year ago. The sequential and year-over-year decrease reflect ongoing cost control measures in response to COVID-19 and the ongoing supply and demand imbalance within the oil markets.Compared with the same quarter last year, operating expenses for G&A decreased 31%, R&D decreased 32% and depreciation increased by 30%.Net loss was $1.1 million or ($0.02) per share, compared to a net loss of $808,503, or ($0.02) in the second quarter of 2020, and net income of $921,748 or $0.02 per diluted share in the same quarter last year.Cash and investments totaled $17.2 million at September 30, 2020 compared to $18.6 million at the end of 2019, and the Company continues to operate debt-free. Capital expenditures for the quarter were $152,000. Working capital as of September 30, 2020 was $22.5 million, compared to $22.9 million at the end of 2019.“We remain highly focused on building our sales funnel, maintaining and strengthening our customer relationships, and most important, research and development in order to maintain our leading brand awareness and market share,” said Cameron Tidball, Co-CEO of Profire Energy. “We are assessing and analyzing the vast market and opportunity for combustion solutions that reside outside of our traditional market wherein we can leverage our world class burner management systems to serve a more diverse customer base.” Conference CallProfire Energy executives will host the call, followed by a question and answer period.Date: Tuesday, November 10, 2020 Time: 1:00 p.m. ET (11:00 a.m. MT) Toll-free dial-in number: 1-877-705-6003 International dial-in number: 1-201-493-6725The conference call will be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=142279 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 November 24, 2020.Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay Pin: 13712689About 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 plans to assess opportunities outside of traditional markets. 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, CFO (801) 796-5127Three Part Advisors Steven Hooser, Partner 214-872-2710PROFIRE ENERGY, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets As of September 30, 2020 December 31, 2019 ASSETS (Unaudited) CURRENT ASSETS Cash and cash equivalents $7,919,545 $7,358,856 Short-term investments 2,239,256 1,222,053 Short-term investments - other 600,000 2,600,000 Accounts receivable, net 2,397,985 5,597,701 Inventories, net (note 3) 8,780,571 9,571,807 Prepaid expenses and other current assets (note 4) 2,178,682 1,672,422 Income tax receivable 465,828 77,385 Total Current Assets 24,581,867 28,100,224 LONG-TERM ASSETS Long-term investments 6,450,891 7,399,963 Financing right-of-use asset 61,347 107,991 Property and equipment, net 11,595,366 12,071,019 Intangible assets, net 1,827,553 1,989,782 Goodwill 2,579,381 2,579,381 Total Long-Term Assets 22,514,538 24,148,136 TOTAL ASSETS $47,096,405 $52,248,360 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $980,601 $2,633,520 Accrued liabilities (note 5) 1,061,515 2,089,391 Current financing lease liability (note 6) 43,024 59,376 Income taxes payable — 403,092 Total Current Liabilities 2,085,140 5,185,379 LONG-TERM LIABILITIES Net deferred income tax liability 484,115 439,275 Long-term financing lease liability (note 6) 20,927 52,120 TOTAL LIABILITIES 2,590,182 5,676,774 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: 51,371,960 issued and 47,959,582 outstanding at September 30, 2020, and 50,824,355 issued and 47,411,977 outstanding at December 31, 2019 51,371 50,824 Treasury stock, at cost (5,353,019) (5,353,019) Additional paid-in capital 30,208,082 29,584,172 Accumulated other comprehensive loss (2,873,765) (2,415,460) Retained earnings 22,473,554 24,705,069 TOTAL STOCKHOLDERS' EQUITY 44,506,223 46,571,586 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $47,096,405 $52,248,360 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 September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 REVENUES (note 9) Sales of goods, net$3,517,280 $9,251,947 $14,377,377 $29,009,837 Sales of services, net482,826 653,814 1,429,350 1,853,013 Total Revenues4,000,106 9,905,761 15,806,727 30,862,850 COST OF SALES Cost of goods sold-product2,141,888 4,326,335 7,919,959 13,465,989 Cost of goods sold-services337,795 410,130 1,114,804 1,275,655 Total Cost of Goods Sold2,479,683 4,736,465 9,034,763 14,741,644 GROSS PROFIT1,520,423 5,169,296 6,771,964 16,121,206 OPERATING EXPENSES General and administrative expenses2,247,614 3,256,023 8,273,925 9,984,251 Research and development433,800 641,716 1,073,074 1,503,645 Depreciation and amortization expense168,507 130,105 496,976 357,238 Total Operating Expenses2,849,921 4,027,844 9,843,975 11,845,134 INCOME (LOSS) FROM OPERATIONS(1,329,498) 1,141,452 (3,072,011) 4,276,072 OTHER INCOME (EXPENSE) Gain on sale of fixed assets36,483 34,826 193,938 73,166 Other expense(48,349) (2,065) (49,667) (3,029) Interest income103,364 38,478 255,289 216,068 Total Other Income91,498 71,239 399,560 286,205 INCOME (LOSS) BEFORE INCOME TAXES(1,238,000) 1,212,691 (2,672,451) 4,562,277 INCOME TAX BENEFIT (EXPENSE)180,252 (290,943) 440,936 (986,407) NET INCOME (LOSS)$(1,057,748) $921,748 $(2,231,515) $3,575,870 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation gain (loss)$233,170 $(91,397) $(336,986) $160,453 Unrealized gains (losses) on investments(36,840) (12,386) (121,319) 105,861 Total Other Comprehensive Income (Loss)196,330 (103,783) (458,305) 266,314 COMPREHENSIVE INCOME (LOSS)$(861,418) $817,965 $(2,689,820) $3,842,184 BASIC EARNINGS (LOSS) PER SHARE (note 10)$(0.02) $0.02 $(0.05) $0.08 FULLY DILUTED EARNINGS (LOSS) PER SHARE (note 10)$(0.02) $0.02 $(0.05) $0.07 BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING47,933,318 47,739,192 47,717,114 47,509,357 FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING47,933,318 48,469,246 47,717,114 48,259,900 These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.PROFIRE ENERGY, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) For the Nine Months Ended September 30, 2020 2019 OPERATING ACTIVITIES Net income (loss)$(2,231,515) $3,575,870 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expense860,028 732,396 Gain on sale of fixed assets(193,938) (73,166) Bad debt expense182,179 255,943 Stock awards issued for services351,943 358,270 Changes in operating assets and liabilities: Accounts receivable3,404,439 1,244,104 Income taxes receivable/payable(404,304) (890,523) Inventories714,245 1,711,446 Prepaid expenses43,099 (586,576) Deferred tax asset/liability44,840 219,138 Accounts payable and accrued liabilities(2,648,339) 855,207 Net Cash Provided by Operating Activities122,677 7,402,109 INVESTING ACTIVITIES Proceeds from sale of equipment16,313 75,310 Sale of investments1,814,070 2,476,227 Purchase of fixed assets(1,146,400) (3,309,191) Payments for acquisitions, net of cash acquired— (4,322,722) Net Cash Provided by (Used in) Investing Activities683,983 (5,080,376) FINANCING ACTIVITIES Value of equity awards surrendered by employees for tax liability(148,879) (185,004) Cash received in exercise of stock options2,020 8,870 Purchase of treasury stock— (2,249,745) Principal paid towards lease liability(45,965) (53,190) Net Cash Used in Financing Activities(192,824) (2,479,069) Effect of exchange rate changes on cash(53,147) (468) NET CHANGE IN CASH560,689 (157,804) CASH AT BEGINNING OF PERIOD7,358,856 10,101,932 CASH AT END OF PERIOD$7,919,545 $9,944,128 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION CASH PAID FOR: Interest$4,946 $4,469 Income taxes$402,510 $1,793,281 NON-CASH FINANCING AND INVESTING ACTIVITIES Common stock issued in settlement of accrued bonuses$419,373 $379,861 Issuance of common stock - Midflow acquisition$— $1,020,000 These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.