Profire Energy Reports Financial Results for Third Quarter 2024
Profire Energy (NASDAQ: PFIE) reported its highest quarterly revenue of $17.2 million for Q3 2024, up from $14.9 million in Q3 2023. The company achieved a gross profit of $8.3 million with a 48.2% margin, and net income of $2.2 million ($0.04 per diluted share). EBITDA reached $3.1 million, with cash and investments totaling $16.9 million and no debt. The company has agreed to be acquired by CECO Environmental for $2.55 per share, with the transaction expected to close in Q1 2025.
Profire Energy (NASDAQ: PFIE) ha riportato il suo più alto fatturato trimestrale di 17,2 milioni di dollari per il terzo trimestre del 2024, in aumento rispetto ai 14,9 milioni di dollari del terzo trimestre del 2023. L'azienda ha ottenuto un utile lordo di 8,3 milioni di dollari con un margine del 48,2%, e un utile netto di 2,2 milioni di dollari (0,04 dollari per azione diluita). L'EBITDA ha raggiunto 3,1 milioni di dollari, con liquidità e investimenti che ammontano a 16,9 milioni di dollari e senza debiti. L'azienda ha accettato di essere acquisita da CECO Environmental per 2,55 dollari per azione, con la transazione che si prevede si concluderà nel primo trimestre del 2025.
Profire Energy (NASDAQ: PFIE) informó su mayor ingreso trimestral de 17,2 millones de dólares para el tercer trimestre de 2024, un aumento de 14,9 millones de dólares en el tercer trimestre de 2023. La compañía logró una ganancia bruta de 8,3 millones de dólares con un margen del 48,2%, y una ganancia neta de 2,2 millones de dólares (0,04 dólares por acción diluida). El EBITDA alcanzó 3,1 millones de dólares, con efectivo e inversiones totalizando 16,9 millones de dólares y sin deuda. La empresa ha acordado ser adquirida por CECO Environmental por 2,55 dólares por acción, con la transacción prevista para cerrarse en el primer trimestre de 2025.
Profire Energy (NASDAQ: PFIE)는 2024년 3분기 동안 1,720만 달러의 분기별 최고 매출을 보고했으며, 이는 2023년 3분기의 1,490만 달러에서 증가한 수치입니다. 회사는 830만 달러의 총 이익을 달성하였고, 마진은 48.2%였으며, 순이익은 220만 달러 (희석 주당 0.04 달러)로 나타났습니다. EBITDA는 310만 달러에 도달했으며, 현금 및 투자 총액은 1,690만 달러였고, 부채는 없습니다. 이 회사는 CECO Environmental에 의해 주당 2.55달러에 인수될 것에 합의하였으며, 거래는 2025년 1분기에 마감될 예정입니다.
Profire Energy (NASDAQ: PFIE) a annoncé son chiffre d'affaires trimestriel le plus élevé de 17,2 millions de dollars pour le troisième trimestre de 2024, en hausse par rapport à 14,9 millions de dollars au troisième trimestre de 2023. L'entreprise a réalisé un bénéfice brut de 8,3 millions de dollars avec une marge de 48,2%, et un revenu net de 2,2 millions de dollars (0,04 dollar par action diluée). L'EBITDA a atteint 3,1 millions de dollars, avec des liquidités et des investissements totalisant 16,9 millions de dollars et aucune dette. L'entreprise a accepté d'être acquise par CECO Environmental pour 2,55 dollars par action, la transaction étant prévue pour se conclure au premier trimestre de 2025.
Profire Energy (NASDAQ: PFIE) meldete einen Rekordumsatz von 17,2 Millionen Dollar im dritten Quartal 2024, ein Anstieg von 14,9 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte einen Bruttogewinn von 8,3 Millionen Dollar bei einer Marge von 48,2% und einen Nettogewinn von 2,2 Millionen Dollar (0,04 Dollar pro verwässerter Aktie). EBITDA erreichte 3,1 Millionen Dollar, und die liquiden Mittel sowie Investitionen beliefen sich auf 16,9 Millionen Dollar ohne Schulden. Das Unternehmen hat zugestimmt, von CECO Environmental für 2,55 Dollar pro Aktie übernommen zu werden, wobei der Abschluss der Transaktion im ersten Quartal 2025 erwartet wird.
- Record quarterly revenue of $17.2 million, up 15.4% year-over-year
- Gross profit increased to $8.3 million from $7.5 million year-over-year
- Strong cash position of $16.9 million with zero debt
- Pending acquisition by CECO Environmental at $2.55 per share
- Gross margin declined to 48.2% from 50.0% year-over-year
- Operating expenses increased to $5.5 million from $4.9 million year-over-year
- R&D expenses increased by 85% compared to previous year
Insights
A strong quarter with record-breaking revenue of
The balance sheet remains robust with
While gross margins declined to
Company Reports Highest Quarterly Revenue in Company History
LINDON, Utah, Nov. 06, 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 third quarter ending September 30, 2024.
Third Quarter Summary (comparisons to prior-year quarter)
- Revenue of
$17.2 million , compared to$14.9 million - Gross profit of
$8.3 million , compared to$7.5 million - Gross margin of
48.2% , compared to50.0% - Net income of
$2.2 million , or$0.04 per diluted share, versus$2.0 million and$0.04 - Generated EBITDA of
$3.1 million , versus$2.9 million - Cash and investments of
$16.9 million with no debt
Pending Acquisition and Conference Call Update
On October 29, 2024, Profire Energy announced it agreed to be acquired by CECO Environmental in an all cash transaction for
As a result of the pending transaction, and as is common during the pendency of such transactions, Profire will not hold an earnings conference call in connection with its third quarter financial results.
Third Quarter 2024 Financial Results
Total revenues for the period equaled
Gross profit was
Total operating expenses were
Compared with the same quarter last year, operating expenses for G&A increased
Net income was
About 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 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) 796-5127
Three Part Advisors
Steven Hooser, Partner
John Beisler, Managing Director
(214) 872-2710
About 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.
| 9/30/2024 | 9/30/2023 | |||
| EBITDA Calculation: | 3 months | 3 months | ||
| Net Income | | |||
| add back net income tax expense | | |||
| add back net interest expense | | |||
| add back depreciation and amortization | | |||
| EBITDA calculated | | |||
| PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| As of | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | (Unaudited) | |||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 7,963,892 | $ | 10,767,519 | ||||
| Short-term investments | 2,338,259 | 2,799,539 | ||||||
| Accounts receivable, net | 16,431,559 | 14,013,740 | ||||||
| Inventories, net (note 3) | 17,188,656 | 14,059,656 | ||||||
| Prepaid expenses and other current assets (note 4) | 3,379,650 | 2,832,262 | ||||||
| Total Current Assets | 47,302,016 | 44,472,716 | ||||||
| LONG-TERM ASSETS | ||||||||
| Net deferred tax asset | 436,578 | 496,785 | ||||||
| Long-term investments | 6,584,919 | 6,425,582 | ||||||
| Lease right-of-use asset (note 6) | 369,549 | 432,907 | ||||||
| Property and equipment, net | 11,330,713 | 10,782,372 | ||||||
| Intangible assets, net | 998,736 | 1,104,102 | ||||||
| Goodwill | 2,579,381 | 2,579,381 | ||||||
| Total Long-Term Assets | 22,299,876 | 21,821,129 | ||||||
| TOTAL ASSETS | $ | 69,601,892 | $ | 66,293,845 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 2,166,969 | $ | 2,699,556 | ||||
| Accrued liabilities (note 5) | 4,728,919 | 4,541,820 | ||||||
| Current lease liability (note 6) | 136,739 | 130,184 | ||||||
| Income taxes payable | 542,393 | 1,723,910 | ||||||
| Total Current Liabilities | 7,575,020 | 9,095,470 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Net deferred income tax liability | 53,318 | 52,621 | ||||||
| Long-term lease liability (note 6) | 241,793 | 307,528 | ||||||
| TOTAL LIABILITIES | 7,870,131 | 9,455,619 | ||||||
| STOCKHOLDERS' EQUITY (note 7) | ||||||||
| Preferred stock: | — | — | ||||||
| Common stock: | 53,690 | 53,048 | ||||||
| Treasury stock, at cost | (10,976,706 | ) | (9,324,272 | ) | ||||
| Additional paid-in capital | 33,675,391 | 32,751,749 | ||||||
| Accumulated other comprehensive loss | (2,902,754 | ) | (2,844,702 | ) | ||||
| Retained earnings | 41,882,140 | 36,202,403 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | 61,731,761 | 56,838,226 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 69,601,892 | $ | 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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (See Note 1) | (See Note 1) | |||||||||||||||
| REVENUES (note 8) | ||||||||||||||||
| Sales of products, net | $ | 16,017,224 | $ | 14,085,028 | $ | 42,435,024 | $ | 41,562,935 | ||||||||
| Sales of services, net | 1,180,729 | 858,871 | 3,564,582 | 2,624,514 | ||||||||||||
| Total Revenues | 17,197,953 | 14,943,899 | 45,999,606 | 44,187,449 | ||||||||||||
| COST OF SALES | ||||||||||||||||
| Cost of sales - products | 7,881,956 | 6,666,949 | 20,418,350 | 19,157,973 | ||||||||||||
| Cost of sales - services | 1,034,242 | 799,866 | 2,683,156 | 2,304,838 | ||||||||||||
| Total Cost of Sales | 8,916,198 | 7,466,815 | 23,101,506 | 21,462,811 | ||||||||||||
| GROSS PROFIT | 8,281,755 | 7,477,084 | 22,898,100 | 22,724,638 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative | 5,058,465 | 4,605,566 | 14,431,441 | 12,573,171 | ||||||||||||
| Research and development | 337,597 | 182,253 | 952,666 | 649,506 | ||||||||||||
| Depreciation and amortization | 135,541 | 145,662 | 435,209 | 428,644 | ||||||||||||
| Total Operating Expenses | 5,531,603 | 4,933,481 | 15,819,316 | 13,651,321 | ||||||||||||
| INCOME FROM OPERATIONS | 2,750,152 | 2,543,603 | 7,078,784 | 9,073,317 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Gain on sale of property and equipment | 84,971 | 17,350 | 221,860 | 251,768 | ||||||||||||
| Other expense | 8,973 | 19,718 | (11,322 | ) | (26,704 | ) | ||||||||||
| Interest income | 93,299 | 74,165 | 248,543 | 255,865 | ||||||||||||
| Interest expense | (2,358 | ) | (4,438 | ) | (7,960 | ) | (6,226 | ) | ||||||||
| Total Other Income | 184,885 | 106,795 | 451,121 | 474,703 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 2,935,037 | 2,650,398 | 7,529,905 | 9,548,020 | ||||||||||||
| INCOME TAX EXPENSE | (752,400 | ) | (611,008 | ) | (1,850,168 | ) | (2,061,851 | ) | ||||||||
| NET INCOME | $ | 2,182,637 | $ | 2,039,390 | $ | 5,679,737 | $ | 7,486,169 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
| Foreign currency translation loss | $ | 139,211 | $ | (301,642 | ) | $ | (231,674 | ) | $ | (28,838 | ) | |||||
| Unrealized gains (losses) on investments | 107,924 | (71,193 | ) | 173,622 | (25,322 | ) | ||||||||||
| Total Other Comprehensive Loss | 247,135 | (372,835 | ) | (58,052 | ) | (54,160 | ) | |||||||||
| COMPREHENSIVE INCOME | $ | 2,429,772 | $ | 1,666,555 | $ | 5,621,685 | $ | 7,432,009 | ||||||||
| BASIC EARNINGS PER SHARE | $ | 0.05 | $ | 0.04 | $ | 0.12 | $ | 0.16 | ||||||||
| FULLY DILUTED EARNINGS PER SHARE | $ | 0.04 | $ | 0.04 | $ | 0.12 | $ | 0.15 | ||||||||
| BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 46,809,342 | 47,521,238 | 46,937,404 | 47,364,445 | ||||||||||||
| FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 48,739,900 | 49,504,024 | 48,867,962 | 49,314,304 | ||||||||||||
| 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, | |||||||
| 2024 | 2023 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 5,679,737 | $ | 7,486,169 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization expense | 802,842 | 822,204 | |||||
| Gain on sale of property and equipment | (221,860 | ) | (251,768 | ) | |||
| Bad debt expense | 209,177 | 420,883 | |||||
| Stock awards issued for services | 815,295 | 878,392 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (2,353,006 | ) | (2,360,696 | ) | |||
| Income taxes receivable/payable | (1,178,904 | ) | 464,256 | ||||
| Inventories | (3,167,889 | ) | (3,245,588 | ) | |||
| Prepaid expenses and other current assets | (583,976 | ) | (437,023 | ) | |||
| Deferred tax asset/liability | 61,953 | 466,398 | |||||
| Accounts payable and accrued liabilities | (286,109 | ) | (1,574,995 | ) | |||
| Net Cash Provided by (Used in) Operating Activities | (222,740 | ) | 2,668,232 | ||||
| INVESTING ACTIVITIES | |||||||
| Proceeds from sale of property and equipment | 316,095 | 328,350 | |||||
| Sale (purchase) of investments | 476,281 | (383,520 | ) | ||||
| Purchase of property and equipment | (1,403,525 | ) | (974,070 | ) | |||
| Net Cash Used in Investing Activities | (611,149 | ) | (1,029,240 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Value of equity awards surrendered by employees for tax liability | (336,833 | ) | (502,307 | ) | |||
| Cash received in exercise of stock options | 96,476 | 178,195 | |||||
| Purchase of treasury stock | (1,652,434 | ) | (339,313 | ) | |||
| Principal paid toward lease liability | (33,499 | ) | (26,617 | ) | |||
| Net Cash Used in Financing Activities | (1,926,290 | ) | (690,042 | ) | |||
| Effect of exchange rate changes on cash | (43,448 | ) | 5,335 | ||||
| NET CHANGE IN CASH | (2,803,627 | ) | 954,285 | ||||
| CASH AT BEGINNING OF PERIOD | 10,767,519 | 7,384,578 | |||||
| CASH AT END OF PERIOD | $ | 7,963,892 | $ | 8,338,863 | |||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
| CASH PAID FOR: | |||||||
| Interest | $ | 7,960 | $ | 6,227 | |||
| Income taxes | $ | 3,107,899 | $ | 1,126,750 | |||
| NON-CASH FINANCING AND INVESTING ACTIVITIES | |||||||
| Common stock issued in settlement of accrued bonuses | $ | 324,415 | $ | 378,526 | |||
| Common stock issued for stock options | $ | 120,860 | $ | — | |||
| These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes. | |||||||
FAQ
What was Profire Energy's (PFIE) revenue in Q3 2024?
What is the acquisition price for Profire Energy (PFIE) by CECO Environmental?
What was Profire Energy's (PFIE) net income per share in Q3 2024?
