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
First 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 12%, R&D decreased 11% and depreciation increased by 5%.
Net income was
"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
Conference Call
Profire Energy Executives will host the call, followed by a question-and-answer period.
Date:
Time:
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304
The 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
A replay of the call will be available via the dial-in numbers below after
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay Pin Number: 10022992
About
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
Contact:
(801) 796-5127
Three
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.
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 |
Condensed Consolidated Balance Sheets | ||||||||
As of | ||||||||
2024 | 2023 | |||||||
ASSETS | (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 | ||||||
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: | — | — | ||||||
Common stock: | 53,340 | 53,048 | ||||||
(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.
Condensed Consolidated Statements of Income and Comprehensive Income | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
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.
Condensed Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
For the Three Months Ended | |||||||
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 | ||||
(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.
Source:
2024 GlobeNewswire, Inc., source