Second Quarter Summary (comparisons to prior-year quarter)
- Revenue of
$14.4 million , a 50% increase - Gross profit of
$7.4 million , a 68% increase - Gross margin of 51.3%, a 560 basis point increase
- Net income of
$2.9 million , or$0.06 per diluted share, versus$284,829 and$0.01 - Generated EBITDA of
$3.7 million , versus$587,024 - Cash and investments of
$17.4 million with no debt - Began repurchasing shares under the previously announced
$2 million share repurchase program.
“Our second quarter results reflect the sustained momentum across our business which contributed to a 50 percent increase in revenue over the prior year and the highest quarterly net income and EBITDA in company history,” said
Second Quarter 2023 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 were flat, R&D decreased 29% and depreciation decreased by 12%.
Net income was
“Our legacy business continues to perform well as E&P’s resume maintenance activity that has been deferred over multiple years as well as new investments being made to increase automation and efficiency and lower emissions,” stated
Conference Call
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Date:
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International dial-in number: 1-631-891-4304
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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, the Company’s expected revenues from recent acquisitions, the Company’s plans to make internal and external investments, and the availability of Company resources to make beneficial investments in 2023 and beyond. 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 | |||
Net Income | $ | 2,857,157 | ||
add back net income tax expense | $ | 634,028 | ||
add back net interest expense | $ | (122,800 | ) | |
add back depreciation and amortization | $ | 285,957 | ||
EBITDA Calculated | $ | 3,654,342 | ||
EBITDA MARGIN CALCULATION: | ||||
EBITDA | $ | 3,654,342 | ||
Divided by total revenue | $ | 14,443,577 | ||
EBITDA Margin | 25.3 | % |
Item 1 Financial Information
Condensed Consolidated Balance Sheets | ||||||||
As of | ||||||||
ASSETS | (Unaudited) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 8,246,092 | $ | 7,384,578 | ||||
Short-term investments | 1,896,397 | 1,154,284 | ||||||
Accounts receivable, net | 13,987,743 | 10,886,145 | ||||||
Inventories, net (note 3) | 13,016,192 | 10,293,980 | ||||||
Prepaid expenses and other current assets (note 4) | 2,399,676 | 2,314,639 | ||||||
Total Current Assets | 39,546,100 | 32,033,626 | ||||||
LONG-TERM ASSETS | ||||||||
Long-term investments | 7,212,652 | 7,503,419 | ||||||
Financing lease right-of-use asset | 156,943 | 120,239 | ||||||
Property and equipment, net | 10,627,702 | 10,423,964 | ||||||
Intangible assets, net | 1,182,859 | 1,268,907 | ||||||
2,579,381 | 2,579,381 | |||||||
Total Long-Term Assets | 21,759,537 | 21,895,910 | ||||||
TOTAL ASSETS | $ | 61,305,637 | $ | 53,929,536 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 2,120,546 | $ | 2,955,506 | ||||
Accrued liabilities (note 5) | 4,374,628 | 3,573,994 | ||||||
Current financing lease liability (note 6) | 66,229 | 53,646 | ||||||
Income taxes payable | 887,647 | 205,169 | ||||||
Total Current Liabilities | 7,449,050 | 6,788,315 | ||||||
LONG-TERM LIABILITIES | ||||||||
Net deferred income tax liability | 694,429 | 488,858 | ||||||
Long-term financing lease liability (note 6) | 92,511 | 67,883 | ||||||
TOTAL LIABILITIES | 8,235,990 | 7,345,056 | ||||||
STOCKHOLDERS' EQUITY (note 7) | ||||||||
Preferred stock: | — | — | ||||||
Common stock: | 52,662 | 52,144 | ||||||
(7,394,281 | ) | (7,336,323 | ) | |||||
Additional paid-in capital | 32,514,997 | 31,737,843 | ||||||
Accumulated other comprehensive loss | (2,976,198 | ) | (3,294,873 | ) | ||||
Retained earnings | 30,872,467 | 25,425,689 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 53,069,647 | 46,584,480 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 61,305,637 | $ | 53,929,536 | ||||
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(See Note 1) | (See Note 1) | |||||||||||||||
REVENUES (note 8) | ||||||||||||||||
Sales of products, net | $ | 13,602,884 | $ | 8,860,682 | $ | 27,231,396 | $ | 17,739,105 | ||||||||
Sales of services, net | 840,693 | 772,465 | 1,765,643 | 1,397,182 | ||||||||||||
Total Revenues | 14,443,577 | 9,633,147 | 28,997,039 | 19,136,287 | ||||||||||||
COST OF SALES | ||||||||||||||||
Cost of sales - product | 6,270,174 | 4,530,065 | 12,244,513 | 8,912,764 | ||||||||||||
Cost of sales - services | 758,958 | 699,937 | 1,504,972 | 1,263,674 | ||||||||||||
Total Cost of Sales | 7,029,132 | 5,230,002 | 13,749,485 | 10,176,438 | ||||||||||||
GROSS PROFIT | 7,414,445 | 4,403,145 | 15,247,554 | 8,959,849 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative | 3,792,127 | 3,786,561 | 7,840,093 | 7,178,938 | ||||||||||||
Research and development | 258,317 | 362,197 | 594,769 | 670,512 | ||||||||||||
Depreciation and amortization | 140,093 | 159,580 | 282,981 | 326,597 | ||||||||||||
Total Operating Expenses | 4,190,537 | 4,308,338 | 8,717,843 | 8,176,047 | ||||||||||||
INCOME FROM OPERATIONS | 3,223,908 | 94,807 | 6,529,711 | 783,802 | ||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Gain on sale of assets | 181,343 | 214,841 | 234,418 | 310,683 | ||||||||||||
Other expense | (36,866 | ) | (337 | ) | (46,423 | ) | (18,420 | ) | ||||||||
Interest income | 123,654 | 20,307 | 181,701 | 41,852 | ||||||||||||
Interest expense | (854 | ) | (17,612 | ) | (1,787 | ) | (18,308 | ) | ||||||||
Total Other Income | 267,277 | 217,199 | 367,909 | 315,807 | ||||||||||||
INCOME BEFORE INCOME TAXES | 3,491,185 | 312,006 | 6,897,620 | 1,099,609 | ||||||||||||
INCOME TAX EXPENSE | (634,028 | ) | (27,177 | ) | (1,450,842 | ) | (187,619 | ) | ||||||||
NET INCOME | $ | 2,857,157 | $ | 284,829 | $ | 5,446,778 | $ | 911,990 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Foreign currency translation gain (loss) | $ | 278,328 | $ | (290,291 | ) | $ | 272,804 | $ | (131,933 | ) | ||||||
Unrealized gains (losses) on investments | (30,416 | ) | (134,662 | ) | 45,871 | (421,788 | ) | |||||||||
Total Other Comprehensive Income (Loss) | 247,912 | (424,953 | ) | 318,675 | (553,721 | ) | ||||||||||
COMPREHENSIVE INCOME | $ | 3,105,069 | $ | (140,124 | ) | $ | 5,765,453 | $ | 358,269 | |||||||
BASIC EARNINGS PER SHARE | $ | 0.06 | $ | 0.01 | $ | 0.12 | $ | 0.02 | ||||||||
FULLY DILUTED EARNINGS PER SHARE | $ | 0.06 | $ | 0.01 | $ | 0.11 | $ | 0.02 | ||||||||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 47,393,768 | 47,092,275 | 47,284,749 | 47,285,782 | ||||||||||||
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 49,473,080 | 48,699,208 | 49,349,488 | 48,865,186 | ||||||||||||
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 Six Months Ended | |||||||
2023 | 2022 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 5,446,778 | $ | 911,990 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization expense | 547,996 | 558,832 | |||||
Gain on sale of property and equipment | (234,418 | ) | (310,683 | ) | |||
Bad debt expense | 378,753 | 28,474 | |||||
Stock awards issued for services | 583,493 | 412,893 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (3,034,236 | ) | (877,417 | ) | |||
Income taxes receivable/payable | 682,284 | 534,456 | |||||
Inventories | (2,662,032 | ) | (2,097,471 | ) | |||
Prepaid expenses and other current assets | (51,121 | ) | (140,352 | ) | |||
Deferred tax asset/liability | 205,571 | (408 | ) | ||||
Accounts payable and accrued liabilities | (80,409 | ) | 1,601,376 | ||||
Net Cash Provided by Operating Activities | 1,782,659 | 621,690 | |||||
INVESTING ACTIVITIES | |||||||
Proceeds from sale of property and equipment | 309,493 | 412,339 | |||||
Purchase of investments | (405,578 | ) | (231,032 | ) | |||
Purchase of property and equipment | (607,248 | ) | (223,215 | ) | |||
(703,333 | ) | (41,908 | ) | ||||
FINANCING ACTIVITIES | |||||||
Value of equity awards surrendered by employees for tax liability | (248,958 | ) | (93,527 | ) | |||
Cash received in exercise of stock options | 65,335 | 25,106 | |||||
Purchase of treasury stock | (57,957 | ) | (1,228,731 | ) | |||
Principal paid towards lease liability | (13,972 | ) | (19,787 | ) | |||
(255,552 | ) | (1,316,939 | ) | ||||
Effect of exchange rate changes on cash | 37,740 | (32,286 | ) | ||||
NET CHANGE IN CASH | 861,514 | (769,443 | ) | ||||
CASH AT BEGINNING OF PERIOD | 7,384,578 | 8,188,270 | |||||
CASH AT END OF PERIOD | $ | 8,246,092 | $ | 7,418,827 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
CASH PAID FOR: | |||||||
Interest | $ | 1,787 | $ | 1,253 | |||
Income taxes | $ | 576,750 | $ | 21,000 | |||
NON-CASH FINANCING AND INVESTING ACTIVITIES | |||||||
Common stock issued in settlement of accrued bonuses | $ | 378,526 | $ | 212,787 | |||
These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes.
Source:
2023 GlobeNewswire, Inc., source