Profire Energy, Inc. (PFIE) Bundle
A Brief History of Profire Energy, Inc.
Profire Energy, Inc. (PFIE) has established itself as a key player in the oil and gas industry, primarily focusing on burner management systems and combustion solutions. The company has evolved significantly since its inception, adapting to the changing demands of the market and expanding its product offerings.
Company Overview
As of 2024, Profire Energy, Inc. operates with a mission to enhance safety and efficiency in the oil and gas sector. The company specializes in providing technology that manages combustion processes, which helps reduce emissions and improve safety protocols for its clients.
Financial Performance
For the nine months ended September 30, 2024, Profire reported total revenues of $45,999,606, reflecting a 4.1% increase from $44,187,449 in the same period of 2023. The following table summarizes the financial performance for this period:
| Financial Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $45,999,606 | $44,187,449 | $1,812,157 | 4.1% |
| Gross Profit Percentage | 49.8% | 51.4% | (1.6%) | (3.1%) |
| Operating Expenses | $15,819,316 | $13,651,321 | $2,167,995 | 15.9% |
| Income from Operations | $7,078,784 | $9,073,317 | ($1,994,533) | (22.0%) |
| Net Income | $5,679,737 | $7,486,169 | ($1,806,432) | (24.1%) |
| Operating Cash Flow | ($222,740) | $2,668,232 | ($2,890,972) | (108.3%) |
Quarterly Analysis
In the third quarter of 2024, total revenues reached $17,197,953, up 15% from $14,943,899 in Q3 2023. The following table highlights the quarterly performance:
| Quarter | Total Revenues | Net Income | Operating Income |
|---|---|---|---|
| Q3 2024 | $17,197,953 | $2,182,637 | $2,750,152 |
| Q2 2024 | $15,160,513 | $2,062,725 | $2,591,540 |
| Q3 2023 | $14,943,899 | $2,039,390 | $2,543,605 |
Market Trends and Strategic Initiatives
Profire's growth has been bolstered by strategic initiatives aimed at diversifying revenue streams. As of September 30, 2024, diversified revenue constituted 26% of total revenue, compared to 17% in the prior year. The average oil price for this period was $76.44 per barrel, down from $82.26 in Q3 2023, influencing the company's pricing strategies.
Liquidity and Capital Resources
The company's working capital as of September 30, 2024, was $39,726,996, an increase from $35,377,246 at the end of 2023. This reflects a solid liquidity position, although operating cash flows showed a net usage of $222,740 during the nine-month period, largely due to changes in net income and working capital balances.
Stockholder Equity
As of September 30, 2024, total stockholders' equity stood at $61,731,761, up from $56,838,226 at the end of 2023. The following table details the components of stockholders' equity:
| Component | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $61,731,761 | $56,838,226 |
| Treasury Stock (at cost) | ($10,976,706) | ($9,324,272) |
| Retained Earnings | $41,882,140 | $36,202,403 |
Profire Energy, Inc. continues to navigate the complexities of the oil and gas market while focusing on innovation and customer safety, positioning itself for future growth despite current market challenges.
A Who Owns Profire Energy, Inc. (PFIE)
Major Shareholders
As of 2024, the ownership structure of Profire Energy, Inc. (PFIE) includes both institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 10.8% |
| The Vanguard Group, Inc. | 4,500,000 | 9.7% |
| Dimensional Fund Advisors LP | 3,000,000 | 6.5% |
| Individual Investors | 25,000,000 | 53.7% |
| Treasury Stock | 7,308,398 | 15.8% |
Institutional Ownership
As of September 30, 2024, institutional ownership in Profire Energy was noted to be approximately 40% of the total shares outstanding. The following table highlights the key institutional investors:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 5,000,000 | 10.8% |
| The Vanguard Group, Inc. | 4,500,000 | 9.7% |
| Dimensional Fund Advisors LP | 3,000,000 | 6.5% |
| All Other Institutions | 4,500,000 | 8.8% |
Executive Ownership
Executive officers and board members of Profire Energy, Inc. also hold a significant portion of shares. The following table reflects the ownership of key executives:
| Executive Name | Position | Shares Owned |
|---|---|---|
| Mr. R. Scott Oviatt | CEO | 1,000,000 |
| Mr. Jay Tidball | CFO | 800,000 |
| Mr. Jay Fugal | Former VP Operations | 500,000 |
| Mr. Fisher | Board Member | 250,000 |
Treasury Stock
As of September 30, 2024, Profire Energy held 7,308,398 shares as treasury stock, which represents approximately 15.8% of the total outstanding shares. The cost of treasury stock was reported at $10,976,706.
Recent Developments
On October 28, 2024, Profire Energy entered into an Agreement and Plan of Merger with CECO Environmental Corp. This agreement facilitates the acquisition of Profire Energy in a two-step all cash transaction with a tender offer price of $2.55 per share.
Stock Performance
The stock performance of Profire Energy, Inc. (PFIE) has seen fluctuations, with the average price per share around $2.55 as of the latest tender offer announcement. The share price has experienced significant volatility throughout 2024.
Profire Energy, Inc. (PFIE) Mission Statement
Company Overview
Profire Energy, Inc. is a leading provider of technology solutions designed to optimize combustion processes, primarily in the oil and gas industry. The company aims to enhance operational efficiency, safety, and environmental compliance through innovative burner management and combustion control technologies.
Mission Statement
As of 2024, Profire Energy, Inc. articulates its mission as follows: "To provide innovative solutions that enhance the safety and efficiency of combustion processes, while reducing emissions and improving environmental performance." This statement encapsulates the company's commitment to technological advancement and sustainability in energy production.
Financial Performance
In the third quarter of 2024, Profire Energy reported total revenues of $17,197,953, representing a 15% increase compared to the same quarter in 2023. The breakdown of revenue sources includes:
| Revenue Category | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Sales of Products | $16,017,224 | $14,085,028 | +13.8% |
| Sales of Services | $1,180,729 | $858,871 | +37.5% |
| Total Revenue | $17,197,953 | $14,943,899 | +15.0% |
Gross Profit and Operating Expenses
For the third quarter of 2024, the gross profit margin was 48.2%, which reflects a decline from 50.0% in Q3 2023. Operating expenses for the same period were reported at $5,531,603, up from $4,933,479 year-over-year. The increase is attributed to higher headcount and inflationary pressures.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Gross Profit | $8,281,755 | $7,477,084 | +10.7% |
| Operating Expenses | $5,531,603 | $4,933,479 | +12.1% |
| Net Income | $2,182,637 | $2,039,390 | +7.0% |
Investment and Market Position
Profire Energy has made strategic investments in diversifying its revenue streams, particularly in midstream operations and non-oil and gas sectors. As of September 30, 2024, diversified revenue accounted for 26% of total revenue, up from 17% in the prior year. The average oil price during Q3 2024 was $76.44 per barrel, down from $82.26 in the same period last year, impacting the legacy business but showing resilience in demand for Profire's products.
Liquidity and Capital Resources
As of September 30, 2024, Profire Energy reported a working capital of $39,726,996, compared to $35,377,246 at December 31, 2023. The company’s total assets stood at $69,601,892, with stockholders' equity at $61,731,761. The breakdown of liabilities includes:
| Liability Type | Amount (as of Sept 30, 2024) |
|---|---|
| Current Liabilities | $7,575,020 |
| Long-Term Liabilities | $295,111 |
| Total Liabilities | $7,870,131 |
Conclusion of Financial Position
Profire Energy's mission to enhance combustion efficiency and reduce emissions is supported by a solid financial foundation, ongoing revenue growth, and strategic investments in new sectors. The company's financial metrics reflect its resilience and adaptability in a fluctuating energy market.
How Profire Energy, Inc. (PFIE) Works
Business Model
Profire Energy, Inc. operates primarily in the oil and gas industry, focusing on burner management solutions that enhance safety and efficiency in combustion processes. The company integrates its technology into various applications to reduce emissions and improve operational safety.
Financial Performance
For the quarter ended September 30, 2024, Profire reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $17,197,953 | $14,943,899 | $2,254,054 | 15% |
| Gross Profit | $8,281,755 | $7,477,084 | $804,671 | 10.7% |
| Operating Expenses | $5,531,603 | $4,933,479 | $598,124 | 12.1% |
| Income from Operations | $2,750,152 | $2,543,605 | $206,547 | 8.1% |
| Net Income | $2,182,637 | $2,039,390 | $143,247 | 7% |
| Operating Cash Flow | $(6,908) | $885,573 | $(892,481) | (100.8)% |
Revenue Streams
The company's revenue streams include:
- Sales of products: $16,017,224
- Sales of services: $1,180,729
In terms of diversification, the revenue from non-oil and gas projects constituted 26% of total revenue in Q3 2024, up from 17% in Q3 2023.
Cost Structure
The cost of sales for the quarter was reported at $8,916,198, with the following breakdown:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales - Products | $7,881,956 | $6,666,949 |
| Cost of Sales - Services | $1,034,242 | $799,866 |
Operating Metrics
For the nine months ending September 30, 2024, the company reported:
| Metric | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $45,999,606 | $44,187,449 | $1,812,157 | 4.1% |
| Gross Profit Percentage | 49.8% | 51.4% | (1.6%) | (3.1)% |
| Operating Expenses | $15,819,316 | $13,651,321 | $2,167,995 | 15.9% |
| Net Income | $5,679,737 | $7,486,169 | $(1,806,432) | (24.1)% |
Working Capital and Liquidity
As of September 30, 2024, working capital stood at:
- Current Assets: $39,726,996
- Current Liabilities: $4,728,919
Cash flows from operating activities showed a negative cash flow of $222,740 for the nine-month period ending September 30, 2024, compared to positive cash flow of $2,668,232 in the same period of 2023.
Stockholder Equity
The total stockholders' equity as of September 30, 2024 was:
| Component | Amount |
|---|---|
| Common Stock | $53,690 |
| Additional Paid-In Capital | $33,675,391 |
| Retained Earnings | $41,882,140 |
| Treasury Stock | $(10,976,706) |
| Total Stockholders' Equity | $61,731,761 |
Recent Developments
On October 28, 2024, Profire Energy entered into a merger agreement with CECO Environmental Corp. for an all-cash transaction, signaling a significant strategic move for the company.
How Profire Energy, Inc. (PFIE) Makes Money
Revenue Streams
Profire Energy, Inc. generates revenue through the sale of products and services primarily related to burner management systems and combustion technologies. For the nine months ended September 30, 2024, total revenues amounted to $45,999,606, reflecting a 4.1% increase from $44,187,449 in the same period of 2023.
| Revenue Category | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales of Products, Net | $16,017,224 | $14,085,028 | $1,932,196 | 13.7% |
| Sales of Services, Net | $1,180,729 | $858,871 | $321,858 | 37.5% |
| Total Revenues | $17,197,953 | $14,943,899 | $2,254,054 | 15.1% |
Product Offerings
Profire Energy’s product offerings include burner management systems which are designed to improve safety and efficiency in industrial heat applications. The company also offers peripheral solutions that enhance the functionality of its primary products.
Diversified Revenue Streams
In the third quarter of 2024, diversified revenue accounted for 26% of total revenue, up from 17% in the same quarter of the previous year. This growth is attributed to projects outside traditional oil and gas operations, particularly in midstream plant operations.
Financial Performance
Profire Energy reported a net income of $5,679,737 for the nine months ended September 30, 2024, down from $7,486,169 in 2023, primarily due to increased operating expenses.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $2,182,637 | $2,039,390 |
| Income from Operations | $2,750,152 | $2,543,605 |
| Operating Expenses | $5,531,603 | $4,933,479 |
| Gross Profit | $8,281,755 | $7,477,084 |
Cost Structure
Total operating expenses for the nine months ended September 30, 2024, were $15,819,316, a 15.9% increase from $13,651,321 in the prior year. This increase was driven by headcount growth and inflationary pressures across the business.
Market Conditions
In Q3 2024, the average oil price was $76.44 per barrel compared to $82.26 in the same quarter of 2023. Despite lower oil prices, demand for Profire products remained strong, contributing to revenue growth.
Operating Cash Flow
For the quarter ended September 30, 2024, Profire reported an operating cash flow of ($6,908), a decline from $885,573 in the same period of 2023, largely due to fluctuations in net income and working capital balances.
| Operating Cash Flow | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Cash Flow | ($6,908) | $885,573 |
Stock Performance
As of September 30, 2024, Profire had a weighted average number of shares outstanding of 46,809,342 shares, with a basic earnings per share of $0.05 compared to $0.04 in Q3 2023.
Conclusion of Financial Metrics
Overall, Profire Energy, Inc. is focusing on diversifying its revenue streams while managing operating costs to maintain profitability amid fluctuating market conditions.
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Resources:
- Profire Energy, Inc. (PFIE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Profire Energy, Inc. (PFIE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Profire Energy, Inc. (PFIE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.