Exhibit 99.1

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Profire Energy Reports Financial Results for Fiscal Third Quarter of 2016

Company Recognizes Quarterly Profit and Positive Cash Flow Amid Difficult Industry Conditions; Fiscal 2016 Guidance Reiterated

LINDON, Utah, February 8, 2016 - Profire Energy, Inc. (NASDAQ: PFIE), a technology company which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for its fiscal third quarter ended December 31, 2015. A conference call will be held on Tuesday, February 9, 2016 at 1:00 p.m. EST to discuss the results.

Fiscal Q3 2016 Highlights

Fiscal Q3 2016 Financial Results

 

Total revenues in the third fiscal quarter of 2016 decreased 40%, compared to the same quarter last year. The decline was a result of decreased oilfield purchasing which could persist for some time. Based on the current industry environment, and near-term commodity price expectations, the Company does not anticipate improvement in customer purchasing in the short-term. Although facing a difficult market, the Company is determined to position itself to capture the greatest amount of revenue in both the short- and long-terms.

Gross profit decreased during the quarter to $4.0 million or 53% of total revenues, compared to $6.5 million or 52% of total revenues in the same year-ago quarter.

Total operating expenses decreased to $3.5 million or 46% of total revenues from $4.7 million or 38% of total revenues in the same year-ago quarter. Cost management has been a significant Company focus over the last few periods and will continue to be an emphasis for the foreseeable future. The Company has been successful in its expense-reduction measures and will continue to work toward maximizing efficiency.

Net income was $478,799 or $0.01 per diluted share, compared to net income of $1.9 million or $0.04 per diluted share in the same year-ago quarter.

Cash and cash equivalents totaled $19.3 million, an increase of more than $5.1 million compared to prior year-end. The Company continues to generate cash flow from operating activities, which will remain a focus in future periods.

First Nine-Months of Fiscal 2016 Financial Results

Total revenues in the first nine-months of fiscal 2016 decreased 46% to $22.5 million from $41.4 million in the same year-ago period.

Gross profit decreased to $11.3 million or 50% of total revenues, compared to $22.5 million or 55% of total revenues in the same period last year.

Total operating expenses decreased to $10.7 million or 48% of total revenues from $14.1 million or 34% of total revenues in the first nine-months of fiscal 2016.

Net income was $0.8 million or $0.01 per diluted share, compared to a net income of $6.2 million or $0.12 per diluted share in the same year-ago period.

Management Commentary

"Unquestionably the industry is enduring a period of significant volatility," said Brenton Hatch, President and CEO of Profire Energy. "We continue to anticipate a challenging calendar year. However, I'm pleased with our ability to remain profitable amid the difficult market headwinds. Our focus continues to be on improving cost management. We have made momentous changes to our cost structure over the last several periods and will continue to look for opportunities to reduce expenses without damaging the long-term strategy of the Company. We believe this strategic approach, coupled with the internal talent and resources we have, will position us to weather the storm and become a flexible, more efficient Company."

Date: Tuesday, February 9, 2016

Time: 1:00 p.m. EST (11:00 a.m. MST)

Toll-free dial-in number: 1-855-327-6837

International dial-in number: 1-631-891-4304

The conference call will also be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=118100.

If you have any difficulty connecting with the call, please contact Tanner Lamb at 1-801-796-5127.

A telephone replay of the call will be available after 8:00 p.m. EST on the same day through February 16, 2016

About 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 and chemical management systems are becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Victoria, Texas; Oklahoma City, Oklahoma; Tioga, Pennsylvania; Greeley, Colorado; and Edmonton, 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 Fiscal 2016 Guidance being reiterated; or, the Company holding a conference call on February 9, 2016 regarding Q3 fiscal results; or, the Company's ability to remain profitable; or, the Company finding ways to reduce expenses without damaging the long-term strategy of the Company; or, the Company being able to weather the industry's current volatility and become a flexible, more efficient Company; or, the Company being able to continue operating debt-free; or, the Company being able to generate positive cash flow; or, the conference call being available for replay until February 16, 2016. 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 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.

Tanner Lamb, Finance and Investor Relations

(801) 796-5127

PART I. FINANCIAL INFORMATION
Item 1 Financial Information
PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
ASSETS
		December 31,				March 31,
		2015				2015
		(unaudited)
CURRENT ASSETS
Cash and cash equivalents		$	19,281,501			$	14,144,796
Accounts receivable, net			6,515,543				9,462,378
Inventories			10,840,598				11,766,535
Income tax receivable			113,978				-
Prepaid expenses & other current assets			312,547				112,741
Total Current Assets			37,064,167				35,486,450
LONG-TERM ASSETS
Deferred tax asset			669,895				501,921
PROPERTY AND EQUIPMENT, net			8,449,492				9,275,965
OTHER ASSETS
Goodwill			997,701				997,701
Intangible assets, net of accumulated amortization			501,490				594,019
Total Other Assets			1,499,191				1,591,720
TOTAL ASSETS		$	47,682,745			$	46,856,056
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	1,379,019			$	1,040,530
Accrued liabilities			594,236				332,229
Income taxes payable			396,089				347,486
Total Current Liabilities			2,369,344				1,720,245
LONG-TERM LIABILITIES
Deferred income tax liability			616,735				631,353
TOTAL LIABILITIES			2,986,079				2,351,598
STOCKHOLDERS' EQUITY
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding			-				-
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,255,275 and 53,199,136 shares issued and outstanding, respectively			53,255				53,199
Additional paid-in capital			26,152,201				25,525,052
Accumulated other comprehensive income (loss)			(3,122,872	)			(1,888,981	)
Retained earnings			21,614,082				20,815,188
Total Stockholders' Equity			44,696,666				44,504,458
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	47,682,745			$	46,856,056

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
(unaudited)
		For the Three Months Ended								For the Nine Months Ended
		December 31,								December 31,
		2015				2014				2015				2014
REVENUES
Sales of goods, net		$	6,515,584			$	11,695,016			$	20,019,400			$	38,640,246
Sales of services, net			1,038,671				821,683				2,509,392				2,742,219
Total Revenues			7,554,255				12,516,699				22,528,792				41,382,465
COST OF SALES
Cost of goods sold-product			2,833,909				5,299,912				9,247,014				16,837,531
Cost of goods sold-services			722,288				674,192				1,941,819				2,015,796
Total Cost of  Goods Sold			3,556,197				5,974,104				11,188,833				18,853,327
GROSS PROFIT			3,998,058				6,542,595				11,339,959				22,529,138
OPERATING EXPENSES
General and administrative expenses			1,800,491				2,446,896				5,439,067				7,722,366
Research and development			348,874				521,814				948,508				1,331,834
Payroll expenses			1,230,022				1,591,397				3,952,447				4,624,826
Depreciation and amortization expense			128,793				176,371				374,247				424,014
Total Operating Expenses			3,508,180				4,736,478				10,714,269				14,103,040
INCOME FROM OPERATIONS			489,878				1,806,117				625,690				8,426,098
OTHER INCOME (EXPENSE)
Interest expense			-				(14,222	)			-				(14,222	)
Gain on disposal of fixed assets			-				9,052				19,391				9,052
Other (expense) income			177,931				(910	)			421,251				1,954
Interest income			5,217				6,687				31,857				14,467
Total Other Income (Expense)			183,148				607				472,499				11,251
NET INCOME BEFORE INCOME TAXES			673,026				1,806,724				1,098,189				8,437,349
INCOME TAX EXPENSE (BENEFIT)			194,227				(110,426	)			299,295				2,221,292
NET INCOME		$	478,799			$	1,917,150			$	798,895			$	6,216,057
FOREIGN CURRENCY TRANSLATION GAIN (LOSS)		$	(482,744	)		$	(381,099	)		$	(1,233,891	)		$	(539,777	)
TOTAL COMPREHENSIVE INCOME (LOSS)		$	(3,945	)		$	1,536,051			$	(434,997	)		$	5,676,280
BASIC EARNINGS PER SHARE		$	0.01			$	0.04			$	0.02			$	0.12
FULLY DILUTED EARNINGS PER SHARE		$	0.01			$	0.04			$	0.01			$	0.12
BASIC WEIGHTED AVERAGE NUMBEROF SHARES OUTSTANDING			53,255,275				52,884,358				53,239,087				51,112,924
FULLY DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING			53,523,081				53,161,058				53,506,778				51,389,624

 

 

These financial statements should be read in conjunction with forms 10-Q and 10-K and accompanying footnotes.

 

 

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