LINDON, Utah, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Profire Energy, Inc. (NASDAQ: PFIE), a technology company (the “Company”) which creates, installs and services burner and chemical management solutions in the oil and gas industry, today reported financial results for its fiscal quarter ended June 30, 2018. A conference call will be held on Thursday, August 9, 2018 at 1:00 p.m. EDT to discuss the results.

Fiscal Q2 2018 Highlights

-- Recognized Revenue of $11.3 million, The Second-Best Quarter in 9 Fiscal Quarters -- Net Income of $1.7 Million or $0.04 Per Share, a 31% Increase From the Same Quarter Last Year -- Realized Gross Profit of $5.9 Million -- Cash and Liquid Investments at Period End totaled over $21 Million -- Remained Debt-Free

Fiscal Quarter Financial Results Total revenues for the period equaled $11.3 million or a 20% increase from the same quarter a year ago. This increase is largely attributed to our ability to leverage our expanding customer base. Total operating expenses were approximately $3.8 million or a 21% increase over the same quarter last year which was highly attributable to the growth in staff and additional R&D spend. Compared with the same year ago quarter, operating expenses for general and administrative increased 23%, R&D increased 15%, and depreciation decreased slightly.

Gross profit increased to $5.9 million or 52.1% of total revenues, as compared to $5 million or 52.6% of total revenues in the year-ago quarter. Gross profit margins fluctuate slightly each quarter due to product mix changes, increased direct labor costs, and adjustments in our inventory and warranty reserves.

Net income was $1.7 million or $0.04 per share, compared to a net income of $1.3 million or $0.03 per share in the same year-ago quarter.

Cash and liquid investments totaled over $21 million at the end of the quarter and the Company continues to operate debt-free.

Management Commentary

“We continually seek opportunities that can help further our strategic goals and currently have the resources and balance sheet to make investments that we believe will be beneficial to Profire and its shareholders,” stated Ryan Oviatt, CFO of Profire. “Our management team remains focused on allocating spending to meet market demand and to accelerate growth potential. We have focused our investment in R&D over the past year as we believe the new SIL certification, which allows us to enter new markets that we could not previously serve, and product enhancements will be significant drivers for future growth.”

“In addition, we continue to look at merger and acquisition opportunities that will complement our existing product offerings and leverage our sales force and customer base,” said Brenton Hatch, President and CEO of Profire Energy. “We have a renewed focus on automation, including the exploration of the internet-of-things capabilities, and other technologies that could be used within our market. These adjacent technologies could allow Profire to become a leader in not only burner management but in a variety of processes within our industry.”

Conference Call

Profire Energy President and CEO Brenton Hatch and CFO Ryan Oviatt will host the presentation, followed by a question and answer period. Date: Thursday, August 9, 2018 Time: 1:00 p.m. EDT (11:00 a.m. MDT) Toll-free dial-in number: 1-877-705-6003 International dial-in number: 1-201-493-6725 The conference call will be webcast live and available for replay via this link: http://public.viavid.com/index.php?id=130900. 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 Todd Fugal at 1-801-796-5127. A replay of the call will be available via the dial-in numbers below after 5:00 p.m. EDT on the same day through August 16, 2018. Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay Pin Number: 13682308

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 management and chemical injection systems are increasingly becoming part of their solution. Profire Energy has offices in Lindon, Utah; Houston, Texas; Homer, Pennsylvania; Greeley, Colorado; and Spruce Grove, 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 holding a conference call on August 9,2018, regarding the financial quarter results; and the ability of the Company to support growth. 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, CFO(801) 796-5127

Three Part AdvisorsSteven Hooser, Partner214-872-2710

PROFIRE ENERGY, INC. AND SUBSIDIARIES ---------------------------------------------------------------------------------------------------------- Condensed Consolidated Balance Sheets ---------------------------------------------------------------------------------------------------------- As of ---------------------------------------------------------------------------- ---------------------------- June 30, December 31, 2018 2017 ---------------------------------------------------------------------------- ------------- ------------- (Unaudited) ---------------------------------------------------------------------------- ------------- ------------- CURRENT ASSETS ---------------------------------------------------------------------------- ------------- ------------- Cash and cash equivalents $9,298,677 $11,445,799 ---------------------------------------------------------------------------- ----------- - ----------- - Short-term investments 531,248 300,817 ---------------------------------------------------------------------------- ----------- - ----------- - Short-term investments - other 3,788,507 4,009,810 ---------------------------------------------------------------------------- ----------- - ----------- - Accounts receivable, net 7,311,689 8,069,255 ---------------------------------------------------------------------------- ----------- - ----------- - Inventories, net 8,281,125 6,446,083 ---------------------------------------------------------------------------- ----------- - ----------- - Prepaid expenses & other current assets 350,260 437,304 ---------------------------------------------------------------------------- ----------- - ----------- - Income tax receivable 191,369 — ---------------------------------------------------------------------------- ----------- - ----------- - Total Current Assets 29,752,875 30,709,068 ---------------------------------------------------------------------------- ------------- ------------- LONG-TERM ASSETS ---------------------------------------------------------------------------- ------------- ------------- Net deferred tax asset — 72,817 ---------------------------------------------------------------------------- ----------- - ----------- - Long-term investments 8,024,247 8,517,182 ---------------------------------------------------------------------------- ----------- - ----------- - Long-term investments - other — — ---------------------------------------------------------------------------- ----------- - ----------- - Property and equipment, net 7,801,954 7,197,499 ---------------------------------------------------------------------------- ----------- - ----------- - Goodwill 997,701 997,701 ---------------------------------------------------------------------------- ----------- - ----------- - Intangible assets, net 459,229 494,792 ---------------------------------------------------------------------------- ----------- - ----------- - Total Long-Term Assets 17,283,131 17,279,991 ---------------------------------------------------------------------------- ------------- ------------- TOTAL ASSETS $47,036,006 $47,989,059 ---------------------------------------------------------------------------- ------------- ------------- CURRENT LIABILITIES ---------------------------------------------------------------------------- ------------- ------------- Accounts payable 1,872,095 1,780,977 ---------------------------------------------------------------------------- ----------- - ----------- - Accrued vacation 257,149 196,646 ---------------------------------------------------------------------------- ----------- - ----------- - Accrued liabilities 1,048,487 1,044,284 ---------------------------------------------------------------------------- ----------- - ----------- - Income taxes payable 325,272 919,728 ---------------------------------------------------------------------------- ----------- - ----------- - Total Current Liabilities 3,503,003 3,941,635 ---------------------------------------------------------------------------- ------------- ------------- LONG-TERM LIABILITIES ---------------------------------------------------------------------------- ------------- ------------- Net deferred income tax liability 19,073 — ---------------------------------------------------------------------------- ------------- ------------- TOTAL LIABILITIES 3,522,076 3,941,635 ---------------------------------------------------------------------------- ------------- ------------- STOCKHOLDERS’ EQUITY ---------------------------------------------------------------------------- ------------- ------------- Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares — — issued or outstanding ---------------------------------------------------------------------------- ----------- - ----------- - Common shares: $0.001 par value, 100,000,000 shares authorized: 54,685,119 issued and 48,082,423 outstanding at June 30, 2018 and 53,931,167 issued and 54,685 53,931 48,606,425 outstanding at December 31, 2017 ---------------------------------------------------------------------------- ----------- - ----------- - Treasury stock, at cost (10,890,349 ) (6,890,349 ) ---------------------------------------------------------------------------- ----------- - ----------- - Additional paid-in capital 27,828,804 27,535,469 ---------------------------------------------------------------------------- ----------- - ----------- - Accumulated other comprehensive loss (2,618,543 ) (2,200,462 ) ---------------------------------------------------------------------------- ----------- - ----------- - Retained earnings 29,139,333 25,548,835 ---------------------------------------------------------------------------- ----------- - ----------- - TOTAL STOCKHOLDERS’ EQUITY 43,513,930 44,047,424 ---------------------------------------------------------------------------- ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $47,036,006 $47,989,059 ---------------------------------------------------------------------------- ----------- - ----------- -

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 Operations and Other Comprehensive Income -------------------------------------------------------------------------------------------------------------- (Unaudited) -------------------------------------------------------------------------------------------------------------- For the Three Months For the Six Months Ended Ended June 30, June 30, ------------------------------------------------------- ------------------------- -------------------------- 2018 2017 2018 2017 ------------------------------------------------------- ------------- ---------- ------------- ----------- REVENUES ------------------------------------------------------- ------------- ---------- ------------- ----------- Sales of goods, net $10,724,409 $8,834,650 $22,179,024 $16,126,879 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Sales of services, net 615,352 630,301 1,330,454 1,162,568 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Total Revenues 11,339,761 9,464,951 23,509,478 17,289,447 ------------------------------------------------------- ------------- ---------- ------------- ----------- COST OF SALES ------------------------------------------------------- ------------- ---------- ------------- ----------- Cost of goods sold-product 4,959,539 4,035,528 10,517,249 7,090,828 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Cost of goods sold-services 471,555 452,591 953,422 854,613 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Total Cost of Goods Sold 5,431,094 4,488,119 11,470,671 7,945,441 ------------------------------------------------------- ------------- ---------- ------------- ----------- GROSS PROFIT 5,908,667 4,976,832 12,038,807 9,344,006 ------------------------------------------------------- ------------- ---------- ------------- ----------- OPERATING EXPENSES ------------------------------------------------------- ------------- ---------- ------------- ----------- General and administrative expenses 3,364,826 2,739,055 6,706,726 5,682,368 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Research and development 317,002 275,776 720,221 479,520 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Depreciation and amortization expense 129,070 130,838 257,787 279,913 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Total Operating Expenses 3,810,898 3,145,669 7,684,734 6,441,801 ------------------------------------------------------- ------------- ---------- ------------- ----------- INCOME FROM OPERATIONS 2,097,769 1,831,163 4,354,073 2,902,205 ------------------------------------------------------- ------------- ---------- ------------- ----------- OTHER INCOME (EXPENSE) ------------------------------------------------------- ------------- ---------- ------------- ----------- Gain on sale of fixed assets 21,254 46,374 86,085 48,476 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Other income (expense) (4,164 ) 18,798 (5,956 ) 13,385 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Interest income 174,771 54,840 225,479 86,118 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Total Other Income 191,861 120,012 305,608 147,979 ------------------------------------------------------- ------------- ---------- ------------- ----------- INCOME BEFORE INCOME TAXES 2,289,630 1,951,175 4,659,681 3,050,184 ------------------------------------------------------- ------------- ---------- ------------- ----------- INCOME TAX EXPENSE 575,363 638,528 1,069,183 1,137,465 ------------------------------------------------------- ------------- ---------- ------------- ----------- NET INCOME $1,714,267 $1,312,647 $3,590,498 $1,912,719 ------------------------------------------------------- ------------- ---------- ------------- ----------- OTHER COMPREHENSIVE INCOME (LOSS) ------------------------------------------------------- ------------- ---------- ------------- ----------- Foreign currency translation gain (loss) $(427,307 ) $238,543 $(394,072 ) $313,656 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Unrealized gains (losses) on investments 9,226 26,659 (24,009 ) 62,947 ------------------------------------------------------- ----------- - ---------- ----------- - ----------- Total Other Comprehensive Income (Loss) (418,081 ) 265,202 (418,081 ) 376,603 ------------------------------------------------------- ------------- ---------- ------------- ----------- NET COMPREHENSIVE INCOME $1,296,186 $1,577,849 $3,172,417 $2,289,322 ------------------------------------------------------- ------------- ---------- ------------- ----------- BASIC EARNINGS PER SHARE $0.04 $0.03 $0.07 $0.04 ------------------------------------------------------- ------------- ---------- ------------- ----------- FULLY DILUTED EARNINGS PER SHARE $0.03 $0.03 $0.07 $0.04 ------------------------------------------------------- ------------- ---------- ------------- ----------- BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 48,266,199 49,678,917 48,467,136 50,152,958 ------------------------------------------------------- ------------- ---------- ------------- ----------- FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING 49,095,575 50,283,144 49,237,938 50,757,185 ------------------------------------------------------- ----------- - ---------- ----------- - -----------

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 Six Months Ended June 30, --------------------------------------------------------------------------------- -------------------------- 2018 2017 --------------------------------------------------------------------------------- ------------ ------------ OPERATING ACTIVITIES --------------------------------------------------------------------------------- ------------ ------------ Net income $3,590,498 $1,912,719 --------------------------------------------------------------------------------- ---------- - ---------- - Adjustments to reconcile net income to net cash provided by operating activities: --------------------------------------------------------------------------------- ------------ ------------ Depreciation and amortization expense 442,959 458,293 --------------------------------------------------------------------------------- ---------- - ---------- - Gain on sale of fixed assets (76,703 ) (48,255 ) --------------------------------------------------------------------------------- ---------- - ---------- - Bad debt expense 141,348 121,015 --------------------------------------------------------------------------------- ---------- - ---------- - Stock awards issued for services 861,189 372,086 --------------------------------------------------------------------------------- ---------- - ---------- - Changes in operating assets and liabilities: --------------------------------------------------------------------------------- ------------ ------------ Changes in accounts receivable 548,419 (1,107,574 ) --------------------------------------------------------------------------------- ---------- - ---------- - Changes in income taxes receivable/payable (790,946 ) 1,327,884 --------------------------------------------------------------------------------- ---------- - ---------- - Changes in inventories (2,074,974 ) (646,870 ) --------------------------------------------------------------------------------- ---------- - ---------- - Changes in prepaid expenses 114,907 (205,781 ) --------------------------------------------------------------------------------- ---------- - ---------- - Changes in deferred tax asset/liability 91,890 (134,427 ) --------------------------------------------------------------------------------- ---------- - ---------- - Changes in accounts payable and accrued liabilities 274,744 716,436 --------------------------------------------------------------------------------- ---------- - ---------- - Net Cash Provided by Operating Activities 3,123,331 2,765,526 --------------------------------------------------------------------------------- ------------ ------------ INVESTING ACTIVITIES --------------------------------------------------------------------------------- ------------ ------------ Proceeds from sale of equipment 159,449 112,183 --------------------------------------------------------------------------------- ---------- - ---------- - Sale of investments 368,379 66,045 --------------------------------------------------------------------------------- ---------- - ---------- - Purchase of fixed assets (1,184,126 ) (181,566 ) --------------------------------------------------------------------------------- ---------- - ---------- - Net Cash Used in Investing Activities (656,298 ) (3,338 ) --------------------------------------------------------------------------------- ------------ ------------ FINANCING ACTIVITIES --------------------------------------------------------------------------------- ------------ ------------ Value of equity awards surrendered by employees for tax liability (736,160 ) (20,800 ) --------------------------------------------------------------------------------- ---------- - ---------- - Cash received in exercise of stock options 174,002 — --------------------------------------------------------------------------------- ---------- - ---------- - Purchase of Treasury stock (4,000,000 ) (2,840,932 ) --------------------------------------------------------------------------------- ---------- - ---------- - Net Cash Used in Financing Activities (4,562,158 ) (2,861,732 ) --------------------------------------------------------------------------------- ------------ ------------ Effect of exchange rate changes on cash (51,997 ) 94,403 --------------------------------------------------------------------------------- ------------ ------------ NET DECREASE IN CASH (2,147,122 ) (5,141 ) --------------------------------------------------------------------------------- ---------- - ---------- - CASH AT BEGINNING OF PERIOD 11,445,799 7,621,708 --------------------------------------------------------------------------------- ---------- - ---------- - CASH AT END OF PERIOD $9,298,677 $7,616,567 --------------------------------------------------------------------------------- ------------ ------------ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION --------------------------------------------------------------------------------- ------------ ------------ CASH PAID FOR: --------------------------------------------------------------------------------- ------------ ------------ Interest $— $— --------------------------------------------------------------------------------- ---------- - ---------- - Income taxes $1,691,397 $67,078 --------------------------------------------------------------------------------- ---------- - ---------- -

These financial statements should be read in conjunction with the Form 10-Q and accompanying footnotes