Profire Energy, Inc. reported its financial results for the nine months ended September 30, 2024, showing a modest increase in total revenue but a decline in profitability compared to the same period in 2023. Total revenue for the nine months reached $45.999 million, a 4.1% increase from $44.187 million in the prior year. In the third quarter alone, revenue was $17.198 million, reflecting a 15% increase from $14.944 million in Q3 2023.
Despite the revenue growth, net income for the nine months fell to $5.680 million, down 24.1% from $7.486 million in the same period last year. The decline in profitability was attributed to increased operating expenses, which rose by 15.9% due to headcount increases and inflationary pressures. Income from operations also decreased significantly, totaling $7.079 million compared to $9.073 million in the previous year, marking a 22% decline.
The company’s gross profit margin decreased by 1.6% for the nine-month period, primarily due to changes in product mix. Operating cash flow turned negative at $(222,740), a stark contrast to the $2.668 million generated in the same period of 2023. The average oil price per barrel increased slightly to $78.57 from $77.27, which may have influenced revenue dynamics.
In terms of strategic developments, Profire Energy entered into a merger agreement with CECO Environmental Corp. on October 28, 2024, involving an all-cash acquisition. The acquisition will proceed through a cash tender offer at $2.55 per share, followed by a merger, with Profire continuing as the surviving entity. This move is part of the company's strategy to enhance its market position and operational capabilities.
The company also reported an increase in diversified revenue, which constituted nearly 18% of total revenue for the nine months, up from 11% in the prior year. This indicates a strategic shift towards expanding its market reach beyond traditional oil and gas sectors.
As of September 30, 2024, Profire held $16.887 million in cash and investments, reflecting a solid liquidity position, and working capital increased to $39.727 million from $35.377 million at the end of 2023. The company continues to focus on enhancing its burner-management products and services, primarily for the oil and gas industry, while exploring opportunities in other sectors.
About PROFIRE ENERGY INC
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