Profire(US:PFIE)2024-11-06 21:07Revenue Performance - Total revenues for the quarter ended September 30, 2024, increased by 15% or $2,254,054 compared to the same quarter in 2023, driven by diversified revenue streams [110]. - Total revenues for the nine months ended September 30, 2024, were $45,999,606, representing a 4.1% increase from $44,187,449 in the same period of 2023 [117]. - Average oil price per barrel increased to $78.57 in 2024 from $77.27 in 2023, contributing to revenue growth [117]. - Diversified revenue constituted 26% of total revenue in Q3 2024, up from 17% in the same quarter of the previous year [110]. - Diversified revenue streams accounted for nearly 18% of total revenue in 2024, up from 11% in 2023 [117]. Profitability - Gross profit margin for Q3 2024 was 48.2%, down 1.8% from the same quarter last year and down 3.6% from Q2 2024 [112]. - Gross profit percentage decreased to 49.8% from 51.4% year-over-year, a decline of 1.6% [118]. - Income from operations for Q3 2024 was $2,750,152, compared to $2,543,605 in the same quarter of 2023 [114]. - Net income for Q3 2024 was $2,182,637, an increase from $2,039,390 in the same quarter of 2023 [115]. - Net income for the nine months ended September 30, 2024, was $5,679,737, down 24.1% from $7,486,169 in the same period of 2023 [118]. Expenses and Cash Flow - Operating expenses for Q3 2024 increased by $598,124 compared to the same quarter last year, primarily due to headcount increases and cost inflation [113]. - Operating expenses rose by 15.9%, increasing from $13,651,321 to $15,819,316, primarily due to headcount increases and general cost inflation [118]. - The company used net operating cash of $6,908 in Q3 2024, compared to generating $885,573 in the same quarter of 2023 [116]. - Operating cash flow was negative at $(222,740) for the nine months ended September 30, 2024, compared to a positive cash flow of $2,668,232 in the same period of 2023, a decrease of 108.3% [118]. Market Expansion and Product Development - The company continues to expand its addressable market by completing installations of burner-management solutions in industries outside of oil and gas [97]. - The company’s burner-management systems are designed to comply with safety and industrial codes, enhancing operational efficiency and safety for customers [102]. Investment and Liquidity - Cash used in investing activities was $611,149 for property and equipment purchases during the nine months ended September 30, 2024 [120]. - Cash and investments held as of September 30, 2024, totaled $16,887,070, representing the company's core excess liquidity [120]. - Working capital as of September 30, 2024, was $39,726,996, an increase from $35,377,246 at December 31, 2023 [119].