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AGENDA
1. Profire Introduction
2. BMS Introduction
3. Three “P”’s
4. Product Overview
5. Service Overview
6. Why Profire?
7. Financials
The International Business Times ranked Profire Energy, Inc. as one of the fastest-growing companies in the world (IBT 2012)…find out why:
Certain statements contained herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or achievements of the
Company to be materially different from those expressed or implied. Forward-
looking statements involve risks and uncertainties, including but not limited to,
such risks as are described in the Company's SEC filings and reports.
FORWARD-LOOKING STATEMENTS
AN INTRODUCTION TO PROFIRE
Profire Energy, Inc. is a leading provider of burner management systems.
• Profire Energy, Inc. (OTCBB: PFIE) is a leader in the manufacturing, installing, and servicing of oilfield combustion management systems and related burner products to oil and gas companies
• Our products aid oil and natural gas producers worldwide by providing reliable management and ignition of combustion burners and associated vessels. The efficiency of these vessels is crucial to these producers
• Maintaining these vessels is costly and dangerous. Profire’s technology automates the process --saving lives and money
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
A SNAPSHOT OF PROFIRE’S ENVIRONMENT
Profire provides valuable products to some of the largest companies in the world.
Our clients range from small producers to major multinationals like Exxon-Mobile, Husky Oil, Devon Energy Shell, Conoco-Phillips, and others
The industry is growing rapidly, is fragmented, and could be further consolidated
Profire’s products fill a critical void as the oil industry faces mounting pressure to improve safety, meet environmental standards, and increase efficiency
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
WHAT IS A BURNER MANAGEMENT SYSTEM?
Burner management systems (BMS) are used to heat and monitor the temperature of the vessels used for heating oil & natural gas during processing. Profire’s BMS acts as a “thermostat,” by controlling the burner to maintain the temperature of the vessel within programmed parameters. Profire’s BMS can be used in various applications.”
These thermocouples measure the temperature of the liquid inside the vessel and report it electronically to the main system control
The Profire 1100/2100 then regulates temperature by adjusting the burn of the system
Without a BMS, burners must be lit manually through this hole, which is usually done by soaking a rag in a flammable liquid, lighting it on fire and inserting it into the hole with a stick. Profire’s BMS allows for remote electronic ignition of the burner
Profire’s burner management systems help optimize combustion, lower costs, and improve safety.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
THE 3 PROS OF THE PROFIRE SOLUTION
1) PROMOTE WORKER SAFETY
2) PROTECT OUR ENVIRONMENT
3) PRODUCE INCREASED PROFITABILITY
Profire’s products help our customers improve their business in three main areas.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
PROMOTE WORKER SAFETY
• The maintenance of oil and gas machinery can pose serious safety risks to employees
• Profire Energy’s technology eliminates certain dangerous procedures (such as the rag-and-stick method of manual ignition) around oil and gas wells, improving worker safety and complying with OSHA regulations
• Profire’s technology automatically alerts operators of dangerous changes in temperature and combustion conditions
Profire’s products reduce the risks to employees in igniting & maintaining systems.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
PROTECT OUR ENVIRONMENT
• Profire provides oil and gas companies throughout the world with state-of-the-art technology that meets US EPA standards. Additionally, Profire optimizes efficiency by decreasing waste heat, fuel consumption, and natural gas emissions
• Regulatory enforcement is expected to become more stringent, with both compliance and enforcement reflecting these initiatives—this will result in increasingly costly fines
Profire’s products meet or exceed current environmental regulatory standards.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
PRODUCE INCREASED PROFITABILITY
Our products minimize costs and maximize efficiency (e.g. less manual labor to maintain a system), and often pay for themselves in a few months—or even weeks
Profire also optimizes efficiency by decreasing waste heat and fuel consumption. Installation of Profire products can increase the efficiency of various vessels and applications.
Many Profire products even allow remote wireless monitoring and management, thereby minimizing downtime and outages in burner management
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
Automated burn management (and ignition) means lower costs and more profit for our users.
PROFIRE 1100 BMS
Profire 1100: Tried and tested, the Profire 1100 Burner Management System has proven itself in the oil industry, providing reliable service to thousands of satisfied customers
It has become a valuable controller of many natural-draft burners in the industry
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
The PF1100 revolutionized the industry and helped establish Profire as an industry leader.
PROFIRE 2100 BMS
Profire 2100: The Profire 2100 Burner Management System is an accumulation of our years of experience and research. It is the latest, cutting-edge model in a proven line of burner controllers
The 2100 exceeds the industry standards for burner control
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
The PF2100 is a powerful, efficient, and robust BMS that is used throughout the industry.
PROFIRE 1300 FIS
The PF1300 is a dedicated, reliable and new system for combustor and open-flare applications.
Profire 1300: The Profire 1300 Flare Ignition System is designed specifically for use in combustor and open-flare applications.
The system monitors flame presence and provides reliable re-ignition, giving the user 24-hour dependability.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
PROFIRE CRESCENT-SHUTTERED AIRPLATE
Crescent-shuttered Airplate: While most systems provide little (or no) flexibility in modifying the airflow, our patent-pending design allows significant versatility in how much air flows into the vessel—yielding greater burner efficiencies.
Our proprietary airplate sets a new standard in airflow management.
The crescent-shuttered airplate facilitates efficient airflow into firetube vessels.
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
FIELD SERVICE
• With nearly three decades of combined experience, our service team is experienced and fast
• Our consistent 24-hour service, coupled with anytime technical support, offers great value for our customers during installation, maintenance, and monitoring of their natural-draft burner system
• Our field service helps improve our products by providing real-time feedback to our engineering teams—helping us stay on the cutting-edge of the industry
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
Profire couples innovative products with exceptional service—creating great value for users.
PROFIRE TODAY--GROWTH
For FYE March 31, 2012, Profire reported yet another year of profitable, organic growth
For fiscal year ending March 31, 2012, Profire Energy reported:
Net income (before income taxes): of $4,351,222 which represents an 88 percent increase from the previous year
Revenues: rose to $15,925,213 which represents a 98 percent increase for the same period
Major Growth Initiatives: 1) Profire recently opened a new office in Houston, TX and expanded its headquarters in Utah. 2) The company opened a new distribution channel in Brazil. 3) A PR firm was hired to consult on our marketing/PR initiatives. 4) An investment bank was consulted to advise on financial growth .
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
PROFIRE TODAY—GROWTH (CT’D)
Profire has a history of strong financial performance. Our plans focus on continued growth, more products, significant international expansion, and profitability.
Profire in the Future:
Expand domestic operations with new distribution agreements and sales channels
Expand international operations into new markets and countries
Engineer new technologies for a larger product line
Protect our intellectual property as new products are developed
Target accretive acquisition candidates to expand product lines and consolidate markets
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
SUMMARY: WHY PROFIRE?
While safety and environmental concerns are valid issues in the industry, the financial impact of injured workers or environmental damage is too great to be ignored. Profire Energy is uniquely positioned within the oil and gas industry to:
Improve worker safety
Improve environmental safety and perceptions
Increase user profitability
…all while reducing financial, regulatory, and litigation risk—ultimately improving the return on invested capital
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
Profire’s profitability and market position give us a strong outlook for the future.
FINANCIAL METRICS AS OF DEC. 7, 2012
(FINANCIAL STATEMENT INFO DRAWN FROM FY 2012)
Price: $1.39
Market Capitalization: (mil)
$62.76
Shares Outstanding: (mil)
≈ 45
Options Outstanding:
NA
Current Cash & ST Investments: (mil)
$2.64
Stock Symbol PFIE.OB (OTCBB)
Auditor Sadler, Gibb & Associates
Cash: $1,914
Working Capital: $6,649
Current Ratio: 5.45
Long-Term Obligations:
NA
LT Debt To Equity Ratio:
NA
Corporate Profile:
Balance Sheet:
Revenues: $15,925
Cost of Revenues: $4,385.1
Gross Profit: $6,887.9
Gross Margin(%): 43%
Operating Income: $4,367
Operating Margin(%): 27%
Net Income: $3,187
Net Margin(%): 20%
Income Statement:
Mar 11 Mar 10 Mar 09 Mar 08
Revenues 8,033.9 5,912.4 6,257.3 4,352.5
Expenses 5,724.9 4,188.3 4,923.2 3,998.6
Pre-tax Gain
2,312.7 1,723.5 1,334.1 353.9
Net Gain 1,626.5 1,279.3 875.1 293.5
EPS .04 .03 .02 .01
Historical P&L Data:
Profire Introduction -- BMS Introduction -- 3P’s -- Product Overview -- Service Overview -- Why Profire? -- Financials
Profire’s financial strength is proven in its financial statements and stock growth.
CONTACT INFORMATION
For more information, see our SEC filings, website, journal/media articles, or contact us.
If you’d like to speak with a representative, please contact AMP Investor Relations SVP Kelly Runfola :
Profire Energy Investor Relations
Kelly Runfola – Acorn Management Partners LLC
Email: [email protected]
Phone: (678)-736-5688
Website: www. ProfireEnergy.com
Address: 321 South 1250 West
Lindon, UT 84042
