Profire Energy (PFIE) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.60 million, or $ 0.01 a share in the quarter, against a net loss of $0.76 million, or $0.01 a share in the last year period.
Revenue during the quarter surged 72.21 percent to $7.82 million from $4.54 million in the previous year period. Gross margin for the quarter expanded 520 basis points over the previous year period to 55.81 percent. Operating margin for the quarter period stood at positive 13.69 percent as compared to a negative 14.66 percent for the previous year period.
Operating income for the quarter was $1.07 million, compared with an operating loss of $0.67 million in the previous year period.
"We remain a market leader in the burner management industry and are positioning ourselves for continued growth. Our cash position allows us to remain flexible and make strategic investments both internally and externally," said Brenton Hatch, president and chief executive officer of Profire Energy. "In an effort to continue to deliver reliable and innovative products to our customers, our R&D team is developing products that we believe will add significant future value to Profire. Our first quarter exceeded our expectations as we were able to see an increase in revenue and maintain our cost structure. The strength of our balance sheet has been a key enabler of the strategic accomplishments of Profire and we believe we are well positioned for future growth."
Operating cash flow improves significantly
Profire Energy has generated cash of $1.96 million from operating activities during the quarter, up 26.54 percent or $0.41 million, when compared with the last year period.
The company has spent $0.52 million cash to meet investing activities during the quarter as against cash inflow of $0.04 million in the last year period.
Cash and cash equivalents stood at $10.46 million as on Mar. 31, 2017, down 50.88 percent or $10.83 million from $21.29 million on Mar. 31, 2016.
Working capital declines
Profire Energy has witnessed a decline in the working capital over the last year. It stood at $27.07 million as at Mar. 31, 2017, down 23.10 percent or $8.13 million from $35.21 million on Mar. 31, 2016. Current ratio was at 11.04 as on Mar. 31, 2017, down from 20.03 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 273 days for the quarter from 500 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 88 days for the same period last year.
Days inventory outstanding has decreased to 248 days for the quarter compared with 448 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 36 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
