Profire Energy, Inc. (PFIE) has reported a 90.44 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.07 million in the quarter, compared with $0.78 million for the same period last year. Revenue during the quarter plunged 38.36 percent to $4.99 million from $8.10 million in the previous year period. Gross margin for the quarter expanded 284 basis points over the previous year period to 52.59 percent. Operating margin for the quarter stood at negative 2.55 percent as compared to a positive 8.34 percent for the previous year period.
Operating loss for the quarter was $0.13 million, compared with an operating income of $0.68 million in the previous year period.
"We remain optimistic for our Company and believe we've positioned ourselves well." Said Brenton Hatch, president and chief executive officer of Profire Energy. "We have invested in R&D, implemented effective cost cutting strategies, taken advantage of the slowdown to more extensively train our personnel, focused on generating positive cash flow, and been able to grow our customer base. We believe these actions will enable us to emerge stronger than before the industry downturn began."
Operating cash flow drops significantly
Profire Energy, Inc. has generated cash of $1.85 million from operating activities during the first half, down 64.11 percent or $3.30 million, when compared with the last year period. The company has spent $11.13 million cash to meet investing activities during the first half as against cash inflow of $0.09 million in the last year period
The company has spent $0.26 million cash to carry out financing activities during the first six months as against cash outgo of $0.04 million in the last year period.
Cash and cash equivalents stood at $11.67 million as on Sep. 30, 2016, down 38.41 percent or $7.28 million from $18.95 million on Sep. 30, 2015.
Working capital declines
Profire Energy, Inc. has witnessed a decline in the working capital over the last year. It stood at $29.15 million as at Sep. 30, 2016, down 14.74 percent or $5.04 million from $34.19 million on Sep. 30, 2015. Current ratio was at 23.77 as on Sep. 30, 2016, up from 19.21 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 251 days for the quarter from 300 days for the last year period. Days sales outstanding went up to 105 days for the quarter compared with 79 days for the same period last year.
Days inventory outstanding has decreased to 173 days for the quarter compared with 238 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 17 for the same period last year.
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