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Pfie 6262013 Pfie 6262013 Presentation Transcript

  • PFIE (OTCBB)Investor Presentation (2013)1
  • PFIE (OTCBB)Forward-looking Statements Certain statements contained herein constitute forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and otherfactors, which may cause the actual results, performance or achievements of theCompany 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 Companys SEC filings and reports.2
  • PFIE (OTCBB)An Introduction to Profire3 Founded in 2002 in Alberta (service) Public in 2008; headquarters now in Utah US company Creates oilfield technologies Specializes in burner managementsystems (BMS) Received multiple awards for growthand financial management in 2012 One of the 1000 fastest-growingcompanies in the world (InternationalBusiness Times, 2012)Profire Energy is an oilfield technology company, specializing in burner management systems(BMS).
  • PFIE (OTCBB)Where Is a BMS Used?4Profire’s products are used in the upstream and midstream processes of the oil/gas industry (see redarrows).(Oil, Gas, Water, Chemicals & Sediment)
  • PFIE (OTCBB)What is a BMS?5 A high-tech, specializedoilfield thermostat Monitors, manages &reignites the flame Controls the burner flame Ignites burner flames Senses flame presence andflame failure Manages fuel to increase ordecrease flame intensity (i.e.heat up or cool down vessel) Can be managed remotelyA BMS automates inefficient and dangerous tasks with an efficient, economic system.
  • PFIE (OTCBB)How Does a BMS Fit In?6 A BMS uses temperature inputs todetect whether more heat is needed inthe application. It then manages thefuel flow accordingly. The BMS also detects whether a flame ispresent. If it detects a flame failure, it willreignite the flame The BMS monitors and managestemperature, and provides re-ignitionas needed. ( indicates where a BMS is used)Burner-flames create the heat within combustions applications, and are an integral part ofeffective oil/gas production & transportation.
  • PFIE (OTCBB)Our Role: SummaryA BMS can improve company efficiency, compliance, and safety for oil/gas companies.7With BMS Without BMSEconomics • The BMS quickly reignites the failedflame, and keeps the application within atemperature range set by the user.• The application can be monitoredremotely.• Production continues with minimalinterruption.• A worker must discover and reignite theextinguished burner flame. The workerthen reignites the application manually.• All application monitoring is donedirectly, on-site.• Production can be interrupted for longerperiods of time.Safety • The BMS assumes the risk of reignition,reducing employee accident-risk.• Employees assume the risk of reignition,which can lead to burns/explosions.Compliance • The BMS can reduce emissions byquickly reigniting a failed flame• The BMS ensures the flame is only usedwhen needed—reducing emissions• No remote monitoring or control ispossible.• The flame burns constantly (and oftenneedlessly) until the flame fails—whichwastes gas
  • PFIE (OTCBB)The Status Quo:Pneumatic Controls with a “Rag & Stick”8 Currently, companies usepneumatic (i.e. “air-driven”)systems to provide very basictemperature management Requires manual re-ignitionand upkeep (costly and time-consuming) BMS makes companies safer,more compliant, and moreefficient Canada already requiresoil/gas companies to use BMS [CELLREF][CELLREF]Profire BMS Installations*Potential Installations Profire Installations*estimatedCurrent industry methods are generally dangerous and inefficient.
  • PFIE (OTCBB)Our Industry9 US and Canada are majoroil and gas producers There are about 1.3 mil.oil/gas wells in NorthAmerica About 35,000 new wellsdrilled each year About 4,000 miles of newpipe laid each year US to be world’s largest oilproducer by 2020 (IEA)Oil and gas supply about 65% of all U.S. energy.World’s Leading Natural Gas ProducersWorld’s Leading Oil ProducersData drawn from US EIA, CIA, and Canadian Provincial Data
  • PFIE (OTCBB)Market Overview10 Use of BMS grew quickly after Canada mandated its use throughB.149.3-10 Sales were mostly regulatory-driven; many basic products were sold to simply fulfillregulation Recently, the economic and safety value of BMS has becomeincreasingly realized within the U.S. Sales have grown strongly without regulatory pressure Market is still served by very few companies (four major players): Profire Energy (Canada & US) The only public company specializing in oilfield BMS ACL (Alberta) Platinum (Texas) Surefire (New Mex.)The large BMS market is growing quickly, and is currently served by a small handful of companies.
  • PFIE (OTCBB) Our primary products include: PF 2100 An advanced, versatile BMS for a variety of applications PF1300 FIS A simple ignition system (e.g. for use with flare stacks) Airplate An adjustable airplate that meters airflow into the firetubeAdditional ProductsWe offer a number of combustion management technologies for a variety of environments.11
  • PFIE (OTCBB) Our service arm allows usto receive real-time andvaluable feedback aboutthe industry’s needs Services are provided by allProfire offices, and include: BMS installations &maintenance Combustion optimization(e.g. gas flow, flame quality,air flow, etc.) Flame-arrestor testingOur service team is dedicated to customer success, and are expert combustion technicians.Service12
  • PFIE (OTCBB)Our Customers13 Service companies,distributors, OEMs, andproducers: Our distributor networksupplies product throughoutNorth America and Brazil. In 2012 we added Cameron toour distribution network—aFortune 500 company (NYSE:CAM)We serve many companies throughout North America and the world.
  • PFIE (OTCBB)Brenton W. Hatch, CEO (President)Previously General Manager of Titan Technologies (a Canadian oilfield service &distribution company) and CEO of Keaton International. He is particularly experienced inoperations and marketing management, and earned a Bachelor’s degree in Education fromthe University of Alberta.Harold Albert, COOPreviously managed the burner division at Titan Technologies, and Natco Canadadoing oil/gas facility commissioning. In addition to overseeing company operations, he alsomanages company R&D and oversees al Canadian operations.Andrew Limpert, CFOPreviously was a financial & strategic advisor for investment banks, and served asofficer, director, and interim CEO of Ohr Pharmaceutical. Mr. Limpert earned a Bachelor’sdegree in Finance from the University of Utah, and an MBA in Finance from WestminsterCollege in 1998.Profire has approximately 50 employees in three offices: Alberta, Utah, andTexas.Our TeamOur corporate direction begins with our experienced executive team—with a strong oil/gasbackground.14
  • PFIE (OTCBB)Financials: Historical15Profire’s financial history demonstrates our commitment to growth. Profire Energy is a profitableand debt-free company.IncomeStatement2009-2012(millions)March2010March2011March2012March2013(est.)March2014(est.)Revenues ($) $5.91 $8.03 $15.93 $16.7 $22.5Net Income ($) $1.28 $1.63 $3.19 $1.4 $4.2Net Margin (%) 21.6% 20.2% 20% 8.3% 18.6%
  • PFIE (OTCBB)Financials: Recent16Our recent financial results speak to our ongoing commitment to create stakeholder value.Bal. Sheet Snapshot (Q3 FY 2013)(millions)Cash: $1.48Working Capital: $7.41Current Ratio: 4.4xLong-Term Obligations: $0LT Debt To Equity Ratio: 0Income Snapshot (FY 2012)(millions)Revenues: $15.9Cost of Revenues: $4.3Gross Profit: $6.8Gross Margin(%): 56.7%Operating Income: $4.3Operating Margin(%): 27%Net Income: $3.1Net Margin(%): 20%
  • PFIE (OTCBB)IR Statistics17 Stock Metrics Price: $1.30* Market Cap: $58.70M* EPS: $0.03 Avg. Volume (Summer 2012 to Spring 2013): 4,600 12,400 Shareholder Metrics Shares Issued & Outstanding: ≈ 45,000,000 Float: ≈ 7,000,0000 % Insider-owned: 85% Total shareholders: ≈ 350 (NOBO & physical certificate)Our growing shareholder base has historically realized gains year-over-year, with the prospect ofbenefitting from our profitable growth in a large industry.*May 20, 2013
  • PFIE (OTCBB)Forecasts Overview18Forecast Item EstimateRevenues for Fiscal Year 2013 (April 1, 2012 – March 31, 2013) $16,700,000Net Income for Fiscal Year 2013 (April 1, 2012 – March 31, 2013) $1,400,000Revenues for Fiscal Year 2014 (April 1, 2013 – March 31, 2014) $22,500,000Net Income for Fiscal Year 2014 (April 1, 2013 – March 31, 2014) $4,200,0005%34%200%56%
  • PFIE (OTCBB)Revenues Forecast19$4,352,536$6,257,269$5,912,350$8,033,926$15,925,213$16,700,000$22,500,000$-$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002008 2009 2010 2011 2012 2013 2014TOTAL ANNUAL REVENUES (FY)
  • PFIE (OTCBB)Net Income Forecast20$314,087$875,145$1,279,274$1,626,463$3,187,771$1,400,000$4,200,000$-$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000$3,500,000$4,000,000$4,500,0002008 2009 2010 2011 2012 2013 2014TOTAL ANNUAL NET INCOME (FY)
  • PFIE (OTCBB)Canada Revenues (Historical Trend)21$2,683,724$4,488,079$4,835,808$3,047,932$2,872,497$3,224,623$2,135,885$2,800,000$-$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013CANADA QUARTERLY REVENUES
  • PFIE (OTCBB)US Revenues (Historical Trend)22$- $34,442$233,175$602,053$804,776$1,154,970$1,405,176$2,400,000$-$500,000$1,000,000$1,500,000$2,000,000$2,500,000$3,000,000Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013US QUARTERLY REVENUES
  • PFIE (OTCBB)Our Future23 Additional domestic offices (e.g. Pennsylvania, Oklahoma, etc.), distributionsagreements, sales channels, and services Expand our international distribution to new countries (e.g. Russia, India, China, Australia, Brazil, Mexico, New Zealand) Engineer new technologies for a larger product line Improved valve train technologies Improved power supply in oilfields Enhancements to flagship products Continue expanding intellectual property Pursue potential acquisition candidates to reduce costs and enter new markets Could also acquire a manufacturing company (vertically integrate) Pursue an uplisting to NASDAQ or AMEX; cross-list to TMXBy pursuing new growth opportunities, establishing new relationships, and developing newtechnologies, we believe the future is promising for Profire stakeholders.
  • PFIE (OTCBB)Key Takeaways24 Profire is largely undiscovered High-tech margins in a strong,proven industry Gross/Net margins typically60/20% 1.3M wells… ≈$4 billion market Proven ability to sell systemson economic merits Profire affords opportunity toparticipate in oil/gas market,without drilling risk Entering a phase of leverageand executionProfire Energy is a growing, profitable, and debt-free oilfield-tech company. Our products improvethe industry’s efficiency, safety, and compliance.$4,352,536$6,257,269$5,912,350$8,033,926$15,925,213$16,700,000$22,500,000$-$5,000,000$10,000,000$15,000,000$20,000,000$25,000,0002008 2009 2010 2011 2012 2013 2014TOTAL ANNUAL REVENUES(FY)
  • PFIE (OTCBB) Investor Relations department Nathan McBride P: (801) 701-2502 E: nmcbride@profireenergy.com Website (www.ProfireEnergy.com) Investor presentation Investor packet Up-to-date financials & charts Subscribe for updates on our PR page Learn about our industry & productsResourcesOur investor relations department is happy to answer questions about our industry, company, orfinancials.25
  • PFIE (OTCBB)Igniting New Possibilities26®PROFIRE ENERGY INC. 2013 ALL RIGHTS RESERVED.