Profire Energy (PFIE) 9 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

Brenton Hatch	President and CEO
Ryan Oviatt	Chief Financial Officer
Cameron Tidball	Vice President, Sales
Rob Brown	Lake Street Capital
John White	ROTH Capital
Jim McIlree	Chardan Capital
Scott Billeadeau	Walrus Partners

Call transcript

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Operator

Good afternoon, everyone. And thank you for participating in today’s conference call to discuss Profire Energy’s Second Fiscal Quarter ended September 30, 2017.

Joining us today is the President and CEO of Profire Energy, Brenton Hatch; and CFO, Ryan Oviatt.

Before we begin today’s call, I would like to take a moment to read the company’s Safe Harbor statement. Cautionary notes regarding forward-looking statements, statements made during this call that are not historical are forward-looking statements. products statements, plan not the share to investment deliver forward-looking regarding to, company’s repurchase contains company’s will company’s the ability the make new program, call the including, execute limited but statements R&D intent company’s This to feature, it company’s and internal company’s base products our structure process up to cost certification to or with and product, customers growth. to increase ability CMS company’s XXXX interested to the customer expand sales the sold, the with scalable follow in the is get investment, forward-looking All changes are such circumstances. statements and subject to in uncertainty

It website the as release, not or in made XXXX, starting events forward-looking undue well available on Forward-looking circumstances, no market, press and results uncertainties economic, statements is reliance are guarantees will to that Reform described by the in Harbor the results except evening. the remind obligation in would XX, date www.profireenergy.com. replay required and the from reports as Factors for company place results as Litigation Act the only like company’s future certain statements that periodic subsequent and statements. actual through and business, being include of cause Private I All material as are law. assumes to or it on provisions Commission. statements or of statements or could forward-looking regulatory Exchange public recorded to identified forward-looking events anticipated performance this the via factors the of Securities yesterday’s are risks such not Safe statements. November this the materially pursuant affect should could company’s to link to Readers and All accessible with reflect and filed forward-looking be assumptions or of release be these at update call and this involve that provided events forward-looking everyone later XXXX. by risks, differ Securities of made will forward-looking statements the

and open we will the by call Hatch your Mr. Following remarks to Mr. questions. Oviatt, the

question-and-answer Mr. be joined Energy’s Cameron will As Tidball. by Hatch session, and of Sales, of part the VP Profire Oviatt

to Now, Chief the of Hatch. turn to President Energy, like call and Mr. would Profire Executive the over Officer I Brenton

Brenton Hatch

with very you us our for Thank on provide sector quarter, in as third we reported that update our by flat results to of quarter industry. to Good this previous the day, quarter. we perform gas continues Profire revenue. report remain quarter expected much. we second the the everyone. in an in performance joining increase Thanks we an quarter. to the well happy realized In that oil today the and In volatile third are we

the region. oil During Permian range, of liquid Northeast the million have increased the flows operating Throughout once saw cash prices and period. our the The cash completion for range. just our solutions great customer realized debt-free, over to volatility, critical we in be allows the December to positive safety remains continue the us a however, end, and marks continues drove the investment, the and in to the revenues a and XX, flexible to Profire of and opportunities. over this X% operational previous surpassed along in our This activity the quarter in quarter. the first over some revenues products increase Total time revenue our in we had the exceeded be third quarter, growth sales. $XX component well revenues during this this budget this our in At activity quarter quarter. million; Despite year with approach same to and be mid-to-high processes. market respond price many success again market CapEx increase spend, customers for $XX $XX and unpredictable; XXXX. quarter ending a varied quarter sales million $XX quarter, XXX% has Within some represents since to ago generated we

in up with keep we increase revenues, demand. hired have strategically the With to the

vendors We is to investment; are to some these manage costs costs lead down. priority. working to The times levels increase revenue management a in lean internal with to future and remains of management inventory however, growth. recent and our satisfy Profire requires sufficient committed keep

we integrity are a a strategic level certification As to customers achieve more that a working company, development requirements our us which reliable enable R&D team a traditional whose stringent is certification will ensure and continues technology safety product that quarter, than R&D products to repeatable more our announced focus. be This to will certification. to Last product is bill process. sell

for remain In to a towards our XXXX. this R&D release leader. working addition continues of product. certification recently issued press augment the us to new develop the We to an important features to team technology XXXX new features the the It’s industry of discussing

of engineers produce with meet works superior of market. market dedicated and has With and a products a team Our employees that volatile customers products team closely Profire expectations. to exceed successfully navigated

now Ryan? strategies allowed to to Ryan to CFO, to turn our the to financial results us and react well have us the industry remain a quarter. leader. quickly the positioned technology have I Oviatt, call for policies changes Our and discuss will over

Ryan Oviatt

XX-Q Brent. the we filed Thanks, and in release. with market press quarter’s the our after close discussed highlights Yesterday a SEC the

to those were this as of documents of As our In the plan. strategic quarter The of the posted on to exceed the we website. available execute fundamentals of our there Investors transcript are expectations days. will section be in coming continue call we both able always, this

to This company further position future. the the quarter revenue for and experienced we growth continued

the income same or looking XXX% two increase and prices to by revenue to our the in XXXX, customer increase in attributable years. was at quarter million up increased of the base This larger revenues Let’s over In ago we’ve our begin statement. built last over quarter. over the year the increase oil partly $XX third total

and from do to in the increased recovery to assets. and costs up and million period Total the This new during speed in will the certifications. deliver the revenues, company decreased primarily demand. other product XX.X% over same strategic period. in revenues year the with a invests increase just to $X.X profit gross mix, XX%, the attributable and but XX% been the or interest same modest the for With general compared $X.X expenses throughout and the operating to remained expenses of has as same to million the income staffing development a compared to gains spending when of over to quarterly the Operating We our our to quarter ago. and of as same increased keep are in product resources total operating Gross in is XX.X% due $X.X additional which and These Total revenues, enhancements, the increased was allowances. product income able total increases product majority of allocations is increased quality was manage Profire increased as of overhead year enable of to margins profit million The $XX,XXX, customers. investments in departments. last downturn up control continue to delivery and the XX% R&D administrative strong million in revenue to operations R&D expenses ago increase varies and sale a the will XXX% year. compared quarter with increase to initial inventory in and $X on to depreciation due expenses our increase superior or quarter. increase us XX.X%

compared net in $X.XX net Our million income year the to per income share, or was $X.X $X.XX ago $XX,XXX of per or quarter. same share

stock to at year. $XX.X end the we’ve the the the Cash shifting sheet. capital million last In liquid Now allocation compared as previously year $XX investments communicated past balance been a actively as part to fiscal the our strategy. totaled repurchasing of and of half, and own million

continue we We flows. focus pursuant be at through continue year. cash Nevertheless, in decrease largely to the $X.X due levels levels. from volume. $X.X sales for increase purchases purchase the were continue while the a our to million cash to flows to for key from enabled Inventory seek reserves opportunity. operating This positive other million to These end Generating of is this area to appropriate cash fiscal maintaining plan, shares the will company. will strategic decreased of

to days end accounts structures receivable now Our team operations sales cost will closely on sales. Accounts ensure with below period. inventory The have of of accounts we and our company projected over remained XX% team remained collections scalable. the balance the strong the total old remains at satisfy and hand works receivable the of XX

new meet retain personnel to market revenue, significant have this key with and in needed. to employees hire year-over-year internally seen sustained invest We to demand to increase we when plan increases

will We to remain accretive structure are its back that, company as an pursuit thanks to to shareholders. maintaining you, be it and we and will to vigilant send the cost in Brent. other With of continue committed our I’ll appropriate and opportunities that grow

Brenton Hatch

Thank you, Ryan.

our invested As in Ryan the the quarter, employees contributed success. our to of a continued planning strategic and hired has highlighted, few department Throughout has we execution in operations R&D.

of increase in believe focused Our future and sales products. product that current will R&D supporting largely and our coming is XXXX investment We certification XXXX the on product quarters.

to we offer XXXX product that As to to mentioned continue a competitive earlier, in expectations. order customer features the add meets

midstream for products that and certification accelerate over part Throughout stabilize products to Fourth in prices due activity, customers customers long-term that of quarters we downtime to including developed. oil spend. us forecast new the conferences locked sales to for in is will strategies. We CapEx oil December other believe the currently our new contribute a we sell we Historically, the being quarter, understand to their prices be budgets allows volatility in remain an a days to season. spends challenging In largely few that within remain Northeast. quarter uptick customers Recent and XXXX, range revenues. the market and We with increase year. to the downstream for quarter work technology plan to the events holiday we attend relatively the optimistic final Profire us and make our previous Permian new months expected that saw CapEx operators associated the addition industry and the the November In Profire are to coming are the will will that CapEx and difficult announced to of to XXXX unpredictable, not are presently with primarily last customers. products allow the it flat. The future two

gaining continues Our we other in is the program and SCOOP preventative regions product. and in CMS traction areas. renewed maintenance to STACK interest in our Last reported perform quarter, well

In product currently product invited the quarter that this for in units customer to multiple purchased We oil Texas with report We a customers. are the of capabilities. pleased a specifically customers and up Houston, quarter. quarter. industry, throughout number on at we product to in the of its quotes previously were and technology we tests present we that the conference other to to the have were able gas interested CMS been you investing present asked this Since have interest conference that in meet with the showing new with to continue for Profire. the number them Thank will and follow for and

is to that staff continued a dedicated have success. Profire’s We

in actively serve attending deliver as we their position meet We our investor to that products and expectations. well are investor and increase customers are our exceed relationships awareness a with conferences our existing strengthen We visibility investors. or as to believe, great

would appropriate get Operator, I call questions. the so can with provide started. we to please Q&A Now that, open you will instruction the the that up

Operator

[Operator the line go question. from of first Rob your Brown, question Please Street Lake comes with Capital. Our Instructions] ahead

Brenton Hatch

Morning, Brown. Mr.

Rob Brown

Congratulations Good quarter. morning. nice a on

Brenton Hatch

sir. you, Thank

Rob Brown

XXXX, new to offerings been in get there, pipeline the sales received the the shaping a market? of XXXX, your product terms more little have up Just how thoughts these for how wanted that’s in and of on

Brenton Hatch

but in cover ask with second, that many that involved done of just in spring that me takes let install the say that are this some XXXX It I that have one in a to of Rob, we bit as and advance will Tidball in projects Mr. especially actually and those when have the there. things a seasonal found, the summer big is projects of big time. some before it’s product doing we in and explained engineering with

schedule find they periods And these when are around that will going at we the install shutdown turn companies so that that point. their the into

to a to the But way. so it don’t for seasonal expect XXXX Cam, you be And why that address we bit issue stay.

Cameron Tidball

are Brent, getting really we it, quo there. describe at ratio -- are use are we one that it’s what to released the handling The what’s features are fuel that we The we has status some decades. been to head we on -- dealing to release different two reacting from in are OEMs can way word is way with refreshing our just, – environment a I far lot turning press been years on customers how then really we’ve customers that recently the based you currently a really over of focus have that have of and control. dealing IO, features years integrating it’s who for for in for going this know out so the been without products that of and

very the keep it’s so And word they meaning to ownership the that again to they there the find it, might be going, I’ll like refreshing. and is thing is spin to one and to that our it, what reoccurring, cost like attractive interesting. what do our this out throw approach is They one have of on that going attractive

pipeline, right strong head, how the XXXX project to right on the is our for seasonality as will XXXX for in As we feel up. however, we has been far ahead, this going more interest the confident see and shape

Brenton Hatch

Thank you, Cam.

some this The haven’t certification thing this it increase will that approach the on for will and in as positive well be and especially add my only earlier us. comments, in product areas seems. I refining been is allow other might to the so we I It still is that able customers working the expressed in to very us interest on will heretofore as

Rob Brown

of give expect much is that get that you. you on to a certification, And for sense completed do when investment that and how

Brenton Hatch

year aggressively, of take little be we more does it time it’s our a lot and a the pretty fingers place, we on for now. this that time, but would that are we actively involve dollars, won’t it we hope and in working right investment itself, springtime that investment ought early a have one. crossed The actually But – to have

Rob Brown

as of a of back or year, generally, good. how more run current it of you you on stable, I view then as you do what’s really do growth a and have view And into the view view Okay, kind do early XXXX? to or it you of sort just your sort know don’t sort perfect thinking XXXX, rate step but wanted visibility it

Brenton Hatch

reason have a is we year. and The indications very believe very that we have in we have what remain certainly to Rob market upsurge, are that the prices steady the positive uptick going been oil and no good to has won’t very

see We be later about coming this of CapEx we some CapEx it’s and saying. E&Ps have high we the to have in year they very positive better and are a to to are where to major that are of conference going attending we going oil month little be the will with assume them a to XXs in see what the talk interested spend they seen if certainly stability the we their spend can some be only for But prices. so

this are year. coming So we we for about where very optimistic are going

Rob Brown

over. it turn I’ll Okay.

Brenton Hatch

Rob. Thanks,

Operator

comes with Capital. White question. the question line next ROTH ahead go with Please from your Our John of

Brenton Hatch

John. morning, Good

John White

the to guys. you again. of Joe Reagor of I’m to talk on on had quick couple call Good ones. a just morning, behalf and Good

probably rig order till You have was U.S. you like know about XX we your back the down in to do and last that week June watched that, book? count it rigs going seen you in Has the had

Brenton Hatch

of portion this dock guess as We’ve the Cam. we thing well. bring [Ph] seen to I whole much there; had difference into

Cameron Tidball

is biggest in for we’ve drop so while. Yeah, the a far seen XX a one of

they not still but that as the [Indiscernible] for keep as are should start all show which there inventory numbers huge, the at on as of in long give chipping I be away changes could haven’t we doc of it chipping We the that post at seen away or a yet, part, be mean some but books is they no.

to seen this drill, normal. is you seasonality impact reduction somewhat you as see degree back can yet drills. haven’t somewhat an on well in in We is that with if history as This a look will some

Brenton Hatch

in, And on. wells when than the count drill That’s equipment I to have more with do coming uncompleted ducks have vessels that our the have go more that, and drill our on. these operation the but mentioned

And drill so of in to that’s count. the than greater just us interest ways some really

John White

going a have fears the that on XXXX on comment production. kind think can people and far. completed and fill, management I for to And into meet accretion total lot that so are appreciate targets would I to sales to drilled the that to their roll on, also want compares there of of on chemical how to you system,

Brenton Hatch

sitting him here second. talk to hasn’t and well allow maybe talk, just had Ryan a him is let a for anxious chance,

John White

Ryan let’s go. Let,

Ryan Oviatt

we was be Okay, it struggle; great to it we than an where chemical thanks has where John. continues area been. a Yeah better question, much wish

in buying in talk just we’ve see briefly the sold some overall that focused And each far got part so kind our was that, E&P the a are to total looking what was year. lot allow actually we’ve of I haven’t activity on that of interest with in and and multiple if so it to to recently ten during However, presentation, not quarter where total so thing is presenting the present increase seen seen what’s significant high of of invited than did product of that all will in systems, of quarter, conference in and the customers event. we we Houston, expressed great where about filled that confidence a go happened seeing It was have Cam that, at them there units a of that down that customers, this a we number into two One say sold quarter. of number at was systems less maybe then since us you’ve in just taking next pipeline, for or was quarter we forward maybe but We’ve that this X% went a pretty to technologies of producers. got many for just him new those will great through. those how were revenues

Cameron Tidball

bet. you Yeah,

I a us with able but the interesting it it solution this have and really this have XX these up, really saying been particulars what up they contractors that that, different So selected stuff, from but with were. great our six received ask meetings chemical secure customer company something was who conference to then we if was was presentations got they anybody, next quarter we questions found all would received some us, something, but able operators question. And for to with XX saw customer conference being interviewed will mock show so their quarter –or conference us, as put and to after positive presentation that. and some the hope out one some was this out And is could great at it the that a for volume that that of using this from the gave think everybody here and after provided most and were chat there come they reception that do testimonials vendors presentation to to that was and hopefully minute out in here we we allowed to have maybe been a specific technology at guys They technology. – definitely probably paid call know a the and of on companies to you actually came the think and trade but where get on approximately we wasn’t we’ve it in systems follow, trial we’ve give they from technology they some E&Ps currently participate application, in that had good they was as we hey almost really very we that speed want that very and and the seen were take more dating E&P, told companies you by by shotgun really we us some you our fallout defined some, respect and that to could feedback, one you we to have do specific XX based

Brenton Hatch

I that the distance uses one sell were Cam, you with presenting this I as was you – that checked the that as there customer well. that was might

Cameron Tidball

us supplies what he on we an actually presentation being our were and and that the one the engineer after customers, for achieve sales the was have meeting where eclipsed told we original Yeah, the great guy was they of a around this advocate savings for in posted us update reception because Profire. to would had unpaid able to drastically they going later really the that

really see contributor So intended to us, news, some to we’d positive we fully just good for be shoulders do for a welcome to and what love sure news, news do significant Profire. I’m to that’s

John White

Thanks.

your I want So more. about that’s appreciate I helps pictures you when to of ask really good you with amount much the can offset color and it. it because customer for say I’m

You Houston. didn't he came call to when me

give you time come a Houston to call. Next you

Cameron Tidball

and I the York. from then flew I then New to was whopping. Chicago at presented there morning got for a we three there I in

So [Indiscernible]. next time but my we'll apologies,

John White

Yes.

Brenton Hatch

to like our when Christmas there? is party down We know

John White

All right.

congratulations gentlemen Well on and very to again. good. nice quarter you it's good talk a to Sounds

Brenton Hatch

Thanks so much.

Ryan Oviatt

you, Thank John.

Brenton Hatch

you. See

Operator

go Chardan Our with Jim with from your ahead line next question questions. of the Capital. comes McIlree Please

Brenton Hatch

you? are how Jim,

Jim McIlree

Thank well. I’m you? are How Brent, Hey, you.

Brenton Hatch

Doing great.

Jim McIlree

think you the XXXX. percentage same for sales of out, I this quarter Can last figure to gave trying I’m for you a quarter? guys do the

Ryan Oviatt

we can. Well, certainly

for us, lower of but of revenue. was quarter a the This be for will total quarter were thing as last it quarter XXXX than this cyclical sales the thought, we percentage X.X%

Jim McIlree

And you. put get before the able units certification these summer? that trials the you're spring tests in or to in and open Thank Great. be to up going have to do sale you

Brenton Hatch

on line that. you since the of -- are Cam, why don’t you front

Cameron Tidball

Yes.

certification. more midstream because application. the phrase really current you’re after, point the big which did game which engineering ability going readily the to go companies in and really party just will is that. head now a to we of just will of the okay we as it to open as friends which not us, to to it without do the what going boys to jobs right year to don’t the We show Profire But make us expand the XXXX it talk your to the to door now, up we of or up you help that high SIL with very with spec play Really application and expand which can and get upstream later. will show give don’t even with you the We’ll does in you in you even does be time. for just integrators special currently in SIL actually let us system SIL end-users need with see in because I Profire. and ups the for not it XXXX will padded So – want will And different right who the can order really aggressive of door say without its it getting build they’re still downstream us, to want midstream, even kind going checkmark, you are

Jim McIlree

that. I all guess interested Yes I more or interested the in I'm of this. timing as get

you a you of SIL I the spring then certification and right that say it big of kind so lot you that don't happens that work see if a lot So you the Is as said and next thanks for summer year. in call the boys thought this not? they'll or before have

Brenton Hatch

whenever lot when not spring of that's United a States, climate, The Well, summer. rest be money of your do making springtime the can they'll for their northern really they’re turnaround. your it is

a in going late for there's project spring, specs. if would now it if won’t even yes, the bid in So XXXX you too even be even that’s because be –

are to really into, XXXX, be higher but a that well. be So it SIL will doesn't times impact lead that more the be mean, get next looking will have still the turnaround our or we’ll ones a would that that major bigger plan, year should spec have will as looking for the to longer probably more,

Jim McIlree

Okay. I see.

even way have the not quarters. are it. – looks work now Is through, inventory to think were your and few more been for Ryan, it is like gone returns you I there old improvement? we’re you looks inventory through. normal have – they some issue work or at have kind over improving some I you’re nicely some trying got But And levels there room turnover that of past there finally didn’t that

Ryan Oviatt

realize a while. there. great some There to has We be now, some but component holding room some more Unfortunately, have of improvement. combination that be it were more the hope product That’s say slow dynamics for where believe inventory biggest on there its will is we the for I as maybe that good to or different do will the we and for improvement. key areas that an moving One were sales further been CMS still inventory observation. who still there quite product. of question bring of there hand the definitely that We We we've and customers and do in to some are is valuable it or so component have the using able past purpose, down. still even are that numbers would and in lot a opportunity relation our

as in lead with times that’s using, times lead keep product demand that in and quickly the able of are this that now, of we're been right year maybe are challenges last us up very we've is longer. our having that for key on all ramp it's we struggling pace the that moving, now to One the vendors we’re getting high to finding right us are that

on with very very to of make to to continue that our amount solve that right hand. work and sure we we challenge So vendors the closely inventory can have

the having still progress amount a are challenge thus but decreased happy regard. in discussed that low the and in the that frequently has fact over balance I'm manager still areas is. we’re I it the that us for in in that right be he ways But heartburn it’s and as areas caring a Our it’s other making topic we through, right is to Well, it this and operations and the other is. of frequently working as excited inventory overall

Jim McIlree

Right.

in The in that Okay. seasonality Brent, to reconcile their the you seasonality as downturn budget to question your we would customers of normal budget were your have in much CapEx year, flush And how about you what flush a Good. sense trying versus customer’s see outweigh spend I’m is do QX. talking to capacity terms a can dollars QX? big this have

Brenton Hatch

Yes.

that always spend don't for month last we of are that budgets Jim, have fingers challenge. in the end do change that’s seems this that and so past see the We occasion some going at seems we on very sure see It’s over for to there was that crossed, year-by-year. some some may a point really bit we a or well spending and Our years to know in on in of year December. left indicate as

One point. they year-end that when anticipating budget products found spend left November was or of need quarter lot at there bit at years this. in down would on the much they December a we CapEx of this when that did was spend and were a little the first purchase had they have things there Things some some because the

you that’s chance. the know So

for we because week couple and the problem this when do weeks of to There's lot of things don't whole its Christmas around -- other just down certainly The know, refer just of course is really but holiday shut a Thanksgiving holidays. and you thing. operations of a

is negative positive. you seems CapEx purchasing have now there as been. only I holiday it over for to have seem really alluded where whole some that’s very be question can thing. There change goes quarter to compared as steady tough predict. interest would any if this The a to be to, The is there doesn't the we tell you left in it and spending one and is though So CapEx that thing in

Jim McIlree

So to going to we’re decline, its sounds best assume a said? for like seasonal if that modeling QX just can purposes it I have what typical summarize you

Brenton Hatch

changed Yes. be be want stress sales holiday by won’t to We the at haven’t operations that of because I all, day that all. surprise at Again it will but effect. in day

we up. for again optimistic very way preparing a in will that, oil going prices stay very positive So, things we’re that us are for keep but as a

Jim McIlree

Thanks.

luck. good and have. Thanks all I lot I think that’s a

Brenton Hatch

Great, Jim.

Operator

Instructions] the ahead [Operator next Our Meriwether comes your with [Indiscernible] question of Please you. line go Thank Security. with questions. from Michael

Unidentified Analyst

quarter. Great guys. Hi,

Brenton Hatch

you. Thank

Unidentified Analyst

that start one quarter. tick a To down Ryan, little margin gross this for with noticed I your bit

gross alluded forward fluctuation. third that? product into margin based that Was bit? sales the I what that the lower side? of just stable range you a Can gross that dig What’s has the product kind margin? then you for You party think And guess of little going driving with on to more kind

Ryan Oviatt

question. Thanks Great Yes. Mike.

as you each in to. of there we’ve product just little a our key contributors quarter the As margin said and past, alluded vary mix the bit the one is overall

service lower downward quarter, quarter. has last little side so higher were within Their this Our bit revenues that product of things. division margin than the affect had a

margin. were revenues They XXXX, carry higher down. Our

a those also effect combination two gross had factors margin. the of So downward driving on

assembled an product we've trains are and very products its us. where for increase up burner or a train leads that are third we positive The customers are it That’s line on from fuel the its that valve send parties together to and the in our products put from in where purchase in fuel of thing control. Another number assembled been majority fuel purchasing boxes seen the us way them that significant as and we the that a which the interested out. trains basically of

maker then is but it or a our So have us system. margin does lower good money it for lower

well. on had effect So overall margin the a downward that as

Again we moving for So that inventory. can them, changes to then have from utilize some carry that allow reserve that there ways them and those a them, of have little find in the but probably sure slow in inventory against we increase that was a key started And to bigger we for of the we make the are items we’re product sitting with that we’ve this still our that with couple also to seen. find customers those impact some of to we team continue reserve sales those. longer the work set been bit

of bit of is what mix combination reserves quarter. little brought the with to a inventory it additional down what was margin those this for the So product change

Unidentified Analyst

color. that Got you. I appreciate

your are Turning flat the on another if QX, expecting is so is trends but QX flat, sales to consider, starting it to not you be far? side, just holidays like things kind for day to be be that, it up there like cost whole topline of what and seen down after just QX in but to sort time you’ve the day would thing the what of question declare

Brenton Hatch

Mike. that’s say, statement, would I accurate

Unidentified Analyst

in is XXXX. for what burner combined right, if new you Okay. be growth? on your so have product the look for of increasing and solution guess as asking a And deliver still But less obviously understand, you have volatile you then into flat spend also expect I’m so forth. should XXXX is from market trying the able XXXX or to XXXX is management kind I’m – more adoption with you the that to to penetration nobody to I predicts and standpoint, market

Brenton Hatch

answer yes. be The would

working. you’ve to addition things all we In of also the actively mentioned, that are

to products year is a to add which Our fact hoping R&D we on coming and have that product what team would other new could significantly new this in we’re doing.

an give that pretty at overall numeric we price year. in about that the enough as to year? expected extra to We there things coming we guidance do we’re but the think oil that unstable still putting point. and seen these the the we out is good a so and with We be companies we that, direction, into and this effort the XXXX, optimism very we’ve the have optimistic are expect we’re products And oil felt upward with have, been overall heard that different change don’t

Unidentified Analyst

maintain on? R&D increase to there’s you talk hoping I assume talk that on when you when future back the And to or you’re some margin, and right, you. growth? maybe and EBITDA to about so of your about still the Got I even have mean, investments Ryan, be increased you to just able making that

Ryan Oviatt

going focused on margin, for greatest and all that achieve we’re we've we more for even Yes. us reduction back the the the really to that look now to maintaining cutting, very into that closely the – able position and EBITDA we’re that XXXX to want we and things doing costs looking cost objective in in value a of increasing in margin, our right and grow hiring That’s managing ourselves over impact recover that great certainly way so at the cost now that a in to maintaining and of of to started much XXXX, for XXXX the us those net even and the areas it’s were we’ve XXXX. greatest income in period strategic been very drive hopefully been revenues, are XXXX cost maintain those that recovery. Again

Unidentified Analyst

right. Thanks. Appreciate it. All

Brenton Hatch

Mike. Thanks

Operator

Our Partners. next of ahead from Scott Walrus go the question comes line with with Billeadeau Please questions. your

Brenton Hatch

Hi, Scott.

Scott Billeadeau

of Most mine have guys. answered. Hi, been

Just quick couple a one.

the an of the what’s sales Just us does would could size you kind think second terms added sales time? question at update the carrying update from about kind of than there? would this XXXX, you the maybe the sales now And point then And in force, in give of what’s force what kind helpful. the I less right Thanks. water That revs? update there X% of be, of you could mentioned little of be

Brenton Hatch

those you want line there, to se? talk about do per front you’re Cameron,

Cameron Tidball

Yes, you bet.

number So team of remained the people. in sales flat

We’re still XX and myself.

closer than serve past. that to starting always base to we be of be all get as legacy of it. there. expertise our has to expand traditional well really to the in for top certifications our different look the one We’ll to higher will to ability grown has to a to been, expand we’re XXXX build that [Indiscernible] way customer them in sales probably vertical bring We we the as where kind with of That’s just going team produced wanted we've on someone the looking team

hire it’s So for be us. different can little

at team with that expanding legacy existing product. our We’re perhaps also deals looking our

some QX quarter on So QX, like we should next the see movement in those fronts.

of just values process would those down, project, dollar if to revenue be see are the still big XXXX heaters were number the the water we’ve get revenue weren't a very as like will of As growing, lot larger it's upgrade of not which dollar per got now they consistent a the higher we those, lowered, projects course far the carrying right but amount, platform with process interest, doing its we’re application, do So, with doing The with we’re very the of down. forced news are this that going – doing smaller great diverse is are that some up. technology have XXXX projects going estimates good news we news revenue we’re the heaters, heaters, the frac is what Profire awareness can bad the up, increasing, the air is your

Brenton Hatch

about that add number force. might I few static the Cam. in Thanks, sales

better they’re but trained there their making the are and out people more and increase. they better Obviously effectiveness have contact, We had better getting sales the and for time some now is all customer more time. they’re

very numbers we market originally so past quarter the this just was of downturn of go Profire by not in very the keep are not or we by contact efficient should that the the have what growing. and its whether products just we increasing they a quarter base that our every are customer So people people some just are, sales including and needs keeping can we shouldn’t, which sales verse sales question had have during now force but what profession, keeps only that

positive still number. same have very we thing a it’s that So, that

Ryan Oviatt

were okay, Chemical the that to to that it’s back if trends at conference. we add So conference

the hands, for Profire, was this. up. their I moderator ask well, next question their questions three EMPs burner and also people, we of have put three and is the Before BMS the first answered few you And hand we guys, the were up put guys, then guys started any course thought there people we the

role say, So within dealing Profire for of what in now a the lot tough people is base. that with are burner well, customer where management even line our people

we good that sales the the what incredibly know us, that it there team there, thought we was [Indiscernible]. to Brent is bring, saying a expertise reliability I which that very people our recognition bring the from brand point So is

Scott Billeadeau

The force And and rattle CMS addition to different to find on ideas the call do around point need the have chemical force. you'll similar you or call similar side? in a person sales a point pretty mean is on the BMS sales do a the

Ryan Oviatt

get back guys to bit some comes The different. You same, anyway, the your totally Chesapeake structure rattle apartment Profire all of gated on got the in investigating of the Anadarko, push think little from CMS so the all your depends that I the in that of to size more bit the it is around majors, large little of it company, mentioned yet focusing of like on can company, does higher a world depend, of shift areas the way potential again we top. one we’re and engineering if the the levels

Scott Billeadeau

All right Thanks. appreciate guys, it.

Brenton Hatch

Scott. you, Thank

Operator

Next of line questions. with question coming Investor. ahead the of Please your go is [Indiscernible] Private

Unidentified Analyst

top Hi, the for growing navigating downturn guys strong? really line the nice see to congratulations so here,

Brenton Hatch

you. Thank

Unidentified Analyst

Yes.

once size done So little market of have, context? any what the if XXXX. to bit is we’re you for provide can downstream certifications What materiality market the currently you that the of about the question relative guys you my is just a for

Brenton Hatch

all just I on to Cam the over and Cam seems on you I’ll that? doing. go can that call, next address turn it it he vacation think for is because focus what

Cameron Tidball

just believe [Indiscernible] I that downstream. the And got we we when Dean believe we to but so in into have we – Yes. that over where process there nothing Well further you it know type projects great are is own, spent know figures that to believe you course shale less in larger obviously in of of side American haven't the it dollars I the is it there’s upstream don't you've of downstream we what we've a is. after. plans. the going because our North that to dollars market for But And your little keep some got of market east spent. know We up that golf is there go year of downstream us know quantify on burner of that focus a what conducting the exactly than done management, we and further lot all is further we research there's amount with total city and the of but thinking you say world we that it quantified research of it the of a on market guys

is box come at plants are They and a can't here difficult got talk and You midstream hey, the different door already to up work. in just specifications show you say more It doesn’t to got heaters, the lot of of engineer. I and much applications those the there. a lot what little your into Profire not phase. of Can you process It doughnuts. doing are than that get different a

about the place so only which is to not go so. gate in excited get But really facilities larger we and a to You lot those operation where its harder, that are there's in those and those. the though other is the mainstream just the there places to there Canada at after like got security of guns the also like more those

Unidentified Analyst

and Okay. currently Thank you. And how fragmented not it similar you with guys XXXX? experienced it XXXX what is Is marketplace. to

Cameron Tidball

already Well, mean? the what kind are They I is there? exist if that technology like understand competitors fragment there question what few to you is me a like

Unidentified Analyst

Yes.

Cameron Tidball

walk people walking with is of to all than really capital is sooner going it. into with deal You a PLCs know one how two for and burner or management the retires Honeywell Honeywell world and hodgepodge that really into later that part you're intellectual interlaced only the equipment most Allen-Bradley PLCs,

going type to don’t be belief of shift, know management take can burner a you care this to the require You're is supported management. you shelf capital our off and see burner of that’s intellectual that

and first world except just change, to everyone in, to old again things to very the the similar want want we very lot to competitors but going to doing are for is going be few not is which it but So live a people antiquated of of change. to way change

Unidentified Analyst

Okay. guys. and That’s great. congrats again Thanks

Brenton Hatch

[Ph] Thanks, Dean

Operator

the concludes back turn answer like This management floor We’d comments. closing to over to and our you. for session. Thank question

Brenton Hatch

to this this of like to employees, Thank at year shareholders time. discuss our and support our joining for customers, encouragement. all We you. thank Please our and continued we us everyone to on XXXX. of for know quarter available call third any the are today their that constant Thanks

a happy be call day. have directly have time. contacts to at you great do you us any If questions, we would entertain all Thank your and

Operator

teleconference. concludes This today’s

your time. You may at your for lines And you participation. thank this disconnect

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