Profire Energy (PFIE) 10 Aug 182018 Q2 Earnings call transcript

Company Profile

Participants

Brenton Hatch	President and Chief Executive Officer
Ryan Oviatt	Chief Financial Officer
Cameron Tidball	Chief Business Development Officer
Jay Fugal	Vice President, Operations
Rob Brown	Lake Street Capital
Jim McIlree	Chardan Capital
John White	ROTH Capital
Patrick Murphy	Maxim Group
Arieh Coll	Coll Capital

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 Quarter 2018 ended June 30, 2018.

Joining us today is 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. Statements made during this call that are not historical are forward-looking statements. This call contains forward-looking statements, including but not limited to statements regarding the company’s future business development activities, expansion into international markets, the release of new products, the expansion into other markets due to the SIL certification that new product certifications will add significant value to the company, additional capabilities of existing products, the potential of international markets and the company’s ability to deliver products to the market faster. are uncertainties statements circumstances. changes forward-looking such subject and to in All

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

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

President Energy’s be Operations, and Jay Vice question-and-answer of part by Officer, Development Fugal. Tidball Cameron Profire Business session, the As and Oviatt Chief of Hatch will Misters joined

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

Brenton Hatch

interest good to in expand into for Profire everyone call. our afternoon, quarter, efforts and us improve on international thank relationships, this past and much. very This establish you joining customer and reach markets. our Thank for your our you products, Good continued we

Our Prior past quarter our provided we best the of second ending, quarter years. an the $XX X.X revenue million. terms expected for performance in to update million overall we quarter between the revenues and $XX.X represented that in

are and actually revenues of pleased second exceeded XXXX. up expectations million. we XX% the of in We $XX.X million Revenues announce that to the from quarter these we nearly $X.X are recorded recognized

been and and seasonality. spring all seasonal We very are in believe is return quarters industry. two the stabilization The the you summer of a industry difference are this activity the months As and between aware, the in volatile past years, has cycles. Historically, slower. first the to reflects in few the the oil the gas markets result the

strategic the levels talked are of exceed we year-over-year have to historic show cash because decisions achieve we our growth to the and about on period performance and is and However before, compared share. XXXX to year $X.XX are flow of quarter per over able from previous same down the slightly income in quarter XX% and to the profitability. Net track last up equates was and when just

team. more our sales of product than are of on legacy our majority growth international with business, development business we the our focusing While remain implementation now the ever

resulted which established an quarter. We sales a have in with repeated relationship this international distributor,

strategic to international used corporate in hosted how offices dedicated to be development discuss product Profire’s our groups growth. We can The team remains have business also internationally. our

corporate traditional strategies our maintain of strategic and taking we belief always and actions for deliberate As growth.

new offerings. plan technologies We soon as adjacent to new to product continued existing our and add capabilities to release products

needs. automate regularly our and further their can products anticipate discuss do Our to what field with we business their in to development meets customers team processes the and

we petrochemical expanded out markets and company’s product present market midstream, to coming to the that updated scale markets in months rolling on force to with additional safety not functional could for expanded said, commitment the release focus enter doors this continued and to we allow to were of The SIL the product Oviatt, growth. This certifications updated on Ryan the I will be software accomplishment field for In refining to quarter. financial to the to received move for well over growth to full targeted turn to accelerate to us August position plan the validate speed X The sales PFXXXX PFXXXX previously us excited focusing downstream, the now the opens addition a market being we on product. our in production. that or us core CFO have press development. that leader application. research serve. PFXXXX and necessary remain that into results Profire capabilities time to is product, Another safety and industry announce the it customers additional for We certification our is discuss an trials will they Ryan? product our With before

Ryan Oviatt

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

The are transcript both call days. this coming be the on posted our always As those the of Investor of section in documents available of will website.

million base. attributed year income increase the XX% largely In begin our a recognized have leverage the is same customer expanding which This the we to ago. $XX.X from our ability Let’s is revenue increase to period looking in statement. by quarter at a

During labor overall in this work the barrel be $XX quarter. prices will first have the CapEx the downturn, per Oil started second this increased of has to anticipate in our spending stabilization an average customer expand stabilize. quarter to We and of seeing in customers quarter the from coming to the we now strategically base our ranging market reflected quarters. $XX that in are fruit we as the

which from $X ago Gross compared or margins of increase million mix adjustments direct due year. the to XX% primarily to our investment in fluctuate in to and in R&D. labor increase or a year increase Operating quarter as increased and $X.X increased and administrative product labor XX%, for additional meet is to expenses compared decreased XX% general quarter. costs the primarily year as increased each increasing ago the total R&D costs slightly With and $X.X same The revenues, depreciation due to XX.X% certification total slightly higher expenses to inventory to interest the were on last our employees. million customer in the other fixed Total sale was changes, of majority in profit XX.X% assets. attributable investments increase employees quarter. the This operating reserves. revenues income demand retain Total same period during or $XXX,XXX, the is was due warranty R&D of revenue to expenses quarter and and year-over-year to SIL profit approximately gross the million of to and hiring requirement. achieve increased the expenses roughly

per is income or year. $X.XX the compared income $X.X net XX% up million same was net $X.X same Our of quarter quarter $X.XX Net in or last share million a to ago. over income share the per year

at in look to increase $XX.X compared liquid balance company’s to certain for let’s as purchasing XXXX. maintain XXXX. the totaled cash were to longer industry-wide $XX.X levels of at $X nearly is $XX million result more million able in times investments Now and million million on million $X.X items. than end Cash liquid the trend We end and the million investment the from increased a at lead $X.X Inventory stock. spending The of despite of sheet.

has source possible. items team vendors operations delivery where Our and worked closely ensure to timely with eliminate single

XX% accounts have over will balance receivable of that seek collections the total to strong our investments the at of we XXXX. X% opportunities beneficial only XX currently compared of further make and resources to remains to that We could accounts receivable Profire. help the and end growth Our with old feel be days strategic continually accounts

With team Our management allocate to send and that, back to demand to market to thanks Brent. I it meet you, spending will growth. and works accelerate

Brenton Hatch

Thanks, Ryan.

We represent previous year-over-year have work quarter. have quarter-over-quarter, year-over-year, are continues these in improve is be in positioned for down at point period. Despite strategies coming to but growth X,XXX swings, that further established uncompleted these for by certain but drilled, us nearly completed counts quarterly wells or as and to us. DUCs the wells XXX future. increased The and however up we DUCs from industry the for Rig the continue revenue deferred will some believe

now requires be more projects. months XX to advance typically team petrochemical beginning higher part which advanced accomplishment and business development customers planned Now SIL are certification, that ensure refining to and trials we creates entering field downstream with the to path opens the we This these out customers projects, working to perform and are our expectations. projects the spec with received still. have These the other is into meeting door advanced product X in to of is more

with land facility In working Canada, addition, and of our in build intent engineers. the environment development our the research that a improve to we Canadian office SIL, team to near will for purchased recently greatly Alberta,

We facility are and expedite process cycle the for our to the engineers will market. to with our a working bringing and that make architects closely product development enhance products

are performing throughout are continued the to interest and widely Our The industry. generate the standard. industry well legacy products chemical system considered management

and going to committed the believe significant additional as this a implementation product will be driver the SIL of are certification enhancements We forward. revenue we

In acquisition will offerings. complement our looking opportunities existing and that addition, are at merger product we

could Internet be our of exploration Things focus within used past the strategies on remain driven renewed to market. We that growth the capabilities of and committed have a over certain the technologies have that automation, key years. We other the including

have longstanding principle We debt-free. remaining of a

allows want to Directors. in At of Profire’s thank family externally week, or XXXX Harold has to of years. cash resigned health position state resigned contributions internally us Harold to need continued maintain in when last Profire We invest we react for our Albert, This the the to over CTO of healthy from that in E. one to personally quickly reserve. and concerns. the we order to address from retired end accelerate founders I a to his the his planning Harold announced Board as growth. and

member board’s will timing your now Thank you any is candidates and replacement for committee an appropriate. reviewing when possible Our Profire. and the is make of investment interest announcement we nominating in new selections

Our has to success. dedicated our entire team Profire

the so international areas the believe We will us and strategies ease-of-use. these certification. enable to growth are instructions, or in We open in periods. within we up for I continued current thank will us provide and company. markets The through to work other get and the you expectations. the will high set working to markets that and Q&A to continue explore to tirelessly provide started. our this we And superior level allow our now opportunities that they would now coming SIL at meet our and execution will industry improve trust products please questions. Operator, to provide call a the the We that can appropriate perform strategies available Thank staff standards the exceed want our to flexibility teams of management grow reliability you. to

Operator

Instructions] first coming of [Operator with Lake question Rob question. Thank today you. proceed Our line from is with your Brown Street Capital. Please the

Rob Brown

thanks for my call. Hi, taking

Brenton Hatch

Mr. Good Brown. morning,

Rob Brown

chemical the turn and point? know with shipments had of we there, have line give start in the I this sense into management of seen repeat in maybe those us can at the reorders you orders a business cadence terms First that field business, have into could additional coming what you some how of

Brenton Hatch

like that Great question. to today. about go our Tidball talk you won’t if Cam, if is could you and to Cameron man will, I little approach change closest a that ahead. would that not bit I but I defer to often sales,

Cameron Tidball

about always field. probably XX XXX have to happy Right say it. now, that in units approximately got talk XXX in the we Yes, to

like, orders smaller lot in repeat our some seen we there to so continue Systems, would to Scavengers Management HXS, orders, we like a being midstream or so is had few Ultra not volume the compared Fab said, there from – that to exists more. our companies is have there unit, kit, where you when With had that resulted have that obviously working on quite can have a the companies like of success here Burner people stats Some more we some are come applications budgets get already, customers the see into upcoming and critical is have to we and trial people great trying QX to try, in some more success for have get orders so to their get to where which from it repeat get is quarters. units great part out it really or that’s good a that can we we strategy

Rob Brown

what’s partners on And maybe in you broad-brush the Okay, we great. are potential the Thanks. international partners put and have there, feel more internationally? in market channel do have growth then there like place market all or channel you opportunity

Cameron Tidball

Brent, that would answer like to you me one?

Brenton Hatch

Yes, please do.

Cameron Tidball

the of increase just grew was focus goal have we this we we presence year one about and alone to left spoke ensure during base backyard course Sure. our We gone that our North but the internationally, and have into here ground want that in it that it. we of has quarters, involved we have the to orders decent we of last America, our gotten Middle some partner success Internationally, region, customer MENA have in two downturn project. kind specifically on in floor had where some a the that East with on have put

some and understand that look in are business. They region. They that for us they a They to They it. had orders strong there have channel our We repeat understand know connected. business. be partner

where China Argentina believe other there better. their in countries, from facilities, We visit little there opportunity that also do some bit is have a corporate people recently market we had including our some and to

So, place. have all the in partners we say channel I wouldn’t

goal to to potentially channel to that strong Our able partners goal. to are this strong that be get we kind accomplish was so X of far trending year place X and or in

Rob Brown

I the Great, turn over. overview. it will thank you for

Brenton Hatch

Thanks Rob.

Operator

The Jim proceed Please line next Capital. McIlree Chardan the with your is with from questions. of question

Brenton Hatch

Mr. how you. are McIlree,

Jim McIlree

you I am How guys? well. are Thank you.

Brenton Hatch

We are great there as well.

Jim McIlree

that of like next such cycle about to they it this way half X,XXX a you reasonable and kind is year would the trial at of year, come long have kind second a is like contributions of sounds the how kind rolls to the a I and rest be of meaningful would X,XXX then look pilot ask if since out? of sales

Brenton Hatch

we that Jim to that midstream, have we necessarily does on applications. increase XXXX other this, whereas XXXX for just for at again fits. interest where Cam need are especially the an SIL if quite it issue want But accurate, a but is jobs we And now downstream is What the I remember downstream, think the right talking to other that with your bringing that’s seeing of involvement that certainly arenas are the are that of actually we looking lots address sec? SIL certainly – refinery, on the augments certification you it. in interest in these necessary, – because related in do

Cameron Tidball

Yes.

You bet.

quarter we XXXX is the of the to gradually doing for still is quarter. pipeline have increasing So we number are seen every projects continue strengthen, a the

that to make a it’s would more jump on like because they the newer allows We were XXXX, to. customers are because customers technology, seeing it one their to some site long-standing, things two X,XXX the them automate that few more

North projects We the on are pipeline Colorado have Texas recently everywhere done – for across from West Profire a the some standardizing and XX South large United Texas. States released the Dakota, and U.S., who company in

some price. even see is and XXXX, really going very to time started still of be So sales talk where close that. a average we be When take a won’t to bit mentioned trialing on little towards will the certified to course of replacing to trial is we to and anymore, we don’t sales are market degree higher year the later continue but trial. some you XXXX, we think the but SIL that downstream going we to Brent, – increase the next We software. I at the accurate that with trials this the product a

in it’s closely watch where perform. like functioning places it it putting still to are we make it sure and that We we how can exactly

Brenton Hatch

Thank you.

Jim McIlree

growth too thinking about stabilizing, And adjectives kind you order big your new need exact trying sounded us growth are you to out? recovery products you seasonality recognize a as and forget seen of Thank in cautious you rate, I nouns like I I how a and of and we and presumption prices you sounds you is maybe Brent into or and in further the kind remarks like be of get oil Okay. are well, secondly, it that get have to Ryan you or reading what are that. for us increase then prices maybe into you forward want to to a in that it but of about part you activity that at now reading we too a in talked am so high much, it but it going wanted need using, that the or much am the

Brenton Hatch

Well, you into I would say there. Jim perhaps a bit are that little isn’t reading it

kind We take a are of always any approach cautious are we as to you – guidance. trying giving be a to very know conservative

We feel that lot noticed except a and of – of we of traditionally so when dynamic flattish summer don’t typically terms bit getting We happen. some we a is or downturn the months goes things back the have did done. out a and over in that years to really this ever occasionally coming there tend see half things be that growth, decade are

but Now, increase having would beginning, would projects with we and pipeline the the all bigger end that, for we pipeline projected the in our Cam some seems the in nice quotes, And alluded we see year we strengthening. coming are as it, the markets. as be to be our the to seen have long of towards at XXXX said the even that, end we year request in of in products flattish for towards have interest the renewed somewhat seeing that

do that for you year-over-year very have so us. Ryan be that don’t will I going why you…? first think is a we point this to still negativity. very something And don’t to we At perhaps Ryan, this there might add for or year positive a think reason good is Cam

Ryan Oviatt

I would some point that Yes. have stabilization in add Certainly, seen and I very good think well it there you we other prices. the is hit

that also for the into up-tick an to their typically takes quarter last our time then in flow stream. uptick even in through that the into We budgets oil price, in remember our customers have prices it CapEx and seen but revenue

with prices those couple happen in flow-through in improvement see should going do that positive there, quarters a and and therefore additional on as have that what we hopeful expect of in well. that saying some some prices is but will So, we that should industry we are there we yes very forward next fluctuations the and that, seasonality even associated impact us that always for higher the are

Brenton Hatch

any comments additional Cam, that? on

Cameron Tidball

golfed with because want to has hear he doesn’t Jim before. from me me,

Jim McIlree

was great. guys. That you. thank a Okay, got lot Thanks I it.

Brenton Hatch

Thank you, Jim.

Operator

of proceed with comes with question question. John Please your the ROTH next The from Capital. White line

Brenton Hatch

John. Hi,

John White

Good gentlemen. morning, you I you? are. How are bet

earnings Another positive quarter net with income, nice per share.

the On been to say the and East sales what international have Middle sales, to all so country? the do you if want

Brenton Hatch

Cameron?

Cameron Tidball

sales. have some working all To partners gone into is of which through are the Saudi difficult with we they Saudi direct with, they Aramco been partner Arabia world sales of in have of and their all to great, that yes, into that get very their

sold other all have We have into but they Saudi Aramco? distributors the gone also through that product countries into specifically that

Brenton Hatch

good association in just continue do we that we other through other there. we it’s projects trying And make though, are America to have two some to I strengthen we North often direct with think that’s into with countries that a countries, under to that work it’s customers we products sales But – do continually they have Cam point take them make that distribution units the abroad. going that the but here

Cameron Tidball

everywhere, yes we that’s but goes probably month we word There that it, spend our more product or Brent, if is week just don’t by a trying are to a is product, international fully. a where because officialiaze not

John White

you the for for comment, those the that. initial previously XXXX, the customers Okay, customers can XXXX are for XXXX? of And thank of the you lot a sales on been

Brenton Hatch

Cameron?

Cameron Tidball

combination both. a It’s of

Profire combustors, could an is it’s and XXXX combustors, they the so have example. another of do they that them single-piloted XXXX EQT to able EQT, we Chevron, now kind over they computers the have of move expanded they capabilities, but and what just Some have to like example over here. takes longstanding with years, used which that with do Profire. X-strap multi-piloted are XXXX customer good the they other for for that

our which also on are before share bringing we is with now. customers that them, balance our expanding we right though have actually and that So, great nice stickiness the but with we are had it’s customers new have never on that

John White

That is good.

to previously applications can sales as I existing the a need you With extent? out new product channel large you have don’t and for entirely utilize you XXXX, the discussed your XXXX

Cameron Tidball

yes. Correct,

John White

very Thanks much.

Cameron Tidball

That’s point though. a good

working John, just force to you sales Just leave, the the are in before using we vertical – XXXX that we addition establishing on existing we working sales are have new on very think of downstream effective to will us these in particularly jobs, them of two combination to we focus make but market. taking the this sale that related the further and for

John White

and again Thanks I it. appreciate

Brenton Hatch

John. Thank you,

Cameron Tidball

Thanks, John.

Operator

from your Murphy comes the question proceed with Please Maxim with next Patrick Group. line of Our question.

Brenton Hatch

Hello, Patrick Murphy.

Patrick Murphy

is How guys. it going? Hey,

Brenton Hatch

It’s good.

Patrick Murphy

are opportunities talking So the looking looking that to well within sort a internationally on way you of or as are front, about? the U.S. at M&A you increase are you expansion as guys primarily

Brenton Hatch

question in happens directly, And the the this active it we if actually quite happen. answer To will market. are are not presently looking North just casual at a now is it this we American as

We serious side on it but as are, taking opportunity some, conservative of are being we about doing there. any aren’t is we that other just as the quite

adjacency regular based. feel we definitely direction. and basis American companies on are are making the we that for where upstream. are we moves But at like But in in time the some a praising strongest we are We are other right some terms now very strong and assessing that of dealing North is we in present with and looking

Cameron Tidball

opportunities say well. not a to international as potentially have that’s But some presence that exposure those wouldn’t or

Patrick Murphy

Okay, thanks. That’s helpful.

the be With of force that the back already, gone sales that that is in XXXX, the how continue the expected to half is through for year? looking, the is hiring

Brenton Hatch

and just mind we made month so begun weeks some could guess we we person has days away team. from and And to or these another have in person and that a coming are add to I offers in yet we Yes. yes, the it have

where this Cam active that in are next two. have Does two at to a So of we least and team people you month now? in with strong fit, three – ready hope right at or would

Cameron Tidball

recruiting ago. from feel bring have as can the Yes. Definitely, started ground could to don’t have we wanted we early as hit six, seven running wanted in the We that quarter We product so yes that within. process place, month someone this course and approvals will we some under these grow. installation development the place, next in some to of this quarter and that in next belt, team, of person some more get our it

Brenton Hatch

you. Thank

Patrick Murphy

Okay, great. And one just final one.

With in and view in you slight production the reduction still general? you do at oil and you EIA U.S. XXXX, any XXXX impact have market believe for business all on how your the

Brenton Hatch

are Cam, Alright. busy a your than today. little to rest a that Again, it are one. on it, you the closer man of you perceptions but

Cameron Tidball

customer There the base. effect. follow – in they stable increase is is so change my opinion with predictions at they the we our the to yes quarter-over-quarter more the still definitely bit. wins do are little thing wins, and look still opportunity Yes. that of everyone they but Well, a don’t little bit transmittal or with The else every are great they co-fires

In as fact have revenue Profire dominant quarters new brand go still and there is customers two are from our last to additional is and get. strong in much There as customers player. so been very

mega-pad us the impacts will will be. be. some yes there impact be for there Permian from be of changing the there for yes will some pipeline, so there to sure And drills, Will

might we customers, CMS strategies per more we getting our more so we to that since continue and have pads pad, However, we Yes, can have revenue growing add that. less of will are belief with however continue. our more customers

a we balancing be able there So act there. that that there but is impacts, negate will we market to there I will grab should is And think those. much think still I share definitely so that be

Brenton Hatch

Thanks Thanks Patrick. Cam.

Patrick Murphy

guys. Thank you,

Brenton Hatch

you. Thank

Operator

the Arieh Coll of The Coll your from proceed Capital. with Instructions] question. [Operator with Please question next line is

Arieh Coll

gentlemen. are afternoon some Good as enjoy Hello. the I finding as hope well working? to summer you time

Brenton Hatch

That’s week. next

Arieh Coll

questions. geographic two So,

am not you I Canada in which I quarter, June one First there? kind the why here up March curious the Canadian explanation step year. material on here sales business a and guess, and would happen sort the this in sales just any the did seasonal for June have highly up quarter quarter historically of the of September step materialize to, expect of step up is slowdown didn’t in in we do in as happen know after quarterly

Brenton Hatch

an and a Canada in of but Yes, resident, has issues that why don’t transportation gas it address fence? interesting area, oil been with Canadian They certainly sales Cam, significant and side some your has being the been place. impacted are bit of this the have a dealing you fairly the from

Cameron Tidball

Well, Minister the believe Prime on I don’t call. Trudeau is

be see Arieh, we So, so jump I anyway, a exactly, say, normally are free with more what I can you but that would little up.

the haven’t, We explanation is Brent gave very accurate.

as QX We good – where historical is also won’t we start heavy really all as last be getting that and We compared electrical little shows terms a been Profire instrumentation especially QX. in the QX as indications project it quarters. to and Bakken, news to very to things in nice we bit. shrinkage levels, been there has but The go investment companies a of oil in that of work has that ramp should the shrinkage There its two lumped number have Canada. in are burner work per in up in Northern QX expecting the got are sector, back se,

Arieh Coll

Got it. by Driven base? heavy the customer oil

Cameron Tidball

lot their this the actually saying but see the definitely are get starting weather but was a frozen to starting would fluctuation see. customers, this be telling here. you normally short them heard we because that never really trucks year, from but E&Ps believe activity vacation before, of have from are to see we rigs just have We whether year, we odd slow basically groups the was wasn’t to it was moving, seeing the take shale, they normal spring up, great busier breakup it you to heavy are break in are are rolling, service take heard they going to are vacation, and basically they the you like the at wasn’t tundra, because quite as Yes. Montney as A bit oil little will spring is here

QX And and will so QX. we be than that believe better QX QX this and

Arieh Coll

and business shifting your mentioned, great. you. money the you Profire. And of sales growth in just over should historically able number higher but hopefully higher customer exact Nevertheless, renewal U.S.? U.S. down U.S. be here March Okay, versus oil of oil base, these don’t are curious profits your in the pockets prices then increasing which obviously sales to step geographically in sequential sales you was DUCs leads provides background did of the what the tailwinds to encouraged the degree rise in your and June in I here to to that know dynamic prices of more Thank to you of if just and as correlation, the CapEx, kind of drive because

Cameron Tidball

quite are encouraged. We

Arieh, usually said an see don’t Ryan there lag. As response immediate isn’t up, go we sales oil months prices up immediately to as as go our when earlier, X X

fact has balance traditionally one budget, our for little and year’s future year, thing spend but wouldn’t things of year of issues in was this worked customers am on quarter, because that sheets, a that things play balance on I projected out. kinds slow that So might large would first call internally focusing the have it in on nice be E&Ps be in improving on spent the the which I different for the off been their the the very it of addressed on that We year. CapEx as November we their year one attended paying and believe saw significant first the the spend we this a a entire be the as quarter leaves meeting it of the of that or they debt, really that year some Colorado that us seen was large last this in in example for we

crossed, CapEx expect see We expect to see CapEx next of of to start the spending a we fingers to are will more focus of spend. And beneficiaries course year. the become the

any has direction. a be future, comments indeed good that that’s ever, will will the So, for very we for think us, things good do year for be been your but think moving keep from us, year our Ryan, have we most won’t this our table? financial been but that you stellar

Ryan Oviatt

said fully would I with agree there. what you

focusing to the long-term some it E&P not I prepare stronger us short-term, those in and today help doing invest more in them although to the them the be their help in or and us and on focusing the help think of it data sheets, other having able and will balance things on future. companies may

QX in So, we are a calls for more of companies of and stable news seen down the Brent And term the as it’s those out longer QX great able medium and do more lot us their in to certainly said, are that coming that opportunity road. have and share that releases, still more even have them additional will Many been buybacks but be believe on debt focusing and what doing. and to are somewhat to we year, but there expand for that years. the that’s reduction, they coming customers, again this dividends CapEx

Arieh Coll

Okay.

might will for of Saudi part here back that of have so enough expect kind more no type in future. And some of which you, Just amount customer the two side, deals a of the irony they follow-up is required representatives how found they is of going of a The testament to is are part buyers creating lot your your or work basically distribution along and are international on reputation My more the the substantial reorders? remain volumes, of it bought the on so a products. the Saudi not meters deal. common reasonable efforts forward to spending installing the on these on formalizing congratulations come question more overseas, you of need kind was be quality in then you or that next year Saudi the will of the maybe kind process far become deal, to of them

Brenton Hatch

Cameron?

Cameron Tidball

healthy really first, based I the that’s are very hoping, but if Profire. on plan one deal, we based that we remember, our well drilling is that’s partner there okay, think Kuwait from it into I question be that are that because two exist is for hearing numbers that expand they as to is what and could ongoing project on Saudi so believe that the drilling programs

they working we interesting, with how us, kind found project. of In another because was terms them of it were on

them that to immediately are ask took we in and on We were are that actually there questions, a warehouse and them they opportunity and their puts way talking working about, they what in them saw to they we out went.

items our some We great which success of as other had pilot, some our they used have such customization inline work manufactured have they done and on there.

I Arieh. question Do I have So, you your too, answered I missed think on a what where follow-up number one?

Arieh Coll

can distributors sure. hopefully, various but other Saudi to you countries, quickly. relationships sales well? be formalize making have achieved countries in efforts What just in Yes, it I oversees as will repeat numerous are which

Brenton Hatch

Great.

thought in know are lot lot we the do that always We a terms partner So, as find example, quantify combustors and like Profire heated got to so of is a big we there the We there can thing that business. a in for it’s of trying treaters, not well, that. that equipment East, know to is have we ground traditional to do like Middle market. of is

As from they and Alberta have facility to our companies, I have been were that officials Utah our delegations some China from had from mentioned we earlier, that facility. even they government in here both

already We have But are over and plans with upstream to them will taking expert, in plan this of China speaking we actually China. VOC which – be expert I to an refineries work the of November doing at work fugitive to plants that company met the there, the other leak in emissions protection with them half etcetera. be forum services. are They where

partner in be nice It’s The to they for for new. them. a business us. So, are we new China is believe going upstream

a who is me the to makes be who are what it we focus to soon sense that our are bit on. to have it leader decide been here initiative sales process, one. that We best we leaders So, still Canada little has resources expand markets quantifying is heading as we do you. up so will but do effort with a and have what will slow, and sales driving longer that we time, to market, trying we believe hope Again, that as

Arieh Coll

luck. you. Great, Best of thank

Brenton Hatch

Arieh. Thank you,

Operator

like time concludes turn At call Mr. you. Mr. that Thank now this to please our to the question-and-answer back Hatch. proceed. session. I over Hatch, would

Brenton Hatch

much, everyone your like quarter continued you would our of We so for of today second Profire. the joining on call all support discuss Rob. XXXX. Thanks of to us for the thank results Thanks to

you We to may you great have. you are of Thank Please for a all have available discuss us. questions day. of always and reach course any out as to any

Operator

company’s available Thank the release will Investors you. through Again, gentlemen for I Thank would this press starting XXXX like be to today’s that everyone section link for this of and ladies provided and XX, you, evening August in us in replay via the later website. the today. joining call remind

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