PFIE - Earnings call transcript Q3 2018

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Operator

Good afternoon, everyone and thank you for participating in today’s conference call to discuss Profire Energy’s Third Quarter 2018 ended September 30, 2018.

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

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

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

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

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

Brenton Hatch

call you Despite within Good some realize in headwinds great Thank Throughout you much. quarter very your Thank past joining and we gas and interest this on those for success. to oil able us the for were afternoon. industry. there were challenges Profire. several the

four fiscal was company's the best years. quarter second in quarter This nearly

So far Revenues this terms year is million recorded be to the $XX.X on up best in second over revenue. in XXXX. quarter third the in our most of the history and year are we XX% year track million versus to profitable $XX company of

XX% quarter previously for the seasonality announced the The believe incur in when months and we stronger months have is producing nearly to As summer cyclical nature. year. last gas compared normal the is income business. to same are far while Net we lower the oil market our this last followed be revenues months historically we returning Profire to our quarter winter have proved up thus

increased by that these by driver XX,XXX and mainly there Profire with now which These for continue oil our accomplishing be of products installed. legacy upstream main industry. the This Profire's systems compliance, melded objectives the gas We accepted universally those sector the customers systems almost approximately have to Our served are efficiency. safety, is and of revenue internal technology Profire. estimate

achieve customers in quarter each goals. amounted In quarter, on some focused to Although strategy add to $X.X the new sales quarter. This a most choose use nearly and past to operators help we producers investment products to to million. we customers long-term continue past our other new areas

continue efforts market developing our We go-to strategy. in international

We Asia, and East, the America. on are Middle in South focusing relationships developing

we the players Asia. quarter on refining we last reported midstream, international hosted possibilities visiting what industry of upstream, some they in from and we the As in follow when will coming be weeks

We integrate into is This component plan. for to existing growth be our initiative Profire opportunities processes assessing Technology infrastructure. will five-year of critical and a

more also our We continue PFXXXX. identify to newer opportunities product the for

the We four for team unfolds. this three PFXXXX are We employees development further a in team of and dedicated that product. the will process business to consist initially of building will this evolve anticipate as market

the service that later developed addition products we products sales announce feedback force our our and sales this being expansion existing to to year. we These to are customers. from plan and on PFXXXX new are In team other training this pursuant

be Our continue are to new products process automation will provide driven. solutions recently the performance industry. user-friendly safety developed Profire our functional to within much and designed needed using

now Oviatt Our Ryan corporate strategic positively that positioned will to turn discuss coming over time areas that company us the Ryan? of impact the well investments and in further I'll the our beliefs financial years. With initiatives to have the to enable in results CFO said the quarter.

Ryan Oviatt

Yesterday, Thanks, the closed, us in a highlights everyone and after thanks quarter's today. to we Brent, the filed discussed market again SEC our the joining and XX-Q press with release.

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

current team. the in customer have largely a income over the third per of Canada. is average quarter. In in of to We begin leverage the increase $XX.X recognized to the increase the expanding our second location an $XX this of X% is ago. from we $XX attributed in with year every an million from U.S. quarter nearly XX% barrel prices to and quarter realized our our Let's an the which increased This ability same looking revenue, base sales sales statement. increase by quarter, in Oil at throughout period

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

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

compared the totaled Cash end balance and of at look as million $XX.X investments the $XX.X at to let's sheet. million liquid XXXX. Now

$X second land free. flows Inventory for facility operating remained a million purchased once end million from purchase the sales this for at able summer of quarter increased certain debt We result of were Profire million longer with the to months demonstrate Canada. new combined $X.X the and concluded in cash of levels for quarters. far increase The again year, So the lead product stock the of on $XX.X XXXX. slowdown to industry-wide we've and over and a a positive the is times trend items in third

team allows timely The customer us where and with demand, to Our on hand over years, the continues competition. distinguished to to vendors to single-source Profire respond delivery quickly eliminate operations items which, inventory the work from proactively have possible. ensure to

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

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

Brenton Hatch

believe The for that management is a quarter, continue further oil The the of Consistent by the with Thanks, Profire periods. Drilled increased gas and budgets quarter. future, ability and as many averaged oil the improve slight $XX require to dip investment quarter they investments Ryan. will most in backlog. per to XX% make of nearly DUCs quarterly like and a swings, with continues represent barrel. flexibility to strategic we in are the we The DUCs point Throughout arise. or systems. of our plan some many positioned for industry provides and us the management wells the a be Despite market our customers XXXX. burner thermal allow at remainder the for to These to much industry years, cost on in uncompleted price Profire, in for growth CapEx and evaluating focus have activity average. deferred their opportunities to the the equipment revenue quickly year-over-year completed respond saw will during coming completion wells

wells year the into a and our increased We purchased improved resources outlined basis, With working quarter, pursue in the through growth, customers our this large Last research sheets, of budgets This dividend focusing target international quarter at in Profire's the XXXX. in for and balance original that Some we the as development despite throughout dramatically year-over-year to are Other year committed plan we and plan terms customers a and are Profire facility land invest market on in faster continue new year improve to M&A we and On opportunities year-over-year QX generate for to is, to to on designed continue beginning revenues to their and third part, a continue are in sequential to bring to innovative position R&D best in and facility of offerings conditions actively and repurchases will technologies. expansion. product payout. team. their Alberta, available have the we announced industry. complete products slowdown profitability. our improving Canada. expand share and ideas CapEx the to for to

and Our legacy our business. of the perform to well products continue core are

PFXXXX believe X-year such we our products as be products, that the other growth have will to plan. and significant We contributors CMS

these challenges the to industry which cycle we we PFXXXX, involved is so today, force expand widely within with Nevertheless, determined sales products. on Our focus that to are these new embraced similar our products. experiencing new other adoption are

see allowed recovery. values cost remaining great core success involving throughout us to have and management and Our debt-free, the industry strategies,

has same make him coming will Directors of CFO, Ryan's Board that joining a release, welcome the press investments the addition buyback and authorized our Board a this is week, throughout to in for plan our to the that to fill providing believe since the execution beyond. Harold vacated In very announced, we our and our We coming been been and in a foundation The anticipated year solid board. Earlier attractive his XXXX plan. investment, leadership growth by performance strategies core Our buyback Ryan this our insight additional Albert. that the periods. press to appointed current execute to exceptional, Directors Profire seat to continued release, enable expertise shareholders. we value share of announced stock has a in another of we add Oviatt, by the XXXX and is

position Q&A We to international and how of markets that to provide January, the worked XXXX allows and exceed appropriate growth. you, other continue we for plan started? you invest to the plan to R&D, tirelessly so improve at we believe level high get to instructions call I perform can would want provide our an that to trust will to questions. goals fiscal areas company. in in we team current we internal please In a in we react Our Profire for We outlook drive Operator, and thank to the Thank expectations. to all that meet now the and this open our demand. or us market growth. achieve plan that members will will they quickly up

Operator

of [Operator Lake Rob from Instructions] Street Our with the Capital. line first question Brown comes

Rob Brown

new wanted First of does combination talk those sort and of I DUC that early start situation time to that up Or know open And throughout year? year? the of of I Do of how the XXXX of all, in impact it's of to 'XX? does roll and the can hard kind project, take how out? the but just kind X kind DUC the kind to products to

Brenton Hatch

it's there's we're haven't say the That would could time, project. companies, But be optimism the the so we -- and contributing of tough some of keeps The Permian a this -- larger increasing good in companies service months, like degree that issues larger of the feel regard. that on little E&Ps. the felt are a has, aware in both I'd obviously, DUC at some the of suggest the pretty count year for and this. point and a we to that XXXX to and that some

Rob Brown

Okay, good. the And latest terms the then at of what in in And terms in how where they -- of are XXXX, expanding? of trials? terms of there customer sort

Brenton Hatch

the to watching on about lot carefully. are I'm the Cameron, that That's a XXXX? very a in, us and take speak of question, sure really a you we're good where and one would at people we're interested minute

Cameron Tidball

bet. You

our regards we're to in no number higher launched projects to X an the have years couple we to of product tune of Customers a to seen question with number core increase the for from trial trending projects. year longer in be trials, adopted year-over-year XX% the that it. that We've of So ago, XX% surrounding or phase. the this

increased orders repeat customers an well as as us number board. giving see on new customers also We of coming

had look see we've growth So for we continuing beyond. that a and that, into going nice 'XX and year to

we SIL some we a it. we certification, on feel bring situations success that the more software to push of point We've we terms slowly. In that SIL putting had into with that to application. where forward complex would now which can great announced it had We're be trial into

it's the But are into with I planning to business focused the customers the XXXX that of traveling say And to additions most add that not we'll would team, so anymore, team advent, be with members we're part, the for XXXX development more area. life. just

Operator

Capital. Our of Chardan the Jim comes next line from question McIlree with

Jim McIlree

of Is you haven't bit the dedicated to empty guess, team would was expand glass need half me, the the because drink a And tell lot The hoping success which be -- can I it a -- hoping just could full reasoning to that you it. that behind little about I'm had XXXX. need should Brent, glass development business is because you just would with you on the it's for. glass half you be, accelerate. I I

Brenton Hatch

is half a for one full more. sure. second The I'd bit go for -- for the it and sure little

the traditional XXXX upstream. product, contacts, of One the and the many we midstream traditional the is more that don't different where and -- the we is much It forced-air forced-draft, It differences the in of between as where And not The is one as XXXX, sales downstream, so course haven't into a have through primarily it's quite typically on. upstream done present XXXX, the traditional new as much. work, focus technology. that force developed our setting. into situations goes whole and are goes haven't

especially, great the now SIL rating, So there, and feel the altogether. there's about down is potential. we are it that like optimistic different we a very And game opportunities we have

have full. the the markets Jim, new We're that vertical in But a are ground this had, just sales definitely this And but to But relationships. identifying to -- is challenges that vertical. we've step market, salesman seem know totally different to be at contacts significantly. they looking want or running. qualified because different things little that had sales as people is that's a But We're looking the we've feel finding a be X half the good. right that qualified taking very there, any could find go is that Now that augmenting the for to it's we one not we the while it into people. hit know can just us developing thing, of glass are potentially we X people the there to

Jim McIlree

And Is half a think see of the -- impact we've you'd second I from probably suggested XXXX. a in think time to to more contributor or revenue? about XXXX significant that conversations, in reasonable prior more a still the frame I've XXXX the being that meaningful

Brenton Hatch

accurate unit overnight It's it and projects these in SIL some field a we through this -- But we'll Cam so. but because ready lead -- status, a some suggesting, the they was harder kind take ship that have trials, Well, some are and obviously, to us little us bit that we engineer time. time to it gone into SIL these we while, time. achieve rating. is the and aren't They it it it have thing, -- that observation your that an They It's and tomorrow. they're typically, -- takes the the the think go own, a if taken essentially takes -- as projects. now install longer-term and products of hit engineer

that increased So next of would the terms get right sales the think to end that yes, away. movement sales energized answer year. process definitely I the terms of we'll themselves, probably towards of year, question, But of in start in will some towards see end it'll sales, the the in the

Jim McIlree

Okay. also and about as were you about candidates bit XXXX, as international little That's international not then XXXX And I distribution, you whether the a or sales? little to for was both bit talking or a talked helpful. confused

Brenton Hatch

that is been to that speak can arena, me let both business Cam especially quite But minute? in answer Well, this to He's the for for you sure. Cam, speak have would actively I to this internationally. say development involved a that.

Cameron Tidball

said, start distributors, upstream what and the transactional-type moved mainly out some be have we -- here to it but we our both, definitely go products we're months. the upcoming Profire of Profire the used most potentially distributors. get take high-volume, the want some that But being The brand, first sales; we'll upstream to with and familiar products. start in used will to through definitely. performance. with, XXXX customers business; XXXX with to Yes, is That is be coming already will business-type overseas core the new But legacy that focus projects are is the the

Jim McIlree

And markets? adding thinking of distribution to correct? Is a area? -- geographic Cam, you international that in it's employee that mostly are Or is dedicated Profire some

Cameron Tidball

of we in are the in not play. our are route to -- Initially, distributor route don't completely dedicated-type or combination the or want people that a minds there. all We wouldn't just to out resource Yes. we have an international We're a time. army go that the traveling agent to America North want closing

look to But team the resources augmenting We to support comfortable. be some markets it. those with is will distributor that'd help more and quantify route the

However, we're closing to our mind opportunities. not other

So far, distributor our in America, South the East, we're markets based. Middle was Asia, at, that looking

However, hastefully. couple lot setting that and into around of into anything businesses But that jump have too we legalities there's a employee. of the of and it opportunities could those turn go wouldn't in Profire do a potentially a logistics we areas,

Jim McIlree

Okay. is, my just on then last update you And us question CMS? can give an

Brenton Hatch

to people just in It their and large third huge, we this -- in fourth And the numbers POs at in quarter, as although, quarter. following we into yet first so went the the good interest what to then are trial the What me energized the And get number by, the course, the I I I were energized dozen same of quarter we seems have say our aren't and in pattern. years of it and can the on. of the we're a BMS the by very have orders the that. U.S. so of of follow-on will before we and so fulfilled almost by accepted establishing of that sales to the this first worked indeed be it fourth in or we process looked following even took was sales universally sales, terms be do Actually, which years there, again. already I now Sure. numbers say more that and the BMS all, on were began they and part let of in have eventually -- go guess wasn't amount to But we in of -- us CMS are quarter. system, with in the particularly the potentially these through

our So show fourth the we're are next very going of been. some where in year, and based optimistic quarter beginning we've significant over to improvement pipeline, on the

Operator

from Capital. the John Our next Roth with line comes question of White

John White

you high are That's us CMS you sales. believe Usually, very numbers. couldn't to off unlike you I the said those going everything. you. Show weren't giving quantify

Brenton Hatch

and One little here, it of have careful the problems grasping twist today. is little be just I bit. our in-house attorney that trying have arm, sitting to to left my I a a

John White

Ryan, election congratulations your on appointment. And and Understood.

Ryan Oviatt

very you much. Thank

John White

to the go about that over back Cameron XXXX, want I XXXXs? does XXXX, the So non-SIL said what mean legacy

Cameron Tidball

Yes.

could little done is in XXXX IO need or quantify a pieces So into bring bump non-SIL applications where, would use up of you what used being would well there or that as that in to being as a we you yes. area. that few you perhaps That's just that, as

John White

legacy your sales up between XXXX XX% XX% year-over-year? So and are

Cameron Tidball

projects. But of is the Yes, well, that. our installations so application towards as midstream type we've completed trending number of year-over-year. projects all increased legacy there, Number that is not in we've it's that --

John White

understanding, Because downstream that midstream, XXXX for -- and was as the and... said, is the petrochem you aimed refining SIL my

Cameron Tidball

Correct.

John White

for successful. And and the trials field completed are product you were said that

Cameron Tidball

critical in certification, you noncritical to -- And although the try we obviously wanted try we or -- first some, them we less software. call applications. confidence We process, software Yes, them that to you I'll had downstream it want in the wouldn't great trialed though, facility. where a the in

we your quarter on heaters, what out as But and packages, as is had working great we've that we've line Your getting of last can, cetera. many et been dehydration is success. this those

what affords confidence, confidence I'll So now does it it us the increased is say.

of plan these applications. on other like our do we have of downstream do we a projects, software all when we'll So stable that some

John White

Okay.

refinding? trials So midstream for field no trial -- or no

Cameron Tidball

correct. Yes, Yes. that's Correct.

John White

a XXX without I try you got it Well, day. of understand day a to XXX,XXX first barrels maybe where wanting upstream can -- barrels instead

Cameron Tidball

SIL do XXXX say we using and Haven't a trials. that want trials, as are they clarify, you we midstream to Yes, don't should should sell software, downstream have put But with were in to plant. But the I that. I it. comfortable down weren't customers no though, knock done

John White

this have the year so XXXX year. for midstream last customers Okay, didn't you that you have some

Cameron Tidball

Absolutely. Correct.

John White

Great. on BMS. -- talking been the sense That as your are sales of makes the some same to And path to out CMS as From [let people I've also kind following field said, the you that low a the and burners injection. that land]. the my the chemical people managed pumpers and understanding, in same foremen production the same are the me. manage the

Cameron Tidball

business, upstream in you're for the correct. areas. In most those both. absolutely the part, Yes. We They're see overlap a great of charge in

John White

the Hatch, to you going fourth call? quarter? Mr. toward And of that announce are Or any going are to products for new wait the end the we for

Brenton Hatch

yet. here isn't Christmas

sure, while but optimism we that But in particular will liking call, wait department. little great we seeing coming think this be close. announcing for really won't R&D No, some longer, we're we a do we're are coming we'll the reasons out here. it So getting but of we our just months for that think John. for really on what there's We

Operator

next Our line Group. the from are questions Maxim Jang with of James

James Jang

I a of quick hopefully. couple ones, So have

a heading trending coal good lower budgets seem downwards, they worried tend budget season. year's guys to CapEx little will like expected? So that you prices, doesn't news than next be Are into be

Brenton Hatch

we're this point. unsure -- We at little a

at by year the on returns -- for some positive. were perspective, today feel we were to, sub-$XX good For some -- planned able significant And returns. rates, are the even on make $XX based And pretty they $XX are they getting most that last that feel of that's were these down It's also oil E&Ps. these they companies. $XX we although for budgets plus,

relates keep on differences of it again, there terms in It that some the are affect oil and And we on don't But reason our price, they so a like they for may products will optimism. well -- have up. contingent they budgets directly oil going staying maybe to the price or very in mind of there's, feel oil. it price always some -- may sales in based overall here our that are sell again, as

James Jang

can I add that. maybe just Brent, to

average think year price I in is to $XXs. probably the upper for mid the somewhere the

their all And -- what than because increased have shareholders significant talked through many about and dividends companies significantly looking reductions, QX, of share that have So better E&P for. they the significant that, for of budgeted to buyback. reports debt

that's though and this money our year housecleaning good, history. been it's put companies. for There's a -- on in relatively lot So been for best second been E&P been these track even has to year company we're of

their So those translate into with are we're to what will type somewhat as also next this companies year. month other forecasts now, our that looking the putting and higher will activities year. year and right for budgets, and CapEx We're for optimistic closely we're and so for working customers next we or efforts our some are planning next out preparing budgets exploration these and

as I projections these are these there's to more some think far still going that's come next several months concerned. out from companies in as the

Brenton Hatch

completed anticipate will in as in is start the of there be things progress stream. be and reduced build some this that we example. And for all improvements to Permian, up thing other along, infrastructure on that as are come DUC will The of they

none The us the forward little to. we're that what they effects of for reason for bit the and know the and of looking we market unsure there's situation really thing a little us we're terms of be so Iran perhaps whole No, of world will optimism is think hedging in other but a on. a

James Jang

Okay.

so I've is is the been Williston. this which in something capacity And the tracking,

heard seen soy. So now on guys North orders Have it tariffs right from Dakota? looks to excess of you or capacity there's due more coming the lot like rail a

Brenton Hatch

Cameron. you that? Good question, Can answer

Cameron Tidball

above been above budget, Yes. steady We've kind pretty the target. for year the fiscal for most part of

the far an that QX see can feel see us. very QX, we bit we far Things so that's little as for coming a positive through looking However, We coming uptick Basin as there. the Williston there. about are in Bakken, of

James Jang

XXXX? for have there or CMS even for just XX? you And orders the more are Or these seen

Cameron Tidball

X opportunities major of there do We do for our XXXX not maintenance CMS, we some E&P smaller product do -- of main we frac applications been then E&P. interest and focused heaters are interest. preventive have X some there among X have the XXXXs, has We with pursuing for there, have lot programs have a been it. there the line, some plant

Operator

Trottier [Operator from the are Instructions] line Our questions investor. , Dean private of next

Dean Trottier

of Most color little my be market down years several of on the bit international me could I give road? a the hoping questions were you the was answered. could potential what of

Brenton Hatch

we at that but increase really I to questions one off quite an passing say, basis very want seems even morning to other and do that? been on sort you seeing, But Dean, in and in companies a we based them address on of Cam, of thing that of kinds this significant of increase there I'm Halliburton possibilities. this late. good noticed for requests -- to will be involved is focus a the are regular quite and the Cameron what quotes And things for a international he's large on

Cameron Tidball

Yes, definitely.

look going all sees all see to United what a new for double to happen and the of right? overall anytime that, international do demand States the market demand? the sudden And So an soon. as we then have we Nobody That's big the is I world? have at, often being for as development not

international Middle other opportunity available. we existing what technology like has in and and a be these the Asia some think been South for exists places is However, in fields, what and not large especially there I will America, believe where exists readily of East places retrofitting

and we've America, standards ahead they and whatever, retrofit we North there's is, the shale to matches Canada to had are believe that similar United we market topography, a of believe for going drilling strong things. geology, potential North to the States. go a what But plays places most the in to going where have American they're of Europe, you of course, Now be

we quantify getting terms hardly get don't day we And these that opportunity significant that. In impossible new yet believe, drills, a we But Profire. used of go international like really we a inquiry it. -- potential be smaller will market, see that course retrofit the to an when well, by we working already of -- and type an things us, they're are for big But for are right because on sale. could to

To is. to right do number, give you it yet. a So that's now, though. that Working the it, on what focus can determine

Dean Trottier

Are And idea or anything kind major XXXX? like helpful. headcount of sales shuffling at that's any any that? of hires looking kind or for then you Okay,

Brenton Hatch

that We've we heard that today on. I him Ryan should from have think so one little take

Ryan Oviatt

various right we're budgeting scenarios process XXXX. options for looking through now going We're at and and Yes. our

So can working to there. know answer Don't determine we're that. an that I still necessarily give

We of the have XXXX expansion there. expansion talked here bit the the a so sales will some little about there team be on call

our what are Some to be forecasting, our by will be we projections the potential on year what based for where see based also year. CapEx we determined next see, on next for business customers revenue of it

are right update working we remarks, mentioned an prepared the through as So XXXX on that outlook planning to give now your for and we are in we in January.

communication. So approaches that we as in information have more that will

Dean Trottier

technology like management are off? One what before That's -- what Okay. kind on now? tough it what Is great. it's technology with of customers several was retrofit of sort North sort of the in burner question last the of But and market, might the using it, to focus, America kind years took the retrofit ago answer. be using international -- the

Cameron Tidball

tackle can one. that I

Brenton Hatch

go Yes, ahead.

Cameron Tidball

infrastructure of Alberta, so in Saskatchewan. if similar Albania, Yes, ground, to you you go. oil Lloydminster, in where heavy I the if guess Because that to has very what go comes of out go depends which of in to, terms sorry, oil you

mean. probably to it on with running is. Albanians stick. going see XX are what to rags around just You not That's that's be crude And a or

a you -- if to it fixing If they're the be going a it you instead of leak, pipeline. up go burn torch into to throw Russia, going pipeline to to it's get

and seeing XX the evolving are we United we States. getting even the the had situation Now in wasn't same that It years better. ago world

have have didn't with rags people XX we around sticks, but did and we running that. Now,

So what have rags a exists? cattle variety sticks You're on variety prods or Honeywell have going XXXX, a Piezo old to going ignition to burner a of you're stick. or management, of

in going are some major You to facilities. have Profire

Pakistan, to of used lot there. they don't product. XXXX they going You're the competitor, our here have have India of competitors even find and you'll and of that But some legacy We it. have a some our know

we most the when they causing these out, part, believe blow that Canada and States Just get ago: inefficiency. the them lighting out, you're will they to quo systems. status them, and the blow in we If For going get manually to years we though, United was to see danger

variety more of you find Except it, technology America as different if ways of cetera, but will doing to burners. -- Europe, Europe. competitor. way a large Autoflame, et So not North lighting advanced will in you that's In see of similar more not -- a with a different

Operator

for like closing I'd the turn over to management session. question-and-answer floor to comments. today's back concludes This

Brenton Hatch

for Thank continued thank XXXX the We'd our your much. like quarter. each so of for today you us of to results to the call discuss of you quarter third joining third on and Thanks everyone support. Profire

questions will have. course be discuss anyone might for to We of to any that calls you available

a us. always, have great feel everyone. Thank you, day As to contact free

Operator

That teleconference. today's concludes

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

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
James Jang	Maxim Group
Dean Trottier	private investor

Profire Energy (PFIE) 11 Nov 182018 Q3 Earnings call transcript