PFIE - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon everyone and thank you for participating in today's conference call to discuss Profire Energy's first quarter 2019 ended March 31, 2019.

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 note regarding forward-looking statements. Statements made during this call that are not historical or forward-looking statements. launch statements, expected not expenses, resources growth, future international investments and forward-looking and and regarding and to, expansion company's to contains the markets company's products, the increase the exploration planned new make call beneficial M&A opportunities beyond, including, the performance. limited but statements into availability This of new company's product expected markets the company's of financial employees, in in in of operating company's additional of XXXX potential the international increase expenses obtaining certifications, and hiring of operating All such in subject uncertainty circumstances. and forward-looking changes statements are to

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

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

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

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

Brenton Hatch

see your $XX.X net very In again million I XXXX. are all that to to first liquid investments am you we delighted to able quarter improvements were call fourth much. our able income were as Thank a Welcome QX quarter-end quarter we for to earnings once million flows. cash These $X.X $XX positive everyone interest cash the generate and of and Profire. million. of of revenues numbers and total thank our were over at XXXX, in you achieve over

performed remain they as standard. Our the industry legacy products well

We are that continue to traction. these as product are of gaining develop such new lines and newer encouraged XXXX some products

XXXX flat revenues from previous due continue We QX gas first the macro oil product PFXXXX. expectations and intend XXXX investments see and to development, the to of indicated Nevertheless, the on earnings in our our to In strategic product the burner these next-gen In the of call, industry. we we for development for expect in sales to technology we enhance market been industry. make changes system, This the significant XXXX leader in some in launch a management the throughout remaining half will not anticipated as As training. invest relevance time. has to fall, continue we within XXXX, any ongoing volatility we do with industry. to

customer interface. includes installation Our and and their to improve a that an has on designed performing focus enclosure product advanced need understand better The delivering intuitive to maintenance. been when met team has the technology with to customers experience and

ability manufactured should The Profire's and been pilots the offering XXXX monitor include include burner to other to base relying auxiliary to X functional XXXX will remove safety features hardware. or into same reduce control the is to increase on automation system. without diagnostics key to multiple having have SIL XXXX on was other and most XXXX. rating technology integrated that and firmware that and product, to the will allow user-friendly customers the designed manpower and to combustion end-user its field-upgradable perform upgrades the The recent company applications. The efficiently by Some and needs the manage access and provide data state-of-the-art advanced safely the being the upgrades received achieve logging

well and user-focused applicable be a Field being to commence to be the thereafter. immediately and being by are final trials XXXX access addition This product. compliant that product, possible believe intuitive certification. will regulatory available certain with the remove currently codes. industry we some await barriers of opportunities to into should us XXXX this standards will as In are and to expected allow the We product Commercial market received markets applications. not to entry XXXX and customers sales performed with are

continue system our the of the A we is we hired. improving in the expanding our XXXX. enhanced product of new Lindon, are in development the of better reach of New product. team was long XXXX facilities The our to focus and assembly term production the support area strategically one capabilities growth Utah Throughout the for quarter, only and be member strategies. invested to

first that end of sales hire for revenues X% product. We the will product from are seeing just XXXX to these X.X% to in This demand XXXX. at meet sales us of fruit staff efforts is enable as total XXXX, the we the dedicated up of over which the of additional support as quarter to increased additional

We also could Profire. opportunities evaluate to that markets continue significant for offer international

establish We and to South distributors America. additional relationships are working with Asia in

as this for major as We see are our opportunity of success a we growth. dedicated to the sales international

for core improve focused expertise, industry add additional complementary share internal strategy capital that We continue XXXX. will increase With expand structure beyond. that Ryan? cash and which our a the reserve debt-free on first in development, and to positions gives to product though maintain belief acquisition significant relationships. quarter to the growth We opportunities time market to us our to customer Even XXXX the our flexibility nature remains the of to weather cyclical strong remain Our this changed. results drive our to We quickly to exploring leverage believe company's in to products, XXXX, our and Ryan CFO, I now the industry. provide respond opportunities opportunities. strategy we impacts further turn evaluate investments financial over and not said, company discuss the has intend continue of the to plan the about such Oviatt, success of

Ryan Oviatt

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

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

the last to a a looking reduction, quarter, a lower the ago Nevertheless, higher product Throughout in from lag oil by XX% three to CapEx the $XX the begin in XXXX of typically we mix approximately decline QX lower have as gross expansion. up income decrease QX. average or and The far of E&P dividends and million E&Ps which from XX.X% macro in quarter increase to we million focused XXXX. to bonuses due lower $XX compared quarter to statement. were the $X.X period oil year. customers. lower like to discipline. prices sales, increase averaged revenue remained prices price of accelerated quarter. operating month the due $X.X X% than million oil on XX% profit our This XX.X% QX commissions they than in see $XX.X the debt but warranty reserves. was result on the barrel percentage the explorations spending XXXX. decrease capital In due of four compensation primarily at to have period a to lower year close same year XXXX to also total million ago share stock Let's and recognized out industry Total same the macro average oil largely XXXX, focus the This additional total a in realized ended QX was the as labor profit since at revenues capital sustained, quarter, Thus continued same ago. QX barrel. expenses in have our of by expenses in or a trends. direct from is decreased revenue more discipline in margin the The price XX% the down The year on and buybacks decrease from prior period paid quarter total compared the and CapEx adjustments $X.X from and and or a improvements of is changes, a inventory reflects quarter, companies X% or last costs Gross product revenue between was

same quarter partially are over operating increase was to strategy. increased is compared decrease and of that as our growth ago. to by year of costs execute the expected As percentage the total in revenues some XX.X% continue revenue, period a a XX% driven the same in our due This we to to investments

to but compared which by believe the intend next the full significantly sale years. when roughly revenue fixed X%, R&D three revenue outpace may We associated labor roughly in which investments expect certification decrease expenses for the in expenses general XXXX. in growth ago as investments over interest the of not to decrease attributable higher administrative commissions July We our the revenues department expenses and and XXXX. last cause The general primarily to is XXXX with term to SIL other we essential XXXX, XX% for year to margins in we compared Total The be As and investing these decreased our XXXX quarter, could lower and XX% which and decreased and was which short personnel XXXX, still during mentioned due administrative in that of and increase to total quarter. period to to challenges. to to the a to same to industry in operating the increase on ongoing tighten, decrease five assets. bonuses decreased XXXX. $XXX,XXX, of to income costs depreciation R&D may was was XX% in the support compared completed operating throughout keep due of Operating consulting related increase is fully will the year R&D majority in

million net quarter same the Our last $X.XX a of share $X.X diluted $X.X up to is or Net previous income quarter share income XX% over year. $X.XX same per QX. net is in income diluted due or the inventory compared was million to per recognized CMS to a due lower Net XXX% onetime the from accrual ago over the down year revenues. in income quarter

the pursuant a liquid quarter team despite result once of program. $X.X decreased our $X.X end hand. at the $XX.X balance XXXX. the levels sales demonstrate on to at and to vendors cash million Inventory The million with worth inventory shares the stock our look for We $XX.X from to able requisite compared to operating closely let's the to total is of investments buyback as XXXX. working end forecasts million Cash Now and flows operating were carry $X.X decrease million of positive of sheet. at purchasing million again

the to customer amounts quickly able still its to has demand decrease distinguished years, We while Profire inventory to been being have over from respond which, competition. able

of XXXX does collections successful believe XXXX it This will We advantage over Brent. market externally total both Our add send to from to to Profire's that will take plan years. we strong With that we I that you, ongoing made to receivable accounts have that, increase us thanks XX% opportunities core Despite XX potential. shareholders. days are balance investment will old of long-term not and for in throughout mean and market volatility, the in values help invest move value that away back committed to of increased was anticipated accounts the we making investments internally the and accounts remained plan receivable. previous

Brenton Hatch

oil Ryan. Well, the to thanks, of and a part barrel experienced of significantly. has and gas as drop XXXX. at dropped price uncertainty the This market end of The volatility led drastic first ongoing oil in industry XXXX dip the per

oil D-J budgets Recently, legislation Colorado legacy the sales due not XXXX, that was D-J prior to products price capital The rig prices have and slowly As of lead the or from are our suspected rising their spend. we are wells sales Basin. increasing appears but discipline XXXX be adversely only and our thing but optimistic the E&Ps, customers to they The E&Ps' number oil. about the services have of customers functions the Ryan which count expenses. in increased appear CapEx to on in new levels sale to slightly streamline the part budgets. production reports prices average shared regulations. within CapEx will and performing E&Ps mentioned, uncompleted reduce decreased in not of nearly the is though with rise their the risen, that as Basin to investing was as layoffs already In much DUCs CapEx has a possible passed Based of increasing in are quarter in quarter, generally affected Even affecting order that oil it have heard and to impact the decreased drilled in X%. of who in

follow see spending will if We will any companies will CapEx E&P or prices continue the be to strategies. of in how affect to oil their the there increases reports

up accordingly the We to revenues flat and QX remain planned this relatively of pick year XXXX as with outlook have along. half as moves the for XXXX first we in expect

the term seasonality tend normal to our This growth fall expect strategy. our be increasing long to before investment again spring the revenues has and and summer months changed lower in commitment in outlook We and not as winter.

the staff market include the on throughout growth to focused of existing will and We team three and and industry to improve. in spending will of expansion we whether we believe operate growth support in that In will revenues evaluation invest in through value The strategy to we areas coming allows expansion sales of can XXXX or they quarter, international five research sales conditions increased where continue training XXXX plan opportunities. not and strategic new product, XXXX R&D XXXX overall years. invest We XXXX for areas the products, believe develop our independently. to the to the add

We the also training of XXXX staff. throughout awareness our increased and sales all

deliver able product and and the R&D incorporate looking make a of our as as partner, exceed prove that additional to new on capable to products safety once of plan announcements their enhancements growing have they improving operational We We team efficiency. addition the technology Profire expectations. believe completed. and implement working that that customer latest deliver of Throughout expectations. the for or are product we XXXX is releases their again is to that are the that year, will ways Many technologies these we meet to trusted and and are product for improvements deliver customers believe solutions will products

Canadian positive. This is facility resources and this to oil the in facility new Our will R&D outlook and production Canada on later space gas team track improved open year. our other Globally, for Alberta, and remains staff. provide

Our products are through countries currently resellers. sold primarily in various

are advantage We high-producing of plan to in equipment Mexico take who locally we We opportunities how region used every major in identify. remain opportunities. thoughtfully exploring invest oil-producing and opportunities geographic can in to be being fully Currently, with intend we in areas. more Nigeria, our and coming global areas combustion products resell strategic investigating the distributors will other integrated. products. any and support We explore We work evaluate have supported Argentina, years, our In to we the time to intend and products markets. these the active

trends questions. that help XXXX now can the years. we industry, in making Profire will appropriate investments we Our the the consistent industry. Operator, started? you. revenues the investments get Q&A oil with within provide the optimistic. And These outlook increasing for up you so the in of strategic with are gas technology would is But intent will market and remain Thank instructions please the a to leader open call we coming

Operator

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

Rob Brown

morning Elaine. Brenton. morning Good Good

Brenton Hatch

Rob morning Brown. Good

Just are an for company of the record we kind truly now, international today.

from Canada. We Fisher, Vice calling in Patrick have of Product Development Mr. President

Fugal course, calling Jay Tidball is away Utah, in which from we, everything far Cameron And as else. have as China. We and about are in of

we to cut are international. you So here there. off Rob, sorry

Rob Brown

How ask your that the question. and will On international of kind presence going is effort in channel? that growing the terms of worries. international note, expanding No I

Brenton Hatch

some along quite working other in towards establishing are coming relationships It's countries we well of certainly Rob, that. actually. and these

bit as especially and a have out companies, oil are the are other followed there. as that. have you circles the noticed are about cautious that companies We international you But opportunities the in realm, gas in reaching recognizing as larger and they well

at this be far time. quite that the by of at using as resellers present least groups at interest But us. terms in expressed and best various positive to still distributors we for So won't this so feel, is establishing point, the going We it's bricks-and-mortar, way abroad.

Rob Brown

your market How Thank product, then features number Okay. that you kind that your maybe of And demand What's see And the and kind environment? you interesting. you. Great. of XXXX, do a size believe. of it, the for that that sort your picture developing new market very were of on I thing? gave of

Brenton Hatch

You bet. Mr. Tidball?

Cameron Tidball

me you Can hear bet. You from China?

Brenton Hatch

have you. We got Yes.

Cameron Tidball

The there right. is for have we the that excited and will for more be obviously, But midstream has today XXXX, to announce upstream volume. and burner we the what masses, coming, management been done All mentioned. really, as are

integrated add the to have too on the itself outside with outstanding coming gas, the platform lot it's will much want. XX technologies the add oil that been will last, open allows the features it's we it's the and to a us years of well although see as run-rate over customers always have features that potentially platform lot future to of into that platform almost a of integrated heard but potential, But a the been well, down and that's the line on we a now We good. ability future and so almost have not of outstretch maybe have nine, XXXX to and in those

product done job we forward customers, excellent So to carry be and able it's and we very right in for. team our will of the that out look getting an SIL flexible, momentum will certification where and open gate has that development will have adopt actually we think,

Rob Brown

quarter the Or And half year. you do guess, Okay. growth see flattish when guess of things? all the, the a about -- the guess, guess, sort Thanks. of general, are XXXX some in product expect other in kind second there and back start When new the do in you And of we I is then that talking uptick I some that discussion? I to I from growth XXXX the market contribute? and is

Brenton Hatch

revenues. spending it because month, their three Those their cut usually environment month lag often are quarters that and really macro quarters at But stellar to usually same now, or typically they But Right of at fact, comes, an to out number the on mercy we the sustained these what in spring when indeed, of and Recently, to of And two maybe spend. XXXX questions kind winter are that CapEx won't the we hinting companies fall time, down But the us. we terms temperatures such, suggested larger end of are the kind when ask a are always is again, all a flattish there's in challenge. thing. the a the be begin looking uptick especially a towards terms and as things may and seem at part. it's in in off, year of companies the trying little for E&Ps be are year, ourselves change four the really have a that decide. the follow come And Rob. even better a of of it caught cool look and or summer we they the literally the fact our find sometimes

Rob Brown

over. Okay. Thanks it for the color. I will turn

Brenton Hatch

Thanks Rob.

Cameron Tidball

Rob. Thanks

Operator

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

Brenton Hatch

James. Hi

James Jang

guys. Good Hi. afternoon

Brenton Hatch

there. Hi

James Jang

a got I So questions. couple of

over products? for in the So Is is really business demand is full the there in that suite Or what that's of Cam, for? specific that in product China? China,

Cameron Tidball

question. Great trip to business China. development second our This is

sought very burners combustors We well old-school logics. Chinese could after forums previous We potential, to energy are haven't market. business very sticks. forced actually upstream useful gains. are not even, we terms perspective know in is efficiency got management some there's They much some PLC, become have relay-based opportunities. market. lighting has participated they burner some and and using where of in here. quite really large but rags this with of But doing The believe The coming They are we in definitely a about quite They I is in Profire for many that clean draft China have their technology. market guess,

what have is the now And be right there market XXXX. sophisticated Chemical, We not the that. the the They can XXXX. a for thing about they so a have yet. the because that for wherever put quite believe market And market sure they does There The there want. for of XXXX. believe China entail? control a market for in is one here, actually we will automation place governments quite pipelines

lot facilities. So it's of a central

do can definitely and the in few from a south north Hainan heaters But way lot an way opportunity everywhere of Province. the all to very Harbin wells. Daqing, So

for well So opportunity sure and supply chain opportunity as Profire. for some as

James Jang

you discussions Are NOCs or over entities with state-owned the there? having the

Cameron Tidball

Yes.

and national-owned had their companies discussions the in upstream. refineries We several of with have three

but We have distributors end-users. only the with also met with not

So But opportunity. there get believe in. it's definitely we learning a process to is that we are

James Jang

looking going mentioned, not maintenance do that are guess, Okay. Great. to, Thanks. down upstream the are more outlook XXXX. strong to prices the now and as Oil guys right pay And for debt. you I and

Do revenues it looking year? So we with think how on XXXX? will should par at more be you be for this

Brenton Hatch

Oviatt, numbers man. our Mr.

James Jang

just you give the Ryan, could numbers, me would be that Or helpful.

Ryan Oviatt

in it's a are the ones bad. in Based Profire. our they challenge. believe the That's don't But the growth little are kind really look more industry for to are There's drilling remarks, a prices, doesn't not back good side forward to but activity, excitement in numbers. there. activity on numbers, oil especially even prepared and that or it they that that I said like the not doing seems on what of James, for committing lot production outlook bit of backward The the we seem am outlook, complicated. bad with it on We a ones, the a then of completion CapEx-related of tremendous exploration It amount are well that or in into companies it cash taking stuff. doesn't putting things. type spend activity, be side, year maybe

So in from that we as, for the least Brent flattish are the as said this half looking his year. remarks, at first at of

numbers of We in are see. the we that some year. optimistic about the the second and improved largely depends half what environment But again, some on of macro

to don't perspective. I we by as well going So back levels means. best are record either, think revenue ever dropping numbers probably any hitting talking XXXX But be of to year not

James Jang

Got you.

final Okay. CMS. And one on the one

So low. what's holdup so like a been being mean it this I especially no-brainer, seems the with the is payback there?

Ryan Oviatt

has really oil that isn't getting think all and solutions gone product or providing times you proven other I I with proves struggled. comment are amount have met we And do companies industry, the and would the just fully that we believe, the take new CMS that to as attention seen many of And just numbers a outlook or it We ROI-type A be on we Cam what mean have out really the would. lot it the inventory learned themselves you his gas because focus the haven't reserve technology and at that a right haven't cases, great least no-brainer. last proven there. fair product and now don't team last a But scenario. against in the technology of would that that a the ROIs know. obviously and that year good have quarter a will Patrick reasons on that did sizable isn't behind over line. should we customers

as how there's play cases, it asking, and of were come think But other in BMS in to I lot into other these many did you break to a there. coming are with just do us they struggling companies things guys because culturally that well. impacts and

hopeful to we pipeline to and in past, to being here on some BMS things said hope to lot activity are the have the its years able things us CMS several to are But that this that year. the for is or bad. later have that for to we but make did There sell. we environment going good we believe again, an U.S. there, play didn't convincing good really the in QX. either it's that the are product, macro come But that obviously others impact have a there that that's the will And are and those foot companies, good still buy We and to the Patrick, a that that of is start door your anything of are doorstep look should product As add they that a we take it things from would optimistic they the some in that, on like path it with happen. had to indicated? in get the challenges. there in that is you of experience other actually

Patrick Fisher

type of, have go we aspect kind management. And the chemical approach of ROI cases, it, to value indication there. of The see of in seen of idea, that for the do a yes, Yes. you lot the we will thank definitely they an

issues BMS. in a The certification like it. as on-site. barriers a The things that high surrounding certifications, to as could definitely So the chemicals, of entry they like that idea. of been no have BMS really implement the sell that's there's looks their we it, whereas it one required, PLC has they is like It go seen agree or and do and it isn't then something lot

James Jang

I see.

final one And one. Okay.

of, of take with some do this competitors? think kind this to is sector, So out of BMS guess, for your stagnant you guys smaller kind I an you opportunity private

Brenton Hatch

macro with there for market, do that. there's a effect struggle on. certainly the well market have limited their presents us. will know think if in an And we opportunity and sales, to it that of if itself as on find opportunities as there's an we We perhaps yes. these think indebtedness struggle there will We that the we think We what's people. some on result that going they so But yes,

James Jang

thank Well, guys. you right. All Great. off will now. Okay. drop I

Brenton Hatch

you. thank James,

Operator

[Operator Chardan the Capital. Instructions] is McIlree question Jim from Our with of line next

Brenton Hatch

morning Good Jim.

Ryan Oviatt

Jim. Hi

Jim McIlree

mentioned in Colorado your that's you in legislation D-J QX? D-J guys. or Hi the in Can revenue us you as the either Brent, Colorado XXXX how help big understand place. was commentary taking and percent of in a

Brenton Hatch

Sure.

can. to question. that's to probably a great man Someone Cam is speak but here that, the

Cameron Tidball

Yes.

D-J to all mainly a incredibly municipality. we last we year So play the was that voted and there the we over done when at well year breakeven the XX% came play places do for have, is And market producers it Plus an politics much West central there. for as we to And because we gave as such the such as in opportunity. before, as and has know Texas. no small the there, or believe, D-J it proposition year, requires The victory do don't into low they heat. and South the minimum. facilities a great Basin it well Basin Last then as have public very they Profire Texas had share strong point

they of area. but assets obviously, we as seen, have put we Oxy in believe, of in we Anadarko a wanted probably for Profire year bid full and divest to XX% But get the seen was much was Chevron. already see happening out, to it quarter first is What quarter In as that terms to because for percentage intention, pulled in in things last of and Well, possible. Chevron's along probably good have revenue, probably move in XX%. the for we with

will Now could that's seen what County will is all will is one Weld of to County go. where we vote something Weld drills remains XX% new be that and because thing watch, what that

that doesn't Powder see in River County an that to And we limiting investment they the do, probably If go big well plays the as to Weld put of to long not they so restrictions, as impact the in are that going Texas. term. in if West Wyoming more pure say Basin will

Colorado we it see believe. area, they much have we been sooner will as will other see later. than a for a loss light should go investment Profire, don't nice Maybe but loss the us. a So think that place But as places, in for the I

Jim McIlree

that block individual Weld is all you within the municipalities are the as And would county as Weld a far County aware, have vote? County an

Cameron Tidball

Yes.

all right. the You is municipalities. are It

take. and for that's what waiting really So that how long will will

our So of risk to and E&Ps. do their night at with is the for on signs and the losses, job those strongly guys, et partner them their and municipalities territory even economies to what do holding part with GDP they We the weekends advocate cetera.

So it are Jim, right, yes, municipality-based. you is

Jim McIlree

the Okay. you pricing And on strategy, that how managing you XXXX transition a the going, And contemplate bit how then XXXX the secondly, little XXXX? from relative to elaborate XXXX? you are the particularly to can

Cameron Tidball

are Yes. good Brent, I one? take this you if

Brenton Hatch

bet. you Yes, do. please Yes,

Cameron Tidball

we Really, and market, have this. do future nor for with potential. we thoughts the is line cheapest be capabilities value. the very upstream XXXX. draft strategy, will We I we midstream pricing point, featured XXXX XXXX, much on sell natural the and some price We be. want the believe, fully to not believe, in a The Profire features sell and

be to not our obviously be a the featured cetera. that's the fully we parts when in XXXX. in that become with stay in line believe be now. is pricing XXXX probably will a Eventually the There bears We what we it with might XXXX time volume as will So produced close But area. strategy, right believe, it in market the et we with strategy. obsolete, saw will line pricing

Brenton Hatch

With of this do, and the the dramatically production purchasing don't volumes that on increase will that cost either. we we such, the believe

Cameron Tidball

No. That's correct.

Jim McIlree

don't that see you the looking at They waiting freezing, can't how And for the do that? you it? XXXX? Is are market

Cameron Tidball

they not it. they It's it. Yes. without. We And be need go don't strategic with see will people waiting would we because something

that and to come they this question was, the know XXXX out when coming said it's We was that ask when percentage when I you good at coming will will, a obviously, on specs, the mass out, that coming. just want in six burner coming. strategy, it's do them people to There when for a a for while process, change to different buy continue XXXX. production. do months we will don't a BMS XXXX. management trials, rewrite continue is customers see incent public want to to holding of XXXX. to They people to coming it's ago? it's the remember et come off testing, for We least Well, management. sales. then. have then But a was They That strategy hang the long the can't. we won't will of since for eventual feedback way, way for we loops field believe detailed cetera. coming, it's may go automation But need launch a time But They have we and now order

Jim McIlree

Great. guys. Thanks right. All

Brenton Hatch

Thank Jim. you

Operator

the Capital. Roth line [Operator John Instructions] Our with of question next White from is

Brenton Hatch

morning, Mr. White. Good

Ryan Oviatt

John. Hello

John White

can bullet you get are hear to talk am technical like more been the XXXX. to you E&P glad pitching a say? Good points? your Hatch. What what again. you some There's operator, I little new when Mr. an you from XXXX you do And product. to morning we do the rolling What emphasize? a details, out about see are Good

Brenton Hatch

Mr. engineering address getting suppose more lingo? would lot too that a than without Patrick, anyone. obviously care Fisher knows to this I into much about you

Patrick Fisher

Yes, for sure.

Brenton Hatch

you. Thank

Patrick Fisher

experience the on in really be lot of we a user the the are going system. points, the the So like bullet going said are focus usability question, focused to and to, you of they

usability, of been intuitive there. go adjacent to and start will hitting on into user-friendliness doesn't a they they just functions the learn is have a because have or very key points require the the we up focusing capability, of not out address of integrated general level way ensuring time kind the experience externally it the Those to box a down. a product is expanded they have been and and user-friendly. and and Training cards auxiliary We the train. of add-on the of first That of that open that few do lot using when So system. effort take currently times product features to lot put have able been

Brenton Hatch

Go ahead.

Cameron Tidball

John commission You a forgot point. to without the would was White point key able be the that burner training. That management key

Patrick Fisher

Yes.

Brenton Hatch

side John. for you, It's job a

unit. too it's add think production the to of the that this important isn't ultimate is I

product this so new to and adding We changes organization features his little will will keep as Mr. on. demand that the coming customers but have and be Fisher out, a them, great along the technology as way

that this replace do that these hardware, to adding will better. field. features we simply features better We in won't field is programmable but add-on make so have will and it it the in it with But keep to the

his organization thing, has really done that's positive So a think, with I this. Patrick that and

John White

correct comment. I am probably I at at had than Well, am Cameron drilling skilled more a production.

So I will concede that.

Brenton Hatch

Okay.

John White

Thanks for taking my question.

Brenton Hatch

Thank you.

Ryan Oviatt

you much, very Thank John.

Operator

over question-and-answer like This back session. I would any to the closing concludes turn comment. for to management our floor

Brenton Hatch

call us first of support. XXXX. to quarter you each for We the all, Thank this on you like for you, continued thank discuss joining everyone Thanks of much. so to would today your

you at As for always, you to might we here great to Thank a to available have. free are you out everyone. us questions Feel Have Profire. that day. reach

Operator

This teleconference. concludes today's

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

Profire Energy (PFIE) 12 May 192019 Q1 Earnings call transcript