Profire Energy (PFIE) 6 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Steven Hooser	Investor Relations Advisor
Ryan Oviatt	Co-Chief Executive Officer and Chief Financial Officer
Cameron Tidball	Co-Chief Executive Officer
Rob Brown	Lake Street Capital Markets
John White	ROTH Capital Partners
Jim McIlree	Dawson James
James Jang	Univest Securities
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 Third Quarter 2021 Ended September 30, 2021.

Following the remarks, we will open the call for a question-and-answer session. I would now like to turn the call over to Steven Hooser, Profire's Investor Relations Advisor.

Steven Hooser

Thank you, Sherry, and thank you, everyone, for joining us on today's call. With me on the call today are Co-CEO and CFO, Ryan Oviatt; and Co-CEO, Cameron Tidball.

call, the like company's today's moment take begin read to safe we I to would a Before harbor statements. this during statements. made call historical not Statements are are forward-looking future statements including, This integration forward-looking company's of performance. the in company's supply financial in investments company's but exploration regarding expansion the ongoing research performance, acquired and markets, not expected call assets, growth, regulation statements, the and successful limited new contains chain of the changes, opportunities, company's to development the M&A All uncertainty such subject changes and to forward-looking statements are in circumstances.

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

Mr. Cam? like Now Cameron Tidball. I turn to would over the call Energy, Profire to of Co-CEO

Cameron Tidball

Thank and to I will you, today will providing provide days, to the the review to joining I start your welcome some Profire. in on our over us who in a Ryan call the those coming of call industry call recording our today We by interest listen will those we updates business. the turn Steven. the and on the financials. appreciate to Then

by successes. initiatives as providing Following our conclude on strategic well an some Ryan's as remarks, development business recent I of will update some

concerns The parts some COVID removal derived signs products quarter XXXX and or Delta and over with of of has progress for economic The in country since the the increased the loosening due has demand third resulted resurgence began oil restrictions gas of full ongoing of to however, production. recovery. from variant, of demonstrated in

we fully increased the production decided that agreed day limited continue demand oil from their at positivity countries, well crude the to increased as of OPEC+ November producers XXX,XXX and high. trading meeting our potential to increases which and per for a constrained seven-year and barrels supply or year-over-year is at continuous keep as improve continue prices is upcoming but gas XX% summer. last at near through this variants, U.S. to improve. for earlier could Profire. to expected will last Higher highs. increase winter, the we constraints to price least Natural average rise. at impact expect don't longer products if are to seven-year are also prices supply commodity to barrel represent that for was restrictions change to The COVID optimistic continue combination due core for Although, hydrocarbon-based and a of currently The see surrounding that demand business policies are Indicators to and

optimism and oil strategies. future dividend As reduction, not capital reinstating and make we debt remain changes majors levels. They have to gas investment to spurred has shared increasing material their committed commodity and and programs previously, prices to production higher maintaining

With hydrocarbon we as to cash consolidation striving capital well E&Ps to the as further producers, of or build up reduced availability see the lack ongoing of industry in future. reserves threat

couple Profire expected, the Several reinvesting of activity, from over let peak quarter to increased With financial by results. me deferred eliminated evident discuss has As completion call in of in or have the been its in which decreasing XX% that, June Ryan the begun capital, which DUC count during maintenance Ryan? the benefited our turn XXXX. is since last years. producers to

Ryan Oviatt

Thanks, Cam.

at The progress has. to to oil. mentioned, ramping rigs. This the improvements active the by Cam decisions. investment to customers the rate, DUCs our to there $XX up the with utilizing be bridge a continue The plateaued is at though efficiency programs. support signify short-term of our down in as could for our environment was which industry be still the DUCs industry pace U.S. a count problem pleased needs world up of available quarter. oil third onshore customers two At less when Profire, just for be XX% are remain the products WTI determined. last and DUC operations. trends we years. of The from rigs solutions XXX seven forefront in certainly peak on XX% gas down used to the to was higher long-term drilling Producers the Like opposed production reacting seems decline than discussed, for quarter. prices under are of combined operational is and maintaining and recently. was that have X,XXX is over energy existing is ongoing than differently U.S. safety, time were solutions made its a per in Automation shale this the traditionally key above the The These it the production the will critical and over As barrel component count is ago and Canada our years rig and

our the a in after the XXXX. XX-Q for me press quarter Yesterday, our release. results third let market highlights turn SEC financial the we quarter's closed, Now and filed the with to discussed

of from Investors section million both call coming revenue, $X.X available the transcript in As of increase our of those always, days. posted quarter, website. The the In will we represents a customer documents the on pandemic. second recognized be which this in the are the increased third by XX% the year, revenues XX% compared than the ongoing compared last to same quarter higher to recovery associated third quarter from and of driven with is Product improving demand primarily XXXX. the XX% quarter as

in our expenses some of continue Total significantly as reduction were over approximately the implemented XX% XX%. remained for operating rate. but the the customers deferred XXXX This Gross the quarter of prior ago $XXX,XXX efforts as a prior million compared the million. reported year-over-year programs of On run Gross below was $X.X second profit returned a quarter. from in pre-pandemic year increase $X.X year. was $X.X third Gross pandemic. segment during margin quarter to sequentially service quarter increased $XXX,XXX, was the third operating Our basis, increase quarter that revenues, XX-basis-point million million the margin expenses and year-over-year in quarter. for XX.X% were as unwind cost we the to $X.X represents improvement a maintenance a largely to the

planning for and and $XX,XXX the nine in nil or quarter XXXX share. share to net prior the net share months third third in was R&D decreased of or amortization and nine quarter Specifically, year XXXX. of of third million or $XXX,XXX quarter net in prior from expense XX% flow strategies. first of in portion quarter. $X.X per decreased of from per compared Cash to G&A compares year. policy an Depreciation pricing from operations the loss expenses $X.XX Net the achieved of per quarter for was months A the last XX% increased the income other XXXX. the X% the loss the year-over-year. of implementation the approximately tax third $X.XX through quarter, This updated diluted $XXX,XXX was income current approximately the approximately $XXX,XXX approximately in transfer first of quarter

was finished million, in inventory remain to the the address of the down near at the orders our $X.X customers mostly our end believe which We XXXX. goods, from Our current inventory term. sufficient of at million quarter balance levels, represent end $X.X

working going our forward. of needs product to sourcing long-term on we provide to business the our call vendors as recent our turn some as will meet update of some our ensure well progress. are medium now customer for to I development and the an with are strategic Cam? initiatives Cam We on well achievements to to positioned over

Cameron Tidball

new customers. remains to of energy protecting preserving you, on is and sector, specification Thank midstream which focused of continuing upstream Profire and comprised business, our solutions adding core our drive Ryan. oil gas and the but and

transition Our to platform. and utilized customers array their robust management a XXXX the in applications. to control BMS XXXX of performance designed wide controllers in our product momentum we the specifically The customer our controller to continue more needs. our continues XXXX is to than XXXX, technology the expand burner and of ability markets. XXXX The as burner initiative the of with acquired to new better be features line With our use XXXX support enhance MEP to continues the industries The play allows to platform XXXX us support customer in support acquisition gain to in base. eventual

and utilized technology on burner applications. draft array a As previous forced calls, industrial, and can we wide Profire have of shared natural on management be combustion

the industries. utilized projects quarter, construction on solution was renewables During the supporting biogas, our XXXX and mining,

and In this appliances continue forging, and to conversations our thermal and sales upgrades food channel at exposure. facilities. channel projects hard engaged chemical direct and projects to beverage are the on presence in potential as end-user metal momentum maintain to both refineries, and quarter, we We and plants, expand we biodiesel on working utilized deliver partner

invest of development and operations, of including transition towards that clean we producers quantification supporting core part a to to processing solution. future our with of the which of validate and continue its believe production they This reduction includes global energy image is We improvements, initiatives. supporting towards essential data AI the E&P shift the as and reliable capabilities research efficient automation, long-term as in emissions the industry and

service user initiatives Our support gas methane emissions. greenhouse products to and end reduce and solutions other

used are organic regulatory installed equipment on reporting. for can logging be controllers the used for capabilities Our data and volatile destruction compound methane and

pneumatic are antiquated In systems. leaking addition like to the to non-emitting designed trains our replace and controllers, fuel our products gas ancillary

improve on experience our transition service to hydrogen. sources, COX related and other lowering support how to combusted, Our is emissions. industries customers also such conducting thus our know-how combustion fuel Profire and as in less offering efficiencies, can energy resulting methane alternative in enables product research initiatives

opportunities acquisition an update multiple As our strategy to continue we merger and to efforts, quarter. each and assess

that to will financial We the protect our shareholder essential previously, to maintains discussed as company so ESG remain strategic excellent have we for transactions value. opportunities drive As searching culture, focused on Profire priorities promoting and acquisitions calculated while a growth for approach the for position industry.

the we the their the our Ryan over thank started. for shareholders. like we and questions, towards appropriate our of our you I call get ongoing the please can customers, so dedication company for and our would provide Operator, contributions Before success and turn would instructions to employees Q&A

Operator

Yes. Brown Our Lake Thank Capital you. Instructions] proceed. is question from Please with Rob first Markets. [Operator Street

Rob Brown

Cam. Ryan. right. Hi, All Okay. you Can Hi, hear me?

Operator

You’re live. ahead. Go

Rob Brown

I comments but the wanted this Ryan. reconciling CapEx going? sense about kind the of Hi, rest how get just spending, your of and into here just And at Cam. trends quarter are how how visibility completions. into a slower the point? is are trending to things year, Maybe the some the more Hi, of

Ryan Oviatt

decent with great to question. performance, That's were we Thanks, see is for in And said will or are calls we things in it certainly and things and year anything think holiday like trend same do or to improving, that quarter QX Yes. earlier are spending that? QX the that and year, a other certainly our will half to we We know, to to we have uncertainty when season this should There's direction of we optimistic always is of December be. going able into the from want improving. We add up trend. throughout there. seeing that QX and programs. that kind you going November customers get Rob. that a don't it be the We sure. Cam, demonstrate continue exactly the we where Though second QX

Cameron Tidball

Yes.

were seeing we're You revised if well, massive we mentioned We our as year. in covered that changes, comments, programs throughout drilling to not Ryan. it and the any, announced still,

we pipeline so signs quoting seen triggering don't up, we industry what as is mentioned, activity that So continue core We're Ryan gas. as see that anything we've mentioned, outside beyond and build far. just in seeing as, definitely we our to up. of well some is as But positive oil

pointing the So all in things direction. right

sometimes Texas. think, a However, that's I season, in holiday holiday season, season, and hunting

So it's get quarter. in that we part fourth overall results the of all the

Operator

Our Please John Partners. from next Capital ROTH question White is proceed. with

Cameron Tidball

John. Hey,

John White

revenues. to closing oil his Hey, he gas, the about the split you did – out happy E&P and good talk was the strong DUC remarks, he talked about to diversified your between very he talked remarks, E&P of In I rest in E&P. morning to more business opening and bit you. of Can and in Really of see talked Cam's or terms – the the that. effort your about completions. about Then all a little business he revenues? diversify

Cameron Tidball

we of business, and as gas it we yet. leads definitely advertising, get to more downstream we Yes. don't the transmission projects We out we to continue the lion's generate really of and The the that being we Profire's marketing normally, oil it quantify some quantifiable. something as initiatives and you be, win that definitely still or traction, paid quite will through upstream and know, more, is is but outside way midstream gain and and – moves our share as to contributing of see needle

projects. that channel mentioned last we call, continues Profire the we partners pipeline think through with, directly we're the or into in or quarter. it That the that the of number found grow. increased here both over But working our brought some XX pipeline I of we're of to contacts, on opportunities,

us. very So exciting for

what to we our That's We're and to great dominant kind reason strategy, at, and It's in it, protect have. that preserve want space. alluded Our and give the it we're mentioned backyard. there's no what that to we up. player of

said, But that it's on continue very So know we'll being purely like drills, lately, we completions, And grow business. bandwidth. some even most that We in other we prices, dependent protect to believe believe preserve we But roadmap. industries. completion. can we these of we more the have importantly, and can and commodity we we believe we product – have that the know think have suite the we we play things

to while it key continue as push the we'll So areas in well, house, were. as protecting the those

John White

gas? that. and you for away from The XX oil XX-plus Thanks projects mean Okay. do projects,

Cameron Tidball

Yes.

over I we XX we last gas, think on the mentioned and building months it, the last, and that. in oil of keep call outside XX upon

John White

I comment application in distracted. in Cam, your you of great. COX closing a your and all – one right. got reduction go? missed of That's in comment, remarks, And resulting again, reduction the made about of I full projects emissions, Could you

Cameron Tidball

Yes, definitely.

we We right to how gas know you're a earlier in this you So a on that's research, gas, and that's so change. right felt now, know long our President customers, These COX know week that our here we're going it's or much get byproduct. some heaters. We we're change going but remarks they're EPA, estimation, whether their based we producers report that going states something, that and time. the doing on and Glasgow. to know don't they really burning know it's as in research Biden's burn We for to now

methane. So target thing it's first right now, worse Methane everyone's talking is to to is because that COX. be the thing. than going XXx about you next COX But the got

COX And in so acquisition, our own those But side, COX. to can our includes going worlds, a more on it's that's the you're through less run whether play it's development. of whether burner, why how both efficient of some research have Profire you

burning, unless they are into where claiming, heated bat believe E&Ps you're from know. expensive they because quantify able don't very right they're some currently really have put appliance, what you win off a every If today, technology to actually in we the

based do, that high an they heater total duty like that report is we the on that's right our can grossly So overstated, and level now, believe. actual belief

but So on if to a right configurations quantify. coupled and that's of we for look thing now, able we stage help XXXX could product the some the as working help research at to XXXX well our still feel It's them, and be us. in with very we're as compelling to them

John White

know part business development. an I of research Well, has important been your

back. good pass very I'll to call that's the hear. So

Cameron Tidball

Thanks, John.

Operator

James. from question Jim Our with McIlree proceed. is next Dawson Please

Cameron Tidball

Hello, Jim.

Jim McIlree

thank Hi guys. Hi, you.

then questions Let have, me mute. throw and three myself put out I'll just the on I

bit can Second, the little I'm you a First, inventory talk trends? confused pricing about comments. by

levels your did trying a comments then what it. You be you comments lot. about improving. in inventory, are had just And Ryan, also I in chain. Thanks to coming And would the QX, kind about reduction But about turns puzzle make a that's lastly, you in necessary but I'm that. through that think you supply quarters? of expenses make talked then

Ryan Oviatt

of we pricing, We'll can on a that in the annual like those, seeing, to process sure make things and Yes. pressures and past. for get of history them comments, the prices all a make implementing are environment, had our add of or current Cam Great we questions, On basis or through the Jim. to changing updated modifying the customers. try inflation But too. strong in I'll prices few an we all light pricing in of in that we're haven't and

will obviously needed, we basis year the next price overall that so adjustments go situation relation into ongoing we frequent and chain everything and increases we'll and guests basis buy some to out. to just groceries issues. see there to as situation the continue make the comments, as concern, be plays from on aware, a through next two and how go to And regular if year, lots we monitor as the economy supply you're there's or In on of inventory in

We a have has do, – companies down. been of our inventory as have inventory other inventory. in the lot a of customers. was to that. we work our problems lot carry we've that more of inventory year. than servicing good our would there on a and supply supply We've at our next still using history typically So the come comment customers of We of same monitor greater We're or problems situation. just anticipation had potential continuing to additional time, we're that But continuing with a we're

this of get advanced liquid and right where supply on sheet, at willing make in just balance some now and still can environment. more of exchange looking and to have sizable needs we are some ahead that. in placing for their is investments a a meet to situation inventory to might sure we needs that our We cash of try and we orders amount customers And that our be

It's answers the then we're working question that forcing facing. we're kind it make not would it your I of going operating in like keep certainly we last things with costs We're people is turnover that's question. been and And in our able But things. to to months. stabilized our all hope for that address those to under leave, something hopefully, expenses that that sure leaving control that the some one seeing that going going labor in on So but ways they're happy and pace get deal inflation of forward find crystal start that. not the to or our when have for that people also future, of costs, those and and that we're several ball to hard retain can it's they them. to

know. those adjustments that any we making as like increase, increases I by those going are to products much to in said we're want do going fully anything the of to think to some add even are I cost to costs well some combat beginning, that to how Cam, you of But see still some to of our don't questions? So that pressure, hopefully trying unfortunately, we trying out. and price of

Cameron Tidball

trends. pricing briefly just the I'll mention on

now. a we story customers As Profire really right Ryan To tell isn't there believe believe does to that why We to isn't going degree, expect this. good have a regards up we it. mentioned, our anything with

We are a value sale.

sell We the fully warrants to that everything expertise, are service feel support we engineering sale. we offer sell value, we tech suite accessibility this. not our We customers, to sell price from a to we

to And lot but the norm, on so norm with we value. do of It's the expect we're pushback a going don't this. the

a have hear. So we you. But course. compelling believe than we to so, hear, do other that, of Ryan, reason Thank that

Operator

Our next Jang with Securities. question James proceed. from is Univest Please

Cameron Tidball

Hey, James.

James Jang

going? It's guys. a How's it been while. Hey,

Cameron Tidball

Hi, James. great. Doing

James Jang

a quarter, questions was can term. the environment, pleasantly So I term just short surprised on that's getting breakeven guys I do. by this testament to long think have in and you But what your I

term, us, from tell been in-bounds short you have So more you versus nat crude? can gas receiving producers

Cameron Tidball

question. Great

has of a that's So for for Shale most a for, had Canada gas because in it's there. term, are that stronghold of some continue many normally picked the of Profire But Northeast, I the in in liquid We've nice where commodity course, plays, over particularly, both pleasant gas wouldn't to years, surprises strong from play Clearwater customers get we're gas, Northeast lot in our for short oil part, it's their except out the been for of arenas, in heavy balance sure. the and balance. price-driven a nat of you we and gas we definitely up, Permian. between Obviously, say the where be places But like the and liquids.

nothing the norm James. So of there, out

James Jang

producers and Russia. if or have Okay. Because U.S. nat crude? a versus was know on on the the as play what's that the going kind the thinking long-term prices gas gas towards I more producers of are Canadian going with with don't issues with geopolitical I with looked

Cameron Tidball

Well, right, there's evident. someone's comments in yours mine – one I to on But it this guess. it's and gas everyone's comes when

the critical. the believe company, Midflow, that natural of and acquisition, XXXX we Midflow in acquisition natural know that we is gas Our gas

I And happen. policy also it before exist green that throw going is seems world like and some We fine. out friend of way to waste you for jeans day. wonderful pounds believe out That's solar, all of to demands trusted he turning and size and talking and all see policies what of reliable. XXX critical every on. you're is is throw a you XX time. single I to overnight wind a it going when going kind crude you you long when this said, That's everything more cannot and is that's to the just equated yesterday, actually that our We most going and and your and good cost-effective buy there. hydrogen XXX, energy like for our part, get get the and to These more

bills. to rent. gas, And everything rent my don't we that will a be do ones to that is to a isn't go want always we can name will on try crude. we a Crudes, be energy, looking know I tie natural But think to I we around. So I before we day believe produced think get and quit fuel, that, there shouldn't especially desk transition. ways I'm and on and preach something maybe at my new new now, huge our desk jobs from a transition don't pay at I the right

there. we're at start to that, unless of be work to it's home So that's floating going all and and need any going at not

there, than or answers know don't if James, to I if do have more correct question, it. your anything that you So happy to Ryan, wanted you

Ryan Oviatt

good No, analogies.

James Jang

right. All

So looking long-term. more

Is So the to One ease Cam, players you're know years, there bit. crude where right a now now and Canada. risk I next there's subsidies to a two. tangible in is, start the five between

Cameron Tidball

the are players would fine. – have you ease, You'll to subsidies crude to saying or

James Jang

the producers. it goes could for Or

Cameron Tidball

I right James. now. here, are know claim Yes. getting producers I’ll ignorance what the subsidies don’t

James Jang

but by cost a that like under to subsidized it's sector maybe Okay. direct and the impression was the government subsidy, a is producers not the degree. I oil itself, the the like folks that sands

Cameron Tidball

Okay.

live parts So McMurray of area. talking about there you Southern the oil the for part When much plays, where doesn't Profire we're be in so stuff, sands, of oil like that. the not may plays, those that sands, is Fort which talk Profire in more

there. subsidies be Canada, subsidies. I in of could In the rest shale not basins believe and there plays there So the are do

is speech the I obviously, has election at XX-second his know. with and one Trudeau a time, So out world, Scotland, going to don't that as in come he's well something, change

try much. resources The is guess over do know We holds is, The he can than down opportunity, is will only to the of going going to problem, hard, rights in to. watch Feds. province I natural or that that. Canada, We the or more come feds so the he

push Canada, around Trudeau but more can lot, So a United limited than in in States. the he's

James Jang

Got you.

the wind and alluded we're question than or it And solar, think know decrease, I going of more here but can and Profire? you to starts hydro. is demand, And of growth if crude kind we've now, to going to strategies a to what be I whether last usage maintain to hit world pivot kind is, peak mix like aware, don't is today, you all where through it's the Okay. and in energy fall, it's for implement green demand

Ryan Oviatt

Great question, James.

and there's add I the a Hydrogen solar, mix. for it those that to believe energy We big at to are will greener looking going absolutely hopefully, things fully point, that at. be is push, and we're think some that there trend more more wind. is a

a that that's going the is to time estimates. lot more belief Our take than of

the or or five peaking ending XX estimates years. within All within five of the over XX five years, last had or it years

of that transition to being there, need environment that, with I stress-tested able a we to in and think five right in now that those XX-year horizon be we that are regardless but certainly runway there is think the predictions that. to current

the beginning so significant and also we to it not of other further. combustion out experts customers And hydrogen itself with move comments certainly talked, blended life arena, as to a have place hopefully crystal fuels path that that in was. making move But Cam's gas eventual play large oil focusing which wish at we industrial and in combustion there the participate I peak its as in and and helping in think we extend emissions mine, even reduced or down in maybe cleaner are along to the looking we towards on even producers process and areas ways would along ball the is the

James Jang

of know, here. the energy? you is that little scope, your waste works obviously Okay. to to CHP or in but outside somebody neighborhood. of would a a I that last out energy field, question of same It with And of look little guys kind it's company transform some into but type acquire

that if I well. kind know are looking of you arena in So don't guys as

Cameron Tidball

to of that. burner, the Socks, are oil, we We we out going everything. neighborhoods, We're and that can't in pretty at when oil, with just definitely burner We're it's I the energy. to think But would view trust, it's small Socks. in companies look fence name, But although a that to think the we involved be to tiny. are We is and narrow-minded part course, have to merge they're industry, your you think, energy we that? a be be much going are going look involved. companies energy major of transition, And E&Ps, just put as drives I'd needs does that are do the It But be machine are overall who Profire oil. also Well, to broad burner, that I with as like make wide. as our the absolutely. think Stance fit. have there Stance need it that say to James. what Again, love in of not energy. don't similar could sense going but doesn't fit, just I that. in we're They're of we

some points future? customers. need trusted door What we to is The of do solved. a of many for going producers in be and they with research are to looking are at they those as discussions need are in how be what the come pain What level ground at partner part thinking? the our development that things things We so we're that of and

their solar gas going forefront believe And of transition And to going or or they're it's hydro, whether so because at energy energy they we are the think oil or and share there right they're companies. to wait we and be price just hydrogen to out to going with not be till nothing. going goes we'll do and them. something, be involved. They're run to They're

James Jang

All Okay. Excellent. right. forward our you, Well, to looking call. thank next guys,

Cameron Tidball

Yes, thanks, James.

Operator

Our Arieh proceed. Coll next Capital. with from question Please is Coll

Arieh Coll

force. an you sales And have company of much you at quick you. regarding for you us call of the number experience? the your questions quota-carrying Two today, appreciate Could it. salespeople on update doing Thank again, their and thank levels give the

Ryan Oviatt

that? take to want you Cam

Cameron Tidball

bet. you Yes,

number, least them, exact I XX% XX been forgive approximately, of but sales and Profire team I I I would should, for we within variety So me. to the with members. say at five say, – XX like experiences or A four would approximately know have are we're years. don't

the on in specialized we and of some gas, but have of some the recent of dealing with outside combustion. areas hires oil And skill brought

level experience well. often our tout high a sales XXX So experience combined that for combustion years some Profire, us. of team service and business has over We and members as development between at of our

Arieh Coll

I additional you open up the – to what Understood, near trying And with salespeople? number, then of demand recs picking you degree hire to term, in what guess, do do some have have

Cameron Tidball

season Yes. great A next now, open do an have question, obviously right we year. again. budget Currently, going for through We're posting. not

And orders it's with capacity It's our the do addition are the the capacity. of We waiting. our million they nice can in we more lot a handle sort. a bigger, because initiatives year, have. focus quite needed of a they're $XX probably outside about they They're thing oil not some just resources can bit to considering of get it's just double-edged and to more resource, as The more especially or sales gas. but also team, do

of them produce do. Some our to want the of team downstream double We which we dip side they what midstream, big is plant opportunities with sales the in members, operations.

development market on share have as and members territory some have outside where do and in. we to capacity are of well the they customer who oil just And them territories because of base as to Some larger add sales then of in gas that. team business don't

of on So focus the single upstream-midstream they kind space. the just areas,

Arieh Coll

a just supply on Okay. then chain. And question the

I hopefully your finished today, Have weeks it position and out and you to figured you many sell need that stock have months a in inventory to how you in will to, replenish. between for all goods you are As how contemplate you for take other products receiving need you take your guess, much the and various replenishing your parts when management inventory? you will time system burner and ordering

Ryan Oviatt

each a forward. monitor order on depends that's Yes, And it that good going we something place we It's as very the products. question. absolutely closely

very about we that's those the again, we a BMS large talking quantities. inventory. systems, you're in what And boxes If order typically in have lot our themselves, of

and some the to very months, times that, long times. change. continue And lead three six longer even those some of than are components months,

visibility and quantities of package with are improve closely that, stock third-party work of their some again, go we And vendors some with that our that things. make that of we've the beyond seen who of those seen good work the solenoids, them solution to and all vendors, as the at each in the those or well there. that. like we up. So with periods with which as slightly. provide And carry work all of big have with on safety through And that, We've order work we lead even we and very types relationship some we into we BMS are valves those that through then train enough look those fuel us sure of the times, go solutions, a components with most of to

trying we So our it challenging even a certainly that with but given and just view processes. suppliers needs. have And or active forward our ordering predicting going long-term are a to in are customers and working into challenge, we is very need in looking to a environment, patterns don't is what their meet quite our

Arieh Coll

And it. a question final just me. for Got

other Regarding into verticals. diversifying

on that of if your I product them? you'd What were of Regarding sales there kind understand value XX happen XX is you mentioned actually to line, in if projects were I those the correctly, PFXXXX all of projects the believe, close pipeline. the

Cameron Tidball

oil anywhere and of think – actually those oil to $X,XXX has higher it's and been XX, projects, projects, gas XX price I the outside six gas. figures outside a we sales already XX the that, Arieh, from with are than those solution. actually, XXXX And and have approaching So on completed some number but average of

completed, are those last and already months. so And XX like have been in the those

obviously, terms out Going some in these that opportunities, we having, discussions business hope the we're a significantly appliances the of we're And Well, is fit. repeat of pipeline? forward, scoping the we're some from pipeline customers. the had of what's We've already the higher to types business. in have repeat to see if

technology we're with. Some of the providers in

some believe, it. that team future. We're to we going into to into into to that well team. in sense that, that industries, have are in more invested as partners is We've where we it are investment some industries those make a consider We're of the as there of going expand so to hard work continue the momentum further partners bunch So on diversification. consider potentially who or combination larger channel channel certain effort for

Arieh Coll

product sticking Okay. obviously if The What, Honeywell, industry. kind on was done believe and Or was upgrade an they updated. which XXXX? in to the when in And the it's been their so competitor have I introduced, which has anything, product, was competitive? really it line introduced Honeywell primary had best-in-class just old are it products the that was originally with of lastly update product more XXXX, hadn't

Cameron Tidball

So we'll called way Honeywell it its of a It's doing But it. burner safeguard, it's to comes does product. flame management, SLATE. Honeywell a the have, different call when it, competitive down

the network everything is skill-set a suppliers, through it's of it So as system as implement et to out integrators, is to to different requires there. It type from go companies which well HVAC cetera. Honeywell program to of got

oil be the is apples. we're getting it's in lot. try midstream apples Still, and out some the not share and applications it, still. about everything. They're sales is in with meant to be had finding a and It compare? what chemical for a it is I a using and fit are and that outside knew, It guess it. now years customers gas. That's applications of it do But gas. apples, are and we is XXXX is effective that of age on can sure. upstream, that and with it can very when although not the for downstream it midstream, transmission obviously it we into powerful lion's used it apples system. of of very know plants, can Still they five, of variety we're outside XXXX shown six to the test businesses. we oil But We does of how Normally, things like to So upstream, refineries do

It's what's on for just SLATE sells. paired tiny two of decades. still terms It as with have the burner a they're really. competitor still That's to They device. management Honeywell we have had little a their of a doing, with technology other as things. us we've really to In well. sticking It development bunch be module, old has still

Arieh Coll

pleasant I very business in. stronger, here. Good. is forward be it. thank to to the you operating Well, Hopefully, more much, wish will best continue you a environment and Got going which be luck always

Cameron Tidball

Absolutely.

Ryan Oviatt

Arieh. Yes, absolutely. Thanks,

Operator

session. would for call We over have I turn to reached back like to remarks. the our closing question-and-answer end of the management

Cameron Tidball

our might And in this to participating questions on results. have. any Advisors Three we to we're us Part this We'd today quarter We that be you month. your XXth all you remind to Conference want you joining our hope XXXX as there. that discuss of the thank Southwest in to discussions support. Dallas for will on We for see everyone, you, Thank for like available you always, third continued or call of IDEAS

make thank great you have you a If day. can and it. And

Operator

conference. does This conclude today's you. Thank

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

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