Earnings call transcript Q3 2022

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Operator

Good morning, everyone, and thank you for participating in today's conference call to discuss the Profire Energy's Third Quarter 2022 ended September 30, 2022.

I will now turn the call over to Steven Hooser, Investor Relations for the company. Please go ahead.

Steven Hooser

Thank you, operator. With me on the call today is Profire's Co-CEO and CFO, Ryan Oviatt; and Co-CEO, Cameron Tidball. closed, discussed its a the market the XX-Q press the and SEC quarter's after Profire Form filed with release. Yesterday, highlights in

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

strengthening company statements. of call, forward-looking would of launch reduction are to safe made increased including, this call to take statement. in we investments limited regarding resources completions, harbor with beyond moment purchasing to Before focus of the emissions, to, Statements and contains well continued collaboration make I the growth the begin performance. a historic beneficial the This planned financial legacy or but not company's forward-looking not and today's statements, and company's business, future of customers, company's like XXXX the call read of new and availability the statements products, during anticipated inventory the expected

All subject such circumstances. to changes in forward-looking uncertainties and statements are

of include in business, not from could involve that and and assumptions Exchange could Forward-looking or risks, statements Commission. anticipated that results performance affect the or statements. filed Securities the in reports forward-looking uncertainties future with factors by Factors actual the public regulatory identified or described to events such results certain differ and the events forward-looking risk results materially or cause materially are and statements economic, market company's periodic guarantees

date forward-looking circumstances, place as assumes live only the Readers by XXXX. except events reflect the of not these forward-looking company Private subsequent Litigation of to Securities no statements pursuant of and should forward-looking All statements. release obligation All on required the statements made law. to reliance are Reform forward-looking made undue update the or safe this harbor of to provisions are statements Act as

starting press as later remind accessible website link and for also will through this recorded on XXXX, be to in as will the this evening. call via would replay release I yesterday's November well everyone available company's be XX, It like that the is www.profireenergy.com. being at provided

we made Following to Ryan the open your and up call questions. will remarks the by Cam,

Now would and of to Mr. Ryan CFO Energy, Profire call the Ryan? Co-CEO turn over Oviatt. like I to

Ryan Oviatt

welcome you, are turn in you progress Steven, call of Thank business, and by the company some start our continued the of updates us review discuss I the a our on will making and the followed financials. on the across And industry who Cam we will efforts we then recovery the all are and diversification providing exciting to joining today. by call the business, I to overall over call legacy outlook. our

recovery been we have has only our we efforts, within our significant on industries. oil both pre-earnings and Profire. meaningful announcement gained As in in a we October communicated but see as this in great exciting quarter other Not did well in as business, legacy traction for XX, diversification gas our

and Our third products of our the reflect oil the within and business need industry. continued our quarter results strength the gas for

highest it years, both our XXXX industry the the since and the in of increased year-over-year quarter sequential from many gas so on remain and gross oil represents likely a basis. the ways, strong believe for American in and is XXXX. to even first gross is is recovering though still a revenue, Our position profit The of few currently, in This we income EBITDA quarterly pandemic. next lows at margin history period third net best and North and our company revenue

per and past but have still completions is XX% in quarter from fact average well activity below E&P steady been from Rig in XXX to X,XXX exploration, the XX% the companies This the completions the at is XXXX. a counts the prior slow below which of that per continued underinvested have up addition ago, X% technology an same Completion XXXX-XXXX steady average year and over years. from the five-plus month. increase, average maintenance well their month, has of which remained new are past the over two quarter quarters and

new We believe as of a for industry these existing assets and future combination look oil the as to opportunities. oil industry customers is indicators our our reinvest gains challenges and upgrade signals well need and the global We in American and strengthen positive foreseeable the for continue focus to believe technology, and legacy to gas customers gas business for ESG Profire to point on these for as efficiency solutions supply North in completions seek whole.

on gas that, attributable $X.X natural growth million and in and Profire. let increase the to increase third detail demand, Profire's With the rig compared third financial XXXX. quarter for In customer XXXX, an my is and $XX.X revenue additional This we quarter drilling which increase some to results driven year-over-year million the activity. higher quarter recognized and to in prior completion the for remarks of quarter sixth $X.X of provide in million sequential consecutive in increases The improved revenue me and the quarter. prices has counts, in represents turn an year oil of second

compared increased the points of to compared $X.X XX.X% the third in quarter the resulting due margin million Gross ago margin from $X.X to XXXX the profit the XXX of million in quarter Gross fixed was compared cost year revenue quarter. second in to Gross million quarter. for revenues second better to coverage higher in $X.X XXXX quarter third and the the basis of quarter XX.X% as was base.

value to higher our levels our pressure excited gross are for that driving We are inflationary battle margins margin continue greater see back but shareholders. on at to

higher credit were compared earned tax second retention quarter been the The previous operating tax Total decrease business, Without the operating in the and would sequential to in of an cost is Act. quarter the approximately quarter. pressures third and this freight shipping have under particularly flat increase $X.X the cost of with year-over-year expenses The of third quarter in ongoing for the and million payroll the headcount $X.X CARES increases reduction to on expenses million reflects recognition attributable roughly employee million $X expense, our XXXX. labor. our inflationary

Specifically, XX% for the G&A a quarter expense prior quarter. increased decreased from expenses the same to R&D increased ago. Depreciation year-over-year. XX% compared year quarter the and amortization X% year

of $X.XX on diluted Net to share the share This was $XXX,XXX per income income the second diluted basis of quarter in breakeven $XX,XXX quarter share. year. quarter the in per approximately of and net $X.XX a third million diluted for $X.X compares or or or net income last approximately third

from a quarter. $X.X the negative to compared third a was the negative $XXX,XXX Cash quarter million operations in in flow prior year

offset strong quarter's generation This cash was receivable. operating increases and accounts inventory in by

the million end the from XXXX. $XX.X third at balance and at $X.X Our of the end at quarter of quarter approximately inventory million, the second was million $X.X of end up the

inventory our strategic of us typical Our to has inventory strong the held. proactive and year-to-date results rebuilding some achieve ordering enabled of QX while

system use has this a necessary as XX components, early inventory little to proprietary from in for the supply believe will been in BMS many through The our to XX suppliers the be months the next to XXXX. We come increase have which than build necessary get easier strategy third-party are electronics ongoing chain solutions, largely systems. see challenges our that chips, products microprocessors and we

through of the third in and purchases and available We have approximately we $XX.X At quarter, debt-free. the liquid we our cash had these cash investments, remain end funded million balance.

I will now turn an to the to business. our provide Cam Cam? call over overview of

Cameron Tidball

Ryan. you, Thank

as gain QX have by growth. momentum Profire we our evidenced top to six achieved results, continues As of consecutive quarters line revenue now

growth year-over-year represents ability demonstrates and our XX% growth scale and sequentially. XX% and quarter-over-quarter Our to

diversification. We our result strategic on our metrics performance. They protecting imperatives. are execution growing legacy revenue areas of into and improvement our in encouraged and adding We by remain the a team's and our represent direct meaningful business of financial focused of

our Canada. demand the of and third and our our see legacy products quarter, market was history. customers' business strong segments legacy to upstream, throughout entire our we In on in programs, ability capital our and increased the utility and focus by completing and including drilling our quarters business, retrofits enabled share upgrades, midstream one continued States to and solutions, experienced This strength experienced downstream strongest for company United across our

project improved in situation inventory quarter. New the were customer an wins supported by and

on strategically build In was $XX, chain, completions well quarter, and count, a as we customer we continued average XX% is that our price to supply quarter. continue stress the gas Although decrease proactively to which our rig inventories. demand previous match as expect barrel well from traditional Drivers impact the commodity per American oil and WTI look North solutions pricing, for include business production. the

year. a increase the quarter XX% However, last from same

Canada but remained and June XXXX or on is keep from for $X in quarter by production to provided limited to sanctions OPEC from announced uncompleted onshore count, production. last full the range a oil remained the at U.S. quarter, the stockpile Natural and count DUC it reserve to the The unwillingness will from combined the however, Global implemented likely outlook. year to averaged in strategic $XX average. the well recently U.S. year Russian plan U.S. $XX XXXX has for previous loosen quarter. Plus announced gas of EIA's The prices in and restrictions and constrained averaged count to peak release up relief replenish consumers the rig and due relatively the oil barrel down The be from administration XXX prices according count month supplies the domestic of which high is $XX to the next unlikely XX% XX% in near-term. the the ongoing the of cut is its petroleum the XX% remain gas to Meanwhile, flat, and drilled

success remain and the demand legacy optimistic XXXX will drive that term that We short business in products North the fundamentals our strong. hydrocarbon-based XXXX. to American continue The to grow be for and of through continue

levels Our orders has of continues historic reached grow. to and backlog

size current capital. existing structure to able support demand and of operational allocation requirement or growth for Our minimal and additions with headcount are

total preliminary significant quarter diversification in to nearly we achieve to operations results our the in October approximately midstream second to million of for diversification our We doubled were X.X% or able the quarter we third highlighted plant success strongest growth quarter. third revenue released XX, quarter, our Key projects. results, revenue. growth non-oil quarterly which related of On $X revenue our to results and and quarterly to the gas date diversified in

for refining, petrochemical customers. The renewable power wastewater. In midstream agriculture, LNG, and generation manufacturing, can found solutions gas, be mining infrastructure have completed the different biogas, metals, plant food we XX Profire beverage, and where construction, and stream now and include water large diversification landfill, fiscal year, natural and projects and industries over operations,

EPA of quarter specialty and support treating hydrogen production projects we third of requirements, the drying, materials processing heat specifically, and completed food landfill destruction advanced industrial involving in In manufacturing. destruction methane and manufacturing, metals in

We production support also continue to the projects of renewable are to critical gas. that natural

reputation exciting to as to these product ability in and project business our and to customer continue optimistic as on business opportunity growing continue our pipeline, remain on streams. markets. our Based feedback We execution, we new build well repeat solutions these about and expand our grow

research short-, initiatives, Turning mid- and strategy focus for development and a long-term additional to bringing enables on development focus maintain us balanced future. to industries This while on our our we traditional preparing us investment. solutions to the and

efforts ESG customers improving overall lowering to heated support collaborate reduction. endeavor with implement research technology as of initiatives customers Our emission focused we on efforts as and to GHG emissions develop our they to These development related appliances. and efficiency continue

we with and which appliances. of monitoring customers will their the potential heated trialing provide continued opportunities solution, work footprint and a new low-cost efficiency quarter, are carbon reporting for who In to

beta with our initiated paid the goal quarter of activity We converting quoting subscriptions. customers the in third to

introductions Our to with as activity fourth suitability and continue the ascertain plan product continue traction. we and to quoting in is strategic quarter increased

our and our exciting believe value current proposition strong. to Profire remains customers, both is a solid and in We future position.

and Our technology operational solutions protection. reliability, environmental safety, provide with industries compliance, multiple efficiency

our their We Before support what management thank you commitment team your Again, our do success. confidence Profire. thank members and you. team. customers' each turning amazing our for I we and appreciate to the Q&A improve We appreciate Ryan thank our for interest of your in in day culture and to each they session, to We team.

please you on instructions begin the will session. and Operator, provide question-and-answer

Operator

go Certainly. Brown Please from Instructions] now [Operator Lake question Capital the with question-and-answer is Markets. first We’ll session. Our Street Rob ahead. begin

Ryan Oviatt

Good morning, Rob.

Rob Brown

taking for question. the Thanks

diversified the to you're further wanted a Just revenue on of little bit color get pipeline talking that projects the about.

business is in the of that that building, sort think, sort in? at I you come or backlog You said have do how of kind visibility pipeline point? does this of any And

Cameron Tidball

some have challenge. visibility. Yes, Rob. it's it's Thanks, Obviously, a a so do always Yes. we growing initiative,

we're with But work You've some is repeat got same and to keep the repeat or of users, filling partners business, OEMs in space. EPCs fact end resale that the projects getting this it. the

a of projects, get to plays area, the really it's Profire that, team, of we different bring our out it introducing focus that this slightly these new types process industries. in been So the decades, continuing these which own. the message is to It have than when comes be in to really that for the who the diversified block we're on but the might incumbents space hey, kid

liking You can't new out upstream, find to like we're of utility Profire we where and that the products of midstream in what work. Profire's business, is but in we're between able really business. And in, get learning downstream dig do to opportunity, already we that and it's in go that down finding the they But to project our customers comes it, know new vernacular, walk while so they're this types then we've are has if when applicable it they really the say, hey, process, the types and built. for work, themselves, we crossover space, we processes

pipeline some making We're Well, also larger what of tend contacts. quick great. We're new getting we're building. really So They it's projects, the these bids. putting is out look But does transactional sized like? to ones. which new be

of that think, XX As year, right. great. over I was year Last sold mentioned, to is this which I customers we've one-third that,

to continue we'll this So growth. see

Rob Brown

Okay. Great.

feel of demand demand you day-by-day? environment a talked not out this environment. you pretty Do rest year of plays core in have of are Do What sort customer the continues? you good about you the as is business, Or next like great seeing visibility sense the the some year? into it this On thinking? still

Cameron Tidball

pipeline luxury quarters before and our is Well, is and a in growing. historic still because even This in the strain, next really we we've we levels strategy, it's coming really have into we our as doing want orders this never backlog you And we're if their year don't last exist in. before. them as we customers get get orders we getting mentioned, with is won't is. a had where And everybody it at with mentioned, purchase still, part, in like you educated if that about them, lot

saying, are ready, up, crazy, part, coming get go we we're we not in the going most For quarters at the the look have like to coming our customers and out hey, past.

I shale see barrels is We got it we August, it. to don't levels, North which million XXXX American day production close drastically going was XX to But or think up. and in per

throughout the the could all is that in more that required are the is we have happen, more But going been still quarter. and and if pipeline, places retrofit think drilling great on year, up, which production that do I required, projects working to tick we've also is are required, more throughout for completions we Profire. some ones see

that anymore through profits jump upgrading their they or don't equipment we And can our they're them buybacks, although because and looks they're think in dividends because shareholders don't strong of customers, I majors I human becoming the putting traditional companies quarters. as older returning their it. even ways But because it is acquired we retrofits power the also and to to call well fields take BMS. people legacy and of for over And see in think game as they're opportunities with coming care investing have that just traditional take more, out still share the are independents in

Rob Brown

pricing, of sort question that Great. get Are to managing on sort chain cost able just price structure, of the maybe kind you Or you supply hear. versus are thing. then last increases? price increases good the how to Okay. That's increases? margins And the of cost

Cameron Tidball

that tackle you would. If don't why Ryan, Well, one? you

Ryan Oviatt

certain in gotten continues areas, Yes, to areas. is better be significant sure. Rob. or a Thanks, for the it's other in found Cam, a Overall, then it certainly chain alleviated supply that struggle. We've And and still challenge.

by mentioned lot able our a our third-party the we've our goes my I to product that getting ancillary inventory solutions, as of been inventory in grow So some in remarks, of anticipation and balance, able the can were out are and and able when of all in, to right then orders that's ship of we systems we get those in come away. that to fulfill product,

more dynamic components, a So of challenged bit type it that what stuff. different that, microprocessors, see for business, electronics, the where of it's those to XXXX dynamics, now, but from is that had our Microchips, pressures of continue hearing of challenges. are lots than into system we're the what lot really a is we've suppliers still which are seeing right historically that but those could that, A macro we before of Obviously, we're alleviated. be impacting there's that things

that ways products. said, you adjustments one as try we to that is deal price our of the And in with for

our have ongoing our refining be that. go a seeing. input as as make and are we types us at doing make those need for can't basis, price to it that of we to the on process these We're easier on looking price crazy price changes well. We able quicker that are of look pass increasing, been going through increases but bit to system and will to Again, make the a increases, increases continuing we're we the along we're to on costs, side still

understand though customers. deliver it's And see sell to so may far, our see it they they our and ability don't it, we not with our that like to can or customers, it, even and impacted to

Rob Brown

you, over. it Okay, I’ll turn great. Thank

Ryan Oviatt

Rob. Thanks

Operator

John question Please next White with go is from ahead. Capital. ROTH The

Ryan Oviatt

morning, John. Good

John White

Congratulations morning. very nice, nice the your on Good in improvement business.

Ryan Oviatt

you. Thank

John White

is is read business from new very diversified. industries off of that where and lengthy list very the coming The from you

in these you so, generating industries have Or doing getting new some expertise the Over standpoint business? is you're of that's the seeing? there where that you're some a people added or have something else you're marketing specialized from marketing past year success

Cameron Tidball

getting Yes. call, heard the projects And the can we you're a couple How the been a as really, and one of in this? have mouthful and had in year every members but also for and just year, have those It then. was we've named even is Well, that on the last they are you the diverse. functioning see you well, they put all it's we done truly industries of place is all are that truly, which full industry. incredible. portion team Well, year, and like, we not team a to this before

So that's reputation. building that

anybody in We haven't this. new added XXXX to

In we terms associations, focus, course, opportunities. just We've some groups, getting are, of of at in a really looking but belonging to it's marketing out there. invested some

Some a they systems that of wide OEMs have spaces, ability that and live EPCs been focus. of industries, in to the also these and different and our work integrators really has in variety

this, your you we're can't do up here we got didn't I really you well, show not opportunities. incineration really to to and the have OEMs mill, I but by-products where the Again, going be that gas it at dealing could equipment, hey, with really to show comes it, say a excess see of say, pulp with in we're great that's and do especially mention, I do it, shouldn't up – to We paper site, I Profire you guess, or burners. which can on when the supply

just course as us the oil have from business this. And within to as we've met we've of support through that who well and in have development been leveraged we OEMs new partners gas that able many

marketing get of the four we've of it, leads variety looking some more things quarter low quarter to it's launched that. is of above. been in working here the in cost like doing on try on hopefully a in the So throughout year. bring and that We're some quarter to of and a That strategy acquisition and push the next of first

John White

really answer back. the very the detail I appreciate call nice That’s pass on that. I’ll a and

Cameron Tidball

Thank you, John.

Operator

James Please McIlree from is go ahead. Securities. Dawson question next The Jim with

Cameron Tidball

Jim. Hey,

Jim McIlree

three just in and kind potential explanations. increase I've about up good I maybe I'm and if relative QX, of out address with the also. to bit there's there in morning. little come to wanted Thanks QX those understand could guys. wondering Hey, you revenue a better another and

one mean, to seen of just have I activity. a So we level shift is could higher the a industry in

you're customers it better done in past able And could the holding again, chain be thing and they're going could a is those with inventory worried which do that maybe increase job your on then be they're because just inventory as theories good QX? that attribute issues. there's pre-ordering are is the on on quarters, Second, something else we same could you've doing supply And with with their pre-buying that another can levels demand, supply that so about you to you're sales and to to yours trying comment haven't. reason you to the in in inventory,

Cameron Tidball

I'll I to industry Yes. it is theories. the over I'll pick up it Ryan. start one slack, start if Ryan but Stability in for pass the sure. missed there will of a off off. shift is And and always good. the But yes,

QX to Now to look had It's an a much? increase is at, shift you in the winters the industry nice always comfort, these industry more coming. QX. pick Profire in of got that thing But up a automated bit there a if little systems the where get Did quite QX. No. okay,

users is bit in backlog normally, we but end pipeline that there a our not the but pre-ordering, part inventory, have and out that, of of too put will and that. people see delivery Customers There's dates much that a pre-order there.

Are side Yes, job have good well. that we're on a some potentially of QX. been a could doing we definitely good So things. as There's this good definitely in think revenue theory I inventory doing of job? the

quarter better the we on I have had inventory. we think had we that call, QX probably would had a mentioned our

ahead four, is get wins, It's good industry did point things other of diversification years. But our they're It's to of to and got three, in project or the it, caught we're that's underinvested. up the more a they've strategic theories little them. well little kind hold would core roller five of those. influx deploy is gains and that riding missed an as some than I is bit probably them to I and they there, couple it's fact profits, we that quantify beyond great and I but a as to get traditional coaster. So and of underinvestment with how of did you finally catching – able have a of even Ryan,

Ryan Oviatt

I Yes, think breakup kind covered a it. spring a typically, months. And then the cold and have getting in the the you when people And that's summer end season of of quarter of QX, forth. as bit to stronger QX. prepping we majority Cam for Canada into little said, the is regions and of colder get is and are than QX, the northern obviously when QX winter things in start more the so

is So of that's there little cyclicality a there. probably in bit

you continued commented, we our backlog on more also had QX, a then, allowed But we've as bit available that well, us backlog in side has late lot inventory QX And more. that as and deliver the early grow. to a as on inventory mentioned that to

now product backlog So it it's not like ton replenish of delivered is we've seen itself. a and the We've lower. much

commented overall, So that years. think It's for on, the of last a number up. is which keep industry key been that it's struggling to I underinvested is you that

short rapid throwing the in right would full longer encouraged not anyway. everywhere industry money that invest the not at keep do allow supply to an At very period of time, up the and which a of least tons going now where to other in facing catch is these try prices in they're chain pressures effort to are just a E&Ps to term despite up

but come We need just more to QX So bubble there's push that was in reasons macro and to this and QX the coming. those pressures this also are of us to that it was, think the That as wasn't of some going a industry this are those going for to on continue continue why down. are a back that while. things as give right there's the good that confidence

Jim McIlree

a to great. but looking helpful. and there's don't we've at That's to then it from be Thanksgiving I call quarter impact got slowdown, want very Christmas. going That's the an potential, And that current

in be Has in that October good But everything was quarter sounds business it And a so you Have in consistent it from QX, that would excluding the pressure. that October moving so perspective again, it's downward saw like been else towards you in as QX? seen far? as a with the what holidays. QX

Cameron Tidball

why Ryan, don't you're roll, on a you going. keep good

Ryan Oviatt

Sure.

said, to deliver and seen backlog unfortunately, challenges, us. had continue our little couple here weeks we supply see able has product a So And there grown. we've we of in one certainly issues to where of as to things chain some delay suppliers continue, our being

shipped those are we'll to So those on it able least that, at but to as pop that tremendous think expect overall, we product don't a up, things We blips, going that quarter. little in, have quickly. get impact out the be comes

As other majority I mentioned, we've got the of all the ancillary products available.

where we chain. in challenges on the on strong. do to that to a be and holidays on in come see the But and supply The up continuing pop we about we that as deal mentioned, with orders last that pipeline new November have things So growing the December. we have you basis daily, we've calls, several those that to deal with weekly talked have continue

can enough an an We to business be our time which time. hunting have from it it also weak. really oddly issue experienced be QX does or that can challenge season, on is But just impact strong for really in and us always either a

ton For example, anticipate out a strong, we products. last the but the weeks of in couple didn't very year, last put being of quarter, of QX we

us. quarter great year last a was QX So for

are about are we similar continuing that knowing that later of with at a see pace to those in deal some So that unknowns it there or and quarter. there we could But overall, some have similar unknowns coming level impact the quarter. the

Jim McIlree

of from units? increases then the question or was both? much unit and year-over-year price increases? or can by price growth revenue So driven And the last my quarter-over-quarter growth much you by in you that Can how how Great. disaggregate either driven is disaggregate and was

Cameron Tidball

and top let obviously the this with to up, keeping those have We trying I comment. off mentioned, do that. our increases Ryan broker market don't electronics, things him suppliers with my of head, cetera, for from received that we look up might think price I'll and the Ryan and keep et the as at

most look the at part, sales they're our system we if For up and for projects, sure.

color it some off don't of some price? could a the of head, know revenue in have you portion my is definitely really know that. increase if Is don't that. So Yes, add the I the percentages. increase it. top Ryan, this to further I from of from of you

Ryan Oviatt

But either. There percentages significant the increases if were not increases but looking implemented. were have not don't I Yes, significant. some you're price there price quarter-over-quarter, at

So be able our and we to to quarter-over-quarter, year-over-year. much be so year this activity. we QX to of going compared still where to just COVID increases were just of that going what it activity Again, quantity that recovery would all customers QX is deliver the majority last We coming year out on point. have in and of the at of more are

activity we then certainly the So price industry, talked done that for it year. majority and is late And last the about, for customers. increase others we of that this some our we've did XX% year-over-year, throughout year

be attributable activity. the So is it to but to portion majority price, that going of there's a would be

Jim McIlree

a Okay, guys. that’s it lot, yes, me. for Thanks

Ryan Oviatt

Jim. Thanks a Thanks lot.

Cameron Tidball

Jim. Thanks

Operator

with The Instructions] Ascend Bair Please John next [Operator Advisors. ahead. from question go Wealth is

John Bair

Thank morning, you, guys. good

Ryan Oviatt

Good morning, John.

John Bair

questions couple of here. A

and those say, a projects opposed have as industries of new you into I can roughly you've on? said effort, turned you've percentage repeat share diversification project the think that one-off forth, XX to, that you new With so customers worked addressed? what that

Cameron Tidball

mind, the of great at would have at look a of customers looking been kind I project say log just If half my the in over I question. repeat. That's

still do on initial is – revenue project. after based new, the you of the like most Now the but

it's quite seen $X happen few, from process for third the think, not about already future. still It's brand-new started and customers. two not look them for I from repeat haven't quarter. business. like new can we at, million a that projects we talked we who like finished some have in on the even, what the we of It's It's So projects are for

that. done So and one hey, thing. they us. It's a we that, love not type It like shows

one for and other facility. food have don't that in There don't burners, beverage We will some They at of have we've quarter. example, facility this multiple heaters some done the those. that have facilities are for they opportunities

they've probably But know team leaders, the John, yes, growing. should we business off closer. have it's probably definitely they yes, unless something don't about. But look it's hand, they a The So which I at not it. expand, development percentage talked little

Ryan Oviatt

I a who add that repeat that that, would in brought to customer and end it us customer, it's earlier end Cam sometimes business, that's mentioned as just may not the the group that we're that's be the the call, targeting. but

of much companies who That's different engineering bring OEMs, different repeat those construction as lots who So lots we or user. the of the customers. just for projects business as to those want do end

mind So well. there a in is little nuance to difference there, in of keep as that but bit

John Bair

Okay.

of to additional this of how get OEM when where for business So facilities that get other product is have do large say, and growth what be? could do words, potential repeat you sense question the this where multiple or be our a in? going type to In business then, company? they other that In could and you is utilized words,

Cameron Tidball

Yes.

such for Our members that. they sales team if digging team good as opportunities be weren't wouldn't sales

be that. little equipment their OEMs looking sometimes, going like – obviously, not kind a building to into lift, to not we're other tight track because, reformers business types have a can but steal hydrogen really get the we're And or with record of we of

so every definitely quantify We systems to OEM or yes, look ask. project. single integrator we And

together in of in this doing to And the what out the put the an package, we part through together in know the we spec need that we and we project order when what get appliance. to from in is process go a of need when types We it's do the know way location. we the packaging relays, outputs, need to terms the spec to order put of inputs hazardous different goes appropriate to and out engineer

And be So out, and that in. more to have from all get is to go we they're going for who into the end things those and a we for opportunities. right industry not we and And often look know If we great so the us. what tool look is, to OEM get Google then user those we'll go for more, and account, taken things. is definitely, look know

user they it. the what is and and where look just have You they have who up end

John Bair

Great.

have you issues to creates seeing no for that another whatever. any supplier a reason now accommodate the making in it be that shifting order issue that, to that you down that, that particular find supplier chain longer product And supplier that a that or particular manufacturing Okay. to where chain you, other was is the for words, supply, are chip need product shutting you area, product over obsolescence for supply In supply that particular product? that and or that's a an whatever a

Cameron Tidball

it then to older, add some to but pieces get that products. turn solution comments, with products really, But itself. whole that, over the normally not parts deal obsolescence color. we in and have do It's some into further sure need deal components? product full you I'll it's as to For with some and Ryan I'll go

that those has Profire for our So watch have especially that's dealt a things, constant We to that. We always need into with. always be to products. thing looking proprietary

now challenge layers shortages. with so these the things. plants, customers problems have We're the one just they're depending of catching not the It's chain just are where dealing catching is our the down here. not make are demand human it's and really with business we're that not of are, things. or where up who plants on that just layers from out And gone they building COVID power up that the we're It's and that there's much problems. dealing More supply companies

have of COVID, of And an it, us but Zoom now some it and sort use used or just or all the into type BlueJeans right, escalated so something forced that to world or – analogy. COVID, of We all that upon call now is Well, were that. Teams during before that with really it's many dramatically normal. types things and different we electronics industries in automation, of

types people to plants they up. up, of not people have and keep if new just of depend different all but vendors. for the for bring that controllers it's need similar on get They that to lot just and of lot that microprocessors industries, electronics, who with we're our look things these almost then now we can to keep and the and example, running enough industries, our plants a we on into are And controllers building go a chips at that's other generalizing

the Instruments, to Texas up they're more For with on keep all needs bring Texas we just play all is up probably escalated example, And greater for to our just And Instruments plants need for know not Well, able they build be trying future. it's for world. and by them. rely been one online, demand. only are, automation the the and to catch that electronic we to

to it So answers, turn will to color like. over anyway, I Ryan add to that he'd I hope any that but

Ryan Oviatt

Yes, Cam.

we've those others, covered it that all other the have some add out suppliers been Cam to product of good go have quality really components quantities issues. the able find the and because in well. only of And reputable would think that that we've has I at broker be additional a lot pressures effort, of you that, than thing or reached struggled of not various to I all is of and and the that those get good need better supplement talked market been to tried and suppliers. the we from Probably about, had that into some could

than of So stopping going more or are business producing a companies challenges those there out just product.

Cam I think described. it's more what

John Bair

very good, Very much. thanks

Ryan Oviatt

John. Thanks

Operator

the queue. Cameron further for like remarks. hand closing I'd in back no questions call over Tidball are to the There to

Cameron Tidball

to Thanks, joining all today everyone, us results. for to of thank on quarter third your you We continued call like would support. our discuss for our

As participating you Three always, we month. Advisors IDEAS questions Dallas for have. later Part or be any Conference discussions in the We'll in are this available may

a day. have Part For to please Three more contact Advisors. register, information or Thank great you, and

Operator

call. today's concludes conference This

you have participating, You and Thank your a day. pleasant lines. may disconnect for

Profire Energy (PFIE) 3 Nov 222022 Q3 Earnings call transcript