Profire Energy, Inc. (NASDAQ:PFIE) Q3 2018 Earnings Conference Call - Final Transcript
Nov 08, 2018 • 01:00 pm ET
Good afternoon, everyone, and thank you for participating in today's conference call to discuss Profire Energy's Third Quarter 2018 ended September 30, 2018. Joining us today are the President and CEO of Profire Energy, Brenton Hatch; and CFO, Ryan Oviatt.
(Forward-Looking Cautionary Statements)
I would now like to remind everyone that this call is being recorded, and it will be available for replay through November 15, 2018, starting later this evening. It will be possible via the link provided in yesterday's press release as well as on the Company's website at www.profireenergy.com.
Following the remarks by Mr. Hatch and Mr. Oviatt, we'll open the call to your questions. As part of the question-and-answer session, Mr. Hatch and Oviatt will be joined by Profire Energy's Chief Business Development Officer, Cameron Tidball; and VP of Operations,Jay Fugal.
Now I would like to turn the call over to the President and CEO of Profire Energy, Mr. Brenton Hatch.
Thank you very much. Good afternoon. Thank you for joining us on this call and for your interest in Profire. Throughout the past quarter, there were several headwinds within the oil and gas industry. Despite those challenges, we were able to realize some great success. This quarter was the Company's second-best fiscal quarter in nearly four years.
So far, this year is on track to be our most profitable year in Company history and the second-best year in terms of revenue. Revenues are up over 14% to $11.5 million versus the $10 million we recorded in the third quarter of 2017. As we previously announced last quarter, we believe the oil and gas market is returning to the normal seasonality we incur in our business. The summer months are lower-producing months for Profire, while the winter months have historically proved to be stronger. Our revenues, thus far, have followed this cyclical nature. Net income is up nearly 36% when compared to the same quarter last year.
Our legacy products, which mainly serve the upstream oil and gas sector, continue to be the main revenue driver for Profire. This technology is now almost universally accepted by the industry. We estimate that there are approximately 65,000 of these Profire systems installed. These systems have melded Profire's internal objectives with those of our customers by accomplishing increased safety, compliance and efficiency. Although, most operators and producers choose to use our products, we continue to add new customers each quarter. This past quarter, sales to new customers amounted to nearly $0.5 million.
In the past quarter, we focused on investment strategy in other areas to help achieve some long-term goals. We continue efforts in developing our international go-to-market strategy. We are focusing on developing relationships in the Middle East, Asia and South America. As a follow-on from what we reported last quarter when we hosted international industry players in the coming weeks, we will be visiting some of the upstream, midstream and refining possibilities in Asia. We will be assessing opportunities for Profire technology to integrate into existing processes and