Profire Energy, Inc.

I will now turn the call over to Stephen Hooser, Investor Relations at Three Part Advisors, to get the call started.

Thank you, Operator. With me on the call today is Co-CEO and CFO of Profire Energy, Ryan Oviatt, and Co-CEO, Cameron Tidball. Before we begin today's call, I would like to take a moment to read the company's Safe Harbor Statement. Statements made during this call that are not historic are forward-looking statements. This call contains forward-looking statements including, but not limited to, statements regarding the company's expected growth, impact of higher oil prices, management of the supply chain, and anticipated impact of government sanctions, expansions in new markets, customer adoption of the PF2200 product line, investments in the launch of new products, anticipated sales opportunities, and planned projects, the ability of the company's resources to make beneficial investments in 2022 and beyond, the company's exploration of M&A opportunities, and the company's future financial performance. All such forward-looking statements are subject to uncertainties and changes in circumstances. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in or anticipated by the forward-looking statement. Factors that could materially affect such forward-looking statements include certain economic, business, public market, and regulatory risk factors identified in the company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only as of the date of the release, and the company assumes no obligation to update forward-looking statements. to reflect subsequent events or circumstances, except as required by law. Readers should not place undue reliance on these forward-looking statements. I would like to remind everyone that this call is being recorded and will be available for a replay through March 23, 2022, starting later this evening. It will be accessible via a link provided in yesterday's press release, as well as the company's website at www.profirenergy.com. Following the remarks, By Mr. Oviatt and Tidball, we will open the call for questions. Now, I'd like to turn the call over to co-CEO and CFO of Profire Energy, Mr. Ryan Oviatt. Ryan?

Thank you, Stephen, and welcome to all of you who are joining us on the call today. I will start the call by providing some updates on our industry and our business, followed by a review of the financial results, and then I will turn the call over to Cam to discuss the quarter's highlights, outlook, and strategic direction. Our 2021 results reflect the gradual recovery of the economy following the extended global shutdowns in 2020. Revenue, gross profit, and EBITDA increased sequentially each quarter during the year, in line with oil demand increases and oil price improvements, driven largely by the reopening of economies worldwide. Subsequent to year end, oil prices have risen and topped $120 per barrel for the first time since 2008. This is putting increased pressure on US and Canadian producers to begin ramping up production. However, we expect the near-term impact to be modest as producers grapple with the challenges of finding the additional skilled labor and available drilling and production equipment necessary to achieve higher production volumes. The lack of capital spending over the past two years will be a challenge for producers and will likely limit their ability to scale quickly. Thankfully, the COVID case rates have started to decrease dramatically in the US and most places around the world. This has caused the CDC, along with many additional state and local governments, to roll back mask mandates for indoor environments, and a number of companies are beginning to set dates for employees to return to work in the office. We are part of this trend and are excited that our Canadian employees can once again gather in our facility as a full team like our U.S. workforce has been able to do for some time now. The EIA expects global production to meet or slightly exceed demand later this year, but the current geopolitical climate may result in greater volatility in prices and global inventory levels. This adds to the already challenged environment resulting from lower production levels over the past two years. The recent unrest in Ukraine has contributed to the upward pressure on oil prices. Until yesterday, the Biden administration had not sanctioned Russian oil exports, which represents approximately 8% of U.S. oil imports. If these sanctions were to be combined with fewer government restrictions on U.S. oil production, this could have a significant impact on our business and the U.S. oil industry in general. With that, let me shift gears and turn my remarks to Profire's financial results for the fourth quarter and full year 2021. Yesterday, after the market closed, we filed our Form 10-K with the SEC and discussed the quarter and full year's highlights in a press release. As always, both of those documents are available on the investor section of our website. The transcript of this call will be posted in the coming days. In the fourth quarter, we recognized $8.3 million in revenue, which represents a 19% increase over Q3 and a 47% increase over the prior year quarter. The sequential and year-over-year increases are primarily due to the continued economic recovery from the COVID-19 pandemic. Gross profit increased to $3.4 million as compared to $3.1 million in the third quarter of 2021 and $2.8 million in the year-ago quarter. Gross margin decreased sequentially to 41.6% of revenues from 44.9%, due primarily to product and customer mix. In an effort to help combat the unprecedented inflationary pressures experienced throughout 2021, we implemented a price increase across our product line at the end of 2021. Total operating expenses for the fourth quarter were approximately $3.7 million compared to $3.4 million in the third quarter and $2.8 million in the fourth quarter of 2020. The sequential and year-over-year increases reflect the significant cost inflation impact on our business combined with restaffing efforts in response to the recovery during the year. Specifically, G&A expenses for the fourth quarter increased 8% sequentially and 36% year-over-year. R&D expense decreased 7% on a sequential basis but increased 20% from the prior year quarter. Depreciation and amortization increased 58% sequentially and 55% as compared to the same quarter a year ago. Net loss for the fourth quarter was approximately 145,000 or breakeven on a per share basis. This compares to net income of 92,000 or breakeven on a diluted share basis in the third quarter of 2021 and net income of 56,000 or breakeven per diluted share in the fourth quarter of last year. Cashflow from operations in the fourth quarter was a negative 309,000 compared to a positive 142,000 in the prior year quarter. During the quarter, we repurchased approximately 664,000 shares of our common stock for approximately $755,000. As of December 31st, 2021, we had roughly 1.2 million remaining on our repurchase program. For the full year 2021, we recognized 26.4 million in revenue, This compares to 21.5 million in 2020. The 23% increase is primarily due to the increased customer demand related to the ongoing economic recovery from the pandemic, as well as our success and progress in the strategic growth segments of our business. Gross profit increased to 11.4 million as compared to 9.5 million in the prior year. Gross margin decreased to 43.3% of revenues from 44.4% in the prior year. This year-over-year decrease in gross margin is primarily due to product and service mix and inflationary pressures on both fixed and variable costs. Total operating expenses for the year were approximately $13.4 million. This represents an $810,000 increase from 2020. The increase is primarily related to higher G&A expenses, resulting from overall cost inflation and the restaffing of positions correlated to the recovery of our business. However, this 6% increase was lower than our revenue growth rate for the year. R&D expense decreased 14% and depreciation and amortization increased 14% compared to the prior year. Total other income during the year was $334,000 compared to $421,000 last year. The decrease is attributable to fewer fixed asset sales and the associated gains or losses year over year. Net loss for the year was approximately $1.1 million or $0.02 per share. This compares to a net loss of $2.2 million or $0.05 per share last year. Cash flow from operations for the full year was 649,000 and our cash and other investments totaled 17.5 million compared to 17.6 million at the end of 2020. We had no borrowings or other debt on the balance sheet at year end. Capital expenditures for the year were approximately 169,000. Our inventory balance at the end of the year was approximately 7.2 million down from 8.4 million at the end of 2020. To date, we have been able to adequately meet our level of customer demand. However, continued disruption of the supply chain over the next three to six months could make this more challenging. We will continue to proactively work with our suppliers to procure the necessary parts and components to deliver our BMS solutions while replenishing the inventory used over the past couple of years. I will now turn the call over to Cam to provide an overview of our business. Cam.