Profire Energy, Inc.

Everyone, and thank you for participating in today's conference call to discuss Profire Energy's quarterly operating and financial performance for the period ended September 30, 2023. I will now turn the call over to Stephen Hooser, Investor Relations, to get the call started. Please go ahead.

Thank you, Operator. With me on today's call is co-CEO and CFO of Profire Energy, Ryan Oviatt, and co-CEO Cameron Tidball. Yesterday, after the market closed, the company filed its Form 10Q with the SEC and discussed the quarter's highlights in a press release. As always, both of those documents are available on the investor section of the company's website. A transcript of this call will be posted in the coming days. Before we begin today's call, I would like to take a moment to read the company's safe harbor statements. Statements made during this call that are not historical or forward-looking statements This call contains forward-looking statements, including but not limited to statements regarding the company's expected growth, increased sales activity, revenue diversification success, the planned research and development of new products, growth in our customer base, collaboration opportunities, beginning from customers' CapEx investments, potential M&A opportunities, supply chain availability, 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 statements. 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 this Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only as of the date of this 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 also like to remind everyone that this call is being recorded and it will be available for replay through November 23rd, 2023, starting later today. 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 made by Mr. Oviatt and Didball, we will open up the call for your questions. Now, I'd like to turn the call over to co-CEO, and CFO of Profire Energy, Mr. Ryan Obious. Ryan?

Thank you, Stephen, and welcome to all of you who are joining us on the call today. We are pleased to report our fifth consecutive quarter of revenue in excess of $12 million and our best nine-month revenue, net income, and EBITDA performance in our 21-year company history. This quarter's performance was driven through a combination of the ongoing strength of our core legacy business as well as solid results from our diversification efforts. The legacy business continues to benefit from consistent capex spend from EMP operators in response to steady and robust oil and natural gas prices. Our diversification revenue covering critical energy infrastructure and new industries was just over 16% of total revenue in the quarter, which represents another best for Profire. We are excited about the traction we are gaining in this space. For the nine-month year-to-date period, our total revenue is 43.8 million. Total revenue for fiscal 2022 was 45.9 million. We are on track to record the highest annual revenue in our company's history. We believe our strong performance over the past 12 months has put us in a great position to drive further strategic growth in 2024 and beyond. Our business continues to benefit from the overall demand for hydrocarbons. The IEA is projecting a global oil demand increase of roughly 900,000 barrels per day in 2024. OPEC's forecast is more bullish, anticipating daily demand to increase by more than 2.2 million barrels. Currently, there are nine liquefied natural gas projects under construction across North America that will double export capacity in the next five years. including five projects in the US representing nearly 10 billion cubic feet of capacity. We believe North America will have a large role to play over this horizon to help provide the feedstock of oil and natural gas to meet the world's energy demands. North American producers are in the best position to supply these products in a clean, safe, and reliable manner to improve environmental conditions worldwide. So long as the U.S. and Canadian governments don't block, hinder, or prevent these investments by North American producers, this increased LNG demand will require significant capital spend by the oil and gas industry for many years to come. Profire stands to benefit greatly from these ongoing multi-year CapEx investments. In recent weeks, many articles have come out covering the significant challenges facing the electric vehicle industry by both auto manufacturers and government organizations. Key among these difficulties is that consumers remain hesitant regarding full adoption of electric vehicles due to concerns on pricing, range limitations, and lack of available charging stations. The EIA recently projected that EVs will only represent one in five vehicles purchased by 2035 through 2050, and even under a scenario where oil prices could reach $190 a barrel in today's dollars, EVs will still only represent roughly a third of vehicle sales. Moreover, the charging stations used by these EVs source their electricity largely from coal and natural gas power plants. Increasing electricity demand will only increase the need for fossil fuel based energy production, which again is good for profile product demand. Oil prices have mostly stayed north of $80 per barrel in recent months. Current events in the Middle East have not yet impacted supply, but a broader conflict in the region could have a meaningful impact on global oil and gas supply. Any further restrictions on global supply will likely increase prices and increase pressure on North American production. Overall, we remain very optimistic about Profire's medium and long-term prospects. We are on track to record the best full-year top-line revenue performance in company history. Our strong financial position allows for additional investments and acquisition opportunities going forward, as more focus is placed on efficiency and environmental initiatives. With that, let me turn my remarks to Profire's financial results for the third quarter of 2023. During the third quarter, we recognized approximately $14.8 million in revenue, our second largest quarterly revenue in company history, compared to $14.4 million in the second quarter and $12.8 million in the prior year quarter. The 16% year-over-year increase was primarily driven by ongoing customer demand, pricing initiatives, supply chain improvements, and continued progress across our strategic diversification efforts. Gross profit for the third quarter was $7.5 million compared to $7.4 million in the prior quarter and $6.1 million in the third quarter of 2022. Gross margin was 50.4%, of revenues compared to 51.3% in the prior quarter and 47.7% in the third quarter of 2022. The sequential decrease is primarily related to product mix, while the year-over-year increase was the result of product mix, greater fixed cost coverage from the higher revenue base, price increases, as well as typical fluctuations in inventory and warranty reserves. Total operating expenses for the third quarter were approximately $4.9 million compared to $4.2 million in the second quarter and $4 million in the year-ago quarter. The second quarter of this year and third quarter of 2022 each included the recognition of a $760,000 employee retention tax credit available through the CARES Act. Excluding the credit, operating expenses were roughly flat on a sequential basis and up 13% year-over-year. The increase year-over-year is primarily due to ongoing inflation pressures on our business and headcount growth to support increased business activity. Net income for the third quarter was approximately $2 million or $0.04 per diluted share. This compares to net income of $2.9 million or $0.06 per diluted share in the second quarter of 2023 and net income of 1.2 million or two cents per diluted share in the third quarter of last year. Cash flow from operations in the third quarter was approximately 886,000 compared to cash use of approximately 1.8 million in the prior year quarter. Our inventory balance at the end of the quarter was approximately 13.5 million compared to 13 million at the end of the second quarter. We continue to work with our suppliers to source the needed components to avoid potential shortages and shipment delays heading into 2024. We ended the quarter with $17.4 million in cash and liquid investments and remained debt-free. We repurchased approximately 193,000 shares of our stock in the quarter at an average price of $1.46 per share and have roughly $1.7 million remaining for additional purchases under our current authorization. I will now turn the call over to Cam to provide an overview of our business. Cam.