Profire Energy Inc (PFIE) 2023 Q4 法說會逐字稿

Good morning, everyone, and thank you for participating in today's conference call to discuss Profire Energy's Fourth Quarter and Full Year 2023 ended December 31st, 2023. (Operator Instructions) I will now like to turn the call over to Stephen, who do Investor Relations to get the call started. Please go ahead.

大家早安，感謝您參加今天的電話會議，討論 Profire Energy 截至 2023 年 12 月 31 日的 2023 年第四季度和全年業績。（操作員說明）我現在想將電話轉給史蒂芬，他負責投資者關係以開始電話會議。請繼續。

Thank you, operator. With me on the call today is Co-CEO and CFO of Profire Energy, Ryan Oviatt and Co-CEO. Cameron did Bob. Yesterday after the market closed, the company filed its 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 Investors section of the Company's website and the transcript of this call will be posted in the coming days.

謝謝你，接線生。今天與我一起參加電話會議的是 Profire Energy 聯合執行長兼財務長 Ryan Oviatt 兼聯合執行長。卡梅倫做了鮑勃。昨天收盤後，該公司向 SEC 提交了 10 K 表格，並在新聞稿中討論了本季和全年的亮點。與往常一樣，這兩份文件均可在公司網站的投資者部分獲取，本次電話會議的記錄將在未來幾天內發布。

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 historical are forward-looking statements. This call contains forward-looking statements, including, but not limited to statements regarding the Company's expected growth, future success of diversification efforts, the planned research and development of new products, growth in our customer base, increased global demand for hydrocarbons growth of our partner service network, increase increases of global LNG demand, potential M&A opportunities, increased momentum in critical energy infrastructure in the company's future and 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 state factors that could materially affect such forward-looking statements include certain economic and 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 provision of the 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.

在我們開始今天的電話會議之前，我想花點時間閱讀公司的安全港聲明。本次電話會議期間所發表的非歷史性聲明均為前瞻性聲明。本次電話會議包含前瞻性陳述，包括但不限於有關公司預期成長、多元化努力的未來成功、新產品的計畫研發、我們客戶群的成長、全球對碳氫化合物需求成長的陳述。合作夥伴服務網路、全球液化天然氣需求的增加、潛在的併購機會、公司未來關鍵能源基礎設施和財務表現的成長勢頭。所有此類前瞻性陳述均受到不確定性和情況變化的影響。前瞻性陳述並非對未來結果或績效的保證，涉及風險、假設和不確定性，這些風險、假設和不確定性可能導致實際事件或結果與前瞻性狀態因素中描述或預期的事件或結果存在重大差異，這些因素可能會對此類前瞻性產生重大影響。前瞻性聲明包括公司向美國證券交易委員會提交的定期報告中確定的某些經濟和商業公開市場以及監管風險因素。所有前瞻性陳述均依據 1995 年《私人證券訴訟改革法案》的安全港條款作出。所有前瞻性陳述僅在本新聞稿發布之日作出，本公司不承擔更新前瞻性陳述以反映後續事件或情況的義務，除非法律要求，讀者不應過分依賴這些前瞻性陳述看起來的陳述。

I would also like to remind everyone that this call is being recorded and will be available for replay through March 20 of 2024. Starting later this evening. It will be accessible via a link provided in yesterday's press release as well as on the Company's website at w. w. w. dot Profire Energy.com.

我還想提醒大家，這通通話正在錄音中，並將在 2024 年 3 月 20 日之前重播。今天晚上晚些時候開始。您可以透過昨天的新聞稿以及公司網站 w 上提供的連結來存取該資訊。 w。 w。點Profire Energy.com。

Following their remarks by Mr. Oviatt and Mr. Ted Wahl, we will open up the call for your questions.

在 Oviat 先生和 Ted Wahl 先生發表講話之後，我們將開始電話詢問您的問題。

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

現在我想將電話轉交給 Profire Energy 聯合執行長兼財務長 Ryan Oviatt 先生。瑞安？

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 business and the industry, followed by a review of the financial results, and then I will turn the call over to Cam to discuss outlook strategic direction and provide an update on our diversification strategy.

謝謝史蒂芬，歡迎今天加入我們電話會議的所有人，我將首先提供有關我們業務和行業的一些最新信息，然後回顧財務業績，然後我將轉向致電Cam，討論展望戰略方向並提供我們多元化戰略的最新資訊。

2023 was a great year for Profire. We had our best year in company history, beating our prior best year for revenue by 14%, which occurred in fiscal 2015 of $51.2 million in 2023. We recognized $58.2 million in revenue, which exceeded our prior year revenue by 27%. We also achieved Company best in gross profit dollars, operating income, net income earnings per share and EBITDA. We are very excited about what we've been able to achieve over this past year and the new ground we are breaking for Profire. These achievements have been the culmination of consistent and steady execution of Company strategy for many years. We have also seen great success in our efforts to diversify our revenue into critical energy infrastructure and non-oil and gas markets. In 2021, our diversification efforts represented less than 1% of total revenue increased to 6% in 2022 and last year accounted for 13% of total revenue. We expect to continue building on this momentum, which Ken will discuss in more detail later.

2023 年對 Profire 來說是偉大的一年。我們迎來了公司歷史上最好的一年，比上一個最好的一年（2015 財年的收入）成長了 14%，到 2023 年收入為 5,120 萬美元。我們確認了 5,820 萬美元的收入，比前一年的收入成長了 27%。我們還在毛利、營業收入、每股淨利潤和 EBITDA 方面實現了公司最佳。我們對過去一年所取得的成就以及我們為 Profire 開闢的新天地感到非常興奮。這些成績是多年來公司策略持續穩定執行的結果。我們在將收入多元化到關鍵能源基礎設施和非石油和天然氣市場方面也取得了巨大成功。2021年，我們的多元化努力佔總收入的不到1%，到2022年增加到6%，去年佔總收入的13%。我們希望繼續鞏固這一勢頭，肯稍後將對此進行更詳細的討論。

Full-size E and OPEC forecast global demand growth of more than 1.2 million barrels per day this year. With the trend to continue for the remainder of the decade, we expect operators will continue their efforts to catch up on the maintenance that had previously been deferred in recent years, but also understand that some long term capital investments may be deferred in 2024 in the lead-up to and pending the outcome of the current year election cycle.

全尺寸E和OPEC預測今年全球需求成長將超過120萬桶/日。隨著這一趨勢在未來十年持續下去，我們預計營運商將繼續努力趕上近年來推遲的維護工作，但我們也了解到，一些長期資本投資可能會推遲到 2024 年在本年度選舉週期的結果之前和之前。

Looking at our core legacy business, the combined onshore rig count for the US and Canada averaged 848 rigs in 2023, representing a 4% decrease from the prior year. The average WTI price per barrel in 2023 was $78, representing an 18% decrease from the previous year. Producers continued to draw down on previously drilled, but uncompleted wells as the duck count decreased to 4,400 at the end of 2023, representing a 51% drop from its peak in June of 2020. Despite the downward trend of these industry metrics, Profire was still able to achieve its best performance in the past 22 years of operations.

看看我們的核心傳統業務，2023 年美國和加拿大的陸上鑽井平台總數平均為 848 座，比前一年減少 4%。2023年WTI平均價格為每桶78美元，較上年下降18%。到 2023 年底，生產商繼續減少先前鑽探但未完工的油井，鴨子數量減少至 4,400 只，較 2020 年 6 月的峰值下降 51%。儘管這些產業指標呈現下降趨勢，Profire仍能實現過去22年營運中的最佳績效。

With that, let me turn my remarks to Profire financial results for the fourth quarter and full year 2023. In the fourth quarter, we recognized $14.4 million in revenue compared to $14.8 million in the third quarter and $14 million in the prior year quarter. Gross profit increased to 7.8 million as compared to $7.5 million in the third quarter of 2023 and $6.6 million in the year ago quarter. Gross margin increased 390 basis points sequentially and 730 basis points from the prior year quarter to 54.3% of revenue. This was due primarily to product and customer mix, normal inventory and warranty adjustments and pricing initiatives.

接下來，讓我談談 Profire 第四季和 2023 年全年的財務表現。第四季度，我們確認了 1,440 萬美元的收入，而第三季度為 1,480 萬美元，去年同期為 1,400 萬美元。毛利增至 780 萬美元，而 2023 年第三季為 750 萬美元，去年同期為 660 萬美元。毛利率比上一季成長 390 個基點，比去年同期成長 730 個基點，佔營收的 54.3%。這主要是由於產品和客戶組合、正常庫存和保固調整以及定價措施。

Total operating expenses for the fourth quarter were approximately $5 million compared to $4.9 million in the third quarter and $4.3 million in the fourth quarter of 2022. The sequential and year-over-year increases reflect cost inflation across our business as well as growth in business activity driving up variable costs. Specifically, G&A expenses for the fourth quarter remained flat sequentially and increased 18% year over year. R&d expenses increased 47% on a sequential basis and increased 15% from the prior year quarter. This is simply due to the timing of R&D projects and certification requirements. Depreciation and amortization were flat with the prior quarter, as well as with the same quarter of last year. Net income for the fourth quarter was approximately 3.3 million, or $0.06 per diluted share. This quarter's results include a onetime 828,000 or $0.02 per diluted share benefit generated from a reduction adjustment to deferred tax expense. Based on a detailed review of our deferred tax balances. Net income in the third quarter of 2023 was $2 million, or $0.04 per diluted share and $1.8 million or $0.04 per diluted share in the fourth quarter of last year. Cash flow from operations in the fourth quarter was approximately 4.4 million compared to 1.7 million in the prior year quarter. For the full year 2023, we recognized $58.2 million in revenue. This compares to $45.9 million in 2022, 27% increase is primarily due to the factors stated earlier. Gross profit increased to $30.5 million as compared to $21.7 million in the prior year. Gross margin increased to 52.5% of revenues from 47.1% in the prior year. This year-over-year increase in gross margin is primarily due to better fixed cost coverage, which offset inflationary pressures on variable costs.

第四季的總營運費用約為 500 萬美元，而 2022 年第三季為 490 萬美元，第四季為 430 萬美元。環比和同比增長反映了我們整個業務的成本通膨以及業務活動的成長推高了可變成本。具體而言，第四季的一般管理費用與上一季持平，年增 18%。研發費用較上季成長 47%，比去年同期成長 15%。這僅僅是由於研發項目的時間表和認證要求所致。折舊和攤銷與上一季以及去年同季持平。第四季的淨利潤約為 330 萬歐元，即稀釋後每股收益 0.06 美元。本季的業績包括因遞延稅費支出減少調整而產生的一次性 828,000 美元或稀釋後每股收益 0.02 美元。基於對我們的遞延稅餘額的詳細審查。2023 年第三季的淨利為 200 萬美元，即稀釋後每股收益 0.04 美元，去年第四季淨利為 180 萬美元，即稀釋後每股收益 0.04 美元。第四季營運現金流量約 440 萬美元，而去年同期為 170 萬美元。2023 年全年，我們確認收入為 5,820 萬美元。與 2022 年的 4,590 萬美元相比，成長了 27%，這主要是由於前面所述的因素。毛利從前一年的 2,170 萬美元增至 3,050 萬美元。毛利率佔收入的比例從前一年的 47.1% 增至 52.5%。毛利率年增主要是由於固定成本覆蓋範圍擴大，抵銷了可變成本的通膨壓力。

Total operating expenses for the year were approximately $18.7 million compared to $16.5 million in 2022. The increase is primarily related to higher G&A expense resulting from overall cost inflation. However, the overall rate of increase remained lower than our revenue growth rate for the year. Over the past 10 years, total operating expenses as a percent of revenue have ranged between 32% and 59% with 2023 being the lowest mark in this range despite the significant inflationary pressures over the past few years.

今年的總營運費用約為 1,870 萬美元，而 2022 年為 1,650 萬美元。這一增長主要與總體成本上漲導致的一般管理費用增加有關。然而，整體成長率仍低於我們全年的收入成長率。過去 10 年，儘管過去幾年通膨壓力巨大，但總營運支出佔收入的比例一直在 32% 至 59% 之間，其中 2023 年是該範圍內的最低水準。

Our strategic efforts in managing costs and building in operational efficiencies combined with our sales price initiatives have helped us achieve this great operating margin. R&d expenses decreased 13% and depreciation and amortization decreased 8% compared to the prior year. Total other income during the year was 592,000 compared to 492,000 last year. The increase is primarily attributable to higher interest income due to a combination of higher rates paid on our cash balance and short-term investments.

我們在管理成本和提高營運效率方面的策略性努力與我們的銷售價格措施相結合，幫助我們實現瞭如此巨大的營運利潤。研發費用較去年同期下降13%，折舊及攤提較去年同期下降8%。本年度其他收入總額為 592,000，而去年為 492,000。這一增長主要歸因於我們的現金餘額和短期投資支付的利率上升導致利息收入增加。

Net income for the year was approximately $10.8 million, or $0.22 per diluted share, which includes $0.02 related to the deferred tax adjustment referenced earlier. This compares to net income of 3.9 million or $0.08 per diluted share last year. Cash flow from operations for the full year was 7.1 million, and our cash and other investments totaled 20 million compared to $16 million at the end of 2022. We had no borrowings or other debt on the balance sheet at year end, net capital expenditures for the year were approximately 873,000. During the year, we were able to repurchase 2 million worth of Profire stock. According to our approved share repurchase program. Our inventory balance at the end of the year was approximately 14.1 million compared to $10.3 million at the end of 2020. To over the past two years, we've been able to implement several tax planning strategies that have had a significant benefit on our financial performance and results of operations. These include filing for and receiving the employee retention credit through the CARES Act, the strategic use of several years of net operating losses in our Canadian subsidiary and the deferred tax review true up mentioned previously, we will continue to deploy our best efforts in identifying and implementing these types of strategic opportunities in the future when they arise. However, we cannot guarantee that similar opportunities will be available to us in future periods because we were able to take advantage of these opportunities in 2023.

本年度淨利潤約為 1,080 萬美元，或攤薄後每股收益 0.22 美元，其中包括與前面提到的遞延稅調整相關的 0.02 美元。相比之下，去年淨利潤為 390 萬美元，即稀釋後每股收益 0.08 美元。全年營運現金流為 710 萬美元，現金和其他投資總額為 2,000 萬美元，而 2022 年底為 1,600 萬美元。年末資產負債表上沒有借款或其他債務，當年淨資本支出約873,000。年內，我們回購了價值200萬股的Profire股票。根據我們批准的股票回購計劃。我們年底的庫存餘額約為 1,410 萬美元，而 2020 年底為 1,030 萬美元。在過去的兩年裡，我們已經實施了多項稅務規劃策略，這些策略對我們的財務表現和營運表現產生了顯著的好處。其中包括透過 CARES 法案申請和接收員工保留信貸、策略性利用我們加拿大子公司幾年來的淨營運虧損以及前面提到的遞延稅審查，我們將繼續盡最大努力識別和在未來出現此類策略機會時予以實施。然而，我們不能保證在未來一段時間內我們會獲得類似的機會，因為我們能夠在 2023 年利用這些機會。

Operating expenses were lowered by $760,000. Income tax expenses were reduced and net income increased by $1.9 million, or $0.04 per diluted share. However, even when removing these nonrecurring adjustments, 2023 remains our best year in company history from an operating income, net income and earnings per share perspective, as I mentioned previously, we are very proud of what we have been able to accomplish in 2023 and the position these accomplishments put us in to be able to continue to do great things in coming years.

營運費用減少了 76 萬美元。所得稅費用減少，淨利潤增加 190 萬美元，即稀釋後每股收益 0.04 美元。然而，即使剔除這些非經常性調整，從營業收入、淨利潤和每股收益的角度來看，2023 年仍然是我們公司歷史上最好的一年，正如我之前提到的，我們對2023 年所取得的成就感到非常自豪，這些成就使我們能夠在未來幾年繼續做出偉大的事情。

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

我現在將把電話轉給 Kim，以概述我們的業務。帕姆？

Thanks, Ryan, and good morning to everyone. Throughout 2023, the Profire team achieved a record-setting pace, leading to our best results in company history, setting a new benchmark for financial performance. Our team successfully navigated a challenged industry facing difficult headwinds surrounding supply chain reality as well as a dynamic regulatory environment. Profire products and solutions deliver value and performance to our customers and support industries who place attention on lowering their carbon footprint, reducing greenhouse gas emissions, increasing operational efficiency and our committed to safety. Our strong fourth quarter capped off a record-setting year for Profire as we achieved exceptional year-over-year growth in our consolidated top line revenue performance of nearly 27%. Our 2023 full year results demonstrate sustained execution strength across each area of focus, including our traditional upstream business, downstream utility and transmission markets as well as our focused diversification efforts in critical energy infrastructure and various non oil and gas and industrial markets. Profire continues to be the burner management solution provider of the top EMPs in North America such as EQT, Chevron, Oxy, Devon Energy, Canadian Natural Resources, Novoste, Chesapeake, Conoco and XTO. In 2023, this space represented nearly 83% of our total revenue compared to 90% in 2022 with nearly 17% growth year over year. Our upstream market growth is attributed to customer acquisition and increased market penetration as well as a sustained focus by producers to expand their automation capabilities on new and legacy thermal appliances as well as to improve efficiency and upgrade pneumatic appliances to meet both internal and regulatory emissions targets and requirements. This led to increased opportunities for retrofits for Profire directly and through our growing partner service network. North American oil and gas production reached record highs in 2023. This remarkable outcome was accomplished with overall rig counts dropping during the year by approximately 26%. And despite federal administrations that stressed their desire to end the industry within a decade. As we look to 2024, we expect onshore drilling in North America to stay relatively flat. However, as takeaway capacity increases through new LNG terminals and gas pipelines coming onstream. In the short term, we expect an eventual boost to drilling activity towards the second half of the year into 2025. Overall, we look at 2023 and 2024 as periods of stability, though, we continue to monitor geopolitical factors such as the situations in Eastern Europe, the Middle East as well as the uncertainty surrounding China and Taiwan, though, overall, global demand for hydrocarbons in 2024 is expected to grow at a slower pace than 2023. Growth remains the industry consensus expectation. We believe that the majority of North American production growth in 2024 will come from the Permian Basin in anticipation of near and long-term growth in this valuable geographic hydrocarbon play. Profire has invested in expanding its footprint and capabilities in the Permian Basin. In Q1, we were able to open a new facility in Odessa, Texas, which we intend to support organic sales and service growth and improve our overall speed of delivery and support of our customers.

謝謝瑞安，祝大家早安。在整個 2023 年，Profire 團隊創下了創紀錄的速度，取得了公司歷史上最好的業績，並樹立了財務業績的新基準。我們的團隊成功地應對了一個充滿挑戰的行業，該行業面臨供應鏈現實以及動態監管環境的困難阻力。Profire 產品和解決方案為我們的客戶提供價值和性能，並為注重降低碳足跡、減少溫室氣體排放、提高營運效率和致力於安全的行業提供支援。我們強勁的第四季為 Profire 創紀錄的一年畫上了圓滿的句號，我們的綜合營收年增了近 27%。我們的2023 年全年業績證明了每個重點領域的持續執行力，包括我們的傳統上游業務、下游公用事業和輸電市場，以及我們在關鍵能源基礎設施以及各種非石油和天然氣及工業市場的重點多元化努力。Profire 繼續成為 EQT、Chevron、Oxy、Devon Energy、Canadian Natural Resources、Novoste、Chesapeake、Conoco 和 XTO 等北美頂級 EMP 的燃燒器管理解決方案提供商。2023 年，該領域占我們總營收的近 83%，而 2022 年這一比例為 90%，較去年同期成長近 17%。我們的上游市場成長歸因於客戶獲取和市場滲透率的提高，以及生產商持續關注擴大新舊熱力設備的自動化能力，以及提高效率和升級氣動設備以滿足內部和監管排放目標和要求。這增加了直接或透過我們不斷成長的合作夥伴服務網路對 Profire 進行改造的機會。2023年北美石油和天然氣產量創歷史新高。這項顯著的成果是在年內總鑽機數量下降約 26% 的情況下實現的。儘管聯邦政府強調他們希望在十年內結束這個行業。展望 2024 年，我們預期北美陸上鑽探活動將保持相對穩定。然而，隨著新的液化天然氣終端和天然氣管道的投產，外送能力不斷增加。短期內，我們預計 2025 年下半年鑽井活動最終將增加。總體而言，我們將2023 年和2024 年視為穩定時期，但我們繼續關注地緣政治因素，例如東歐、中東局勢以及中國和台灣周圍的不確定性，但總體而言，全球對碳氫化合物的需求預計 2024 年的成長速度將低於 2023 年。成長仍是行業共識預期。我們認為，2024 年北美產量成長的大部分將來自二疊紀盆地，預計這一寶貴的地理碳氫化合物區域的近期和長期增長。Profire 已投資擴大其在二疊紀盆地的足跡和能力。在第一季度，我們在德克薩斯州敖德薩開設了一家新工廠，我們打算支持有機銷售和服務成長，並提高我們的整體交付速度和客戶支援。

Turning now to our progress and growth in downstream natural gas utility and distribution. Our customers in this space play a distinct role in the process of supplying natural gas from production sources to end users, including businesses and residential use. We continue to focus on growing our customer base in markets. We have a geographic presence for sales and support, as well as through our efforts to expand our partner program in 2023 we achieved record performance in the number of customers and associated revenue in this space. Year over year, we achieved over 40% growth, equating to nearly 5% of our total revenue.

現在談談我們在下游天然氣公用事業和分銷方面的進展和成長。我們在該領域的客戶在從生產源向最終用戶（包括企業和住宅使用）供應天然氣的過程中發揮著獨特的作用。我們繼續專注於擴大市場客戶群。我們在銷售和支援方面擁有廣泛的地理分佈，並且透過努力在 2023 年擴大我們的合作夥伴計劃，我們在該領域的客戶數量和相關收入方面取得了創紀錄的業績。與去年同期相比，我們實現了 40% 以上的成長，相當於我們總收入的近 5%。

Now looking at our areas of diversification, beginning with our progress in critical energy infrastructure, critical energy infrastructure consist of the essential systems that play a vital role in the production transmission, distribution and storage of energy resources. Profire continues to gain traction with customers, OEMs, systems integrators and EPCs who support the construction, maintenance and upgrading of plants, transmission and distribution networks as well as production and storage facilities. 2023 marked our best year in company history in terms of top line revenue related to customers and projects in critical energy infrastructure in 2023, we achieved $5.6 million in revenue compared to $1.4 million in 2022. Our investments in sales focus, service capability, training product development and project delivery continued to generate a strong return, as demonstrated by our 300% increase year over year in 2023. Revenue generated in this market nearly hit 10% of total revenue as opposed to 3% in 2022. Fire's presence on these critical sites is a testament to the performance of our products as reliability functional safety and certification are essential requirements. Given the critical nature of these thermal appliances, Profire continues to add to its reputation in this area and our list of projects and customers continues to grow. In 2023. We worked with a record number of existing and new customers, including Kinder Morgan, TC Energy, Energy Transfer, Alpha gas, Enbridge enterprise products, DCP Pembina Williams, Targa and MPLX to name a few. We also continued to strengthen existing relationships and work with new OEMs who support projects in this space. As we look forward, we believe Profire stands to continue to gain momentum and traction in critical energy infrastructure as operators look for ways to improve safety and efficiency and reduce site emissions. We expect global LNG demand to increase through 2040 and beyond, requiring an increase of production of 70% compared to 2023. The U.S. became the world's largest LNG exporter in 2023 surpassing Qatar. This may be short-lived. However, it is expected that by 2030, North America will cover over 30% of global LNG demand, obtaining a large portion of its feedstock from the Permian, dj Marcellus and Montney shale plays. Though the global gas market is exposed to risks, including the Biden administration's pause on new LNG export terminal and expansion approvals and Qatar's plans to rapidly expand. We feel there remains a massive runway for North American LNG expansion, which should be positive for Profire.

現在看看我們的多元化領域，首先是我們在關鍵能源基礎設施方面取得的進展，關鍵能源基礎設施由在能源生產、傳輸、分配和儲存中發揮重要作用的基本系統組成。Profire 繼續受到客戶、原始設備製造商、系統整合商和 EPC 的青睞，他們為工廠、輸配電網路以及生產和儲存設施的建設、維護和升級提供支援。就與關鍵能源基礎設施客戶和專案相關的營收而言，2023 年是我們公司歷史上最好的一年，我們實現了 560 萬美元的收入，而 2022 年為 140 萬美元。我們在銷售重點、服務能力、培訓產品開發和專案交付方面的投資持續產生強勁回報，2023 年年增 300% 就證明了這一點。該市場產生的收入幾乎達到總收入的 10%，而 2022 年為 3%。這些關鍵場所的火災證明了我們產品的性能，因為可靠性、功能安全和認證是基本要求。鑑於這些熱設備的關鍵性質，Profire 不斷提高其在該領域的聲譽，我們的專案和客戶名單也在不斷增長。2023年。我們與創紀錄數量的現有和新客戶合作，包括 Kinder Morgan、TC Energy、Energy Transfer、Alpha Gas、Enbridge enterprise products、DCP Pembina Williams、Targa 和 MPLX 等。我們也繼續加強現有關係，並與支持該領域項目的新 OEM 廠商合作。展望未來，我們相信，隨著營運商尋求提高安全性和效率並減少現場排放的方法，Profire 將繼續在關鍵能源基礎設施領域獲得動力和牽引力。我們預計到 2040 年及以後，全球液化天然氣需求將增加，要求產量將比 2023 年增加 70%。美國將於2023年超越卡達成為全球最大液化天然氣出口國。這可能是短暫的。然而，預計到 2030 年，北美將滿足全球 30% 以上的液化天然氣需求，大部分原料來自二疊紀、dj Marcellus 和 Montney 頁岩油區。儘管全球天然氣市場面臨風險，包括拜登政府暫停新建液化天然氣出口碼頭和擴建審批以及卡達的快速擴張計畫。我們認為北美液化天然氣擴張仍有廣闊的空間，這對 Profire 來說應該是正面的。

Finally, as we look at our diversification progress in taking Profire products and solutions to non oil and gas and industrial markets. We are excited to report that the second half of 2023 represented our two best quarters in company history for revenue, sales, orders received and project pipeline, our backlog of projects and project opportunities has never been stronger. In 2023. We achieved nearly 30% year over year growth. Our results were slightly reduced due to the longer term project cycles that are inherent to the new industries we are working and we expect most of these projects will be completed in 2024. 2023 was an exciting year for Profire as we executed an increased number of projects in a variety of industries, including landfill, biogas, RNG production, power generation, wastewater, agriculture, food and beverage mining, heat treat and metal manufacturing and coal processing. As we enter new industries, we find opportunities to work with new OEMs, system integrators and EPCs who continue to be impressed by our products, our project process and deliverables. We feel that this will assist us as we look to build out our partner support network of sales and service in new geographic locations. We expect to achieve strong diversification growth in 2024 based on the current backlog and pipeline of opportunities that we are actively involved in terms of site scopes, quoting and the technical discussions surrounding these potential projects. In 2023 profiles, revenue outside of upstream oil and gas equated to over 17% of total revenue as compared to 10% in 2022. This resulted in Profire achieving over 10 million in revenue derived from our diversification progress in critical energy infrastructure and non oil and gas markets as well as our strategic growth in the downstream utility and transmission space. This combined strategic growth is a monumental achievement and sets the stage for us going forward, finding accretive M&A opportunities for Profire remains at the forefront of our plans to date, we have yet to find the right opportunity for Profire. However, we continue with our pursuit of transactions that will add scale entrance into new markets and or expand the products that we can bring to our existing customers.

最後，我們來看看在將 Profire 產品和解決方案推向非石油和天然氣以及工業市場方面的多元化進展。我們很高興地報告，2023 年下半年是我們公司歷史上收入、銷售額、收到的訂單和項目管道方面最好的兩個季度，我們的項目積壓和項目機會從未如此強勁。2023年。我們實現了近 30% 的同比增長。由於我們正在進行的新行業所固有的較長專案週期，我們的業績略有下降，我們預計這些專案大部分將於2024 年完成。2023 年對Profire 來說是令人興奮的一年，因為我們執行的項目數量增加廣泛應用於各種行業，包括垃圾掩埋場、沼氣、RNG 生產、發電、廢水處理、農業、食品和飲料採礦、熱處理和金屬製造以及煤炭加工。當我們進入新行業時，我們找到了與新的 OEM、系統整合商和 EPC 合作的機會，他們繼續對我們的產品、專案流程和可交付成果印象深刻。我們認為，當我們尋求在新的地理位置建立銷售和服務合作夥伴支援網絡時，這將對我們有所幫助。基於我們積極參與的場地範圍、報價以及圍繞這些潛在項目的技術討論，我們預計將在 2024 年實現強勁的多元化成長。2023 年，上游石油和天然氣以外的收入佔總收入的 17% 以上，而 2022 年這一比例為 10%。這使得 Profire 實現了超過 1000 萬美元的收入，這得益於我們在關鍵能源基礎設施和非石油和天然氣市場的多元化進展以及我們在下游公用事業和傳輸領域的戰略增長。這種聯合策略成長是一項巨大的成就，為我們未來的發展奠定了基礎，為 Profire 尋找增值併購機會仍然是我們迄今為止計劃的首要任務，但我們尚未為 Profire 找到合適的機會。然而，我們將繼續追求能夠擴大進入新市場的規模和/或擴大我們可以為現有客戶提供的產品的交易。

Investment in research and product development remains critical to the future of Profire. We plan to continue developing new products to support our legacy and traditional markets as well as our diversification efforts. This will continue to follow our balanced approach to short mid and long term product development and research processes. We're excited for the future of Profire, our customer-centric team and approach to improving the user experience sets us apart from our competition. We refuse to rest on our laurels, and we continue to forge ahead in support of our current customers and markets as well as those in our future.

研究和產品開發的投資對於 Profire 的未來仍然至關重要。我們計劃繼續開發新產品，以支持我們的傳統市場以及我們的多元化努力。這將繼續遵循我們對短期、中期和長期產品開發和研究過程的平衡方法。我們對 Profire 的未來感到興奮，我們以客戶為中心的團隊和改善用戶體驗的方法使我們在競爭中脫穎而出。我們拒絕固步自封，我們將繼續開拓進取，支持我們當前以及未來的客戶和市場。

Brian and I express our sincere appreciation to our team and to their families to our shareholders. Thank you for your continued interest and support of Profire. Operator, would you please provide the appropriate instructions so we can get the Q&A started.

布萊恩和我向我們的團隊及其家人和我們的股東表示誠摯的謝意。感謝您一直以來對Profire的關注與支持。接線員，請提供適當的說明，以便我們開始問答。

(Operator Instructions) Rob Brown, Lake Street Capital Markets.

（操作員說明）Rob Brown，Lake Street Capital Markets。

Good morning, Rob.

早安，羅布。

Good morning and good morning. Congratulations on all the progress.

早安，早安。祝賀所有的進展。

Thank you.

謝謝。

Thank you.

謝謝。

You did a good kind of overview of the diversification efforts, but you alluded to a project the project pipeline and strength there. Could you just give us some kind of color on what that project backlog looks like and how that pipeline is sort of shaping up for 2020?

您對多元化工作做了很好的概述，但您提到了一個專案、專案管道和實力。您能給我們介紹一下專案積壓的情況以及 2020 年的進度嗎？

Yes, absolutely. And thanks for joining the call. As always, Rob, as we look at 2023, obviously, we had 30% growth year over year in terms of non-oil and gas and industrial projects. As we alluded to, while we didn't allude to it in the comments, that number would have been higher, but these projects sometimes take a little bit longer. They're larger in scale and they have different complexities with regards to on permitting, especially when you're dealing with biogas landfill applications. So some of those projects we thought would close and be materialized in 2023, we'll move into 2024. And overall, as mentioned, still without those, we had our best year ever. And just the growing number of projects, both recurring in terms of the customers were going back to do around number two or three to look at sites that we can support them with their combustion and thermal appliances. It's growing our backlog pipeline. We don't obviously disclose it, but it's higher than it was last year. And so we feel that we have good reason to believe we're going to have another strong growth year in that space. And we look at we're still to a degree and looking at a lot of different industries. We haven't nailed down or targeted the few that we really want to put a whole bunch of horsepower behind because we're still determining what is what is the best place for Profire on right now, the rest of the best places anywhere that needs combustion appliances, but eventually we'll be able to target more sales efforts, more marketing efforts potentially some strategic acquisitions in those places to help us to expand maybe in a particular market. But right now, very diverse in terms of where we're seeing interest, where we're seeing opportunities where we're getting brought into from the OEMs who we're working with, as well as systems integrators and new EPCs that are hearing about the Profire name hearing about us from other projects as well as people move from industry, not so much industry to industry, but within the industries they're out there, they're bringing us along. So very excited about the progress we've seen that we and we can continue to grow this space for many years to come. And there's so many opportunities out there. And it's very exciting for Profire rhyme with you have anything that I missed there. Anything to add?

是的，一點沒錯。感謝您加入通話。像往常一樣，Rob，當我們展望 2023 年時，顯然，我們在非石油和天然氣以及工業項目方面同比增長了 30%。正如我們所提到的，雖然我們沒有在評論中提到，但這個數字會更高，但這些項目有時需要更長的時間。它們的規模更大，並且在許可方面具有不同的複雜性，特別是當您處理沼氣掩埋場應用時。因此，我們認為其中一些項目將在 2023 年結束並實現，我們將進入 2024 年。總的來說，正如前面提到的，即使沒有這些，我們仍然度過了有史以來最好的一年。只是越來越多的項目，無論是客戶方面的重複出現，還是回到第二或第三個位置，看看我們可以為他們提供燃燒和熱力設備的支援。它正在增加我們的積壓管道。我們沒有明顯透露，但比去年高。因此，我們認為我們有充分的理由相信我們將在該領域迎來另一個強勁增長的一年。我們仍然在一定程度上關注許多不同的行業。我們還沒有確定或瞄準那些我們真正想要投入大量馬力的少數幾個地方，因為我們仍在確定目前 Profire 的最佳位置，以及任何需要的其他最佳位置。燃燒器具，但最終我們將能夠瞄準更多的銷售工作，更多的行銷工作，可能在這些地方進行一些策略性收購，以幫助我們在特定市場上擴張。但目前，我們在哪些方面看到了興趣，看到了與我們合作的 OEM 廠商以及系統整合商和新的 EPC 所帶來的機會，這些方面非常多樣化。關於Profire 這個名字，我們從其他專案中聽說過我們，人們從一個行業轉移到另一個行業，而不是從一個行業轉移到另一個行業，但在他們所在的行業內，他們帶著我們一起前進。我們對所看到的進展感到非常興奮，我們可以在未來的許多年裡繼續發展這個領域。那裡有很多機會。Profire 韻律非常令人興奮，因為你有我錯過的任何東西。有什麼要補充的嗎？

No, I don't think you missed anything. I would just maybe expand and say that we're seeing similar trends with the legacy business as well as far as the project pipeline is concerned and the number of projects that we're getting in on a regular basis is still remains very strong and good. We're seeing a lot of indication for later in the year as well. So we're seeing some projects stacking up for at Q. two and beyond in our pipeline, which going back several years wasn't of a thing that typically happens for us.

不，我不認為你錯過了什麼。我可能會擴展並說，就遺留業務以及專案管道而言，我們看到了類似的趨勢，並且我們定期參與的專案數量仍然非常強勁和良好。我們也看到了今年稍後的許多跡象。因此，我們看到一些項目在第二季度及以後在我們的管道中堆積起來，這在幾年前並不是我們通常會發生的事情。

It was much more short term than that.

這比那要短期得多。

One other aspect, though, that we are seeing is our customers or at least some of our traditional customer base is starting to believe that supply chain is much, much better, which is improved, but they might be placing a little too much reliance on how good. The supply chain is right now. So we're seeing some interesting dynamics shifting in that pipeline. But overall, as Ken said, it's very strong. It's very robust, and we're excited about it what will come in 2024.

不過，我們看到的另一方面是我們的客戶或至少我們的一些傳統客戶群開始相信供應鏈要好得多，而且有所改善，但他們可能有點過於依賴供應鏈了。有多好。現在的供應鏈是這樣的。因此，我們看到該管道中出現了一些有趣的動態變化。但總體而言，正如肯所說，它非常強大。它非常強大，我們對 2024 年將要發生的事情感到興奮。

Craig, thanks for that. Great review. And then in terms of the legacy business, I think you talked about kind of catch up on deferred maintenance and some of the regulatory environment. But that is that really the drivers that are we're helping that business despite maybe oil prices down a little bit and what are the drivers that are really pushing that project pipeline moving?

克雷格，謝謝你。很棒的評論。然後就遺留業務而言，我認為您談到了延遲維護和一些監管環境的趕上。但這確實是我們幫助該業務的驅動因素，儘管油價可能略有下降，真正推動該專案管道移動的驅動因素是什麼？

Yes, the legacy business, if we go specifically to say, we'll call it upstream. Obviously, drilling is down year over year and kind of what oil prices are still at a point where we see our customers are very things are very healthy for them. The record profits of 2022 and 2023 may not be replicated it in 2020 for a warm weather. Winter like this, obviously has a drain on two degree on the gas side of the business. But oil is still very strong. You look at some of the pipeline capacity we talked about in the and the comments they're coming on board here. Obviously, that helps with LNG as well, but you've got a lot still a call for growth in production this year. And the United States had a record year last year in historical year. And we think it really speaks to the resiliency of this industry despite get some that believe we don't need hydrocarbons, it's evident we do. There still is obviously a little bit hired on the supply side, the OPEC plus and their production cuts extending through Q2, obviously signal that. And there is some difference of opinion on stockpiles right now. If a conflict were to break out is there enough?

是的，遺留業務，如果我們具體說的話，我們將其稱為上游。顯然，鑽探量逐年下降，而石油價格仍然處於我們的客戶對他們來說非常健康的水平。由於氣候溫暖，2022 年和 2023 年創紀錄的利潤可能無法在 2020 年複製。像這樣的冬天，顯然對燃氣方面的業務有兩度的消耗。但石油仍然非常強勁。您可以查看我們在 中討論的一些管道容量以及他們在這裡發表的評論。顯然，這對液化天然氣也有幫助，但仍有許多人呼籲今年產量成長。美國去年創下了歷史紀錄。我們認為這確實說明了這個產業的彈性，儘管有些人認為我們不需要碳氫化合物，但很明顯我們需要碳氫化合物。供應方面顯然仍然有一些人，OPEC+及其延續到第二季​​度的減產，顯然表明了這一點。目前對於庫存存在一些不同意見。如果爆發衝突，這些還夠嗎？

There's a few opinions that there is and there's quite a few that there is not.

有一些觀點存在，也有相當多的觀點不存在。

So overall, you mentioned that there still is a backlog of deferred maintenance of deferred upgrading that is driving the business for sure. And we had our best year in 2023 in terms of retrofits, whether they were directly with Profire or through our variety of partners in each shale play that do burner maintenance burner upgrades. We do not see E&P slowing down in upgrading their appliances to meet different plans, regulatory requirements or internal net zero goals or just reduction goals, especially on the public company side, we saw a ton of transactions last year, and we're still seeing some this year more not as many in the Permian basin so far this year, but we're seeing about with EQT, for example, have gobbled up another couple of companies here from Chesapeake on that bandwagon as well that will continue as they bring on these. Our merge with these companies acquire these companies. If they have legacy assets that need to be upgraded, we fully expect them to continue to push for those upgrades. So retrofit business continues to drive the business. Obviously, new drilling and production with Profire dominant market share. We believe, obviously, that helps as we get more of the new production equipment, but the legacy business, which is still that looming massive opportunity of these legacy wells, if they're worth being in production, we feel that there's a good chance that they're worth being automated as we progress forward different ESG goals that our customers have.

總的來說，您提到延期維護和延期升級仍然積壓，這肯定會推動業務發展。2023 年是我們在改造方面表現最好的一年，無論是直接與 Profire 合作，還是透過我們每個頁岩油區的各種合作夥伴進行燃燒器維護和燃燒器升級。我們不認為勘探與生產公司會放慢升級設備的速度，以滿足不同的計劃、監管要求或內部淨零目標或僅僅是減排目標，特別是在上市公司方面，去年我們看到了大量交易，而且我們仍然看到今年到目前為止，二疊紀盆地的一些公司數量還沒有那麼多，但我們看到EQT 已經吞併了切薩皮克的另外幾家公司，這股潮流也將繼續下去，因為他們帶來了這些。我們與這些公司的合併收購了這些公司。如果他們有需要升級的遺留資產，我們完全期望他們繼續推動這些升級。因此，改造業務持續推動業務發展。顯然，新鑽採與Profire佔據主導市場份額。我們相信，顯然，隨著我們獲得更多新生產設備，這會有所幫助，但遺留業務仍然是這些遺留油井迫在眉睫的巨大機會，如果它們值得投入生產，我們認為有一個很好的機會隨著我們朝著客戶所設定的不同ESG 目標前進，它們值得自動化。

Okay, great. Thanks for the info. I'll turn it over to Danaher.

好的，太好了。謝謝（你的）資訊。我會把它交給丹納赫。

Thanks, Rob.

謝謝，羅布。

(Operator Instructions) John Bair, Ascend Wealth Advisors.

（操作員說明）John Bair，Ascend Wealth Advisors。

Good morning, Tim, Ryan.

早安，提姆，瑞安。

Good morning, guys.

早上好傢伙。

Congrats on a nice year and good quarter. Two quick questions. Number one, you didn't indicated in your prepared remarks about inventories being up presented anticipation of order flow or trying to get ahead of them and supply chain issues were pricing. And the second question is, can you talk anything about improvement or increase in activity that is more internationally oriented nodes outside of North America.

恭喜您度過了美好的一年和美好的季度。兩個簡單的問題。第一，您在準備好的評論中沒有表示庫存增加是對訂單流的預期或試圖超越訂單流，而供應鏈問題是定價。第二個問題是，您能否談談北美以外更國際化的節點活動的改進或增加。

You bet. Ryan, why don't you tackle the first part and I'll jump in on the second.

你打賭。瑞安，你為什麼不解決第一部分，我會跳到第二部分。

Yes, great question. Inventory is up year over year. It's been up for most of 2023, kind of it started to accumulate early in the year. And then we've continued to bring in product as we've also had a great year of sales, a lot of that continues to be somewhat supply chain related. A lot of our stuff is long lead time orders. So we have to get those orders placed well in advance and then they come in as they come in. So we've been able to bring in a bunch of the product that we had on order early from this year and even stuff that we were starting to order late in 2022. So it's kind of just the timing of when all of that comes in and how we're trying to place our orders and stay ahead to end of anticipated demand for our customers. As I mentioned earlier, some of the supply chain stuff is easing, but they're still pretty long lead times in some of this stuff as well. We're also still in this transitionary period between the end of life of our 21 hundred system and the full rollout implementation of the 2,200 system. So those there's still a mix there where we're accumulating a lot of the 22 hundreds. Getting those in hand, while we're still kind of closing out the 21 hundred side of our ordering as well, making sure that we have enough to continue to satisfy the demand that we have right now, but also for warranty and ongoing support of that product down the road. So that transition will continue throughout 2024. But kind of towards the end of the year, we would anticipate that most of that transition will be completed, assuming that supply chain goes the way we think it will this year. But that's a big piece of it is just kind of working through those transitions, getting the right supply of that PF. 2,200 product and being able to fully transition customers over to that at the right point when we can continue to supply for them. They certainly don't like it if they switch to the 20 to 100 and then have to go back to the 21 hundred for a period of time, they want to be able to make that transition and continue to get the new product in and we have that be reliable for them going forward. So that's the process that we work through as we're doing that. And it has had an increase on inventory over the last two years for sure.

是的，很好的問題。庫存逐年增加。2023 年的大部分時間都在上漲，有點像是年初就開始累積的。然後我們繼續引進產品，因為我們也取得了很好的銷售業績，其中許多仍然與供應鏈有關。我們的很多東西都是交貨時間長的訂單。因此，我們必須提前很長時間下訂單，然後訂單一到就收到。因此，我們已經能夠引進今年年初訂購的大量產品，甚至是 2022 年末開始訂購的產品。因此，這只是所有這些何時到來的時機，以及我們如何嘗試下訂單並保持領先於客戶的預期需求結束。正如我之前提到的，一些供應鏈問題正在緩解，但其中一些問題的交付週期仍然相當長。我們也處於 2100 系統生命週期結束和 2,200 系統全面部署實施之間的過渡期。所以那些仍然是混合的，我們累積了 2200 個中的很多。拿到這些，雖然我們仍然在結束我們的 2100 訂單，確保我們有足夠的數量來繼續滿足我們現在的需求，但也用於保固和持續支援該產品即將上市。因此，這種轉變將持續到 2024 年。但到今年年底，我們預計大部分過渡將完成，假設供應鏈今年將按照我們的預期發展。但這其中很大一部分就是完成這些轉變，獲得正確的 PF 供應。 2,200 種產品，並且能夠在我們可以繼續向他們供應的正確時間點將客戶完全過渡到該產品。如果他們切換到 20 到 100，然後必須在一段時間內回到 2100，他們當然不喜歡這樣，他們希望能夠實現這種轉變並繼續推出新產品，我們讓他們的未來變得可靠。這就是我們正在做的過程。過去兩年裡，庫存肯定有所增加。

So at what point do you say Okay, no more 21 hundred will be will be sold. And then obviously, when you have an installed base and trying to transition existing customers away from the 21 hundred and 22. So what at what point? How do you how do you kind of handle that situation?

那你什麼時候說好吧，不會再賣2100個了。顯然，當您擁有一定的安裝基礎並試圖將現有客戶從 2100 22 轉移出去時。那什麼時候呢？你如何處理這種情況？

Yes. Good question. And it's something that we continue to do bounce around the changes. If you'd asked that question three years ago, I would have said we'd be done by now, but supply chain obviously has a huge impact on us. So right now, we're thinking and it's kind of towards the end of this year, early 2025 as to when we will look to fully have that transitioned into not be selling the 21 hundred passed that point. But again, supply chain issues may impact that. That's our desire at this point. But we'll continue to deal with customers and support customers and work with our supply chain in whatever way we need to to them to make this be the right decision for both Profire and our customer base.

是的。好問題。這是我們圍繞變化繼續做的事情。如果你三年前問這個問題，我會說我們現在就完成了，但供應鏈顯然對我們有巨大的影響。所以現在，我們正在考慮，大約在今年年底、2025 年初，我們將考慮何時完全過渡到不再出售超過該點的 2100 輛。但供應鏈問題可能會再次影響這一點。這就是我們此時的願望。但我們將繼續與客戶打交道，支援客戶，並以我們需要的任何方式與我們的供應鏈合作，以使這對 Profire 和我們的客戶群來說都是正確的決定。

Great. I'll add to that before we jump into some commentary on international. We plan to support our customers with parts for the 21 hundred it because obviously, if you just shut off the tap and they can't support the product after that wouldn't go over well, but we think we have a strategy in place that will resonate with customers for their ability to keep seeing things going. But also to a point where it's it will come a time where you've got to upgrade to one of our newer systems. So overall, we think the plan is going well, like Ryan said, we would have hoped to have transitioned a couple of years ago, but it's just the way it goes with the supply chain, but we're grateful that we have ample supply now both products, which is which is great.

偉大的。在我們開始對國際比賽進行評論之前，我將對此進行補充。我們計劃為 2100 台的客戶提供零件支持，因為顯然，如果你關掉水龍頭，之後他們就無法支持該產品，情況就不太好，但我們認為我們有一個適當的策略會因為客戶持續看到事情發展的能力而引起共鳴。但也到了你必須升級到我們較新的系統之一的時候。所以總的來說，我們認為這個計劃進展順利，就像瑞安說的那樣，我們本來希望在幾年前就可以過渡，但這只是供應鏈的方式，但我們很慶幸我們有充足的供應現在這兩種產品都很棒。

In terms of international, we've definitely seen an uptick to start the year, most of it coming from South South America, South America Latin America, particularly Argentina with the new president, there kind of shaping things a little bit differently, which we believe that it has had a positive impact on those who invest in E&P production there and we've seen some resulting orders. If you look at overall international now is approximately 46% of all rigs are outside of the United States and Canada that's higher than last year. A very high percentage of that over represented, of course, is the Middle East, of which year over year they're up a few rigs, I believe 15 rigs. A lot of that is in places like Qatar who are saying, well, we're going to jump on this LNG track as quick as possible. Overall, Profire still has our distribution distribution channels in the international markets. We're looking to strengthen, strengthen them and particularly in places where we see great expansion for the future such as India. So we're looking for opportunities there of how that could best make sense to grow that. We are working with on a a lot of OEMs that sell their products internationally. We're getting more and more exposure with that, whereas before sometimes we just sell to OEMs and then we get tech caller requests for a spare part down the road and go, oh, that would have gone international we're getting more and more requirements from international companies, more web forms coming on the website, seeing requests for some support or spare parts. So we know that our international business is growing, but still not to a point where it's worth to the breakout. We don't think.

就國際而言，今年年初我們肯定看到了增長，其中大部分來自南南美、南美拉丁美洲，特別是新總統上任的阿根廷，情況有所不同，我們認為相信這對那些在那裡投資勘探與生產的人產生了正面的影響，我們已經看到了一些由此產生的訂單。如果你看看現在的國際鑽孔機總數，大約有 46% 的鑽孔機位於美國和加拿大以外，這比去年要高。當然，其中所佔比例非常高的是中東，其中每年都增加了一些鑽孔機，我相信是 15 個鑽孔機。其中許多是像卡達這樣的地方，他們說，我們將盡快進入液化天然氣軌道。總體而言，Profire在國際市場上仍然擁有我們的分銷管道。我們希望不斷加強它們，特別是在印度等我們認為未來會大幅擴張的地方。因此，我們正在尋找機會，以了解如何最有效地發展這一點。我們正在與許多在國際上銷售產品的原始設備製造商合作。我們越來越多地接觸到這一點，而以前有時我們只是賣給原始設備製造商，然後我們接到技術呼叫者對備件的請求，然後走，哦，那會走向國際，我們越來越多來自國際公司的要求，網站上出現更多網頁表格，看到對某些支援或備件的請求。所以我們知道我們的國際業務正在成長，但還沒有達到值得突破的程度。我們不認為。

Okay. Well, that's interesting as well. So I do with your efforts to expand business outside of the oil and gas industry, are you are you getting any and any business that is non-oil and gas related internationally and that will just landfill gas? I don't know to what extent that's actually done internationally, but it would seem that would be a complementary business expansion opportunity.

好的。嗯，這也很有趣。因此，我認為你們努力擴大石油和天然氣行業以外的業務，你們是否在國際上獲得任何與石油和天然氣無關的業務，而這些業務只會填埋天然氣？我不知道國際上實際上做到了什麼程度，但這似乎是一個補充性的業務擴張機會。

Yes, absolutely. So far, anything that is international that has to deal with non traditional upstream business for Profire has really been in that critical energy infrastructure space. So bigger plants on the deal with processing fees, facility, storage facilities. We've seen some of that in terms of some of the projects that we're working that are like really greenfield for Profire, like we talked about coal processing or you name it, critical infrastructure surrounding life and Dreyer's asphalt drives fly ash.

是的，一點沒錯。到目前為止，任何需要處理 Profire 非傳統上游業務的國際業務實際上都屬於關鍵的能源基礎設施領域。因此，較大的工廠需要處理加工費、設施、儲存設施。我們已經在我們正在進行的一些項目中看到了其中的一些內容，這些項目對於Profire 來說就像是真正的綠地，就像我們談到的煤炭加工或你能想到的、圍繞生活的關鍵基礎設施和德雷爾的瀝青驅動粉煤灰。

We haven't seen any of that as of yet.

到目前為止我們還沒有看到任何這樣的情況。

We currently do not have a partner that we believe would support us outside of oil and gas and international space. It's part of the roadmap. But for the for the foreseeable future of 2024, we're more focused in the backyard where we can support those projects with our technical team and even service support. And because they are different from a process perspective, they're not as plug-and-play is upstream oil and gas. So it's in our future time, but right now the focus for non-oil and gas ventures is definitely in North America.

目前，我們認為在石油和天然氣以及國際太空之外沒有任何合作夥伴可以支持我們。這是路線圖的一部分。但在可預見的 2024 年，我們將更專注於後院，在那裡我們可以透過我們的技術團隊甚至服務支援來支援這些項目。而且由於從流程角度來看它們是不同的，因此它們不像上游石油和天然氣那樣即插即用。所以這是我們未來的時代，但目前非石油和天然氣企業的重點肯定是在北美。

Great. Thanks very much for taking the questions and the hope to see you soon.

偉大的。非常感謝您提出問題，並希望很快見到您。

Thanks.

謝謝。

Yes, thanks, John.

是的，謝謝，約翰。

Thanks, John.

謝謝，約翰。

There are no further questions in the queue. I would like to hand the call back over to management for coats. Closing it.

隊列中沒有其他問題。我想將外套轉交給管理階層。關閉它。

Thank you, everyone, for joining us on our call today to discuss our fourth quarter and full year 2023 results. We'd like to thank all of you for your continued support. As always, we're available for any discussions or questions you may have. And we look forward to speaking with you again when we release our first quarter results in May. Thank you and have a great day.

感謝大家今天加入我們的電話會議，討論我們的第四季和 2023 年全年業績。我們要感謝大家一直以來的支持。一如既往，我們隨時樂意解答您的任何討論或問題。我們期待在五月發布第一季業績時再次與您交談。謝謝您，祝您有美好的一天。

This concludes today's conference call. You may disconnect your lines. Thank you, participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。謝謝您的參與，祝您有個愉快的一天。