Profire Energy Inc (PFIE) 2024 Q2 法說會逐字稿

Good morning, 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 June 30, 2024.

大家早安，感謝大家參加今天的電話會議，討論 Profire Energy 截至 2024 年 6 月 30 日的季度運營和財務業績。

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

我現在將把電話轉給 Three Part Advisors 的投資者關係顧問 Steven Hooser，以開始電話會議。

Thank you, operator. With me on the call today 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 10-Q with the SEC and discussed the quarter's highlights in a press release. As always, both of those documents are available on the Investors section of the company's website. The transcript of this call will also be posted in 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；和聯合執行長卡梅倫·蒂德博爾（Cameron Tidball）。昨天收盤後，該公司向 SEC 提交了 10-Q 表格，並在新聞稿中討論了本季度的亮點。像往常一樣，這些文件都可以在公司網站的投資者部分找到。這次通話的文字記錄也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 revenue diversification success, ability to support growth and diversification, the increase in global and domestic demand for natural gas, crude oil, and LNG, future performance in new and existing markets, OpEx production cuts, increased drilling activity, sales pipeline, the increased necessity of hydrocarbons, potential M&A opportunities, material increases in the US power generation, stock repurchase plan, product development, and introduction, and the company's future financial performance.

在我們開始今天的電話會議之前，我想花點時間閱讀該公司的安全港聲明。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，包括但不限於有關收入多元化成功、支持增長和多元化的能力、全球和國內對天然氣、原油和液化天然氣需求的增長、新能源和液化天然氣的未來表現的陳述。

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 provision of the Private Securities Litigation Reform Act of 1995.

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，涉及可能導致實際事件或結果與前瞻性陳述中所描述或預期的事件或結果有重大差異的風險、假設和不確定性。可能對此類前瞻性陳述產生重大影響的因素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、商業、公開市場和監管風險因素。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。

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.

所有前瞻性陳述僅在發布之日作出，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。讀者不應過度依賴這些前瞻性陳述。

I would like to remind everyone that this call is being recorded and will be available for replay through August 22, of 2024. Starting later today. It will be accessible via the link provided in yesterday's press release as well as the company's website at www.profireenergy.com. Following the remarks by Mr. Oviatt and Mr. Tidball, we will open up the call for your questions.

我想提醒大家，這通通話正在錄音中，可以在 2024 年 8 月 22 日之前重播。今天晚些時候開始。您可以透過昨天新聞稿中提供的連結以及公司網站 www.profireenergy.com 存取該資訊。在 Oviat 先生和 Tidball 先生發言之後，我們將開始電話詢問您的問題。

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

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

Thank you, Steven, and welcome to all of you who are joining us on the call today. Our second-quarter results represent another strong performance for the company, with the second highest quarterly revenue in company history, an increase in gross margin, and higher year-over-year net income, when adjusted for last year's tax credit. The revenue growth is coming across all aspects of our business.

謝謝你，史蒂文，歡迎今天加入我們電話會議的所有人。我們的第二季業績代表了公司的另一個強勁表現，季度收入創下公司歷史第二高，毛利率有所上升，根據去年的稅收抵免進行調整後，淨利潤同比也有所提高。收入成長遍及我們業務的各個層面。

We continue to experience healthy demand for our legacy products, generated our highest quarterly service revenue in company history, and continued traction across our diversification efforts, which accounted for 15% of total revenue in the quarter. In the first six months of the year, our diversified revenue has significantly outpaced the same period of 2023. The underlying fundamentals for our business remain very favorable.

我們繼續體驗到對傳統產品的健康需求，創造了公司歷史上最高的季度服務收入，並持續推動我們的多元化努力，佔本季總收入的 15%。今年前六個月，我們的多元化收入大幅超過 2023 年同期。我們業務的基本面仍然非常有利。

Demand for electricity continues to increase through the growth of data centers, and the electrification of the home through additional electronics, and charging of EVs. The EIA predicts that the US will use 3% more electricity in 2024, compared to 2023, and that consumption will grow again, by an additional 1% in 2025. 60% of the US.'s electricity production still comes from natural gas and coal, which isn't forecast to change materially anytime soon.

隨著資料中心的發展，以及透過額外電子設備和電動車充電實現的家庭電氣化，電力需求不斷增加。EIA預測，與2023年相比，2024年美國用電量將增加3%，2025年消費量將再次成長1%。變化。

LNG will continue to play a larger role in the global energy market. Shell predicts global demand for LNG, will expand by 50% by 2040 as China and other Asian countries switch from coal to natural gas. As we have stated before, these trends are positive for Profire's future as we continue to supply the energy industry, safety and automation solutions that reduce the impact on the environment.

液化天然氣將繼續在全球能源市場發揮更大作用。殼牌預測，隨著中國和其他亞洲國家從煤炭轉向天然氣，到 2040 年全球液化天然氣需求將增加 50%。正如我們之前所說，這些趨勢對 Profire 的未來是正面的，因為我們將繼續為能源產業提供安全和自動化解決方案，以減少對環境的影響。

Oil prices have fallen below $80 per barrel in recent weeks, due to signals of slowdowns in global economies, despite the ongoing geopolitical tensions in the Middle East. OPEC Plus' production cuts are expected to continue for three additional quarters, which should keep upward pressure on oil prices over this period. These actions, combined with any further disruption in the Middle East, could increase the need for additional North American production, which is likely another tailwind for Profire.

儘管中東地緣政治局勢持續緊張，但由於全球經濟放緩的信號，近幾週油價已跌破每桶 80 美元。歐佩克+的減產預計將持續三個季度，這將給油價帶來在此期間的上行壓力。這些行動，再加上中東地區的任何進一步混亂，可能會增加對北美額外生產的需求，這可能是 Profire 的另一個推動力。

We remain very optimistic about our ability in the second half of 2024, to match or exceed our first-half performance, and to carry that forward into 2025 and beyond. Although there may continue to be some fluctuations, from quarter-to-quarter.

我們對 2024 年下半年的業績保持非常樂觀，能夠達到或超過上半年的表現，並將其延續到 2025 年及以後。儘管每個季度可能會繼續出現一些波動。

Our balance sheet remains strong and provides financial flexibility, which allows us to consider additional strategic actions, such as acquisitions or stock repurchases. As previously announced, we began another stock repurchase program in the second quarter.

我們的資產負債表仍然強勁，並提供財務靈活性，這使我們能夠考慮其他策略行動，例如收購或股票回購。正如先前宣布的，我們在第二季開始了另一項股票回購計劃。

With that, let me turn my remarks to Profire's financial results, for the second quarter of 2024. During the second quarter, we recognized approximately $15.2 million in revenue, compared to $13.6 million in the first quarter and $14.6 million in the prior year quarter. This quarter's performance represents the second-best quarter in company history.

接下來，讓我來談談 Profire 2024 年第二季的財務表現。第二季度，我們確認了約 1,520 萬美元的收入，而第一季為 1,360 萬美元，去年同期為 1,460 萬美元。本季的業績是公司史上第二好的季度。

Gross profit for the first quarter was $7.9 million, compared to $6.8 million in the prior quarter and $7.4 million in the second quarter of 2023. Gross margin was 52% of revenues, compared to 50% in the prior quarter and 51% in the second quarter of 2023. The sequential and year-over-year increase was primarily related to product mix, and better fixed-cost coverage, which was partially offset by normal inventory and warranty reserve movements, and inflation across the business.

第一季的毛利為 790 萬美元，而上一季的毛利為 680 萬美元，2023 年第二季的毛利為 740 萬美元。毛利率佔營收的 52%，而上一季為 50%，2023 年第二季為 51%。環比和同比增長主要與產品組合和更好的固定成本覆蓋率有關，但部分被正常庫存和保固準備金變動以及整個業務的通貨膨脹所抵消。

Total operating expenses for the second quarter, were approximately $5.3 million, or 35% of revenue, compared to $5 million, or 37% of revenue, in the first quarter and $4.2 million, or 29% of revenue, in the year-ago quarter, which included a $762,000 cost reduction from the employee retention tax credit. The sequential and year-over-year increase reflects the impact of inflation and additional headcount in support of strategic growth, and increased business activity.

第二季的總營運費用約為 530 萬美元，佔收入的 35%，而第一季為 500 萬美元，佔收入的 37%，去年同期為 420 萬美元，佔收入的 29% ，其中包括通過員工保留稅收抵免減少762,000 美元的成本。環比和同比增長反映了通貨膨脹和支持策略成長的額外員工人數以及業務活動增加的影響。

Net income for the second quarter was approximately $2.1 million, or $0.04 per diluted share. This compares to net income of $1.4 million, or $0.03 per diluted share, in the first quarter of 2024, and net income of $2.9 million, or $0.06 per diluted share, in the second quarter of last year. As previously mentioned, the prior year quarter includes a $762,000, or $0.02 per diluted share, tax credit related to employee retention.

第二季淨利約 210 萬美元，或攤薄後每股收益 0.04 美元。相比之下，2024 年第一季的淨利潤為 140 萬美元，即稀釋後每股收益 0.03 美元，去年第二季淨利為 290 萬美元，即稀釋後每股收益 0.06 美元。如前所述，去年同期包括與員工保留相關的 762,000 美元（即稀釋後每股 0.02 美元）的稅收抵免。

Cash used in operations in the second quarter was approximately $2.5 million, compared to cash generated of approximately $1.3 million in the prior year quarter. This difference was largely driven by a strategic increase in inventory, as well as reductions in accrued liabilities. Our inventory balance at the end of the quarter was approximately $16.1 million, compared to $15.7 million at the end of the first quarter.

第二季營運中使用的現金約為 250 萬美元，而去年同期產生的現金約為 130 萬美元。這種差異主要是由於庫存的策略性增加以及應計負債的減少所造成的。本季末我們的庫存餘額約為 1,610 萬美元，而第一季末為 1,570 萬美元。

We expect the pace of growth in our inventory balance to slow, but we'll maintain sufficient levels to meet customer demand as we continue to transition from our legacy BMS system to our latest technology BMS product lines. We ended the quarter with $18.4 million in cash and liquid investments and remain debt free.

我們預計庫存餘額的成長速度將會放緩，但隨著我們繼續從傳統 BMS 系統過渡到最新技術的 BMS 產品線，我們將保持足夠的水平來滿足客戶需求。本季結束時，我們擁有 1840 萬美元的現金和流動投資，並且保持無債務狀態。

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

我現在將把電話轉給 Cam，概述我們的業務。凸輪？

Thank you, Ryan. To all those joining us on the call today, and to those who will listen to or read the transcript in the coming days, Ryan and I want to express how extremely pleased we are with the performance of our team, and the results we've been able to achieve in the second quarter.

謝謝你，瑞安。對於今天參加我們電話會議的所有人員，以及未來幾天將收聽或閱讀會議記錄的人員，瑞安和我想表達我們對團隊的表現以及我們取得的成果感到非常滿意能夠在第二季度實現。

As mentioned by Ryan, our second-quarter results rank as our second highest quarterly revenue in company history, all while delivering strong company financial results in gross margin and net income. Profire's performance over the last eight quarters continues to demonstrate the strength of our brand in our traditional markets, as well as continued validation of our diversification strategy and trajectory.

正如 Ryan 所提到的，我們第二季度的業績是公司歷史上第二高的季度收入，同時在毛利率和淨利潤方面實現了強勁的公司財務業績。Profire 在過去八個季度的表現繼續證明了我們的品牌在傳統市場的實力，並持續驗證了我們的多元化策略和發展軌跡。

We remain committed to our strategic growth objectives, which are focused on maintaining and growing our market-leading position with upstream oil and gas producers, and natural gas utility, transmission and distribution providers, coupled with our high growth focus on midstream and critical energy infrastructure operators, as well as the vast opportunity in the downstream industrial and renewable space.

我們仍然致力於實現我們的戰略成長目標，重點是維持和發展我們在上游石油和天然氣生產商以及天然氣公用事業、輸配電供應商中的市場領先地位，以及我們對中游和關鍵能源基礎設施的高成長關注營運商，以及下游工業和再生能源領域的巨大機會。

We remain confident in our ability to deliver consistent results and continue to plan for growth. Our burner and combustion management technology and automation solutions continue to be the preferred platform of choice in our traditional markets and are gaining momentum and notoriety with new customers in new and exciting industries.

我們對提供一致結果並繼續規劃成長的能力仍然充滿信心。我們的燃燒器和燃燒管理技術和自動化解決方案仍然是我們傳統市場中的首選平台，並且在令人興奮的新興行業中的新客戶中獲得了動力和聲譽。

Let's dig into our diversification progress. In Q2, our combined diversification revenue exceeded Q1, by nearly 40%, with revenue from non-oil and gas increasing, by nearly 230% quarter-over-quarter. Our combined diversification revenue equated to just over 15% of our total revenue in the quarter.

讓我們深入了解我們的多元化進展。第二季度，我們的綜合多元化收入比第一季成長了近 40%，其中非石油和天然氣收入較上季成長了近 230%。我們的多元化綜合收入僅佔本季總收入的 15% 以上。

Comparing our first half results of 2024 to 2023, we are significantly ahead of our pace of last year, improving our ability, to add new customers and projects, earn repeat business, and generate new opportunities for our pipeline through efforts and initiatives of our sales and marketing teams.

比較 2024 年至 2023 年上半年的業績，我們明顯領先於去年的步伐，透過銷售的努力和舉措，提高了我們增加新客戶和專案、贏得回頭客業務並為我們的管道創造新機會的能力和行銷團隊。

Our current backlog of diversification business has never been higher as we continue to win new projects in various industries. Thus far in 2024, our diversification results have been derived from critical energy infrastructure, landfill, biogas, biofuel, chemical manufacturing, power generation, metal manufacturing, and mining.

隨著我們不斷贏得各行業的新項目，我們目前的多元化業務積壓從未如此之高。2024 年迄今為止，我們的多元化成果來自關鍵能源基礎設施、垃圾掩埋場、沼氣、生物燃料、化學品製造、發電、金屬製造和採礦。

In the second quarter, we were able to win several exciting new diversification projects, which comprise both new customer acquisition, and repeat business with the expectation of continued collaboration and projects. Of note, we were awarded our first project with a producer and manufacturer of various specialty chemicals, products, and synthetic waxes.

在第二季度，我們贏得了幾個令人興奮的新多元化項目，其中包括新客戶獲取和重複業務，並期望持續合作和項目。值得注意的是，我們獲得了與各種特種化學品、產品和合成蠟的生產商和製造商合作的第一個專案。

We were also awarded repeat business with a leading technology firm who specializes in carbon dioxide removal and production of biofuels and syngas. Profire's 3100 technology and platform will support critical combustion and flame safeguard management to enable these customers to operate their facilities, and applications safely and efficiently.

我們還獲得了一家領先的技術公司的重複業務，該公司專門從事二氧化碳去除以及生物燃料和合成氣的生產。Profire 的 3100 技術和平台將支援關鍵的燃燒和火焰保障管理，使這些客戶能夠安全且有效率地運作其設施和應用。

Our reference case of projects continues to grow. Our engineering, sales, and service teams are gaining valuable knowledge, with each new application that we encounter and project we deliver on. As we compare our capabilities now to that of just three years ago, we are able to support projects with larger scale, greater complexity and detail. And we are proving to be a valuable and even preferred option to that of the incumbents, who have traditionally served these markets.

我們的專案參考案例不斷成長。我們的工程、銷售和服務團隊正在透過我們遇到的每一個新應用程式和我們交付的專案來獲得寶貴的知識。當我們將我們現在的能力與三年前的能力進行比較時，我們能夠支援更大規模、更複雜和更詳細的專案。事實證明，我們是一個有價值的選擇，甚至比傳統上服務這些市場的現有企業更受青睞。

As we have mentioned on previous calls, we feel that Profire is in a strong position to leverage our technology, and proven project execution. This will enable us to continue to grow market share in the various industrial markets that, have the need to operate critical heaters and appliances safely, reliably, and efficiently. As mentioned, we experienced strong growth in critical energy infrastructure in the second quarter.

正如我們在先前的電話會議中提到的，我們認為 Profire 處於有利地位，可以利用我們的技術和經過驗證的專案執行。這將使我們能夠繼續擴大在需要安全、可靠和高效地運行關鍵加熱器和設備的各個工業市場的市場份額。如前所述，我們在第二季經歷了關鍵能源基礎設施的強勁成長。

With our second quarter and first half results, our year is on track to meet our internal growth targets. In the quarter, we were successful in completing projects with several national operators, as well as winning new high-profile projects with Marathon's midstream division, MPLX, and Kinder Morgan. Profire was selected to support the initiatives of these leading operators to help lower emissions at specific plants and facilities.

根據我們第二季和上半年的業績，我們今年可望實現內部成長目標。本季度，我們成功完成了與多家國家營運商的項目，並贏得了與 Marathon 中游部門 MPLX 和 Kinder Morgan 的新的備受矚目的項目。Profire 被選中來支持這些領先營運商的舉措，以幫助降低特定工廠和設施的排放。

These wins continue to demonstrate, the trust our customers have in Profire to support them in reaching internal and regulatory environmental targets. We continue to build relationships with original equipment manufacturers who design, and manufacture fired equipment, used in various downstream industries. We are also focused on collaborating with automation providers who serve these various markets.

這些勝利繼續證明了我們的客戶對 Profire 的信任，相信 Profire 將支持他們實現內部和監管環境目標。我們繼續與設計和製造用於各個下游行業的燃燒設備的原始設備製造商建立關係。我們也專注於與服務這些不同市場的自動化供應商合作。

These OEMs and automation firms are turning to Profire due to our technology, our field and combustion experience, as well as our rapid response and ability to deliver design and technology solutions that meet industry needs, and stand above that of our competitors. Our plans remain to find service and sales partners in geographic areas, where we currently do not have team members, to support our expanding customer and installation base.

這些 OEM 和自動化公司正在轉向 Profire，因為我們的技術、現場和燃燒經驗，以及我們的快速回應和提供滿足行業需求的設計和技術解決方案的能力，並超越我們的競爭對手。我們的計劃仍然是在目前沒有團隊成員的地理區域尋找服務和銷售合作夥伴，以支持我們不斷擴大的客戶和安裝基礎。

In summary, we are pleased with the progress we are making towards our diversification goals. Our sales pipeline and backlog in critical energy infrastructure continues to strengthen. We remain on pace to exceed 2023's results in this diversified area, of the energy sector.

總之，我們對實現多元化目標所取得的進展感到高興。我們在關鍵能源基礎設施方面的銷售管道和積壓訂單持續加強。我們將繼續努力超越 2023 年能源產業這一多元化領域的表現。

Our downstream and industrial project pipeline, current sales orders, and potential bid opportunities, have set the stage for us to break the record set in 2023. We continue to develop our internal teams and individuals who are focused on growing our ability to support projects and customers in diversified industries, and plan for future sales and support expansion in the coming quarters.

我們的下游和工業項目管道、當前銷售訂單以及潛在的投標機會，為我們打破 2023 年創下的紀錄奠定了基礎。我們繼續發展我們的內部團隊和個人，他們專注於提高我們支持多元化行業項目和客戶的能力，並計劃在未來幾個季度的未來銷售和支援擴展。

Turning to our traditional business and markets, overall, we are seeing stability from upstream producers. We experience moderate growth quarter-over-quarter despite reduced year-over-year rig counts, which in turn results in less drilling and completion activity.

就我們的傳統業務和市場而言，總體而言，我們看到上游生產商的穩定性。儘管鑽機數量同比減少，導致鑽井和完井活動減少，但我們仍經歷了季度環比溫和增長。

Our growth was achieved due to overall steady commodity prices, regular business from existing customers, winning bids and completing projects from new customers, as well as achieving our best quarter in company history in terms of service revenue generated. Our customers continue to specify Profire, as their burner management solution provider of choice. It is our belief that our market share has never been stronger.

我們的成長得益於整體穩定的商品價格、現有客戶的正常業務、中標和完成新客戶的項目，以及在產生的服務收入方面實現了公司歷史上最好的季度。我們的客戶繼續指定 Profire 作為他們首選的燃燒器管理解決方案提供者。我們相信，我們的市場佔有率從未如此強大。

We continue to support EMPs with the technology they need, to safely and efficiently run their heated appliances, as well as enable them to complete projects focused on emissions reduction, and monitoring on appliances that are used to meet air quality regulations.

我們繼續為 EMP 提供他們所需的技術支持，以安全、高效地運行他們的加熱設備，並使他們能夠完成專注於減排和監控用於滿足空氣品質法規的設備的專案。

The record-breaking merger and acquisition activity of 2023, which carried into 2024, has continued to impact normal project discussions, with upstream customers involved in these transactions. Due to the significant integration efforts which ensue, our contacts' ability to execute purchase orders and make normal operational decisions, can experience delay.

2023年創紀錄的併購活動持續到2024年，繼續影響正常的專案討論，上游客戶參與了這些交易。由於隨後進行的重大整合工作，我們的聯絡人執行採購訂單和做出正常營運決策的能力可能會延遲。

Looking to the remainder of the year, we expect we will begin to see things settle down, which we believe will lead to potentially a stronger second half of 2024. As we look forward to the remainder of the year, we are expecting to see increased drilling activity in the Marcellus and Haynesville.

展望今年剩餘時間，我們預計情況將開始穩定下來，我們相信這將導致 2024 年下半年可能更加強勁。展望今年剩餘時間，我們預計馬塞勒斯和海恩斯維爾的鑽探活動將會增加。

Currently, both shale plays are running rigs below what is needed, to maintain production levels, which has overall gas production - down year-to-date. The gas market is still considered oversupplied, however, based on comments from our customers, we believe we will see increased activity in the second half of the year.

目前，兩個頁岩油區的鑽機運轉量均低於所需水平，以維持產量水平，而今年迄今為止，天然氣總產量有所下降。天然氣市場仍然被認為供應過剩，但是，根據客戶的評論，我們相信下半年活動將會增加。

As a result of the opening of the Trans Mountain Pipeline, Canada-based producers are ramping up production. With this shorter route to new markets and lowered cost of transportation, operators believe that the differentials have the potential to reduce, which could result in Western Canadian Select becoming one of the most cost-effective crude available in the world.

由於跨山管道的開通，加拿大生產商正在提高產量。由於通往新市場的路線較短且運輸成本更低，業者相信差異有可能縮小，這可能導致加拿大西部精選原油成為世界上最具成本效益的原油之一。

As we monitor the health and outlook of the energy sector, related to hydrocarbon production, we remain optimistic on the long-term demand and essential need for hydrocarbons. We believe the outlook for LNG exports from North America is bright, and that the case for hydrocarbons is strengthening. We feel that more and more markets will conclude that hydrocarbons are a necessity, and that all forms of energy will be required to meet future demand.

當我們監測與碳氫化合物生產相關的能源產業的健康狀況和前景時，我們對碳氫化合物的長期需求和基本需求保持樂觀。我們認為北美液化天然氣出口前景光明，碳氫化合物的前景正在增強。我們認為，越來越多的市場將得出結論，碳氫化合物是必需品，並且需要所有形式的能源來滿足未來的需求。

The EIA forecasts remain in support of Profire's traditional business. US natural gas production is predicted to increase in 2025. Natural gas consumption in the US is expected to remain flat. LNG exports are expected to increase dramatically, and crude production, is forecast to increase through 2025. For the first time in decades, the United States is going to see a material increase in its power generation needs.

EIA 預測仍支援 Profire 的傳統業務。預計 2025 年美國天然氣產量將增加。美國的天然氣消費預計將保持穩定。預計到 2025 年，液化天然氣出口將大幅增加，原油產量預計將增加。數十年來，美國的發電需求將首次出現實質成長。

We echo sentiments of CEOs of leading natural gas producers that things are looking very exciting for natural gas. We remain committed to our M&A activities, employing a systematic approach to identify and assess potential opportunities. We are actively seeking and engaging with companies that offer synergistic businesses, aligning with Profire's growth and scalability objectives in our current and future markets.

我們同意領先天然氣生產商執行長的觀點，即天然氣的情況看起來非常令人興奮。我們仍然致力於併購活動，採用系統化方法來識別和評估潛在機會。我們正在積極尋找並與提供協同業務的公司合作，以符合 Profire 在當前和未來市場的成長和可擴展性目標。

These efforts also extend to developing products and solutions tailored, to both our traditional markets and our diversification strategy. Looking ahead to the upcoming quarters and years, we are enthusiastic and optimistic about our prospects. Our traditional customers will continue to rely on us for automating their new and existing heated appliances, aiming to enhance efficiency and reduce greenhouse gas emissions.

這些努力也延伸到開發適合我們傳統市場和多元化策略的產品和解決方案。展望未來幾個季度和幾年，我們對我們的前景充滿熱情和樂觀。我們的傳統客戶將繼續依賴我們實現其新的和現有的加熱設備的自動化，旨在提高效率並減少溫室氣體排放。

Existing regulations underscore the demand for our solutions. Moreover, our efforts in diversifying into new industries, with burner and combustion management solutions are gaining momentum, as we consistently demonstrate the value of our over 400 years of combustion experience and expertise across multiple sectors.

現有法規強調了對我們解決方案的需求。此外，我們透過燃燒器和燃燒管理解決方案進軍新行業的努力正在獲得動力，因為我們始終如一地展示了我們在多個領域 400 多年的燃燒經驗和專業知識的價值。

Before we open the line to questions, Ryan and I want to express our sincere gratitude for your interest and support of Profire. We also want to acknowledge and extend appreciation to our team members, for their hard work and commitment in supporting our customers, shareholders, and each other.

在我們開始提問之前，Ryan 和我想對您對 Profire 的關注和支持表示誠摯的感謝。我們也要感謝我們的團隊成員，感謝他們為支持我們的客戶、股東和彼此的辛勤工作和承諾。

Operator, would you please provide the appropriate instructions. So, we can get the Q&A started?

接線員，請您提供適當的指示。那麼，我們可以開始問答了嗎？

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

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

First question is on the service revenue activity. It was quite strong in the quarter. What was driving that and can that continue or how can that continue?

第一個問題是關於服務收入活動。本季的表現相當強勁。是什麼推動了這種情況？

Yes, certainly, Rob. That's a great question. Cam, do you want to talk about that?

是的，當然，羅布。這是一個很好的問題。卡姆，你想談談這個嗎？

Yes, for sure. Really overall, if we look at the last few quarters, our service team just continues to get busier-and-busier. And it's in part due, we think, to the fact that human power is stretched in especially the upstream industry. And as we've moved into some of these diversified industries as well, we've been able to secure some nice projects that our service team has been involved in the commissioning, and sometimes the installation portions of that.

是的，當然。總的來說，如果我們看看過去幾個季度，我們的服務團隊繼續變得越來越忙碌。我們認為，部分原因是人力在上游產業捉襟見肘。隨著我們也進入其中一些多元化行業，我們已經能夠獲得一些不錯的項目，我們的服務團隊參與了調試，有時還參與了其中的安裝部分。

Can it continue to a degree? Yes. We are extremely busy this quarter, but we will say our team is probably a little more stretched than we'd like from the hours they're working. We have expanded the service team slightly, and we continue to look for more technicians that we can either bring on that, can just be plug and play or that we can train, especially in the Permian, probably the Northeast as we see it getting busier there.

能持續到一定程度嗎？是的。本季我們非常忙碌，但我們要說的是，我們的團隊的工作時間可能比我們希望的要緊張。我們稍微擴大了服務團隊，我們繼續尋找更多的技術人員，我們可以帶來這些技術人員，可以即插即用，也可以進行培訓，特別是在二疊紀，可能是東北部，因為我們看到它變得越來越繁忙那裡。

But really, as our service team, our tenure is becoming really strong. We don't have a lot of turnover. We have great experience. We've had some great projects in the DJ basin where we're working with some of the major EMPs there to do a lot of upgrading. We see that continuing. So can it continue to this degree? We hope to be able to do it, but probably with adding a few more people.

但實際上，作為我們的服務團隊，我們的任期正在變得非常強大。我們的營業額不多。我們有豐富的經驗。我們在 DJ 盆地有一些很棒的項目，我們正在與那裡的一些主要 EMP 合作進行大量升級。我們看到這種情況仍在繼續。那麼還能持續到這個程度嗎？我們希望能夠做到這一點，但可能需要增加一些人。

But there will be some fluctuations up and down slightly with it. But overall, it really comes down to some large projects that we were able to execute during the quarter, as well as just we are incredibly busy right now, which is a great sign.

但隨之也會有一些小幅的上下波動。但總的來說，這實際上取決於我們在本季度能夠執行的一些大型項目，以及我們現在非常忙碌，這是一個很好的跡象。

Okay. Great. Thank you. And then on the diversification efforts, good progress there. The pipeline is active. How would you characterize the pipeline growth in diversification and maybe what you see that playing out over time in terms of percent of revenue?

好的。偉大的。謝謝。然後在多元化方面的努力也取得了良好進展。管道處於活動狀態。您如何描述多元化管道的成長，以及您認為隨著時間的推移，在收入百分比方面會發生什麼？

Yes, another great question. As we mentioned, we're very excited about what we've been able to achieve in the continuing increases, not only just as a percentage of revenue, but the overall revenue base increasing itself as well, for total revenue. So hitting 15% this quarter on top of a strong Q1 as well, with a great start to the first half of this year is something that we're really proud of.

是的，另一個很好的問題。正如我們所提到的，我們對我們在持續成長中所取得的成就感到非常興奮，不僅是佔收入的百分比，而且整體收入基礎也在總收入方面不斷增加。因此，在第一季表現強勁的基礎上，本季的成長率也達到了 15%，今年上半年取得了良好的開局，這讓我們感到非常自豪。

And it continues to come, as Cam mentioned in his prepared remarks, that that's coming from within critical energy infrastructure and oil and gas, but also from lots of other areas. And as far as the pipeline is concerned, we're continuing to see a significant amount of our total pipeline, probably at least a third, if not more of that total revenue pipeline is coming from diversification areas.

正如卡姆在他準備好的演講中提到的那樣，這種情況仍在繼續，這來自關鍵的能源基礎設施和石油和天然氣內部，但也來自許多其他領域。就管道而言，我們繼續看到我們總管道中的很大一部分，可能至少有三分之一（如果不是更多的話）來自多元化領域。

So it continues to strengthen. We continue to see a bunch of projects coming in that hopefully hit within the second half of the year, but also things stacking in already for 2025. Cam, do you want to give any further color on any specifics there?

所以它繼續加強。我們繼續看到大量項目預計在今年下半年推出，但也有一些項目已經在 2025 年推出。卡姆，你想進一步說明具體細節嗎？

Yes, absolutely. We've talked about before on calls. Just, okay, is there come a point, a tripping point here where you just really laser focus on an area, and put some horsepower behind it? And the answer to that is, yes, there still does come a point. But we're seeing so many like really interesting projects come our way, partly because we've been able to execute on some of these projects in the last couple of years with really notable firms in the landfill, and biogas and renewable natural gas space.

是的，絕對是。我們之前在電話中討論過。只是，好吧，是否有一個點，一個觸發點，你只需真正激光聚焦在一個區域上，並在其後面施加一些馬力？答案是，是的，仍然存在一個問題。但我們看到有很多非常有趣的項目出現在我們面前，部分原因是我們在過去幾年中能夠與垃圾掩埋場、沼氣和可再生天然氣領域的知名公司一起執行其中一些項目。

And we're finding, we're putting some good investment into marketing. And so, people are finding us. We're working on these interesting projects where they're taking industrial biomass, and they have to do something with it. And there's firms that are specializing in dealing with this, and coming up with new and creative ways to use, whether it's coal or to use a feedstock of wood chips to turn it into something else or biochar.

我們發現，我們正在對行銷進行一些良好的投資。因此，人們正在找到我們。我們正在進行這些有趣的項目，他們正在利用工業生物質，他們必須利用它做點什麼。有些公司專門處理這個問題，並提出新的、創意的使用方法，無論是煤炭或使用木片原料將其轉化為其他物質或生物炭。

And companies are coming to us and, because as we mentioned, we're able to respond very quickly, much quicker than that of the incumbents. We're able to speak their language when it comes to burner management, combustion. And it's just something that is not so readily available out there to find. And so, as Ryan mentioned, the backlog is strengthening.

公司正在向我們求助，因為正如我們所提到的，我們能夠非常迅速地做出反應，比現有企業快得多。在燃燒器管理和燃燒方面，我們能夠使用他們的語言。而且它只是一些不太容易找到的東西。因此，正如瑞安所說，積壓的情況正在加劇。

We see it continue to go forward as we continue to put case studies out there, as we continue to execute on new projects, and able to publicize that to train our sales and service teams. As we mentioned in our remarks, we plan on expanding our sales team both internally, as well as expanding our sales and service support in areas where we just don't have people.

我們看到它繼續向前發展，因為我們繼續進行案例研究，繼續執行新項目，並能夠宣傳這些項目來培訓我們的銷售和服務團隊。正如我們在評論中提到的，我們計劃在內部擴大我們的銷售團隊，並在我們沒有人員的領域擴大我們的銷售和服務支援。

We're finding projects that we've closed on that we'll have to support that, are just in areas that we never thought Profire would be. Well, we've always hoped we would be, but a few years ago, we never thought we'd have people in certain areas. But very exciting. We're looking forward to, as we talked about, or as I mentioned, executing on a project here late Q3, probably into Q4, at a large chemical plant.

我們發現我們已經關閉的項目必須予以支持，這些項目位於我們從未想過 Profire 會出現的領域。嗯，我們一直希望能夠做到這一點，但幾年前，我們從未想過我們會在某些領域擁有人員。但非常令人興奮。正如我們所討論的，或者正如我所提到的，我們期待在第三季末（可能到第四季）在一家大型化工廠執行一個專案。

And we see more and more, some of these new customers that we're bringing on that repeat business, is going to start to ensue. We already are enjoying some of that. But as we build our base here, just the number of open projects has expanded significantly quarter-over-quarter. So great progress. We can't really overstate how excited we are about our movement here. And we're going to look to continue to grow that while growing that legacy business, which we love and is still a great business for Profire.

我們看到越來越多的，我們帶來的重複業務中的一些新客戶將開始出現。我們已經在享受其中的一些了。但當我們在這裡建立基地時，開放項目的數量逐季度顯著增加。如此巨大的進步。我們對這裡的運動感到多麼興奮都不為過。我們將尋求繼續發展這項業務，同時發展我們喜愛的傳統業務，並且對 Profire 來說仍然是一項偉大的業務。

Okay. Great. And then I guess on the legacy business, you talked about oil prices being a bit of a headwind. And then, some of the cross-currents in the market. But I guess the question is, do you think you can grow overall? And is the legacy business continuing to grow? And what's the near-term, mid-term growth outlook? I know you want to give guidance, but directionally, what the growth outlook you think you can get?

好的。偉大的。然後我想在傳統業務上，您談到油價有點不利。然後是市場上的一些逆流。但我想問題是，你認為你能整體成長嗎？傳統業務是否持續成長？近期、中期成長前景如何？我知道你想給予指導，但是方向性上，你認為你能得到什麼樣的成長前景？

And I'll say some remarks here, and then Ryan will want to comment for sure. But you look at the rate count. Quarter-over-quarter is down. Year-over-year, it's down. But Profire's still been able to produce some great quarters. And there's a lot of reasons for that. One is our market share continues to grow. There's still new customers to go and get. We've seen this M&A activity.

我會在這裡說一些話，然後瑞安肯定會發表評論。但你看看利率計數。環比下降。逐年下降。但 Profire 仍然能夠創造出一些出色的季度業績。這有很多原因。一是我們的市佔率持續成長。仍然有新客戶需要去爭取。我們已經看到了這種併購活動。

Although we mentioned it does slow things for us and put things on delay, you're seeing that greater sophistication and need for automation from these firms. And as they buy other companies, obviously, Exxon buying Pioneer, they're both very, I guess, sophisticated. Sorry, Chevron, not Pioneer. But they're both very sophisticated, and Profire works with both.

儘管我們提到它確實會減慢我們的速度並使事情延遲，但您會看到這些公司更加複雜和對自動化的需求。顯然，當他們收購其他公司時，埃克森美孚收購了先鋒公司，我認為他們都非常成熟。抱歉，雪佛龍，不是先鋒。但它們都非常複雜，Profire 都可以使用。

But, the thing is, as we see a lot of these independents get bought, they don't do a lot of burner management, not to the degree that the majors do. So that's going to be in support of Profire. We think, as mentioned, in the second half of the year and into next year, drilling and completion activity is going to continue both on the natural gas front, which is spectacular for Profire, as well as on the crude side of it.

但是，問題是，正如我們看到許多獨立公司被收購一樣，他們並沒有進行大量的燃燒器管理，也沒有達到專業公司所做的程度。所以這將是對 Profire 的支援。正如所提到的，我們認為，從今年下半年到明年，天然氣領域和原油領域的鑽探和完井活動都將繼續，這對 Profire 來說是壯觀的。

Crude demand, is it slowing? Yes, you could say it's slowing, but it's still growing. We think that the North American play and ability to ramp up quicker than they ever have before, to support energy needs, that is a tailwind for Profire. Obviously, US AI is expected to require a lot more energy. And really, if you were to put that in perspective alone, just AI, it doesn't really make up a large percentage of the total baseload that North America or the United States would need.

原油需求是否正在放緩？是的，你可以說它正在放緩，但它仍在增長。我們認為，北美地區的業務和能力比以往任何時候都更快地成長，以支持能源需求，這對 Profire 來說是一個順風車。顯然，美國人工智慧預計需要更多的能源。事實上，如果你單獨考慮這一點，只是人工智慧，它並沒有真正佔北美或美國所需的總基本負載的很大一部分。

But if you were able to just increase natural gas production - with existing pipeline infrastructure by 10%, which there's room, you could almost meet that whole demand. And so, as that need for AI and other electrification comes on, natural gas is going to be a big part of it. And that's why we see these huge forecasts by the world's largest LNG providers.

但如果你能夠將天然氣產量增加——現有的管道基礎設施增加 10%（還有空間），那麼你幾乎可以滿足全部需求。因此，隨著人工智慧和其他電氣化需求的出現，天然氣將成為其中的重要組成部分。這就是為什麼我們看到全球最大的液化天然氣供應商做出如此巨大的預測。

That LNG feedstock, it is going to come from the United States and Canada, not all of it, but a lot of it's going to be there. So, we think there's still some really great tailwinds. Can we grow the legacy business? We believe so. Probably not at the same, we know not at the same rate as we can grow, our non-oil and gas and industrial side of the business, but we believe that it can continue to see growth, moderate, but still grow. Ryan?

液化天然氣原料將來自美國和加拿大，不是全部，但其中很大一部分將來自美國和加拿大。因此，我們認為仍然存在一些非常好的有利因素。我們可以發展傳統業務嗎？我們相信是這樣。可能不一樣，我們知道我們的非石油和天然氣以及工業業務的成長速度不一樣，但我們相信它可以繼續看到成長，雖然溫和，但仍然成長。瑞安？

Yes, I would just add to that. We've said for years that we believe the world needs the best of all forms of energy, all sources of energy, and oil and gas is going to continue to be a critical piece of that. There may be some short-term disruptions related to the election or, and which direction that pushes, we don't really know. Disruptions in the Middle East will obviously have an impact, and that's forecast, or people are expecting a lot more of that.

是的，我只想補充一點。多年來我們一直表示，我們相信世界需要各種形式的能源中最好的，所有能源來源，而石油和天然氣將繼續成為其中的關鍵部分。可能會出現一些與選舉相關的短期幹擾，或推動哪個方向，我們真的不知道。中東的混亂顯然會產生影響，這是預測的，或者人們期待的會更多。

The tensions are certainly escalating and not de-escalating in those regions. So, obviously, there will be some ups and downs, but overall, we are very confident in the future of our legacy business, as well as our diversification efforts. We also believe that stability in prices is more important, probably, than even the price level itself. Stability in the low 70s, is a good thing for the industry, much better than quick rises and falls between 70 and 90.

這些地區的緊張局勢肯定正在升級，而不是緩和。因此，顯然，會有一些起伏，但總的來說，我們對傳統業務的未來以及我們的多元化努力充滿信心。我們也認為，價格穩定可能比價格水準本身更重要。穩定在 70 左右，對行業來說是一件好事，比 70 到 90 之間的快速上升和下降要好得多。

If it stabilizes above that, obviously, higher prices are better, but that ongoing stability, which we have actually seen for the last two years, represents a good, strong environment for the EMP producers, for natural gas, for oil. And at these rates, at these levels, they will continue to invest in new technology, looking to get the most out of the existing assets that they have.

如果價格穩定在該水平之上，顯然，價格越高越好，但我們在過去兩年中實際看到的持續穩定代表 EMP 生產商、天然氣和石油的良好、強大的環境。按照這樣的速度和水平，他們將​​繼續投資新技術，尋求最大限度地利用他們擁有的現有資產。

As Cam mentioned, the drilling and completion activity is still 25% below where it was pre-COVID. So, the investment on the production side has been more in the technology, and not so much in drilling new wells or adding new capacity. But over time, with the decline of these shale wells, that has to be considered as well. So, again, we think that there's obvious uncertainty, but a lot of upside potential, a lot of upside opportunity for the industry and for Profire in the coming years.

正如 Cam 所提到的，鑽井和完井活動仍比新冠疫情爆發前低 25%。因此，生產方面的投資更集中在技術上，而不是鑽探新井或增加新產能。但隨著時間的推移，隨著這些頁岩井的減少，這一點也必須考慮。因此，我們再次認為存在明顯的不確定性，但未來幾年該行業和 Profire 仍有很大的上行潛力、大量上行機會。

All right. Thank you. I'll turn it over.

好的。謝謝。我會把它翻過來。

(Operator Instructions) And with no further questions in queue, I would like to turn the call back over to Cameron Tidball for closing remarks.

（操作員說明）由於隊列中沒有其他問題，我想將電話轉回給 Cameron Tidball 進行結束語。

Thanks, everyone, for joining us on our call today, and thank you for all of your continued support. As always, we are available for any discussions or questions you may have. To mention, we will be participating at the Three Part Advisors' IDEAS Conference in Chicago on August 29 and the Lake Street Conference in New York on September 12. Thank you, and have a great day.

感謝大家今天加入我們的電話會議，並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。值得一提的是，我們將參加 8 月 29 日在芝加哥舉行的三部分顧問 IDEAS 會議和 9 月 12 日在紐約舉行的湖街會議。謝謝您，祝您有美好的一天。

And this will conclude today's conference. Thank you for your participation, and you may now disconnect.

今天的會議到此結束。感謝您的參與，您現在可以斷開連接。