TAMPA, Florida, May 26, 2017 /PRNewswire/ --
MagneGas Corporation ('MagneGas' or the 'Company') (NASDAQ:
MNGA), a leading clean technology company in the renewable
resources and environmental solutions industries, announced today
that new client acquisitions for 2017 are on pace to grow at the
fastest rate in company history. In addition, the average sales per
client are also growing at the fastest pace since MagneGas acquired
Equipment Sales & Service Inc (ESSI) in 2014.
MagneGas acquired its wholly-owned subsidiary Equipment Sales
& Service Inc (ESSI) in November
2014, which is now part of the MagneGas Welding Supply LLC
(MWS) division. The primary purpose of this acquisition was to
obtain an established customer base that could validate the value
proposition of the MagneGas clean technology solution for the
legacy acetylene market. The Company also sought to more
effectively expand this acquired client base.
As a result, MagneGas and its subsidiary have rapidly grown
their average revenues per client. In 2014, ESSI generated
$3,157 in revenues per
client. In 2017, the average revenues per client are currently
$11,732 on an annualized basis. This
represents a 272% increase from 2014 to 2017.
The company attributes much of this increase to key competitive
advantages of using MagneGas2® to penetrate large, locally-based
industrial clients in the Florida
market, as well as the ability to leverage sales of MagneGas2®
product to more effectively penetrate client businesses and
dramatically increase cross-sales opportunities.
"We are very pleased with the accelerated market acceptance of
the MagneGas product," stated Ermanno
Santilli, CEO of MagneGas. "When we acquired ESSI in 2014,
we were optimistic that we could leverage the acquired customer
base and an experienced sales team to demonstrate the efficacy of
the MagneGas2® product. Little more than 2 years later, we now
have very clear data to prove that our product is a differentiating
factor. We are actively growing our customer base and expanding our
client relationships at rates well above industry standards. We
anticipate accelerating this growth as we continue to expand our
sales team and add new locations to our growth model."
"One of the key metrics we have used to evaluate our growth
strategy has been average revenues per client," stated Scott Mahoney, CFO of MagneGas. "This can
be a very effective measurement for the ability of our sales team
to take market share, and do so at scale. We are optimistic
that with our new efforts in the CO2 market in West Florida, our new store locations in
Sarasota, FL and Huntington, IN, and in other new endeavors
within our organic growth model, we will be able to steadily drive
meaningful growth."
"As we look to make acquisitions and add similar businesses like
ESSI to our MWS portfolio, we hope to replicate this accelerated
growth model in many markets across the US. We feel this growth
plan presents a sound path to self-fund future growth, as well as
fund growth in our R&D efforts in the combustion,
sterilization, and filtration spaces longer-term," concluded Mr.
Mahoney.
About MagneGas Corporation
MagneGas® Corporation (MNGA) owns a patented process that
converts various renewables and liquid wastes into MagneGas fuels.
These fuels can be used as an alternative to natural gas or for
metal cutting. The Company's testing has shown that its metal
cutting fuel 'MagneGas2®' is faster, cleaner and more productive
than other alternatives on the market. It is also cost effective
and safe to use with little changeover costs. The Company currently
sells MagneGas2® into the metal working market as a replacement to
acetylene.
The Company also sells equipment for the sterilization of
bio-contaminated liquid waste for various industrial and
agricultural markets. In addition, the Company is developing a
variety of ancillary uses for MagneGas® fuels utilizing its high
flame temperature for co-combustion of hydrocarbon fuels and other
advanced applications. For more information on MagneGas®, please
visit the Company's website at http://www.MagneGas.com.
The Company distributes MagneGas2® through Independent
Distributors in the U.S. and through its wholly owned subsidiary
MagneGas Welding Supply, LLC and its distributor, Equipment Sales
and Services, Inc. ('ESSI'). ESSI has four locations in
Florida and distributes
MagneGas2®, industrial gases and welding supplies. For more
information on ESSI, please visit the company's website
at http://www.weldingsupplytampa.com.
FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements as
defined within Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements relate to future events, including
our ability to raise capital, or to our future financial
performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of
activity, performance, or achievements to be materially different
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking
statements. You should not place undue reliance on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
our control and which could, and likely will, materially affect
actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. We assume no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future.
For a discussion of these risks and uncertainties, please see
our filings with the Securities and Exchange Commission. Our public
filings with the SEC are available from commercial document
retrieval services and at the website maintained by the SEC at
http://www.sec.gov.
Investor Contacts:
Crescendo Communications
626 RXR Plaza
Uniondale, NY 11556
T: +1-844-589-8760
mnga@crescendo-ir.com
SOURCE MagneGas Corporation