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.
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.
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SOURCE MagneGas Corporation