$2.3 Million Represents 5% Month Over Month Growth
PHOENIX, AZ, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced that the Company generated $2.3 million in total sales for its domestic operations, which represents a 5% monthly increase when compared to December domestic sales of $2.2 million. These sales figures include the Company’s retail industrial gas network, branded as MagneGas Welding Supply, and the Company’s wholesale mobile gas operations, branded under TGS. Factors contributing to the monthly increase were as follows:
MagneGas Welding Supply’s southeastern operations covering the Florida market were unchanged for the month when compared to December. This market experienced exceptionally strong results in December due to tax driven capital expenditures by several clients. Overall, the Florida market continues to generate sustained sales in excess of 40% higher than the COVID driven lows experienced for most of the second quarter 2020.
MagneGas Welding Supply’s southern region covering the Texas, Louisiana, and Indiana markets saw revenues increase 9%, representing the highest level of revenue growth among the Company’s three retail divisions. The growth was primarily attributed to the onboarding of a large new client at the Company’s Huntington, Indiana location, which won all of the industrial gas and welding supply business for a Big Three auto manufacturer’s local plant operations. This client is expected to gradually increase its impact for this market’s sales performance for one to two additional months, as the onboarding process has been implemented in stages over the past two months.
MagneGas Welding Supply’s western market grew 2% when compared to December of 2020. The growth was primarily driven by continued strength in the San Diego market, and improvements in sales results in Lodi, the Company’s newest California location. Overall sales results in this market have been heavily impacted by the strict lockdown conditions implemented to combat the spread of COVID-19.
TGS also produced strong sales growth, generating 13% sales growth when compared to December of 2020. The improvements are in part seasonal, as the Company’s sales are typically lowest in December, and peak in the early half of the summer months. TGS also implemented annual price increases in all markets, which should positively impact profitability above and beyond the raw sales growth.
Going forward, the Company intends to disclose the number of MagneGas demonstrations it conducts, as well as various financial data related to new clients acquired through MagneGas marketing efforts, the adoption rate of MagneGas versus acetylene, and the estimated annualized revenues generated through MagneGas sales. These sales figures will be disclosed at the total client relationship level in aggregate, not as dollar amounts per product in order to preserve sensitive competitive data. For the month of January, the Company conducted a total of 22 live MagneGas demonstrations. Customer adoption and usage data will be reported once recurring sales can be verified on a lagging basis.
“Overall, we are pleased to start 2021 with good momentum,” commented Scott Mahoney, CEO of Taronis Fuels. “Despite continued challenges in one of our largest markets, we produced 5% combined monthly sales growth. We are looking to build on this success throughout the remainder of the quarter. Our sales team has been exceptionally aggressive in its marketing efforts, and we continue to take market share on a daily basis,” concluded Mr. Mahoney.
About Taronis Fuels, Inc.
Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.
Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.
Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.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:
Michael Khorassani
IR@Taronisfuels.com