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MagneGas Preliminary 2016 Annual Revenue $3.35 Million

Posted By Carl Dilley, Tuesday, January 24, 2017

MagneGas Preliminary 2016 Annual Revenue $3.35 Million

TAMPA, Florida, January 10, 2017 /PRNewswire/ --

Company Experienced a 2016 Growth Rate of 39% in Welding Gas and Supply Segment Versus Estimated Industry Growth Rate of 2% 

MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading clean technology company in the renewable resources and environmental solutions industries, announced today that its 2016 full year revenue growth rate was 39% over the same period in 2015. The preliminary unaudited revenue from the welding gas and supply segment was $3.347 million for the period ending December 31, 2016, which represents a 39% increase over the December 31, 2015 revenue of $2.4 million.

The welding gas and supply segment includes MagneGas2®, industrial gases, welding supplies and equipment to produce MagneGas2®. The Company believes that the use of MagneGas2® as a wedge product has been a critical driver of revenue growth and the Company's ability to quickly gain market share. As a result, MagneGas experienced a 39% growth rate versus the estimated industry rate of 2%. The Company plans to expand the use of this strategy through organic growth into multiple stores and the acquisition of profitable industrial gas companies throughout the United States in 2017 and beyond.  

"We spent 2015 and 2016 proving our model, that by using MagneGas2® as a door opener, we are able to achieve growth rates that far surpass our competitors. Now we intend to focus on an accelerated growth strategy of industrial gas company acquisitions coupled with organic expansion. We are confident this will accelerate our revenue growth through 2017 and beyond. The Company has adopted an aggressive strategy for 2017 with the use of MagneGas2® as the catalyst and we are excited to see the results," stated Ermanno Santilli, CEO.

The MagneGas IR App is now available for free in Apple's App Store for the iPhone and iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

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 distributor, ESSI (Equipment Sales and Services, Inc.). 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. The Company is currently using virgin vegetable oil to produce fuel while it configures its systems to properly process waste within local regulatory requirements.

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:
KCSA Strategic Communications
Philip Carlson
+1 212.896.1233
pcarlson@kcsa.com

SOURCE MagneGas Corporation

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Crystal Research-Magnegas Report now available on SMM

Posted By Carl Dilley, Friday, December 16, 2016

Crystal Research Associates-

Magnegas Executive Overview Report 10-21-16 now available on SMM

CLICK HERE

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MagneGas Announces Financing of $3 Million

Posted By Carl Dilley, Wednesday, November 16, 2016

MagneGas Announces Financing of $3 Million

TAMPA, Florida, November 16, 2016 /PRNewswire/ --

MagneGas Corporation ("MagneGas" or the "Company") (MNGA), a technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, announced today that on November 16, 2016, it entered into an agreement with a single institutional investor for a registered direct placement of approximately $3 million.  The Securities Purchase Agreement provides for the sale of $2.5 million of pre-funded warrants which warrants are exercisable into 5,102,041 shares and $500,000 in payment for 1,020,408 shares. 

The investor and the Company also agreed to amend the following warrants issued as part of a June 2016 financing: an E-4 common stock purchase warrant is now exercisable at $0.66 ($0.01 above the closing market price) for the investor to purchase up to an additional $4.6 million of common stock and is now exercisable 6 months from the closing of this transaction and now has a term of 7 years; an E-5 common stock purchase warrant to purchase 3,508,772 shares of common stock is now exercisable at $0.90 (approximately 38% premium to the closing market price); and an E-6 common stock purchase warrant to purchase 1,754,386 shares of common stock is also now exercisable at $0.90. The Series E-5 and E-6 common stock purchase warrants vest ratably only upon the exercise of the E-4 common stock purchase warrant.

The placement is expected to close on or before November 18, 2016, subject to satisfaction of customary closing conditions.

The pre-paid warrants and common stock are being offered and the E-4 warrants are being amended pursuant to a shelf registration statement (File No. 333-207928), which was declared effective by the United States Securities and Exchange Commission ("SEC") on June 15, 2016.

The E-5 and E-6 warrants are being amended pursuant to a resale registration statement (File No. 333-212879), which was declared effective by the SEC on August 12, 2016. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 distributor, ESSI (Equipment Sales and Services, Inc.). 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.

The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

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.

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MagneGas Reports 66% Increase in Revenue for the Third Quarter of 2016

Posted By Carl Dilley, Wednesday, November 16, 2016

MagneGas Reports 66% Increase in Revenue for the Third Quarter of 2016

TAMPA, Florida, November 14, 2016 /PRNewswire/ --

MagneGas2® Fuel Driving Revenue Growth 

Gross Margins Increased 411 Basis Points 

Call to be held on Monday, November 14th at 10:00 a.m. Eastern Time 

MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading clean technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, today announced financial results and provided a business update for the third quarter ending September 30, 2016.

Third Quarter2016Financial Highlights  

  • Revenue for the three months ended September 30, 2016 increased 66% to $1.0 million compared to $623,893 for the same period last year;
  • Revenue for the nine months ended September 30, 2016 increased 45% to $2.5 million compared to $1.8 million for the same period last year;
  • Gross margins increased 411 basis points to 39% from 35% for the three-month period ending September 30, 2016 versus September 30, 2015.

Recent Business Highlights 

  • A Letter of Intent was signed for the purchase of a coal combustion technology company with revenue in excess of $14 million;
  • A Letter of Intent with deposit was signed with a German company to purchase $2.65 million in MagneGas equipment and fuel;
  • Thousands additional fuel cylinders were purchased to keep up with increasing demand for MagneGas2® fuel;
  • A leading industrial gas distributor in the Southeast began distributing MagneGas2® fuel for metal cutting as an alternative to acetylene;
  • The Company announced the opening of two new retail locations for the sale of MagneGas2® and industrial gases and supplies for the welding industry;
  • A Fortune 100 auto manufacturing company selected MagneGas2® for metal cutting at two factories in the United States;
  • The Company completed construction of its gasification system for sale to Green Arc Supply from Louisiana.

Ermanno Santilli, Chief Executive Officer of MagneGas, stated, "We continue to grow our industrial gas sales and we are pleased to report a 66% increase in revenue for the three months ending September 30, 2016 versus the same period last year. We have benefitted from our MagneGas2® product line, which enables us to drive better value for our clients in an otherwise commoditized price competitive landscape. We are gaining market share at an accelerated pace in our addressable markets."

"As a whole, our industrial gas segment, which not only includes MagneGas2® but also welding supplies and other gases, has increased at nearly a 20% annualized growth rate, compared to an estimated 2% growth rate for our welding supply peers. We attribute our continued growth quarter after quarter to our strong marketing efforts and the addition of customers and distributors, including those we obtained through our welding supply business, ESSI. We believe that MagneGas2® is an excellent door opener, and customers quickly see the value-added benefits of switching to MagneGas2®, which is a safer, hotter and faster cutting alternative to what they are using now."

"Given the growing demand for MagneGas2®, which has allowed us to build our backlog, we completed the purchase of thousands of additional fuel cylinders per the previously announced purchase order. The demand we are experiencing is a direct result of our sales penetration into key vertical market segments including utilities, demolition companies, first responder markets and major manufacturing companies.  Several existing customers have expanded their use of MagneGas2® into additional facilities and we have other large potential customers currently testing MagneGas2®."

"We continue to grow our industrial gas segment through new partnerships within the gas market. We signed a distributor agreement with Holston Gases of Tennessee, one of the largest independent distributors of industrial, propane, medical and beverage gases in the United States as a preferred distributor for the Southeast with 27 locations in 7 states. Holston will be distributing MagneGas2® for metal cutting as an alternative to acetylene.  We feel that this new strategic relationship further validates the market's growing acceptance of our MagenGas2® product offering."

"We are also expanding the use of MagneGas2® along the East Coast and nationwide. The marketing program we implemented with our distribution partner, AWISCO Corporation, attracted new customers including the NYC Department of Transportation, which selected MagneGas2® for metal cutting and repairs, as well as the New York Iron Workers Joint Apprentice Training Facility, which added MagneGas2® to its training program for new iron workers."

"In September, we announced that MagneGas2® fuel was chosen by one of the nation's largest recycling and waste disposal companies for maintenance and repair of the company's fleet of trucks, its dumpsters and related machinery. Our fuel will initially be used in six locations in one state with plans to expand into eight more neighboring states in the region in the coming months."

"We have been successful in demonstrating MagneGas2® in the automotive industry.  We recently announced that a Fortune 100 global auto manufacturer based in the mid-western United States successfully completed the MagneGas2® rollout at their first factory and has begun the procurement process at a second factory. Following successful demonstrations in the second factory, the automaker has indicated an interest in continuing expansion into other factories as part of a larger rollout program. This global auto manufacturer chose MagneGas2® to be its exclusive fuel and to discontinue using acetylene for metal cutting due to its faster cutting speed and hotter flame temperature compared to existing cutting fuels. We believe that reducing costs as well as reducing down time on the assembly line, will lead to other larger opportunities with this global customer and others in the auto manufacturing sector."

"We continue to look for opportunities to increase equipment sales. In September, we successfully completed construction of a 100kw Plasma-Arc Gasification system as part of last year's purchase by Green Arc Supply, expanding our presence into the Gulf Coast region. The Company has already received milestone payments totaling $583,750 as a result of this Green Arc Supply sale and will receive a final payment of $191,250 after the expected delivery of the system by us by the end of 2016. We believe that this domestic equipment sale will open the door to additional equipment sales nationwide."

"Last month, we signed a letter of intent for a $2.65 million sale of our proprietary gasification and sterilization system, MagnesGas2® fuel and cylinders to a company based in Germany. This transaction represents the largest sale in our company's history. The LOI calls for exclusive distribution rights in Germany, with an option to purchase the rights to other countries as well as future unit purchase requirements and royalties on gas sales. The sterilization system will be used in small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany. We believe this transaction sets the stage for our expansion across Europe and globally."

"Our co-combustion project suffered a setback with the death of our operational partner due to an undiagnosed medical condition. We are saddened by the loss of our dear friend who was instrumental in the day to day management of our project in Michigan. Our joint venture partners are taking the opportunity to re-examine our project structure and will likely move it to Florida, closer to our gas production and support teams. We expect to restart testing in January."

"Finally, we announced that we signed a non-binding letter of intent to purchase all of the outstanding capital stock of a privately held coal combustion environmental technology company that had revenue in excess of $14 million in 2015. The coal combustion company has historically generated consistent revenue growth with meaningful profitability and has been in business for more than 20 years.  The company services some of the largest utility companies in the United States, and has benefitted from very high customer loyalty. They are working with strategic partners to grow the technology platform globally and are developing international markets. We believe that the acquisition of this coal combustion technology company will bring significant value to MagneGas through their product offerings, common marquee customers, and real world combustion expertise with power companies.  This acquisition, if closed, will be a major milestone for MagneGas in terms of revenue and growth potential that will bring significant shareholder value."

Third Quarter 2016 Financial Results 

Revenues for the three months ended September 30, 2016 were $1,037,688 as compared to $623,893 for the same period last year. For the three months ended September 30, 2016 and 2015, we generated revenues from the industrial gas segment of $676,518 compared to $623,893 last year. This increase was primarily due to additional customers and distributors acquired through ESSI and the results of marketing our Company.

Gross margins increased to 39% from 35% for the third quarter ending September 30, 2016 versus September 30, 2015.  This improvement was in part due to increased sales of our higher-margin offerings, including MagenGas2® and our proprietary equipment sales.

Operating expenses increased approximately $580,000 for the third quarter ending September 30, 2016 to $3.0 million from $2.4 million for the same period last year. The increase in our operating expense in 2016 was primarily attributable to the completion of our new headquarters and increased consulting expenses related to research and development, investor relations, public relations and new business development.

Conference Call 

MagneGas' executive management team will host a conference call today, Monday, November 14th at 10:00 a.m. Eastern Time to discuss the company's financial results for the third quarter ending September 30, 2016, as well as the Company's corporate progress and other meaningful developments.

Interested parties can access the conference call by dialing (877) 407-8031 for U.S. callers or +1 (201) 689-8031 for international callers.

A teleconference replay of the conference call will be available approximately one hour following the call, through midnight December 14, 2016, and can be accessed by dialing (877) 481-4010 for U.S. callers or +1 (919) 882-2331 for international callers and entering conference ID: 10151.

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 distributor, ESSI (Equipment Sales and Services, Inc.). 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.

The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

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 .

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Holston Gases, One of the Largest Independent Industrial Gas Distributors in the U.S., with 27 Locations, to Distribute MagneGas2®.

Posted By Carl Dilley, Wednesday, October 26, 2016

Holston Gases, One of the Largest Independent Industrial Gas Distributors in the U.S., with 27 Locations, to Distribute MagneGas2®.

TAMPA, Florida, October 26, 2016 /PRNewswire/ --

MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, announced today that it has signed a Distribution Agreement with Holston Gases of Tennessee.  Holston will be distributing MagneGas2® for metal cutting as an alternative to acetylene.  

Holston Gases is one of the largest independent distributors of industrial, propane, medical and beverage gases in the United States with 27 locations in 7 states. MagneGas and Holston partnered in a marketing effort aimed at demonstrating MagneGas2® in their local markets through four store locations.  The response from customers was overwhelmingly positive, resulting in the execution of a distributor agreement. Holston has received several shipments of cylinders and will be making MagneGas2® available in all 27 locations.

"MagneGas personnel have been working with Holston for almost one year with multiple meetings and demonstrations completed as part of the Holston due diligence process. We identified Holston as a key potential distributor for the southeast and have been diligently pursuing the relationship ever since. We are honored that Holston, after significant due diligence, selected MagneGas2.  They are one of the largest independent industrial gas distributors in the country and present a significant opportunity for MagneGas as we continue to execute on our strategy to grow our industrial gas segment through these kind of marquee relationships," stated Ermanno Santilli, CEO of MagneGas.  

The MagneGas IR App is now available for free in Apple's App Store for the iPhone and iPadhttp://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

About Holston Gases 

Holston Gases is one of the largest independent suppliers of industrial, medical, propane, and beverage gases in the United States. Headquartered in Knoxville, Tn., Holston has grown to 27 locations in 7 states:TennesseeKentuckyAlabama, Virginia, Georgia, South Carolina, and North Carolina, and serving customers in Georgia, South Carolina, Virginia, Ohio, and Indiana.

We carry all welding and industrial gases, medical, specialty and laboratory gases, beverage CO2, and propane gas. They are equipped to handle compressed cylinders, bulk facilities, and liquid requirements.

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 distributor, ESSI (Equipment Sales and Services, Inc.). 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. The Company is currently using virgin vegetable oil to produce fuel while it configures its systems to properly process waste within local regulatory requirements.

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:
KCSA Strategic Communications
Philip Carlson
+1-212-896-1233
pcarlson@kcsa.com


SOURCE MagneGas Corporation

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MagneGas Reports 43% Increase in Revenue for the Second Quarter of 2016

Posted By Carl Dilley, Tuesday, August 23, 2016

MagneGas Reports 43% Increase in Revenue for the Second Quarter of 2016

Gross Margins Increased 737 Basis Points

Call to be held on Monday, August 15th at 11:00 a.m. Eastern Time

TAMPA, Florida, Aug. 15, 2016 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, today announced financial results and provided a business update for the second quarter ending June 30, 2016.

Second Quarter 2016 Financial Highlights

  • Revenue for the three months ended June 30, 2016 increased 43% to $837,257 compared to $584,445 for the same period last year;
  • Revenue for the six months ended June 30, 2016 increased 33% to $1.5 million compared to $1.1 million for the same period last year;
  • Gross margins increased 737 basis points to 44% from 36% for the three-month period ending June 30, 2016 versus June 30, 2015;
  • The Company had an ending cash balance of $3,848,292 on June 30, 2016.

Ermanno Santilli, Chief Executive Officer of MagneGas, stated, "We are pleased to report a 43% increase in revenue for the three months ending June 30, 2016 versus the same period last year.  Our strong growth was due to a combination of equipment sales and an increase in our industrial gas sales. On the domestic front, we signed a lease to open another facility for our ESSI subsidiary, which will be our fourth such location in Florida. In the second quarter, we also added several new distributors, including a major Southeast distributor with over 20 locations in Georgia, Tennessee, Kentucky, Alabama, Virginia, South Carolina and North Carolina. In June, we signed a distribution agreement with Berger Welding Supply of Indiana.  Berger will be the preferred distributor for MagneGas2® for metal cutting in their territory and will supply MagneGas2® to a local Fortune 100 company. We now have distribution coverage in many of the major hubs in the eastern half of the United States. We plan to support our continued expansion through both new plant installation as well as joint ventures."

"Last month we announced that a global auto manufacturing company based in the Midwestern United States chose to switch to MagneGas2® as its sole fuel of choice for metal working at one of its top factories. The company chose MagneGas2® to be its exclusive fuel and to discontinue use of acetylene. We believe MagneGas2® will save them money by reducing downtime on the assembly line, while demonstrating their continued environmental leadership. Independent testing shows that MagneGas2® is a faster, hotter replacement to existing cutting fuels and we believe these initial purchase orders will open the door to other larger opportunities with this customer."

"We are also expanding along the West Coast and internationally.  In May we announced that Complete Welding and Cutting Supplies, Inc., with multiple locations in both California and Mexico, will be distributing MagneGas2® and has taken its first fuel orders.  As a result of this new distributor relationship, and others already in place, MagneGas2® fuel is now available in most major California metropolitan areas.  This is also our first international gas supplier relationship for MagneGas2®.  Mexico has grown to be a major manufacturing hub using large amounts of acetylene fuel.  We are pleased to offer an alternative that is renewable, cuts faster and has many favorable attributes."

"Another component of our strategy is leveraging our existing distribution channels by adding new gas products.  Last month, we announced that we became an authorized distributor for Global Calibration Gasses (GCG). GCG, based in Florida, is a premier supplier of calibration gases and custom specialty gas mixtures. This new relationship with GCG allows us to expand our revenue potential by providing our existing customers with GCG's calibration gases and custom specialty gas mixtures. Through ESSI, we have developed relationships with major clients in the technical rescue, auto manufacturing and utility markets. Now those clients can buy both MagneGas2® and these specialty gases from one source."

"We continue to push forward with our Co-Combustion project as intensive testing continues and we still anticipate independent verification of our results in 2016, using MagneGas® fuel to reduce coal emissions.  Additionally, we are continuing with our sterilization project as we have applied to the U.S. Department of Agriculture for a grant to utilize our system on a farm and hope to hear the results of that application in the third quarter of 2016."

"Finally, we continue to look for opportunities to increase equipment sales.  In July, we met a key benchmark for system construction as per our original agreement with Green Arc Supply, LLC to manufacture and sell a $775,000 100kw Plasma-Arc Gasification system. To-date, we have received milestone payments totaling $583,750 and expect to receive a final payment of $191,250 in the third quarter of 2016. We believe that this first domestic equipment sale will open the door for additional equipment sales nationwide."

Second Quarter 2016 Financial Results

Revenues for the three months ended June 30, 2016 were $837,257 as compared to $584,445 for the same period last year. Revenue from the industrial gas segment was $643,507 for the second quarter of 2016 compared to $561,112 for the same period last year. This increase was primarily due to additional customers and distributors acquired through ESSI.

Gross margins increased to 44% from 36% for the second quarter ending June 30, 2016 versus June 30, 2015.

Operating expenses increased approximately $820,000 for the second quarter ending June 30, 2016 to $3.1 million from $2.3 million for the same period last year. The increase in our operating expense in 2016 was primarily attributable to the completion of our new headquarters and increased consulting expenses related to research and development, investor relations, public relations and new business development.  The Company plans on beginning an aggressive cost cutting campaign aimed at focusing operational expenses on the most promising business opportunities.

As a result of the financing in June of 2016, the Company did incur a derivative liability associated with the Warrants and Debenture from that transaction. This resulted in a non-cash interest expense in the period ending June 30, 2016 of $2,622,084.  In addition, the Company took a one-time adjustment of $501,011 as an impairment of our Joint Venture with China. That Joint Venture, although still active, did not produce the operational results expected and as such the Company has chosen to impair its value on the balance sheet.

At the end of June, the Company announced it has closed on $4.0 million of financing out of a possible maximum amount of approximately $10.6 million with a single institutional investor for a registered direct placement and concurrent private placement.

Conference Call

MagneGas' executive management team will host a conference call today, Monday, August 15th at 11:00 a.m. Eastern Time to discuss the company's financial results for the second quarter ending June 30, 2016, as well as the Company's corporate progress and other meaningful developments.

Interested parties can access the conference call by dialing (877) 407-8031 for U.S. callers or +1 (201) 689-8031 for international callers.

A teleconference replay of the conference call will be available approximately one hour following the call, through midnight Thursday, September 15, 2016, and can be accessed by dialing (877) 660-6853 for U.S. callers or +1 (201) 612-7415 for international callers and entering conference ID: 13643254.

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 athttp://www.MagneGas.com.

The Company distributes MagneGas2® through Independent Distributors in the U.S and through its wholly owned distributor, ESSI (Equipment Sales and Services, Inc.). 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.

The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Playhttp://bit.ly/Km2iyk for Android mobile devices.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

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.

        (tables follow)

MagneGas Corporation
Condensed Consolidated Balance Sheets



June30,



December31,




2016



2015




(Unaudited)



(Audited)


Assets









Current Assets









Cash


$

3,848,292



$

5,319,869


Accounts receivable, net of allowance for doubtful accounts of $129,568 and $109,568, respectively



332,243




373,006


Inventory, net



2,370,154




2,362,014


Prepaid and other current assets



597,124




320,431


Total Current Assets



7,147,813




8,375,320











Property, equipment and leasehold improvements, net of accumulated depreciation and amortization of $1,684,869 and $1,467,123, respectively



6,562,120




6,004,990











Intangible assets, net of accumulated amortization of $373,329 and $345,382, respectively



465,069




493,016


Investment in joint ventures, net



253,590




754,601


Security deposits



26,674




24,113


Goodwill



2,108,781




2,108,781


Total Assets


$

16,564,047



$

17,760,821











Liabilities and Stockholders' Equity









Current Liabilities









Accounts payable


$

767,975



$

425,294


Accrued expenses



492,501




504,855


Deferred revenue and customer deposits



202,250




412,500


Notes payable, current



9,329




7,891


Derivative liabilities



6,342,332




1,241,841


Total Current Liabilities



7,814,387




2,592,381











Long Term Liabilities









Note payable, net of current maturities



549,981




552,177


Senior convertible debenture, net of debt discount of $1,000,000



-




-


Total Liabilities



8,364,368




3,144,558











Commitments and Contingencies


















Stockholders' Equity









Preferred stock: $0.001 par; 10,000,000 authorized; 1,000,000 issued and outstanding



--




--


Series A preferred stock - $0.001 par value 1,000,000 authorized and outstanding



1,000




1,000


Common stock: $0.001 par; 90,000,000 authorized; 46,549,534 and 45,599,534 issued and outstanding, respectively



46,549




45,599


Additional paid-in capital



51,012,330




50,658,216


Accumulated deficit



(42,860,200)




(36,088,552)


Total Stockholders' Equity



8,199,679




14,616,263











Total Liabilities and Stockholders' Equity


$

16,564,047



$

17,760,821


 

 

MagneGas Corporation
Condensed Consolidated Statements of Operations
(Unaudited)



ThreeMonthsEndedJune30,



SixMonthsEndedJune30,




2016



2015



2016



2015















Revenue:



837,257




584,445



$

1,502,920



$

1,130,093



















Cost of Revenues



472,275




372,728




838,038




672,053


Gross Profit



364,982




211,717




664,882




458,040


Operating Expenses:

















Selling, general and administration



2,301,085




2,121,854




4,853,989




3,880,802


Research and development



167,963




64,224




329,257




126,650


Impairment of joint venture



501,011




0




501,011




0


Depreciation and amortization



175,490




139,696




329,443




276,619


Total Operating Expenses



3,145,549




2,325,774




6,013,700




4,284,071



















Operating (Loss)



(2,780,567)




(2,114,057)




(5,348,818)




(3,826,031)



















Other Income and (Expense):

















Interest



(8,689)




(5,485)




(19,495)




(10,255)


Non-Cash Interest, derivative liability



(2,622,084)




-




(2,622,084)




-


Loss on sale of property



-




-




-




(483,630)


Other income



20,365




520




21,230




3,342


Change in fair value of derivative liability



240,722




-




1,197,519




-


Total Other Income (Expense)



(2,369,686)




(4,965)




(1,422,830)




(490,543)



















Net Loss



(5,150,253)




(2,119,022)



$

(6,771,648)



$

(4,316,574)



















Net Loss per share:

















Basic and diluted


$

(0.10)



$

(0.05)



$

(0.13)



$

(0.11)


Weighted average common shares:

















Basic and diluted



50,575,879




39,143,593




50,437,143




38,148,600


 

Investor Contacts:
KCSA Strategic Communications
Philip Carlson 
+1-212-896-1233
pcarlson@kcsa.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/magnegas-reports-43-increase-in-revenue-for-the-second-quarter-of-2016-300313256.html

SOURCE MagneGas Corporation


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