MAGNA GROWTH ..... MAGNA GROWTH
MagneGas Updates Client Growth Success
New Client Acquisitions, Revenues per Client Growth Accelerating
May 26, 2017 9:00 AM EDT
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.