Taronis Fuels Releases 2019 Results of OperationsPress Release | 05/18/2020
118% Annual Revenue Growth,
Record Fourth Quarter EBITDA Improvement
PHOENIX, AZ, May 18, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today released results of operations for the full year ending December 31, 2019. The Company achieved a series of significant financial milestones in 2019, which are summarized below:
Revenues were a record $21.1 million, representing a 118% increase from $9.7 million the prior year. Sales increased across all of the Company’s US retail operations.
The Company acquired nine locations in 2018 through six acquisitions. Same store sales for these nine locations increased by 82% year over year in 2019. This demonstrates a strong validation of the Company’s operational execution and a clear ability to drive growth without a reliance on acquisitions.
Gross margins improved dramatically to 51% in 2019, as compared to approximately 42% in 2018. The increase was partly due to major improvements in buying power, as well as a shift towards a more profitable product mix, including the impact of increased sales of MagneGas as a growing contribution to total sales.
Operating expenses were $15.7 million, as compared to $8.7 million in 2018. However, expenses significantly decreased as a percentage of total sales, decreasing from 89.7% in 2018 to only 74% in 2019.
The Company reduced its quarterly net loss by 56%, from $2.1 million in the third quarter of 2019 to $0.9 million in the fourth quarter.
Working capital remained consistently positive and strong, with a current ratio of 1.62x.
Excluding a limited number of capital leases and a $0.5 million mortgage on one property, the Company has no material indebtedness and is entirely equity financed.
The Company has more than $4.5 million in cash, with sufficient liquidity to support its current business objectives for the remainder of 2020.
Beyond these financial results, the Company was very active on multiple fronts for both domestic and international business development. The Company completed three acquisitions in the first quarter of 2019, expanding to become a top five independent industrial gas competitor in both California and Texas. All three of these transactions helped to support our growing national retail brand, MagneGas Welding Supply.
The Company was also extremely active overseas, executing a scalable contract for the deployment of an initial 30 gasification units in Turkey for $165 million in July 2019. The Company executed a $250 million marketing agreement that covers 13 countries in central Asia in December 2019. Both of these contracts have progressed materially in 2020. Lastly, the Company secured approval from the Port Authority of Amsterdam and executed a 10-year lease for that port in September 2019, which is expected to be operational in September 2020.
The Company also made significant inroads for additional international expansion throughout the year. Most notably, the Company made meaningful progress in Bahrain, the United Arab Emirates, and El Salvador towards launching partnerships and marketing arrangements to sell MagneGas or other new renewable fuel products to these markets in 2020 and beyond.
“We are very proud of the financial results of operations we produced for 2019,” commented Scott Mahoney, CEO of Taronis. “The rapid revenue growth we delivered in 2019 was likely to be the highest level of sales growth in our industry. We capitalized on a series of international expansion opportunities in Europe and Asia, and we laid the foundation to enter many new markets for years to come.”
“Most importantly, we demonstrated a clear path to sustainable and profitable self-funded growth with our strong financial performance in the fourth quarter. We made tremendous progress, and this has positioned us well to deliver further financial improvements in 2020,” concluded Mr. Mahoney.
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