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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 Quarter 2016 Financial 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 .

 

Endurance Exploration Team Completes Video Survey, Recovers First Artifacts

Read the press release by clicking here.




WRAPmail, Inc. Announces Appointment of New Chief Information Officer

Greg Partin Brings More Than 15 Years' Experience in Information Technology to WRAPmail, Inc.

HICKSVILLE, NY--(Marketwired - Apr 8, 2015) - WRAPmail, Inc. (OTC PINK: WRAP) -- WRAPmail, Inc., a leader in providing technology solutions in a platform for business efficiency, announces the appointment of Greg Partin. Mr. Partin has over 15 years of experience in the field of software development of internet-based enterprise systems in multiple Fortune 500 companies. He is fluent in multiple technologies such as .NET, HTML 5, Ajax, MVC, WCF, SQL, Web services and cloud-based SOA architecture and design and has vast experience managing large teams of Software Developers, QA and Business Analysts both onshore & offshore in many SDLC methodologies such as SCRUM and Waterfall

Mr. Partin most recently led the R & D and Professional Services development efforts at a Fortune 500 company based out of Fort Lauderdale, FL. Mr. Partin has a Bachelor's degree in Computer Science from Bowling Green State University and a Master's degree in Computer Information Systems from Nova Southeastern University.

Mr. Partin stated about joining the management team, "I am very excited about the recent acquisition of Prosperity Systems by WRAPmail and I am extremely happy to be joining the team at this monumental time. The synergy between these two systems is very powerful to companies that want to build their organization around a cloud-based system for ease of use and automation. I look forward to overseeing the merger of the two systems and assisting in managing the rapid growth that we are expecting."

Technical Updates:

WRAPMail, Inc., a leading provider of software products for mobile professionals, rolled-out to its customers over the weekend major upgrades to its core infrastructure, legacy operating systems and database server installations. Ron Stone, co-founder and CTO writes, "We kept Windows Server 2003 in-place for so long because it provided a very stable environment for us during the last six years. With Windows Server 2012 and SQL Server 2014 both having a chance to settle, we thought it was worth taking the leap in order to step up to newer and optimized software designs and really take advantage of all the amazing technology before us."

The company currently operates its servers in SSAE 16 audited data centers with new expansion into the Dallas Metro Area to provide "closer-to-home" data information storage for the best performance and reliability. The company also added three new Cisco security appliances to improve network security and monitoring capabilities.

Public Appearances:

On April 29-May, 1 2015 we will host a booth at theFSXinterlinked Conference, located in the Loews Resort in Midtown Atlanta. We are excited for the exposure this will bring WRAPmail.

On June 4th 2015 we will host a booth at the Small Business Expo located in the Jacob Javits Center, New York City. There are expect to be 6000 attendees throughout this event and we are excited for the exposure this will bring WRAPmail.

We are excited to be the exclusive Data-Vault provider for the National Investment Banking Association (NIBA). We will be attending their upcoming quarterly conference in Balboa Bay Resort, Newport Beach, CA on June 24-26. At this meeting we will interact with close to 300 participants and 25 presenting companies which we will set up accounts for within our services.

The Company

WRAPmail, Inc. is a technology company focused on intuitive collaboration technologies. Our aim is to bring simple, reliable and consistent technologies to market that improve the velocity of our clients' workforce.

We have a current product suite designed to empower large enterprise teams and SMBs. This suite includes a complete Back-Office-in-a-box solution and a patented email technology that paves the way for outbound / inbound marketing and analytics. (OTC PINK: WRAP) has operating offices in Hicksville, NY and Hollywood, FL.

Prosperity Systems

Prosperity Systems offers a Back-Office-in-a-box solution for large enterprise teams and SMBs. Designed to manage, retain and distribute all information while empowering your extended workforce to increase your profitability. The platform is sold on a subscription basis and offers a very extensive set of capabilities designed for the social enterprise.

WRAPmail, Inc.

The patented (US patent 8,572,275) technology known, as WRAPmail is a FREE email template system that adds a dynamic, interactive and trackable letterhead to the regular emails we all send every day. WRAPmail users can create wraps in the included WRAP-maker from scratch or choose an email template and combine this with an image library and customization. These emails can become complete marketing tools and help promote, brand, sell and cross-sell in addition to drive traffic to the website and conduct research. WRAPmail has also released solutions that automatically create interactive email stationery based on a user's Facebook, LinkedIn or Google+ profile.

Forward looking statements and risks and uncertainties

Matters discussed in this press release contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein, including the development of our automated solution creating interactive email letterheads (WRAPS) for Google+ and potential revenue derived therefrom should not be construed in any way, shape or manner of our future financial condition or stock price. For more complete information regarding our business and financial condition, you may access our filings atotcmarkets.com.

WRAPmail Investor Relations:
IR@WRAPmail.com
Phone: (516) 205-4751
www.wrapmail.com


 

SEC Adopts Rules to Facilitate Smaller Companies' Access to Capital

New Rules Provide Investors With More Investment Choices

Click here to read full release

The Securities and Exchange Commission today adopted final rules to facilitate smaller companies' access to capital. The new rules provide investors with more investment choices.

The new rules update and expand Regulation A, an existing exemption from registration for smaller issuers of securities. The rules are mandated by Title IV of the Jumpstart Our Business Startups (JOBS) Act.

The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12 month period, subject to eligibility, disclosure and reporting requirements.

The final rules, often referred to as Regulation A+, provide for two tiers of offerings: Tier 1, for offerings of securities of up to $20 million in a 12-month period, with not more than $6 million in offers by selling security-holders that are affiliates of the issuer; and Tier 2, for offerings of securities of up to $50 million in a 12-month period, with not more than $15 million in offers by selling security-holders that are affiliates of the issuer. Both Tiers are subject to certain basic requirements while Tier 2 offerings are also subject to additional disclosure and ongoing reporting requirements.

The final rules also provide for the preemption of state securities law registration and qualification requirements for securities offered or sold to "qualified purchasers" in Tier 2 offerings. Tier 1 offerings will be subject to federal and state registration and qualification requirements, and issuers may take advantage of the coordinated review program developed by the North American Securities Administrators Association (NASAA).

The rules will be effective 60 days after publication in the Federal Register.

 

 
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