Taronis Fuels Releases Third Quarter Results of Operations

Company Generates $9.7 Million in Revenues, 80% Increase Versus Prior Year

PHOENIX, AZ, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or the “Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced its results of operations for the third quarter of 2020. The Company reported $9.7 million in revenues during the quarter, which represented a $4.3 million increase, or 80% increase in sales when compared to $5.4 million in sales generated during the third quarter of 2019.

The significant increase in sales was in part due to the sale of 300KW Venturi plasma arc gasification units during the quarter for $2.3 million. The second significant factor for the increase in sales was approximately $2 million in increased industrial gas and welding supply products across the Company’s domestic retail and wholesale networks. Excluding the impact of international unit sales, the Company’s domestic sales were $7.4 million in the third quarter of 2020. This represents a 37% increase in domestic sales when compared to the $5.4 million generated in the third quarter of 2019. The Company continued to experience widespread growth across its domestic network, most notably in its Florida and Texas retail markets.

Gross income for the third quarter was $6.3 million, which represented a 125% increase when compared to the $2.8 million in gross income reported for the same period in 2019. The increase was due to a significant improvement in gross margins, which were 65.2% for the quarter, as compared to 48.6% for the same period in the prior year. The primary factor for the improvement was the change in revenue composition due to the impact of high margin gasification unit sales to international clients.

Total cash operating expenses during the third quarter were $6.7 million excluding depreciation, amortization, allowance for doubtful accounts, and non-cash stock expenses. For the same period in the third quarter of 2019, cash operating expenses were $4.3 million. The increase was primarily attributed to increased payroll, as the Company has expanded its operations substantially over the past twelve months. Payroll for the third quarter was $4.8 million, compared to $2.5 million for the same period in 2019. Headcount increased by almost 50% in the last 12 months.

All other cash operating expenses were $2 million for the third quarter, as compared to $1.8 million for the third quarter of 2019. The 11% increase in non-payroll expenses was largely related to the new corporate headquarters and manufacturing facilities launched in Arizona during the third quarter of 2020, as well as new retail and wholesale industrial gas sales locations added over the past 12 months. The Company has increased its locations from 20 at the end of the third quarter of 2019 to 31 at the end of the third quarter of 2020, representing a 55% increase in locations.

“Our third-quarter financial accomplishments are the direct result of the dedication and commitment to success across our entire team,” commented Scott Mahoney, CEO of Taronis Fuels. “Our domestic industrial gas and welding supply team generated a record quarter, driving 37% year over year growth, and 25% quarter over quarter sales growth. Our team responded to the COVID-19 pandemic flawlessly, and we have benefitted by taking market share in all markets served.”

“Our domestic team also delivered strong results in many of our newest markets. Miami, Tampa, and Huntington contributed meaningfully to our growth during the quarter. We have great expectations for these locations, as well as Phoenix, Lodi, and our new wholesale HVAC gas distribution center serving Sacramento, San Francisco, and San Jose. Our US team should be commended for their accomplishments despite general economic headwinds from the COVID-19 pandemic.”

Mr. Mahoney continued, “Equally important, our engineering team did an excellent job capitalizing on the opportunity to fulfill our obligations in Turkey. They successfully commissioned our first gasification unit in operation overseas, as a mobile 50 KW Venturi plasma arc gasification unit was commissioned in Ankara in late August. This event was widely covered in the Turkish media, and we have capitalized since on our newfound brand awareness in the market.”

“We also fulfilled our obligations to the Turkish Ministry of Trade and Finance through the delivery of a customized, European Union compatible 300 KW Venturi gasification unit design that is now in production for the Turkish market. This was a critical milestone as we continue to make progress on our long-term contract obligations for the Turkish market.”

“The third quarter was a very meaningful success story for our Company, but we are not complacent. Our team has established very strong momentum and continues to leverage our financial resources to accelerate our growth plans in the fourth quarter,” 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