Taronis Technologies (TRNX) Stock: Climbing On Record Revenues

Taronis Technologies Inc (NASDAQ: TRNX) is having an incredibly strong start to the trading session this morning and for good reason. The company announced its financial results for 2018, producing record revenue in the year.

As you could imagine, the news excited investors, pushing the stock on a run for the top. Today, we’ll talk about:

  • The financial results;
  • what we’re seeing from TRNX stock as a result; and
  • what we’ll be watching for ahead.

TRNX Reports Financial Results

As mentioned above, Taronis Technologies is having an incredibly strong start to the trading session this morning after reporting its earnings for the 2018 year. Here’s what we saw from the report:

  • Revenue – In terms of revenue, TRNX did overwhelmingly well. During the 2018 year, the company generated $9.7 million in revenue. That proved to be a 161% increase over the $3.7 million reported in 2017. In the report, the company said that the revenue growth was fueled by acquisitions.
  • Gross Profit – During the year, the company generated a gross profit of $3.6 million. In the 2017 year, gross profits came to $1.5 million. The company also said that gross profits came in at $4.1 million when ecluding the effects of acquisition accounting on inventory values.
  • Net Loss – The net loss for the year came to $15 million. This included $3.1 million in non-stock compensation paid to vendors. The high net loss is also attributed to expenses incurred with regard to the six acquisitions it was part of in 2018.
  • Cost Cutting – Finally, cost cutting measures resulted in a decrease of about 33% in terms of quarterly operating expenses. The company said that it expects these cost cutting measures to significantly improve operating performance in 2019.

In a statement, Scott Mahoney, CEO at TRNX, had the following to offer:

2018 was a year of significant development and transformation for Taronis. We entered the year with a goal to dramatically expand our industrial gas distribution network in the US, and we executed extremely well on six transactions that closed over the course of the year.

We grew revenues by more than 161% on a GAAP basis, and established a $13 million revenue run rate in the fourth quarter of 2018, for a more than 400% increase in sales heading into 2019. Our goal is to achieve a $25 million revenue run rate, which we believe will enable Taronis to become a cash flow positive business. We are close to meeting this objective as we are now running at a $24 million run rate through the completion of three additional transactions in early 2019.

Equally importantly, we added tremendous resources across our entire team. We increased our industrial gas sales team from fewer than 20 to more than 75 across the best markets in the US. We added 175 years of industrial gas management experience to a team that only had 50 years combined prior to 2018. We added a chemical engineer, an environmental engineer, and a technical project manager to help coordinate highly technical proprietary gas production across multiple markets. We now have an experienced, successful team that can handle and capitalize on scalable growth in 2019 and beyond.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Taronis, the news proved to be overwhelmingly positive.

After all, revenu has gained significantly. Not to mention, cost cutting measures are proving to impact operating expenses in a positive way. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:54), TRNX is trading at $0.95 per share after a gain of $0.28 per share or 41.22% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on TRNX. In particular, we’re interested in following the company’s work to expand value for investors as revenue continues to grow and cost cutting measures continue to bring operating expenses down. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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