Hudson Technologies Reports Third Quarter Revenues of $21.7 Million, 42% Revenue Growth over 2014
By Business Wire News
By Business Wire News
PEARL RIVER, N.Y.
Hudson Technologies, Inc. (NASDAQ:HDSN) announced results for the third quarter and nine months ended September 30, 2015.
Revenues for the three months ended September 30, 2015 were $21.7 million, an increase of 42% compared to $15.3 million in the comparable 2014 period. The revenue increase in the quarter is primarily related to an increase in sales volumes for refrigerants and a higher selling price of certain refrigerants, as well as revenue contribution from the Company’s recent acquisitions. Gross margin increased to 20% as compared to 10% in the third quarter of 2014. Net income for the quarter was $1.1 million, or $0.03 per basic and diluted share, compared to a net loss of $0.1 million, or $0.00 per basic and diluted share, in the third quarter of 2014.
For the first nine months of 2015, Hudson recorded revenues of $72.4 million, a 52% increase as compared to $47.8 million in the comparable 2014 period. The increase is primarily related to an increase in sales volumes for refrigerants, and a higher selling price of certain refrigerants. Gross margin increased to 24% in the first nine months of 2015 as compared to 12% in the first nine months of 2014. Net income for the first nine months of 2015 was $5.8 million, or $0.18 per basic and $0.17 per diluted share, compared to $0.4 million or $0.01 per basic and diluted share in the nine months of 2014.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have achieved strong revenue growth and increased profitability for the third quarter. Increased sales volume for refrigerants and a continued higher average selling price for R-22 refrigerant drove our growth in the quarter, particularly as compared to lower R-22 pricing in the third quarter of last year. We continued to face what we believe is short term gross margin pressure from HFC refrigerant pricing dynamics and lower services revenue during the quarter. We remain focused on effectively serving our existing customers and leveraging new opportunities to expand our customer base.”
Mr. Zugibe continued, “We are focused on educating our customers and the marketplace about our reclamation capabilities and ability to meet the demand for R-22 as production of that refrigerant is being methodically eliminated. Our technology also enables us to reclaim HFC refrigerants, the replacement refrigerants for R-22 and CFCs which are also expected to be subject to production restrictions in response to concerns over their high global warming potential. We believe our proprietary technology, longstanding industry relationships and proven distribution network position us to meet the needs of our customers and give us the agility to adapt to ongoing changes in our marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the third quarter results today, November 4, 2015 at 5:00 P.M. Eastern Time.
To access the live webcast, log onto the Hudson Technologies website at www.hudsontech.com, and click on “Investor Relations”. To participate in the call by phone, dial (877) 407-9205 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8054.
A replay of the teleconference will be available until December 4, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13622986. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson’s proprietary RefrigerantSide® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer’s site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer’s system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company’s web site at www.hudsontech.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company’s ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, and other risks detailed in the Company’s 10-K for the year ended December 31, 2014 and other subsequent filings with the Securities and Exchange Commission. The words “believe”, “expect”, “anticipate”, “may”, “plan”, “should” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
|Hudson Technologies, Inc. and subsidiaries|
|Consolidated Statements of Operations|
(Amounts in thousands, except for share and per share amounts)
|Three month period|
ended September 30,
|Nine month period|
ended September 30,
|Cost of sales||17,298||13,801||55,301||42,255|
|Selling and marketing||958||630||2,972||1,894|
|General and administrative||1,524||992||4,216||2,609|
|Total operating expenses||2,482||1,622||7,188||4,503|
|Operating income (loss)||1,902|
|Total other (expense)||(157||)|
|Income (loss) before income taxes||1,745||(226)||9,333||503|
|Income tax expense (benefit)||663|
|Net income (loss)||$||1,082||$|
|Net income (loss) per common share – Basic||$||0.03||$||0.00||$||0.18||$||0.01|
|Net income (loss) per common share – Diluted||$||0.03||$||0.00||$||0.17||$||0.01|
|Weighted average number of shares outstanding – Basic||32,639,429||32,031,426||32,487,230||28,179,853|
|Weighted average number of shares outstanding – Diluted||33,856,045||32,031,426||34,071,982||29,839,975|
|Hudson Technologies, Inc. and subsidiaries|
|Consolidated Balance Sheets|
(Amounts in thousands, except for share and par value amounts)
|Cash and cash equivalents||$||1,040||$||935|
|Trade accounts receivable – net||9,614||3,968|
|Deferred tax asset||397||397|
|Prepaid expenses and other current assets||5,484||1,011|
|Total current assets||65,499||43,328|
|Property, plant and equipment, less accumulated depreciation||7,518||7,887|
|Deferred tax asset||2,609||6,031|
|Intangible assets, less accumulated amortization||3,379||2,322|
Liabilities and Stockholders’ Equity
|Accounts payable and accrued expenses||$||10,257||$||4,510|
|Short-term debt and current maturities of long-term debt||14,983||6,320|
|Total current liabilities||25,481||11,214|
|Long-term debt, less current maturities||4,377||4,389|
|Commitments and contingencies|
|Preferred stock, shares authorized 5,000,000:|
|Series A convertible preferred stock, $0.01 par value ($100|
|liquidation preference value); shares authorized 150,000; none|
|issued or outstanding||0||0|
|Common stock, $0.01 par value; shares authorized 100,000,000;|
|issued and outstanding 32,676,196 and 32,312,276||327||323|
|Additional paid-in capital||62,047||61,505|
|Total Stockholders’ Equity||50,331||43,999|
|Total Liabilities and Stockholders’ Equity||$||81,691||$||59,935|
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau
Hudson Technologies, Inc.
Brian F. Coleman, (845) 735-6000
President & COO