Hudson Technologies, Inc. (NASDAQ:HDSN) announced results for
the fourth quarter ended December 31, 2016.
The Company reported revenues of $7.8 million, for the fourth
quarter ended December 31, 2016, an increase of 7% compared to $7.3
million in the comparable 2015 period. The revenue increase in the
quarter is primarily related to an increase in the volume of
certain refrigerants, offset by a reduction in service sales. Gross
margin in the fourth quarter of 2016 was 13% compared to 19% in the
prior year period primarily due to a change in sales mix in 2016
when compared to 2015. Net loss for the quarter was $1.9 million,
or ($0.05) per basic and diluted share, compared to a net loss of
$1.0 million, or ($0.03) per basic and diluted share, in the fourth
quarter of 2015.
In December 2016, the Company raised $48 million of net proceeds
through an underwritten public offering, which was partially
utilized to pay down all of its existing revolving credit facility,
resulting in a cash balance of $34 million as of December 31,
2016.
For the year ended December 31, 2016 Hudson achieved record
revenues of $105.5 million, a 32% increase compared to $79.7
million in the comparable 2015 period. The increase is primarily
related to a higher selling price of certain refrigerants and
higher volumes of certain refrigerants sold. Gross margin increased
to 29% for full year 2016 compared to 23% for 2015. Net income for
2016 was $10.6 million, or $0.31 per basic and $0.30 per diluted
share, compared to $4.8 million or $0.15 per basic and $0.14 per
diluted share in 2015.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson
Technologies commented, “2016 was another strong year for our
Company as demonstrated by record revenues, increased gross margins
and significantly improved profitability. Our full-year results are
reflective of our strong nine-month refrigerant season, during
which we continued to benefit from increases in the average selling
price of R-22 refrigerant. The fourth quarter is historically our
slowest portion of the year, as volume demand for refrigerants
falls off.”
Mr. Zugibe continued, “As a leading provider and reclaimer of
refrigerants, we believe we are well positioned to continue to
capitalize on the opportunities we’re seeing with the phase out of
R-22 and to take advantage of the industry dynamics that will
develop with the anticipated phase down of next generation HFC
compounds expected to begin in 2019. We, along with others in our
industry, believe a strong refrigerant reclamation program is
essential to fulfilling demand as production of legacy refrigerants
is phased out, but the equipment that requires these gases remains
in operation. With our long term experience in the industry,
proprietary technology and industry relationships, we are uniquely
positioned to assist customers as they adapt to the evolving
refrigerant marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the fourth
quarter results today, March 1, 2017 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 April 1,
2017 and may be accessed by dialing (877) 481-4010. International
callers may dial (919) 882-2331. Callers should use conference ID:
10262.
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, 2015 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
SubsidiariesConsolidated Statements of
Operations(unaudited)(Amounts in thousands, except for
share and per share amounts)
Three Months EndedDecember
31,
Year EndedDecember 31,
2016 2015 2016
2015 Revenues $ 7,779 $ 7,301 $ 105,481 $
79,722
Cost of sales 6,746 5,933
74,395 61,233
Gross profit
1,033 1,368 31,086
18,489
Operating expenses: Selling and
marketing 1,273 1,207 4,310 4,179 General and administrative
2,588 1,913 7,829 6,129
Total operating expenses 3,861
3,120 12,139 10,308
Operating income (loss) (2,828 ) (1,752 ) 18,947 8,181
Other income (expense): Interest expense (199 ) (176
) (1,118 ) (776 ) Other income (expense) 31
302 (564 ) 302 Total other income
(expense) (168 ) 126 (1,682 )
(474 )
Income (loss) before income taxes (2,996 )
(1,626 ) 17,265 7,707
Income tax expense (benefit)
(1,071 ) (603 ) 6,628 2,944
Net income (loss) $
(1,925 )
$ (1,023 )
$ 10,637 $
4,763 Net income (loss) per common share
– Basic
$ (0.05 )
$
(0.03 )
$ 0.31
$ 0.15 Net income (loss) per
common share – Diluted
$ (0.05 )
$ (0.03 )
$
0.30 $ 0.14
Weighted average number of shares outstanding - Basic
36,527,250
32,715,802
34,104,476
32,546,840
Weighted average number of shares outstanding - Diluted
36,527,250
32,715,802
35,416,910
33,936,099
Hudson Technologies, Inc. and
SubsidiariesConsolidated Balance Sheets(Amounts in
thousands, except for share and par value amounts)
December
31,
2016
2015
Assets
Current assets: Cash and cash equivalents $ 33,931 $ 1,258
Trade accounts receivable - net 4,797 4,414 Inventories 68,601
61,897 Deferred tax asset - 376 Prepaid expenses and other current
assets
847 1,524
Total current assets 108,176 69,469 Property,
plant and equipment, less accumulated depreciation 7,532 7,536
Other assets 75 76 Deferred tax asset 2,532 3,287 Goodwill 856 856
Intangible assets, less accumulated amortization
3,299
3,787 Total Assets
$ 122,470 $
85,011
Liabilities and
Stockholders' Equity
Current liabilities: Trade accounts payable $ 5,110 $ 5,792
Accrued expenses and other current liabilities 2,888 3,018 Accrued
payroll 1,782 1,577 Income taxes payable 322 -- Short-term debt and
current maturities of long-term debt
199
20,573 Total current liabilities
10,301 30,960 Other liabilities - 333 Long-term debt, less current
maturities
152 4,293
Total Liabilities 10,453
35,586 Commitments and
contingencies Stockholders' equity: 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
--
--
Common stock, $0.01 par value; shares authorized 100,000,000;
issued and outstanding 41,465,820 and 32,804,617 415 328 Additional
paid-in capital 114,032 62,163 Accumulated deficit
(2,430 ) (13,066
) Total Stockholders' Equity
112,017 49,425
Total Liabilities and Stockholders' Equity
$ 122,470 $
85,011
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version on businesswire.com: http://www.businesswire.com/news/home/20170301006396/en/
Investor Relations:Institutional Marketing Services
(IMS)John Nesbett/Jennifer
Belodeau203-972-9200jnesbett@institutionalms.comorCompany:Hudson
Technologies, Inc.Brian F. Coleman, 845-735-6000President &
COObcoleman@hudsontech.com
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