Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for
the second quarter and six months ended June 30, 2017.
The Company reported record revenues of $52.2 million for the
second quarter ended June 30, 2017, an increase of 51% compared to
$34.6 million in the comparable 2016 period. The revenue increase
in the quarter is primarily related to both price and volume
increases of certain refrigerants sold. Gross margin in the second
quarter of 2017 was 33% compared to 30% in the prior year period.
Net income for the quarter, including the recognition of $0.8
million of non-recurring SG&A expense related to corporate
development initiatives, was $8.5 million, or $0.21 per basic and
$0.20 per diluted share, compared to net income of $4.8 million, or
$0.15 per basic and $0.14 diluted share, in the second quarter of
2016.
For the six months ended June 30, 2017, Hudson reported revenues
of $91.1 million, a 45% increase compared to $62.8 million in the
comparable 2016 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 33% for the
first half of 2017 compared to 29% for the first half of 2016. Net
income for the first six months of 2017 was $14.3 million, or $0.34
per basic and $0.33 per diluted share, compared to $7.8 million or
$0.24 per basic and $0.23 per diluted share in 2016.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson
Technologies commented, “We’re very pleased to have built upon our
strong first quarter performance to deliver record revenues,
enhanced margins and significantly improved profitability in the
second quarter of 2017. During the second quarter, which is the
midpoint of our nine-month refrigerant sales season, our results
were particularly strong as we saw increased sales volume for
refrigerants and benefitted from incremental increases in the
average selling price for R-22 refrigerant as well as a temporary
increase in pricing for HFC refrigerants.”
Mr. Zugibe continued, “In addition to the evident gains we are
realizing through our sales of virgin refrigerants, we also see a
tremendous opportunity associated with our ability to reclaim
refrigerants as we enter the final years of the R-22 production
phase out, which will be completed by the end of 2019, and look
toward the anticipated phase-down of HFC refrigerants. As the
industry transitions to new technology and next generation
refrigerants, Hudson, as a leading reclaimer, is well positioned to
apply our reclamation capabilities to help fill demand for
refrigerants as virgin production is phased down and eliminated. We
remain focused on leveraging our expansive distribution network,
decades of experience and long-standing customer relationships to
capitalize on opportunities that arise from the evolving industry
landscape.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the second
quarter results today, August 9, 2017 at 5:00 P.M. Eastern
Time.
To access the live webcast, please use the following link:
https://www.hudsontech.com/investor-relations/events-presentations/
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 September
9, 2017 and may be accessed by dialing (877) 481-4010.
International callers may dial (919) 882-2331. Callers should use
conference ID: 19253.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative
and sustainable solutions for optimizing performance and enhancing
reliability of commercial and industrial chiller plants and
refrigeration systems. Hudson's proprietary RefrigerantSide®
Services increase operating efficiency, provide energy and cost
savings, reduce greenhouse gas emissions and the plant’s carbon
footprint while enhancing system life and reliability of operations
at the same time. RefrigerantSide® Services can be performed at a
customer's site as an integral part of an effective scheduled
maintenance program or in response to emergencies. Hudson also
offers SMARTenergy OPS®, which is a cloud-based Managed Software as
a Service for continuous monitoring, Fault Detection and
Diagnostics and real-time optimization of chilled water plants. In
addition, the Company sells refrigerants and provides traditional
reclamation services for commercial and industrial air conditioning
and refrigeration uses. 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, 2016 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 Income Statements
(unaudited)
(Amounts in thousands, except for share
and per share amounts)
Three month period Six month
period ended June 30, ended June 30, 2017
2016 2017 2016
Revenues $ 52,231 $ 34,605 $ 91,061 $ 62,772
Cost
of sales 34,811 24,114
61,174 44,759 Gross profit
17,420 10,491 29,887
18,013 Operating expenses: Selling and
marketing 1,110 1,019 2,149 2,136 General and administrative
2,410 1,328 4,445
2,714 Total operating expenses
3,520 2,347 6,594
4,850 Operating income 13,900 8,144
23,293 13,163
Interest expense, net 61
352 146 623 Income
before income taxes 13,839 7,792 23,147 12,540
Income
tax expense 5,314 2,962
8,888 4,766 Net income $
8,525 $
4,830 $
14,259 $
7,774 Net income per common share – Basic $
0.21 $
0.15 $
0.34 $
0.24 Net income per common share – Diluted $
0.20 $
0.14 $
0.33 $
0.23 Weighted average number of shares outstanding –
Basic
41,567,848 33,128,518
41,537,894 33,008,588 Weighted average
number of shares outstanding – Diluted
43,550,226
34,270,337 43,490,914
34,045,125
Hudson Technologies, Inc. and
Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share
and par value amounts)
June 30, December 31,
2017 2016 (unaudited)
Assets
Current assets: Cash and cash equivalents $ 33,673 $ 33,931
Trade accounts receivable – net 24,522 4,797 Inventories 64,612
68,601 Prepaid expenses and other current assets
6,331
847 Total current assets 129,138 108,176
Property, plant and equipment, less accumulated depreciation 7,203
7,532 Deferred tax asset 2,036 2,532 Intangible assets, less
accumulated amortization 3,056 3,299 Goodwill 856 856 Other assets
88 75 Total Assets $
142,377 $
122,470
Liabilities and
Stockholders' Equity
Current liabilities: Trade accounts payable $ 9,746 $ 5,110
Accrued expenses and other current liabilities 2,681 2,888 Accrued
payroll 968 1,782 Income taxes payable 2,155 322 Short-term debt
and current maturities of long-term debt
90
199 Total current liabilities 15,640 10,301
Long-term debt, less current maturities
107
152 Total Liabilities 15,747
10,453 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
41,625,181 and 41,465,820 416 415 Additional paid-in capital
114,385 114,032 Retained earnings (Accumulated deficit)
11,829 (2,430) )
Total Stockholders'
Equity 126,630 112,017
Total Liabilities and Stockholders' Equity $
142,377 $
122,470
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version on businesswire.com: http://www.businesswire.com/news/home/20170809005970/en/
Investor Relations:Institutional Marketing Services
(IMS)John Nesbett/Jennifer Belodeau(203)
972-9200jnesbett@institutionalms.comorCompany:Hudson
Technologies, Inc.Brian F. Coleman, President & COO(845)
735-6000bcoleman@hudsontech.com
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