Hudson Technologies, Inc. (NASDAQ: HDSN) announced preliminary
results for the third quarter and nine months ended September 30,
2017.
In conjunction with today’s closing of the Company’s acquisition
of Airgas-Refrigerants, Inc., and given the proximity to the close
of the third quarter of 2017, Hudson has chosen to provide a
preliminary range of estimated earnings per share and revenues for
the three and nine months ended September 30, 2017, as well as
additional refrigerant pricing trend information.
The Company expects to report revenues for the three months
ended September 30, 2017 of approximately $25 million and net
income per share in the range of approximately $0.03 to $0.05 on a
fully diluted basis. For the nine months ended September 30, 2017,
Hudson expects to report revenues of approximately $116 million and
net income per share of approximately $0.36 to $0.38 on a fully
diluted basis. The anticipated results for the third quarter and
nine months include non-recurring SG&A expense related to
corporate development initiatives of approximately $1.0 million, or
$0.01 per diluted share and $2.4 million, or $0.03 per diluted
share, respectively.
As previously disclosed, entering the third quarter of this year
Hudson expected declines in price and volume for all refrigerants.
However, the magnitude of the decline was greater than previously
anticipated. Notwithstanding these trends, the Company is expecting
to achieve its gross margin target of 30% for the entire nine-month
2017 cooling season.
On a combined basis, assuming that third quarter 2017 included
revenue from Airgas-Refrigerants, Inc. (“ARI”), pro forma
consolidated revenue would have been approximately $57 million for
the three months ended September 30, 2017.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson
Technologies commented, “As we noted on our most recent conference
call in August, following the close of the second quarter, we began
to see a downturn in both volume and pricing for all refrigerants.
At that point R-22 prices had decreased to $18 per pound and the
pricing pressure continued through the end of the 2017 cooling
season, with R-22 prices declining further. We also indicated
during that call that we were experiencing declining demand for all
refrigerants and noted that we expected the price volatility for
HFCs that occurred in the second quarter would end, and that HFC
pricing would return to January 2017 levels. The pricing change for
HFCs occurred faster than anticipated, also impacting our results
for the third quarter.
“We are energized by the completion of our acquisition of ARI
and confident about the long-term opportunities ahead for our
combined Company related to the sale and reclamation of R-22
refrigerants as well as HFC refrigerants, as the industry continues
its transition to next generation technology and equipment. We
expect to release our full third quarter results during the week of
November 4 when we will also share the combined historical results
and outlook for both businesses.”
The Company cautions that the preliminary financial results
presented here are unaudited estimates. These estimates and trends
may or may not be realized and they may be based upon judgments or
assumptions that prove incorrect. These estimates have not been
reviewed by the Company's Independent Registered Public Accounting
Firm and are therefore subject to modification in the course of
completing the Company's quarter-end financial review and
completion of the Company's full financial results. The Company’s
actual results may be materially different from its estimates.
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. These include statements
regarding management’s intentions, plans, beliefs, expectations or
forecasts for the future including, without limitation, Hudson’s
expectations with respect to the benefits, costs and other
anticipated financial impacts of the proposed ARI transaction;
future financial and operating results of the company; and the
company’s plans, objectives, expectations and intentions with
respect to future operations and services. 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. Examples of such risks
and uncertainties specific to the proposed ARI transaction include,
but are not limited to, the possibility that the expected benefits
will not be realized, or will not be realized within the expected
time period. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171010006707/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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