PEARL RIVER, N.Y.--(BUSINESS WIRE)--Hudson Technologies, Inc. (NASDAQ:HDSN) announced results for the first quarter ended March 31, 2017.
The Company reported revenues of $38.8 million for the first quarter ended March 31, 2017, an increase of 38% compared to $28.2 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 first quarter of 2017 was 32% compared to 27% in the prior year period. Net income for the quarter, including the recognition of $0.5 million of non-recurring SG&A expense related to corporate development initiatives, was $5.7 million, or $0.14 per basic and $0.13 per diluted share, compared to net income of $2.9 million, or $0.09 per basic and diluted share, in the first quarter of 2016.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have delivered a strong start to 2017, as demonstrated by solid revenue growth, improved gross margin and increased profitability. Our business continued to be favorably impacted by increases in the average selling price of R-22 refrigerant during the first quarter, which marks the beginning of our nine-month refrigerant selling season.”
Mr. Zugibe continued, “The ongoing phase-out of R-22 refrigerants and the anticipated phase down of HFC-based refrigerants, expected to begin in 2019, represent significant opportunities for the growth of our Company. As a leading provider and reclaimer of refrigerants, we are well positioned to capitalize on the industry transition to next generation equipment and gases. This applies to both the sale of virgin refrigerants for use in new equipment and by utilizing our reclamation capabilities to help fulfill the growing supply gap for gases, such as R-22, which are being phased out of production. We are focused on working with our customers as they navigate the changing refrigerant marketplace and believe that our longstanding presence as an industry leader, proprietary technology and expansive distribution network are competitive advantages. Additionally, our strong balance sheet leaves us well positioned for continued growth and profitability.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the first quarter results today, May 3, 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 June 3, 2017 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 10327.
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, 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
(Amounts in thousands, except for share and per share amounts)
Three month period
ended March 31,
|Cost of sales||26,363||20,645|
|Selling and marketing||1,039||1,117|
|General and administrative||2,035||1,386|
|Total operating expenses||3,074||2,503|
|Interest expense, net||85||271|
|Income before income taxes||9,308||4,748|
|Income tax expense||3,574||1,804|
|Net income per common share – Basic||$||0.14||$||0.09|
|Net income per common share – Diluted||$||0.13||$||0.09|
|Weighted average number of shares outstanding – Basic||41,507,941||32,888,659|
|Weighted average number of shares outstanding – Diluted||43,503,889||33,944,876|
Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
|Cash and cash equivalents||$||40,159||$||33,931|
|Trade accounts receivable – net||20,731||4,797|
Prepaid expenses and other current assets
|Total current assets||139,548||108,176|
|Property, plant and equipment, less accumulated depreciation||7,418||7,532|
|Deferred tax asset||2,036||2,532|
|Intangible assets, less accumulated amortization||3,177||3,299|
Liabilities and Stockholders' Equity
|Trade accounts payable||$||29,016||$||5,110|
|Accrued expenses and other current liabilities||2,105||2,888|
|Income taxes payable||3,400||322|
|Short-term debt and current maturities of long-term debt||138||199|
|Total current liabilities||34,960||10,301|
|Long-term debt, less current maturities||129||152|
|Commitments and contingencies|
Preferred stock, shares authorized 5,000,000: Series A Convertible
preferred stock, $0.01
Common stock, $0.01 par value; shares authorized 100,000,000;
issued and outstanding
|Additional paid-in capital||114,299||114,032|
Retained earnings (Accumulated deficit)
|Total Stockholders' Equity||118,018||112,017|
|Total Liabilities and Stockholders' Equity||$||153,107||$||122,470|