Hudson Technologies Reports Record Revenues of $52.2 Million for Second Quarter 2017; Diluted EPS of $0.20
- 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
ContactsInvestor Relations:
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau
(203) 972-9200
[email protected]
or
Company:
Hudson Technologies, Inc.
Brian F. Coleman, President & COO
(845) 735-6000
[email protected]
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PEARL RIVER, N.Y.–(BUSINESS WIRE)–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 | ||||
Contacts
Investor Relations:
Institutional Marketing Services (IMS)
John
Nesbett/Jennifer Belodeau
(203) 972-9200
[email protected]
or
Company:
Hudson
Technologies, Inc.
Brian F. Coleman, President & COO
(845)
735-6000
[email protected]
