Hudson Technologies Reports 14.7% Increase in 2007 revenues

 

 

pearl river, ny – march 13, 2008 – Hudson Technologies, Inc. (NASDAQ: HDSN), a leading refrigerant services company specializing in proprietary on-site decontamination services for large comfort and process cooling systems, announced results for the fourth quarter and year ended December 31, 2007.

 

Revenues for the year ended December 31, 2007 were $26,894,000, an increase of 14.7% from $23,451,000 in 2006.  Fourth quarter revenues were $2,732,000 compared to $2,771,000 in the same quarter last year. 

 

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “2007 was a very significant year for Hudson.  The increase in revenues for the year was driven by refrigerant sales as we continued to expand and strengthen our offerings to the commercial and industrial air conditioning and refrigeration markets.  In addition, during 2007 the Company’s ownership was restructured through management’s purchase of $6 million of Hudson common stock from Hudson’s principal shareholders, which required us to recognize significant non-cash and non-recurring charges, and through the Company’s purchase and retirement of nearly 7 million shares.  The retirement of these 7 million shares substantially enhances Hudson’s ownership structure which should benefit our shareholders in 2008 and beyond.” 

 

Mr. Zugibe continued, “Revenues for the fourth quarter were essentially flat as compared to last year.  Net income for the quarter decreased by $876,000 primarily due to: a non-cash $437,000 share-based compensation expense; higher interest expense on increased debt related to our 2007 stock repurchases; and additional taxes in the quarter.  Absent the non-cash expenses, the cash flow of the business remains very strong.  It is important to note that the fourth quarter is typically our seasonally slowest quarter given the colder weather.  We did, however, see a slight increase in quarterly services revenues and we continue to make strides educating the market on our innovative solutions to optimize the efficiency of industrial scale air conditioning and refrigeration systems.”    

 

“As a result of the Company’s 2007 stock repurchases, future earnings per share will be calculated based upon 26% fewer shares outstanding, which should enhance shareholder value as we grow the business.  As we emerge from a year of record sales and head into 2008, we are particularly encouraged by the healthy demand we are seeing for our offerings,” Mr. Zugibe concluded.  

 

CONFERENCE CALL INFORMATION

The Company will host a conference call to discuss the fourth quarter and year-end results on March 13, 2008, at 10:00 A.M. Eastern Time.

 

To participate in the conference call, dial 866-585-6398 approximately five minutes prior to the start time.  International callers please dial 416-849-9626.

 

A replay of the teleconference will be available until March 20, 2008 and may be accessed domestically by dialing 866-245-6755 and international callers may dial 416-915-1035.  Callers should use pass code 934896.

 

A webcast of the conference call will be available on the company’s website, http://www.hudsontech.com or at http://www.investorcalendar.com.

 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 Act of 1995

 

Statements contained herein, which are not historical facts constitute 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 markets 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 which 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 and other risks detailed in the Company's periodic reports filed 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.

  

Investor Relations Contact: John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) (203) 972-9200 jnesbett@institutionalms.com

Company Contact: Brian F. Coleman, President & COO Hudson Technologies, Inc. (845) 735-6000 bcoleman@hudsontech.com

 

 

Hudson Technologies, Inc. and subsidiaries

Consolidated Statements of Operations

(Amounts in thousands, except for share and per share amounts)