HUDSON TECHNOLOGIES REPORTS THIRD
QUARTER 2007 RESULTS
PEARL
RIVER, N.Y. – November 8, 2007 -
Hudson Technologies, Inc. (NASDAQ: HDSN), a leading refrigerant
services company specializing in proprietary on-site decontamination
services for large comfort and process cooling systems, today
announced results for the third quarter ended September 30, 2007.
Revenues for the three-month period
ended September 30, 2007, were $4,738,000, a decrease of $233,000 or
five percent from the $4,971,000 reported during the comparable 2006
period. Revenues for the nine-month period ended September 30, 2007,
were $24,162,000, an increase of $3,482,000 or 17 percent from the
$20,680,000 reported during the comparable 2006 period.
Comments by
Kevin J. Zugibe, chairman and chief executive officer, Hudson
Technologies:
“Continued growth in our refrigerant
sales has raised total revenues to record levels for the Company. As
a result, nine-month revenues of $24.2 million have already surpassed
total 2006 revenues. While total revenues in the third quarter of 2007
were down slightly as compared to the third quarter of 2006,
refrigerant revenues increased by approximately 5 percent over the
same period last year. Hudson has been able to grow its refrigerant
sales by focusing on customers in previously underserved markets and
customers who utilize our service offerings.
“The refrigerant revenue increase for
the third quarter of 2007 was offset by a decline in our service
revenues, which was primarily attributable to a decline in revenues
from the marine industry coupled with a slight decline in revenues in
certain geographic markets we serve. We believe that these declines
are primarily the result of general market conditions and are not
indicative of a decline in the acceptance of our services.
“Our service revenues continue to be
primarily comprised of emergency response revenue, which is consistent
with the industry’s approach to servicing refrigeration systems. We
will continue to advocate to customers, prospects and our industry the
benefits of moving from reactive maintenance to predictive and
preventative maintenance procedures such as those that we have
developed. As with any major paradigm shift, we continue to meet
resistance to change, but we believe that over time we will be
successful.
“During the third quarter of 2007,
the Company completed the tender offer that commenced on June 29,
2007. As a result of the tender offer and the stock purchase from the
Fleming Funds in June 2007, the Company reduced the total number of
common shares outstanding to 19,067,264 shares. This represents a
reduction of more than 26 percent in the total number of shares issued
and outstanding prior to the tender offer and the Company’s purchase
of stock from the Fleming Funds.
The Company’s purchase and retirement of
approximately 6.9 million shares of its common stock is intended to
create shareholder value in future periods.
“These transactions, together with the
$6 million personal investment made by our management last quarter to
purchase shares from the Fleming Funds, reflect our confidence in the
future of the Company.”
Conference
Call Information
The Company
will host a conference call to discuss the third quarter 2007 results
and additional matters on November 8, 2007, at 10:00 A.M. Eastern.
To listen to
the conference call, dial 866-296-6505. Callers should please call at
least ten minutes prior to the scheduled start time and verbally give
the operator the following access code: 7045414.
An audio
replay of the call will be available beginning November 8, 2007 at
4:00 P.M. Eastern for one week through November 15, 2007, and can be
accessed by dialing 877-528-4487 and using the following access code:
87561185#.
A web stream
replay of the call will be available for 30 days through December 8,
2007 at the following link:
http://app.replayrecorder.com/budget?replaycode=87561185.
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.
Hudson Technologies, Inc. and
subsidiaries
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except for share
and per share amounts)
|
|
Three month period
ended September
30, |
Nine month period
ended September 30, |
|
|
2007 |
2006 |
2007 |
2006 |
|
|
|
|
|
|
|
Revenues |
$4,738 |
$4,971 |
$24,162 |
$20,680 |
|
Cost of sales |
3,131 |
3,170 |
18,048 |
14,565 |
|
Gross Profit |
1,607 |
1,801 |
6,114 |
6,115 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Selling and marketing |
352 |
351 |
1,240 |
1,200 |
|
|
General and administrative |
664 |
708 |
2,237 |
2,434 |
|
|
Compensation expense for stock
purchases |
-- |
-- |
4,338 |
-- |
|
|
Total operating expenses |
1,016 |
1,059 |
7,815 |
3,634 |
|
|
|
|
|
|
|
Operating income (loss) |
591 |
742 |
(1,701) |
2,481 |
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest expense |
(235) |
(78) |
(540) |
(266) |
|
|
Interest income |
4 |
15 |
15 |
21 |
|
|
Total other income (expense) |
(231) |
(63) |
(525) |
(245) |
|
|
|
|
|
|
|
Income (loss) before income taxes
|
360 |
679 |
(2,226) |
2,236 |
|
|
|
|
|
|
|
Income tax provision (benefit) |
3 |
5 |
(1,251) |
18 |
|
|
|
|
|
|
|
Net income (loss) |
$357 |
$ 674 |
($975) |
$2,218 |
|
|
========= |
|
========= |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share –
basic |
$ 0.02 |
$ 0.03 |
($0.04) |
$ 0.09 |
|
|
|
|
|
|
|
Net income (loss) per common share –
diluted |
$ 0.02 |
$ 0.03 |
($0.04) |
$ 0.08 |
|
|
|
|
|
|
|
Weighted average number of shares –
basic |
20,234,664 |
25,910,664 |
24,021,864 |
25,897,630 |
|
|
|
|
|
|
====== |
|
Weighted average number of shares –
diluted |
20,400,704 |
26,207,117 |
24,021,864 |
26,319,265 |
|
|
|
|
|
|
|
