PEARL RIVER, NY – May 3, 2017 – 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.