PEARL RIVER, NY – MAY 4, 2016 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the first quarter ended March 31, 2016.
Revenues for the three months ended March 31, 2016 were $28.2 million, an increase of 27% compared to $22.1 million in the comparable 2015 period. The revenue increase in the quarter is primarily related to an increase in the price and volume of certain refrigerants. Gross margin improved to 27% in the first quarter of 2016 compared to 25% in the prior year period. Net income for the quarter was $2.9 million, or $0.09 per basic and diluted share, compared to net income of $1.9 million, or $0.06 per basic and diluted share, in the first quarter of 2015.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have gotten off to a strong start in the first quarter with solid revenue growth, improved margins and increased profitability. Our revenue increase in the quarter was related to a higher average selling price for certain refrigerants, including R-22. The price increase in R-22 is driven by the ongoing federally mandated phase-out of virgin production of R-22, which will ultimately be eliminated by 2020. The first quarter is typically characterized by ‘pre-sales’ ahead of the cooling season and we achieved our targeted volume growth rate this quarter.
“As we expected, gross margin improved in the first quarter of 2016. We believe that our gross margin will continue to be in the mid to upper twenty percent range throughout our nine-month refrigerant season, as we see improved pricing on HFCs (hydrofluorocarbons). Going forward, we anticipate HFC-based refrigerants will continue to be a volume growth area for our business and we do not expect to see the margin compression related to HFCs that we experienced during the 2015 sales season.”
Mr. Zugibe concluded, “We are anticipating further growth in reclamation, not just in response to the R-22 production phase-out but also related to the expected phase-out of next generation HFC-based refrigerants. The high global warming potential of HFCs, which are the replacement refrigerants for HCFCs such as R-22, has drawn increased concern from the worldwide community, resulting in HFCs also being targeted for phase out. As the largest reclaimer in the industry, with proprietary technology, a robust distribution network and long term relationships, we believe we are well positioned to assist our customers as they prepare for the ongoing changes in our marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the first quarter results today, May 4, 2016 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 4, 2016 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13635398.