PEARL RIVER, NY – APRIL 29, 2015 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the first quarter ended March 31, 2015.
Revenues for the three months ended March 31, 2015 were $22.1 million, an increase of 42% compared to $15.6 million in the comparable 2014 period. The revenue increase in the quarter is primarily related to an increase in sales volumes of certain refrigerants, a higher selling price of certain refrigerants, and includes a full quarter of revenues from the Company’s recent acquisitions. Gross margin increased to 25% as compared to 11.6% in the first quarter of 2014. Net income for the quarter was $1.9 million, or $0.06 per basic and diluted share, compared to net income of $160,000, or $0.01 per basic and diluted share, in the first quarter of 2014.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have achieved strong revenue growth and improved profitability in the first quarter, related to increased sales volume as we benefitted from a higher average selling price for R-22 refrigerants in the quarter. Since the EPA issued its final rule in October 2014 establishing R-22 allowances for 2015 through 2019, we’ve seen incremental increases in R-22 pricing related to the clearly defined supply step down that was put forward. While our financial performance during the past two years was affected by previous actions taken by the EPA, with the final October rule, the EPA has set the stage for the transition to an R-22 aftermarket primarily served with reclaimed refrigerant due to the decline and eventual elimination of R-22 virgin production. Consequently, we believe for the foreseeable future we will see improved levels of gross margin, as well as profitability for R-22 refrigerant.”
Mr. Zugibe continued, “We believe the orderly phase out of R-22 will establish reclamation as the primary, and eventually the sole source of R-22 refrigerant when production ends in 2020. Our integration of Polar Technologies, one of the industry’s largest reclaimers, is progressing as expected and we believe the added geographic scope and customer base that the Polar acquisition brings, positions us well to grow our footprint as the leading reclaimer in the marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the first quarter results today, April 29, 2015 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 May 29, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13607784. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.