PEARL RIVER, NY – AUGUST 9, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2017.
The Company reported record revenues of $52.2 million for the second quarter ended June 30, 2017, an increase of 51% compared to $34.6 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 second quarter of 2017 was 33% compared to 30% in the prior year period. Net income for the quarter, including the recognition of $0.8 million of non-recurring SG&A expense related to corporate development initiatives, was $8.5 million, or $0.21 per basic and $0.20 per diluted share, compared to net income of $4.8 million, or $0.15 per basic and $0.14 diluted share, in the second quarter of 2016.
For the six months ended June 30, 2017, Hudson reported revenues of $91.1 million, a 45% increase compared to $62.8 million in the comparable 2016 period. The increase is primarily related to a higher selling price of certain refrigerants and higher volumes of certain refrigerants sold. Gross margin increased to 33% for the first half of 2017 compared to 29% for the first half of 2016. Net income for the first six months of 2017 was $14.3 million, or $0.34 per basic and $0.33 per diluted share, compared to $7.8 million or $0.24 per basic and $0.23 per diluted share in 2016.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented,
“We’re very pleased to have built upon our strong first quarter performance to deliver record revenues, enhanced margins and significantly improved profitability in the second quarter of 2017. During the second quarter, which is the midpoint of our nine-month refrigerant sales season, our results were particularly strong as we saw increased sales volume for refrigerants and benefitted from incremental increases in the average selling price for R-22 refrigerant as well as a temporary increase in pricing for HFC refrigerants.”
Mr. Zugibe continued, “In addition to the evident gains we are realizing through our sales of virgin refrigerants, we also see a tremendous opportunity associated with our ability to reclaim refrigerants as we enter the final years of the R-22 production phase out, which will be completed by the end of 2019, and look toward the anticipated phase-down of HFC refrigerants. As the industry transitions to new technology and next generation refrigerants, Hudson, as a leading reclaimer, is well positioned to apply our reclamation capabilities to help fill demand for refrigerants as virgin production is phased down and eliminated. We remain focused on leveraging our expansive distribution network, decades of experience and long-standing customer relationships to capitalize on opportunities that arise from the evolving industry landscape.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the second quarter results today, August 9, 2017 at 5:00 P.M. Eastern Time.
To access the live webcast, please use the following link: https://www.hudsontech.com/investor-relations/events-presentations/
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 September 9, 2017 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 19253.