PEARL RIVER, NY – MARCH 2, 2016 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the fourth quarter and year ended December 31, 2015.
Revenues for the three months ended December 31, 2015 were $7.3 million, a decrease of 9% compared to $8.1 million in the comparable 2014 period. The revenue decrease in the quarter is primarily related to a decrease in sales volumes for certain refrigerants and lower service revenues. 2014 fourth quarter revenues were unusually strong due to preseason refrigerant sales driven primarily by the EPA’s October 2014 final rule providing a more aggressive step down approach for the phase out of R-22 production. Gross margin increased to 19% in 2015 compared to 12% in the fourth quarter of 2014. Net loss for the quarter was $1.0 million, or a loss of $0.03 per basic and diluted share, compared to a net loss of $1.1 million, or a loss of $0.03 per basic and diluted share, in the fourth quarter of 2014.
For the year ended December 31, 2015, Hudson achieved record revenues of $79.7 million, a 43% increase compared to $55.8 million in 2014. The increase is primarily related to an increase in sales volumes for refrigerants, and a higher selling price of certain refrigerants. Gross margin increased to 23% in 2015 compared to 12% in 2014. Net income for the year was $4.8 million, or $0.15 per basic and $0.14 per diluted share, compared to a net loss of $0.7 million or a loss of $0.02 per basic and diluted share in 2014.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “2015 was a very strong year for us as demonstrated by our record revenues, solid gross margin performance and improved profitability. Our growth for the full year was driven by increased sales volume from certain refrigerants, coupled with a higher average selling price for R-22 refrigerant through the nine-month refrigerant season. Our 2015 fourth quarter performance was representative of what we expect during the last quarter of each year, which is historically our slowest quarter as demand for refrigerants and servicing typically taper off.
“We continue to work with our customers and look to expand our customer base and grow our revenues through our reclamation capabilities, which apply not only to the phase out of R-22 production that is currently underway, but also apply to the reclamation of HFC (hydrofluorocarbon) refrigerants, the replacement refrigerants for R-22 and CFCs. Environmental concern around the high global warming potential of HFCs is driving momentum for their phase out, as demonstrated by recent initiatives that came out of both the annual meeting of the parties of the Montreal Protocol in Dubai and at the UN Conference on Climate Change in Paris. We are encouraged by these developments and remain committed to doing our part to curb the emission of greenhouse gases by promoting our reclamation capabilities and the environmental benefits of using reclaimed refrigerants. We believe our proprietary technology, longstanding industry relationships and proven distribution network position us to meet the needs of our customers as they adapt to the changing marketplace dynamics.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the fourth quarter and annual results today, March 2, 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 April 2, 2016 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13631392.