PEARL RIVER, NY – JULY 29, 2015 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2015.
Revenues for the three months ended June 30, 2015 were $28.6 million, an increase of 70% compared to $16.9 million in the comparable 2014 period. The revenue increase in the quarter is primarily related to an increase in sales volumes of certain refrigerants and a higher selling price of certain refrigerants, as well as revenue contribution from the Company’s recent acquisitions. Gross margin increased to 25% as compared to 13% in the second quarter of 2014. Net income for the quarter was $2.8 million, or $0.09 per basic and $0.08 per diluted share, compared to net income of $0.3 million, or $0.01 per basic and diluted share, in the second quarter of 2014.
For the first six months of 2015, Hudson recorded revenues of $50.7 million, a 56% increase as compared to $32.5 million in the comparable 2014 period. The increase is primarily related to an increase in sales volumes of certain refrigerants, and a higher selling price of certain refrigerants. Gross margin increased to 25% in the first half of 2015 as compared to 12% in the first half of 2014. Net income for the first half of 2015 was $4.7 million, or $0.14 per basic and diluted share, compared to $0.5 million or $0.02 per basic and diluted share in the first half of 2014.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We are very pleased to have built upon our strong first quarter performance to deliver record revenues, strong margins and significantly improved profitability in the second quarter. During the quarter we saw increased sales volume and benefitted from a continued higher average selling price for R-22 refrigerants, particularly compared to the weaker R-22 pricing we contended with last year. Likewise, our acquisitions have provided revenue contribution as a result of the expanded customer base and increased geographic reach.”
Mr. Zugibe continued, “We remain focused on expanding our reclamation capacity as we prepare for anticipated increased demand for reclaimed refrigerant as virgin production of R-22 is eliminated. With the end of R-22 production, reclamation will become the primary source of R-22 supply and we are intent on growing our position as the leading reclaimer in the marketplace. Additionally, there are indications that HFCs, the replacement refrigerants for R-22 and CFCs, will also be subject to restrictions on virgin production in response to concerns over their high global warming potential. The strategy that we have put in place for the R-22 phase out provides us with the opportunity to take advantage of the HFC phase out. We believe our industry relationships, established distribution network, and proprietary technology leave us well positioned to capitalize on the changing refrigerant marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the second quarter results today, July 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 August 29, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13611457. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.