PEARL RIVER, NY – NOVEMBER 4, 2015 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the third quarter and nine months ended September 30, 2015.
Revenues for the three months ended September 30, 2015 were $21.7 million, an increase of 42% compared to $15.3 million in the comparable 2014 period. The revenue increase in the quarter is primarily related to an increase in sales volumes for refrigerants and a higher selling price of certain refrigerants, as well as revenue contribution from the Company’s recent acquisitions. Gross margin increased to 20% as compared to 10% in the third quarter of 2014. Net income for the quarter was $1.1 million, or $0.03 per basic and diluted share, compared to a net loss of $0.1 million, or $0.00 per basic and diluted share, in the third quarter of 2014.
For the first nine months of 2015, Hudson recorded revenues of $72.4 million, a 52% increase as compared to $47.8 million in the comparable 2014 period. 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 24% in the first nine months of 2015 as compared to 12% in the first nine months of 2014. Net income for the first nine months of 2015 was $5.8 million, or $0.18 per basic and $0.17 per diluted share, compared to $0.4 million or $0.01 per basic and diluted share in the nine months of 2014.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We’re pleased to have achieved strong revenue growth and increased profitability for the third quarter. Increased sales volume for refrigerants and a continued higher average selling price for R-22 refrigerant drove our growth in the quarter, particularly as compared to lower R-22 pricing in the third quarter of last year. We continued to face what we believe is short term gross margin pressure from HFC refrigerant pricing dynamics and lower services revenue during the quarter. We remain focused on effectively serving our existing customers and leveraging new opportunities to expand our customer base.”
Mr. Zugibe continued, “We are focused on educating our customers and the marketplace about our reclamation capabilities and ability to meet the demand for R-22 as production of that refrigerant is being methodically eliminated. Our technology also enables us to reclaim HFC refrigerants, the replacement refrigerants for R-22 and CFCs which are also expected to be subject to production restrictions in response to concerns over their high global warming potential. We believe our proprietary technology, longstanding industry relationships and proven distribution network position us to meet the needs of our customers and give us the agility to adapt to ongoing changes in our marketplace.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the third quarter results today, November 4, 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 December 4, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13622986. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.