Hudson Technologies Reports Second Quarter 2020 Net Income of $2.4 Million or $0.06 Per Share
PEARL RIVER, NY – AUGUST 5, 2020 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2020.
For the quarter ended June 30, 2020, Hudson reported revenues of $47.7 million, a decrease of 14.8% compared to revenues of $56.0 million in the comparable 2019 period. The decrease is primarily due to a decline in volume, partially offset by an increase in selling price, of certain refrigerants sold during the second quarter of 2020, compared to the second quarter of 2019. Gross margin in the second quarter of 2020 was 26.6%, compared to negative gross margin in the second quarter of 2019. The Company reported operating income of $5.2 million for the second quarter of 2020 compared to an operating loss of $10.0 million in the second quarter of 2019. During the second quarter of 2019 the Company recorded a lower of cost or net realizable value adjustment to its inventory of $9.2 million, mainly due to declines in selling prices of certain refrigerants at that time. The Company recorded net income of $2.4 million or $0.06 per basic and diluted share in the second quarter of 2020, compared to a net loss of $13.8 million or ($0.32) per basic and diluted share in the same period of 2019.
For the six months ended June 30, 2020, Hudson reported revenues of $84.0 million, a decrease of 7.4% compared to $90.7 million in the first six months of 2019. The decrease in revenue was primarily due to decreased volume, partially offset by increased pricing of certain refrigerants. Gross margin for the first six months of 2020 improved to 25.0% compared to gross margin of 5.1% in the first half of 2019. The Company reported operating income of $5.6 million for the first six months of 2020 compared to an operating loss of $9.7 million in the same period of 2019. The Company’s net loss for the first six months of 2020 was $0.5 million, or ($0.01) per basic and diluted share, compared to a net loss of $17.8 million, or ($0.42) per basic and diluted share, in the first half of 2019, which included the above mentioned $9.2 million non-cash inventory adjustment.
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, “We were pleased to deliver solid second quarter results, particularly as we continue to navigate the challenging landscape associated with the COVID-19 virus and the associated impact to our economy. During the quarter, the closures to public venues, such as office buildings, recreation centers, schools and universities across the U.S. impacted end markets and demand for refrigerants. While pricing remained consistent in the quarter, volume declines adversely impacted our overall revenues. Nonetheless, we delivered improved gross margin for the quarter, achieved solid operating income and returned to profitability.
“There are still many uncertainties associated with this pandemic and we remain focused on the elements of our business that we can control: protecting the health and safety of our employees and keeping our products in supply to best serve our customers across all channels. We’ve been in this business for more than thirty years, and our ability to adapt to changing economic and industry landscapes while executing our operational strategy is a strength we continue to rely upon. Despite the challenging market environment, Hudson generated over $6 million of operating cash flow during the second quarter of 2020. The Company’s financial position and liquidity remain strong, with total liquidity at June 30, 2020 of approximately $39 million, which includes cash and revolver availability. Finally, as announced in an 8-K this past Monday, we’ve met certain performance targets set forth in our Credit Agreement, and as a result of this achievement, we have terminated the services of our Chief Restructuring Officer.
“As you know, in late June, our Company suffered the unexpected loss of our founder Kevin J. Zugibe, P.E. He was an industry pioneer who brought remarkable passion, expertise and energy to Hudson, and he is greatly missed. In his years building the Company, Kevin recognized the importance of establishing a strong management team to drive and support Hudson’s growth. All of our employees are committed to continuing to grow and execute on Kevin’s legacy, and as one of Kevin’s longstanding partners for over 20 years, I can assure you that we are focused on our Company’s success as we move through the coming months and years,” Mr. Coleman concluded.
Hudson Technologies Reports First Quarter 2020 Revenues of $36.4 Million, Gross Margin of 23% and Liquidity of $27 Million
Pearl River, NY – May 6, 2020 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the first quarter ended March 31, 2020.
For the quarter ended March 31, 2020, Hudson reported revenues of $36.4 million, a 5% increase compared to $34.7 million in the comparable 2019 period, primarily due to an increase in the volume of refrigerants sold. Gross margin was 23% for the first quarter of 2020 compared to 20% for the first quarter of 2019. The Company reported operating income of $0.4 million for the first quarter of 2020 compared to operating income of $0.2 million for the first quarter of 2019. Net loss for the first quarter of 2020 was $2.9 million, or ($0.07) per basic and diluted share, compared to a net loss of $4.0 million or ($0.09) per basic and diluted share in the first quarter of 2019.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “First let me say that the novel coronavirus disease, COVID-19, has had a dramatic impact on every person, business and industry, and Hudson is no exception. However, Hudson operates in a ‘critical infrastructure industry’ and is an essential business as defined by the U.S. government. We have kept our plants operating and have been effectively running our operations, while following all state and federal guidelines to keep our employees safe and healthy. Our priorities throughout this pandemic have been, and will continue to be, to ensure the health and safety of our employees; to keep our products in supply and to maintain the quality and safety of our products; to best serve our customers across all channels as they adapt to the crisis; and, to position ourselves to emerge strong when the crisis ends.
“As we look back on the first quarter, we saw an increase in volume over the same period last year, building on the increased volume we saw in 2019, and we are seeing some strengthening in the pricing of R-22. We are a few weeks away from the prime selling season so it is still early in the 2020 season to know how pricing will develop, and it also remains to be seen as to what effect the weather and the economic impact of COVID-19 will have on the price and demand for refrigerants. Additionally, during the first quarter, we improved our gross margins in 2020 over 2019 and believe we have the opportunity to further drive improved margins in 2020 as we replace higher priced inventory with lower priced product. We believe that customer inventories are low and, with the elimination of R-22 production and importation in 2020, we expect to see a tightening in the supply of virgin R-22. Finally, the Company’s financial position and liquidity remain strong, with total liquidity at March 31, 2020 of approximately $27 million, which includes cash and revolver availability.
“As we proceed through 2020, we are concerned that the economic factors resulting from the various governmental restrictions that have been put in place could have a negative impact on the demand for refrigerants. We continue to focus on implementing various strategies to grow our leadership position in the refrigerant industry, and on leveraging our strong reclamation abilities and our presence at key points in the supply chain.”
Hudson Technologies to Present at 15th Annual Craig-Hallum Institutional Investor Conference
PEARL RIVER, NY, May 14, 2018 – Hudson Technologies, Inc. (NASDAQ: HDSN), today announced that Brian Coleman, President and Chief Operating Officer, will attend Craig-Hallum’s 15th Annual Institutional Investor Conference, to be held at The Depot Renaissance Minneapolis Hotel on Wednesday, May 30, 2018. Mr. Coleman will be available for one-on-one meetings throughout the day.
Hudson Technologies to Present at Oppenheimer Emerging Growth Conference
PEARL RIVER, NY, May 3, 2018 – Hudson Technologies, Inc. (NASDAQ: HDSN), today announced that Kevin Zugibe, Chairman & Chief Executive Officer and Brian Coleman, President and Chief Operating Officer, will attend the Oppenheimer Emerging Growth Conference, to be held at the InterContinental New York Barclay Hotel on Tuesday, May 15, 2018. Messrs. Zugibe and Coleman will be available for one-on-one meetings throughout the day.
Hudson Technologies to Present at 30th Annual ROTH Conference
PEARL RIVER, NY, March 6, 2018 – Hudson Technologies, Inc. (NASDAQ: HDSN), today announced that Brian Coleman, President and Chief Operating Officer, will present at the 30th Annual ROTH Conference, to be held at the Ritz-Carlton in Dana Point, California. The presentation will take place on Monday, March 12, 2018 at 3:00 p.m. PT in Salon 1. Mr. Coleman will be available for one-on-one meetings throughout the day.
Hudson Technologies to Attend 5th Annual ROTH Industrial Growth and Cleantech Conference
PEARL RIVER, NY, December 5, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN), today announced that Kevin Zugibe, Chairman & Chief Executive Officer and Brian Coleman, President and Chief Operating Officer, will attend the 5th Annual ROTH Industrial and Cleantech 1×1 Conference, to be held at the Lotte New York Palace Hotel on Tuesday, December 12, 2017. Messrs. Zugibe and Coleman will be available for one-on-one meetings throughout the day.
Hudson Technologies to Present at 8th Annual Craig-Hallum Alpha Select Conference
PEARL RIVER, NY, November 10, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN), today announced that Kevin Zugibe, Chairman & Chief Executive Officer and Brian Coleman, President and Chief Operating Officer, will be presenting at the 8th Annual Craig-Hallum Alpha Select Conference, to be held at the Sheraton New York Times Square Hotel. The presentation will take place on Thursday, November 16, 2017 at 8:40 a.m. Eastern Time in the Liberty 1 & 2 Suite. Messrs. Zugibe and Coleman will be available for one-on-one meetings throughout the day.–>
