Hudson Technologies Reports Second Quarter 2020 Net Income of $2.4 Million or $0.06 Per Share
Hudson Technologies reported Q2 2020 revenues of $47.7 million, down 14.8% from $56.0 million in 2019, mainly due to volume declines. However, gross margin improved to 26.6% compared to negative margins last year. The company achieved operating income of $5.2 million against a loss of $10.0 million in 2019, and delivered a net income of $2.4 million or $0.06 per share, recovering from a net loss of $13.8 million. Total liquidity stood at approximately $39 million. CEO Brian Coleman acknowledged COVID-19 challenges but emphasized adaptability and focus on health and safety.
- Gross margin improved to 26.6% from negative in Q2 2019.
- Operating income was $5.2 million compared to an operating loss of $10.0 million in Q2 2019.
- Net income of $2.4 million or $0.06 per share, up from a net loss of $13.8 million in Q2 2019.
- Total liquidity at June 30, 2020 was approximately $39 million.
- Q2 2020 revenues decreased 14.8% due to reduced volume.
- Revenue for the first half of 2020 fell 7.4% compared to 2019.
PEARL RIVER, N.Y., Aug. 05, 2020 (GLOBE NEWSWIRE) -- 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
For the six months ended June 30, 2020, Hudson reported revenues of
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
“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.
Conference Call Information
The Company will host a conference call and webcast to discuss the second quarter results today, August 5, 2020 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 (844) 407-9500 approximately five minutes prior to the scheduled start time. International callers please dial (862) 298-0850.
A replay of the teleconference will be available until September 4, 2020 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 35826.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative and sustainable solutions for optimizing performance and enhancing reliability of commercial and industrial chiller plants and refrigeration systems. Hudson's proprietary RefrigerantSide® Services increase operating efficiency, provide energy and cost savings, reduce greenhouse gas emissions and the plant’s carbon footprint while enhancing system life and reliability of operations at the same time. RefrigerantSide® Services can be performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies. Hudson also offers SMARTenergy OPS®, which is a cloud-based Managed Software as a Service for continuous monitoring, Fault Detection and Diagnostics and real-time optimization of chilled water plants. In addition, the Company sells refrigerants and provides traditional reclamation services for commercial and industrial air conditioning and refrigeration uses. For further information on Hudson, please visit the Company's web site at www.hudsontech.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under existing credit facilities, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Company’s ability to successfully integrate any assets it acquires from third parties into its operations, the impact of the current COVID-19 pandemic, and other risks detailed in the Company's 10-K for the year ended December 31, 2019 and other subsequent filings with the Securities and Exchange Commission. The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.
| Investor Relations Contact: | Company Contact: |
| John Nesbett/Jennifer Belodeau | Brian F. Coleman, President & CEO |
| IMS Investor Relations | Hudson Technologies, Inc. |
| (203) 972-9200 | (845) 735-6000 |
| jnesbett@institutionalms.com | bcoleman@hudsontech.com |
Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,850 | $ | 2,600 | ||||
| Trade accounts receivable – net | 25,317 | 8,061 | ||||||
| Inventories – net | 48,570 | 59,238 | ||||||
| Prepaid expenses and other current assets | 3,622 | 4,525 | ||||||
| Total current assets | 85,359 | 74,424 | ||||||
| Property, plant and equipment, less accumulated depreciation | 22,108 | 23,674 | ||||||
| Goodwill | 47,803 | 47,803 | ||||||
| Intangible assets, less accumulated amortization | 24,580 | 26,012 | ||||||
| Right of use asset | 7,205 | 8,048 | ||||||
| Other assets | 180 | 192 | ||||||
| Total Assets | $ | 187,235 | $ | 180,153 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | $ | 12,140 | $ | 10,274 | ||||
| Accrued expenses and other current liabilities | 19,985 | 18,120 | ||||||
| Accrued payroll | 1,537 | 724 | ||||||
| Short-term debt | 15,931 | 14,000 | ||||||
| Current maturities of long-term debt | 5,743 | 3,008 | ||||||
| Total current liabilities | 55,336 | 46,126 | ||||||
| Deferred tax liability | 1,238 | 1,192 | ||||||
| Long-term lease liabilities | 4,710 | 5,742 | ||||||
| Long-term debt, less current maturities | 81,006 | 81,982 | ||||||
| Total Liabilities | 142,290 | 135,042 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | ||||||
| Common stock, | 426 | 426 | ||||||
| Additional paid-in capital | 117,890 | 117,557 | ||||||
| Accumulated deficit | (73,371 | ) | (72,872 | ) | ||||
| Total Stockholders’ Equity | 44,945 | 45,111 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 187,235 | $ | 180,153 | ||||
Hudson Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except for share and per share amounts)
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenues | $ | 47,677 | $ | 56,011 | $ | 84,027 | $ | 90,675 | ||||||||
| Cost of sales | 34,996 | 58,377 | 62,999 | 86,056 | ||||||||||||
| Gross profit (loss) | 12,681 | (2,366 | ) | 21,028 | 4,619 | |||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 6,757 | 6,848 | 14,022 | 12,872 | ||||||||||||
| Amortization | 716 | 753 | 1,432 | 1,474 | ||||||||||||
| Total operating expenses | 7,473 | 7,601 | 15,454 | 14,346 | ||||||||||||
| Operating income (loss) | 5,208 | (9,967 | ) | 5,574 | (9,727 | ) | ||||||||||
| Other expense: | ||||||||||||||||
| Net interest expense | (3,132 | ) | (4,267 | ) | (6,446 | ) | (8,474 | ) | ||||||||
| Other income | 8 | 508 | 11 | 508 | ||||||||||||
| Total other expense | (3,124 | ) | (3,759 | ) | (6,435 | ) | (7,966 | ) | ||||||||
| Income (loss) before income taxes | 2,084 | (13,726 | ) | (861 | ) | (17,693 | ) | |||||||||
| Income tax (benefit) expense | (302 | ) | 71 | (362 | ) | 143 | ||||||||||
| Net income (loss) | $ | 2,386 | $ | (13,797 | ) | $ | (499 | ) | $ | (17,836 | ) | |||||
| Net income(loss) per common share – Basic | $ | 0.06 | $ | (0.32 | ) | $ | (0.01 | ) | $ | (0.42 | ) | |||||
| Net income(loss) per common share – Diluted | $ | 0.06 | $ | (0.32 | ) | $ | (0.01 | ) | $ | (0.42 | ) | |||||
| Weighted average number of shares outstanding – Basic | 42,628,560 | 42,604,189 | 42,628,560 | 42,603,315 | ||||||||||||
| Weighted average number of shares outstanding – Diluted | 42,917,562 | 42,604,189 | 42,628,560 | 42,603,315 | ||||||||||||
FAQ
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