Hudson Technologies Reports Second Quarter 2023 Results
- None.
- Decreased revenues and gross margin, lower operating and net income, reduced debt
WOODCLIFF LAKE, N.J., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter ended June 30, 2023.
For the quarter ended June 30, 2023, Hudson reported revenues of
For the six months ended June 30, 2023, Hudson reported revenues of
Hudson reduced total outstanding debt from
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, “As we move through the 2023 selling season, our results, while solid, continue to face a difficult comparison to the extraordinarily strong revenue and margin performance of the 2022 season. As many of you know, during the second quarter of last year we saw significant sales price increases without a corresponding increase in inventory price, a trend that continued for most of 2022. As a result, certain refrigerants we purchased for the current selling season were obtained at higher price points, and the gap between sales price and inventory price has narrowed to more historical levels. Our first half profitability and strong cash flow have enabled us to continue to strengthen our balance sheet by further reducing our total debt by
“We view the cooling season as a nine-month season given the varying weather and temperature patterns from year to year. While the warmer weather arrived a little later than normal this year, the recent surge in temperature has provided opportunities for increased service calls and refrigerant sales. As we move through the balance of the selling season we believe we are well positioned to meet the needs of our customer base and continue driving solid profitability.
“Looking at the regulatory landscape, in July, the EPA issued its final rule confirming the mandated
Conference Call Information
The Company will host a conference call and webcast to discuss the second quarter results today, August 2, 2023 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 (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use entry code: 830286
A replay of the teleconference will be available until September 1, 2023 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 48711.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.
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, 2022 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: John Nesbett/Jennifer Belodeau IMS Investor Relations (203) 972-9200 jnesbett@institutionalms.com | Company Contact: Brian F. Coleman, President & CEO Hudson Technologies, Inc. (845) 735-6000 bcoleman@hudsontech.com |
Hudson Technologies,Inc. and Subsidiaries Consolidated Balance Sheets (Amounts in thousands, except for share and per share amounts) | ||||||
June 30, | December 31, | |||||
2023 | 2022 | |||||
(unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 11,415 | $ | 5,295 | ||
Trade accounts receivable – net | 49,057 | 20,872 | ||||
Inventories | 134,444 | 145,377 | ||||
Prepaid expenses and other current assets | 10,377 | 5,289 | ||||
Total current assets | 205,293 | 176,833 | ||||
Property, plant and equipment, less accumulated depreciation | 19,909 | 20,568 | ||||
Goodwill | 47,803 | 47,803 | ||||
Intangible assets, less accumulated amortization | 16,167 | 17,564 | ||||
Right of use asset | 7,497 | 7,339 | ||||
Other assets | 2,386 | 2,386 | ||||
Total Assets | $ | 299,055 | $ | 272,493 | ||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Trade accounts payable | $ | 17,579 | $ | 14,165 | ||
Accrued expenses and other current liabilities | 28,334 | 27,908 | ||||
Accrued payroll | 3,423 | 6,303 | ||||
Current maturities of long-term debt | 4,250 | 4,250 | ||||
Total current liabilities | 53,586 | 52,626 | ||||
Deferred tax liability | 3,161 | 244 | ||||
Long-term lease liabilities | 5,773 | 5,763 | ||||
Long-term debt, less current maturities, net of deferred financing costs | 25,085 | 38,985 | ||||
Total Liabilities | 87,605 | 97,618 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity: | ||||||
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | ||||
Common stock, | 454 | 453 | ||||
Additional paid-in capital | 118,296 | 116,442 | ||||
Retained earnings | 92,700 | 57,980 | ||||
Total Stockholders’ Equity | 211,450 | 174,875 | ||||
Total Liabilities and Stockholders’ Equity | $ | 299,055 | $ | 272,493 |
Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) (Amounts in thousands, except for share and per share amounts) | ||||||||||||
Three months | Six months | |||||||||||
ended June 30, | ended June 30, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Revenues | $ | 90,474 | $ | 103,941 | $ | 167,673 | $ | 188,279 | ||||
Cost of sales | 53,847 | 46,444 | 100,716 | 84,962 | ||||||||
Gross profit | 36,627 | 57,497 | 66,957 | 103,317 | ||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 8,273 | 7,014 | 15,250 | 13,838 | ||||||||
Amortization | 699 | 699 | 1,397 | 1,397 | ||||||||
Total operating expenses | 8,972 | 7,713 | 16,647 | 15,235 | ||||||||
Operating income | 27,655 | 49,784 | 50,310 | 88,082 | ||||||||
Other expense: | ||||||||||||
Net interest expense | 1,899 | 2,623 | 3,748 | 9,928 | ||||||||
Income before income taxes | 25,756 | 47,161 | 46,562 | 78,154 | ||||||||
Income tax expense | 6,567 | 7,351 | 11,842 | 8,789 | ||||||||
Net income | $ | 19,189 | $ | 39,810 | $ | 34,720 | $ | 69,365 | ||||
Net income per common share – Basic | $ | 0.42 | $ | 0.89 | $ | 0.77 | $ | 1.55 | ||||
Net income per common share – Diluted | $ | 0.41 | $ | 0.84 | $ | 0.73 | $ | 1.48 | ||||
Weighted average number of shares outstanding – Basic | 45,339,570 | 44,960,464 | 45,319,155 | 44,870,642 | ||||||||
Weighted average number of shares outstanding – Diluted | 47,297,419 | 47,152,257 | 47,305,196 | 46,974,441 |