Hudson Technologies Reports Third Quarter 2024 Results
Hudson Technologies (NASDAQ: HDSN) reported Q3 2024 results with revenue of $61.9 million, down 19% year-over-year, and net income of $7.8 million or $0.17 per diluted share. The company maintained a strong balance sheet with $56.5 million in cash and no debt. Gross margin decreased to 26% from 40% in Q3 2023, primarily due to pricing pressure on certain refrigerants. The company repurchased $2.6 million of common stock and adjusted its full-year 2024 revenue guidance to the lower end of the previous range, with expected gross margin of approximately 28%. The EPA's new Refrigerant Management rule, mandating reclaim usage in certain sectors by 2029, is viewed as positive for the industry transition.
Hudson Technologies (NASDAQ: HDSN) ha riportato i risultati per il terzo trimestre del 2024 con un fatturato di 61,9 milioni di dollari, in calo del 19% rispetto all'anno precedente, e un utile netto di 7,8 milioni di dollari o 0,17 dollari per azione diluita. L'azienda ha mantenuto un bilancio solido con 56,5 milioni di dollari in contante e senza debiti. Il margine lordo è diminuito al 26% rispetto al 40% del terzo trimestre del 2023, principalmente a causa della pressione sui prezzi di alcuni refrigeranti. L'azienda ha riacquistato azioni ordinarie per 2,6 milioni di dollari e ha adeguato le previsioni di fatturato per l'intero anno 2024 verso il fondo del range precedente, con un margine lordo atteso di circa il 28%. La nuova normativa dell'EPA sulla gestione dei refrigeranti, che impone l'uso di recupero in determinati settori entro il 2029, è vista come positiva per la transizione del settore.
Hudson Technologies (NASDAQ: HDSN) reportó los resultados del tercer trimestre de 2024 con ingresos de 61,9 millones de dólares, una disminución del 19% en comparación con el año anterior, y una ganancia neta de 7,8 millones de dólares o 0,17 dólares por acción diluida. La empresa mantuvo un balance sólido con 56,5 millones de dólares en efectivo y sin deudas. El margen bruto disminuyó al 26% desde el 40% en el tercer trimestre de 2023, principalmente debido a la presión de precios en ciertos refrigerantes. La empresa recompró 2,6 millones de dólares en acciones ordinarias y ajustó su guía de ingresos para todo el año 2024 hacia el extremo inferior del rango previo, con un margen bruto esperado de aproximadamente el 28%. La nueva regla de gestión de refrigerantes de la EPA, que exige el uso de recuperación en ciertos sectores para 2029, se considera positiva para la transición de la industria.
허드슨 테크놀로지스 (NASDAQ: HDSN)는 2024년 3분기 실적을 발표했으며, 매출은 6,190만 달러로 전년 대비 19% 감소하였고, 순이익은 780만 달러 또는 희석 주당 0.17달러입니다. 회사는 5,650만 달러의 현금을 보유하고 있으며, 부채는 없습니다. 총 이익률은 2023년 3분기의 40%에서 26%로 감소하였으며, 이는 특정 냉매에 대한 가격 압박으로 인한 것입니다. 회사는 260만 달러의 보통 주식을 재매입하였고, 2024년도 전체의 매출 전망을 이전 범위 하단으로 조정하였으며, 예상 총 이익률은 약 28%입니다. EPA의 새로운 냉매 관리 규칙은 2029년까지 특정 분야에서 회수 사용을 의무화하고 있으며, 이는 산업 전환에 긍정적인 것으로 보고되고 있습니다.
Hudson Technologies (NASDAQ: HDSN) a annoncé les résultats du troisième trimestre 2024 avec un chiffre d'affaires de 61,9 millions de dollars, en baisse de 19 % par rapport à l'année précédente, et un bénéfice net de 7,8 millions de dollars ou 0,17 dollar par action diluée. L'entreprise a maintenu une solide situation financière avec 56,5 millions de dollars en liquidités et aucune dette. La marge brute a diminué à 26 % contre 40 % au troisième trimestre 2023, principalement en raison de la pression sur les prix de certains réfrigérants. L'entreprise a racheté pour 2,6 millions de dollars d'actions ordinaires et a ajusté ses prévisions de chiffre d'affaires pour l'année 2024 vers le bas du précédent intervalle, avec une marge brute attendue d'environ 28 %. La nouvelle règle de gestion des réfrigérants de l'EPA, qui impose l'utilisation de la récupération dans certains secteurs d'ici 2029, est considérée comme positive pour la transition de l'industrie.
Hudson Technologies (NASDAQ: HDSN) hat die Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 61,9 Millionen US-Dollar, was einem Rückgang von 19 % im Vergleich zum Vorjahr entspricht, und einem Nettoergebnis von 7,8 Millionen US-Dollar oder 0,17 US-Dollar pro verwässerter Aktie. Das Unternehmen weist eine starke Bilanz auf mit 56,5 Millionen US-Dollar in bar und keinen Schulden. Die Bruttomarge fiel von 40 % im 3. Quartal 2023 auf 26 %, hauptsächlich aufgrund von Preisdruck auf bestimmte Kältemittel. Das Unternehmen hat Aktien im Wert von 2,6 Millionen US-Dollar zurückgekauft und die Umsatzprognose für das Gesamtjahr 2024 nach unten angepasst, mit einer erwarteten Bruttomarge von etwa 28 %. Die neue Regelung der EPA zur Kältemittelverwaltung, die bis 2029 die Nutzung von Rückgewinnung in bestimmten Sektoren vorschreibt, wird als positiv für den Übergang der Branche angesehen.
- Strong cash position of $56.5 million with zero debt
- Board approved increased share repurchase program up to $20 million
- Q3 net income of $7.8 million including $2.3 million non-recurring income
- New EPA reclaim mandates expected to benefit business long-term
- Revenue declined 19% year-over-year to $61.9 million
- Gross margin decreased to 26% from 40% in Q3 2023
- Operating income decreased to $7.0 million from $23.1 million YoY
- SG&A expenses increased to $8.1 million from $6.8 million YoY
- Lowered full-year 2024 revenue guidance
Insights
Hudson Technologies' Q3 results show significant headwinds with
The bright spots include a strong balance sheet with
- Third Quarter Revenue of
$61.9 million - Net income of
$7.8 million or$0.17 per diluted share - Strengthened balance sheet with
$56.5 million in cash and no debt - Repurchased
$2.6 million of common stock during the third quarter
WOODCLIFF LAKE, N.J., Nov. 04, 2024 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the third quarter and nine months ended September 30, 2024.
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, “Our third quarter results reflected continued pricing pressure that persisted for certain refrigerants throughout the 2024 cooling season. While disappointing in the near term, pricing trends are only one element of our business model and we remain confident in our long-term growth strategy to capitalize on the phasedown of HFC refrigerants and the expected corresponding growth in demand for reclaimed refrigerants. With our current visibility, we are adjusting our expectation for full year 2024 revenue, which we anticipate will be at the low end of the guidance range we previously provided, with full year gross margin of approximately
“The EPA recently finalized the Refrigerant Management rule pursuant to subsection (H) of the AIM Act, providing reclaim mandates for use in servicing certain sectors of the market beginning in 2029, and we view this as a positive step in the industry’s transition to the broader use of reclaimed refrigerants. Throughout our many decades in the refrigerant industry we have remained focused on the elements of our business we can control: ensuring that our customers have reliable supply of the refrigerants they need and promoting recovery and reclamation activities to enable the ongoing evolution to more efficient equipment and sustainable refrigerant management practices.
“Our unlevered balance sheet strengthened during the quarter with no debt and
Three Months Results
For the quarter ended September 30, 2024, Hudson reported:
- Revenues of
$61.9 million , a decrease of19% compared to revenues of$76.5 million in the comparable 2023 period. The decrease is primarily related to decreased prices for certain refrigerants, as well as slightly lower revenue from the Company’s DLA contract in the quarter compared to the third quarter of 2023. - Gross margin of
26% , compared to40% in the third quarter of 2023. - Selling, general and administrative expenses increased to
$8.1 million compared to$6.8 million in the third quarter of 2023, primarily related to higher personnel costs and professional fees. - Operating income of
$7.0 million , compared to operating income of$23.1 million in the prior year period. - Net income of
$7.8 million or$0.17 per basic and diluted share in the third quarter of 2024, compared to net income of$13.6 million or$0.30 per basic and$0.29 per diluted share in the same period of 2023. Of note, net income for the third quarter of 2024 included approximately$2.3 million of non-recurring income, arising in part from proceeds of a litigation settlement.
Nine Months Results
For the nine months ended September 30, 2024, Hudson reported:
- Revenues of
$202.5 million , a decrease of17% compared to revenues of$244.2 million for the first nine months of 2023. Revenues declined primarily due to decreased selling prices for certain refrigerants as well as lower revenue from the Company’s DLA contract. - Gross margin of
30% , compared to gross margin of40% in the first nine months of 2023. - Selling, general and administrative expenses increased to
$25.0 million compared to$22.0 million in the first nine months of 2023. Included in the year to date, 2024 selling, general and administrative expenses are approximately$0.7 million of non-recurring costs associated with the USA acquisition and IT expenses. - Operating income of
$32.5 million compared to operating income of$73.4 million in the first nine months of 2023. - Net income of
$27.0 million or$0.59 per basic and$0.57 per diluted share, compared to net income of$48.3 million or$1.07 per basic and$1.02 per diluted share in the first nine months of 2023. Net income in the first nine months included approximately$2.3 million of non-recurring income, arising in part from proceeds of a litigation settlement as mentioned above.
The Company announced the establishment of a stock repurchase program during the third quarter of 2024, under which it repurchased
Conference Call Information
The Company will host a conference call and webcast to discuss the third quarter results today, November 4, 2024, at 5:00 P.M. Eastern Time.
Advance registration for the call is required. Please visit this link by 4:30 p.m. Eastern Time today, Monday, November 4, 2024 to register and receive dial-in and webcast details.
A replay of the teleconference will be available until December 4, 2024, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 51297.
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 its existing credit facility, 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, and other risks detailed in the Company's 10-K for the year ended December 31, 2023 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@imsinvestorrelations.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 par value amounts) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 56,487 | $ | 12,446 | |||
Trade accounts receivable – net | 28,547 | 25,169 | |||||
Inventories | 103,523 | 154,450 | |||||
Income tax receivable | 3,645 | 5,438 | |||||
Prepaid expenses and other current assets | 11,308 | 7,492 | |||||
Total current assets | 203,510 | 204,995 | |||||
Property, plant and equipment, less accumulated depreciation | 20,075 | 19,375 | |||||
Goodwill | 62,420 | 47,803 | |||||
Intangible assets, less accumulated amortization | 14,982 | 14,771 | |||||
Right of use asset | 5,217 | 6,591 | |||||
Other assets | 3,224 | 3,137 | |||||
Total Assets | $ | 309,428 | $ | 296,672 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 11,060 | $ | 23,399 | |||
Accrued expenses and other current liabilities | 31,595 | 31,537 | |||||
Accrued payroll | 3,908 | 3,615 | |||||
Total current liabilities | 46,563 | 58,551 | |||||
Deferred tax liability | 3,538 | 4,558 | |||||
Long-term lease liabilities | 3,832 | 4,790 | |||||
Other long-term liabilities | 1,600 | — | |||||
Total Liabilities | 55,533 | 67,899 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | |||||
Common stock, | 452 | 455 | |||||
Additional paid-in capital | 116,263 | 118,091 | |||||
Retained earnings | 137,180 | 110,227 | |||||
Total Stockholders’ Equity | 253,895 | 228,773 | |||||
Total Liabilities and Stockholders’ Equity | $ | 309,428 | $ | 296,672 | |||
Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Income (unaudited) (Amounts in thousands, except for share and per share amounts) | |||||||||||||||
Three months | Nine months | ||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | $ | 61,943 | $ | 76,496 | $ | 202,475 | $ | 244,169 | |||||||
Cost of sales | 46,001 | 45,916 | 142,541 | 146,632 | |||||||||||
Gross profit | 15,942 | 30,580 | 59,934 | 97,537 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 8,059 | 6,760 | 25,019 | 22,010 | |||||||||||
Amortization | 910 | 698 | 2,368 | 2,095 | |||||||||||
Total operating expenses | 8,969 | 7,458 | 27,387 | 24,105 | |||||||||||
Operating income | 6,973 | 23,122 | 32,547 | 73,432 | |||||||||||
Other (income) expense: | |||||||||||||||
Interest expense (income) | (315 | ) | 4,358 | 51 | 8,106 | ||||||||||
Other income | (2,250 | ) | — | (2,250 | ) | — | |||||||||
Total other (income) expense | (2,565 | ) | 4,358 | (2,199 | ) | 8,106 | |||||||||
Income before income taxes | 9,538 | 18,764 | 34,746 | 65,326 | |||||||||||
Income tax expense | 1,732 | 5,182 | 7,793 | 17,024 | |||||||||||
Net income | $ | 7,806 | $ | 13,582 | $ | 26,953 | $ | 48,302 | |||||||
Net income per common share – Basic | $ | 0.17 | $ | 0.30 | $ | 0.59 | $ | 1.07 | |||||||
Net income per common share – Diluted | $ | 0.17 | $ | 0.29 | $ | 0.57 | $ | 1.02 | |||||||
Weighted average number of shares outstanding – Basic | 45,435,458 | 45,404,963 | 45,486,263 | 45,348,072 | |||||||||||
Weighted average number of shares outstanding – Diluted | 47,135,443 | 47,345,380 | 47,278,638 | 47,319,464 | |||||||||||
Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (Amounts in thousands) | |||||||
Nine month-period | |||||||
ended September 30, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 26,953 | $ | 48,302 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation | 2,274 | 2,213 | |||||
Amortization of intangible assets | 2,368 | 2,095 | |||||
Impairment of long lived assets | 441 | — | |||||
Lower of cost or net realizable value inventory adjustment | 3,811 | (2,195 | ) | ||||
Allowance for credit losses | 14 | 800 | |||||
Share based compensation | 808 | 2,061 | |||||
Amortization of deferred finance costs | 171 | 669 | |||||
Loss on extinguishment of debt | — | 3,427 | |||||
Deferred tax expense | (1,020 | ) | 4,280 | ||||
Changes in assets and liabilities: | |||||||
Trade accounts receivable | (733 | ) | (24,863 | ) | |||
Inventories | 52,189 | 8,341 | |||||
Prepaid and other assets | (6,732 | ) | (684 | ) | |||
Lease obligations | (6 | ) | 1 | ||||
Income taxes receivable | 1,794 | (4,212 | ) | ||||
Accounts payable and accrued expenses | (11,229 | ) | 3,283 | ||||
Cash provided by operating activities | 71,103 | 43,518 | |||||
Cash flows from investing activities: | |||||||
Payments for acquisition | (20,670 | ) | — | ||||
Additions to property, plant, and equipment | (3,752 | ) | (2,215 | ) | |||
Cash used in investing activities | (24,422 | ) | (2,215 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock | — | 39 | |||||
Repurchase of common shares | (2,636 | ) | — | ||||
Excess tax benefits from exercise of stock options | (4 | ) | (693 | ) | |||
Borrowing of short-term debt - net | — | 5,000 | |||||
Repayment of long-term debt | — | (47,161 | ) | ||||
Cash used in financing activities | (2,640 | ) | (42,815 | ) | |||
Increase (decrease) in cash and cash equivalents | 44,041 | (1,512 | ) | ||||
Cash and cash equivalents at beginning of period | 12,446 | 5,295 | |||||
Cash and cash equivalents at end of period | $ | 56,487 | $ | 3,783 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 529 | $ | 4,232 | |||
Cash paid for income taxes – net | $ | 7,042 | $ | 16,955 | |||
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