Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the fourth quarter and year ended December 31, 2011.
Revenues for the three months ended December 31, 2011 decreased 7% to $3,857,000 from $4,140,000 in the comparable 2010 period. Hudson reported gross profit margin of 21% for the fourth quarter of 2011 compared to 33% in the fourth quarter last year. The Company also reported a net loss of $722,000 or $0.03 per basic and diluted share for the fourth quarter of 2011, compared to a net loss of $556,000 or $0.02 per basic and diluted share for the fourth quarter of 2010.
For the year ended December 31, 2011, revenues increased 19% to $44,322,000 as compared to revenues of $37,273,000 for the year ended December 31, 2010. Gross profit margin for 2011 was 20% compared to 22% in 2010. The Company reported net income of $1,034,000, or $0.04 per basic and diluted share in 2011 compared to net income of $701,000, or $0.03 per basic and diluted share, in 2010. Income tax expense of $634,000 and $363,000 for the 2011 and 2010 periods, respectively, is largely a non-cash item as a result of the Company’s deferred tax asset.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We are pleased to report another year of record revenues, with 19% revenue growth for the year. The increase in revenues was accomplished despite a reduction in the sales price of certain refrigerants in 2011, so we believe we are well positioned for continued growth in 2012. Our fourth quarter is typically our slowest quarter due to the seasonality of our business. Comparatively, the fourth quarter of 2010 saw higher service revenues and corresponding margins, while this year’s fourth quarter service revenues were closer to historical levels.
“In early January 2012, the United States Environmental Protection Agency (“EPA”) published a proposed rule which provides a range of material reductions in allowances for the production and consumption of virgin Hydrochlorofluorocarbon-22 (R-22) for calendar years 2012, 2013 and 2014. A final rule establishing the actual production and consumption limits for those years will not be final until later this year. In the interim, the EPA issued ‘No Action Assurance’ letters in January 2012 to producers and importers of R-22 that until the issuance of a final rule, reduces the amount of R-22 that can be manufactured and/or imported in 2012 by approximately 45% from the amount allowed in 2011.