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Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the first quarter ended March 31, 2012.
Revenues for the three months ended March 31, 2012 increased more than 7% to $14,854,000 from $13,818,000 in the comparable 2011 period. Hudson reported a gross profit margin of 40% for the first quarter of 2012 compared to 27% in the first quarter last year. The Company also reported net income of $2,509,000, or $0.11 per basic share and $0.10 per diluted share for the first quarter of 2012, compared to net income of $1,088,000, or $0.05 per basic share and $0.04 per diluted share for the first quarter of 2011. Income tax expense of $1,538,000 and $667,000 for the first quarter of 2012 and for the first quarter of 2011, 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, “During the first quarter of 2012 the industry saw, and continues to see, a dramatic increase in the price of R-22 which favorably impacted our first quarter performance. The increased sales price of R-22 followed the Environmental Protection Agency’s (EPA) issuance in January 2012 of ‘No Action Assurance’ letters to producers and importers of R-22 that, until the EPA’s issuance of a final rule, limits the amount of R-22 that can be manufactured and/or imported in 2012 by approximately 45% from the amount allowed in 2011. We believe a final rule from the EPA establishing the actual production and consumption limits for 2012, 2013 and 2014 will be issued later this year. Despite a slight decline in the volume of pounds sold during the first quarter, which is a result of our inventory management as we move through the current year, increased R-22 pricing contributed to our ability to achieve record revenues and gross margins of 40%.