Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the fourth quarter and year ended December 31, 2012.
Revenues for the three months ended December 31, 2012 increased by 26% to $4,869,000 from $3,856,000 in the comparable 2011 period. Net income for the fourth quarter, which included an income tax benefit of $4,638,000 ($4,000,000 of which was associated with the Company’s recognition of its deferred tax asset), was $2,964,000, or $0.12 per basic share and $0.11 per diluted share, compared to a net loss of $723,000, or $0.03 per basic and diluted share for the fourth quarter of 2011.
For the year ended December 31, 2012, Hudson reported record revenues of $56,447,000, an increase of 27% as compared to revenues of $44,322,000 in the year ended December 31, 2011. Gross profit margins increased to 40% for 2012 as compared to 20% in 2011. For 2012, the Company reported income tax expense in the amount of $1,395,000, based upon federal and state income taxes of $5,395,000, partially offset by the recognition of $4,000,000 for the Company’s deferred tax asset. The Company reported net income of $12,801,000, or $0.54 per basic share and $0.49 per diluted share in 2012, compared to net income of $1,034,000 or $0.04 per basic and diluted share in the same period of 2011.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We are very pleased with our financial results for 2012, having achieved record revenues and record profitability. Our financial performance continues to be favorably impacted by the EPA’s support of the growth of reclamation and recycling through regulatory actions that have mandated annual reductions in the production of virgin R-22 refrigerant. As we previously reported, last month the EPA revised and extended the ‘No Action Assurance’ issued in January 2012 to further reduce the 2013 levels of R-22 when compared to 2012. We are pleased with EPA’s No Action Assurance, which has already had a positive impact on pricing, and we believe that we are well positioned for another year of strong results. As the EPA continues to make progress toward the complete phase out of R-22, we believe we will continue to see growth in the reclamation market, with recovered refrigerants filling the supply gap created with the limitation of virgin R-22 production.