Hudson Technologies Reports Record Revenues And Net Income For Second Quarter 2012; $0.20 Earnings Per Diluted Share

Hudson Technologies, Inc. (NASDAQ: HDSN), announced results for the second quarter and six months ended June 30, 2012.

Revenues for the three months ended June 30, 2012 increased by 51% to $22,251,000 from $14,712,000 in the comparable 2011 period. Hudson reported a gross profit margin of 46% for the second quarter of 2012 compared to 18% in the second quarter last year. The Company also reported net income of $5,135,000 or $0.22 per basic share and $0.20 per diluted share for the second quarter of 2012, compared to net income of $781,000, or $0.03 per basic and diluted share for the second quarter of 2011.

For the six months ended June 30, 2012, revenues increased 30% to $37,105,000 as compared to revenues of $28,530,000 in the first six months of 2011. Gross profit margins increased in the first half of 2012 to 44% compared to 22% in the first half of 2011. The Company reported a net profit of $7,644,000, or $0.32 per basic share and $0.29 per diluted share in the first six months of 2012, compared to net income of $1,869,000 or $0.08 per basic share and $0.07 per diluted share in the first six months of 2011.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “Our second quarter results built upon our strong first quarter performance as we continued to benefit from our efforts to focus on our long term strategies for growing our refrigerant and reclamation businesses. The 2012 year has been favorably impacted to date by the significant increase in the sales price of R-22 refrigerant following 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. While we cannot predict when a final rule will be issued, we currently anticipate that a final rule may not be issued until the end of this year or later.

“Until the EPA issues a final rule, there will be uncertainty in the market as to future supplies of virgin R-22. The issuance of a final rule from EPA would provide a level of certainty, at least as to the available supply of virgin R22 through 2014, that we believe the industry needs to plan for and assess the future virgin supply available to serve the refrigerant aftermarket. From our perspective, there has been strong refrigerant demand during this year’s cooling season. We expect that such strong demand, coupled with a clearly defined final rule on future reductions in available virgin supply, will further support the supply/demand imbalance which, along with existing price increases in R-22, should positively impact the market opportunities for our R-22 reclamation business.

“This was a very strong quarter for our Company and we remain confident that we are well positioned to take advantage of the ongoing opportunities related to the R-22 phase down and the ultimate phase out of virgin production and the benefits that we anticipate can be derived from a vibrant reclamation market.”


The Company will host a conference call to discuss the first quarter results today, August 2, 2012 at 10:00 A.M. Eastern Time.

To access the live webcast log onto the Hudson Technologies website at and click on “Investor Relations”.

To participate in the call by phone, dial (877) 407-9205 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8054.

A replay of the webcast will be available until September 1, 2012 and may be accessed by dialing (877) 660-6853 and international callers may dial (201) 612-7415. Callers should use account number 286 and pass code 397607. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide ® Services increase operating efficiency and energy savings, and remove moisture, oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies, RefrigerantSide ® Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels, and can be utilized while the customer's system continues to operate. In addition, the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. For further information on Hudson, please visit the Company's web site at

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 markets 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 which 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, risks associated with the Company’s joint venture which include the ability of the parties to perform their obligations under the joint venture agreement, 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 joint venture may seek to conduct business, and other risks detailed in the Company's periodic reports filed 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.

Hudson Technologies, Inc. and subsidiaries

Consolidated Balance Sheets

(Amounts in thousands, except for share and par value amounts)



Current assets:
  Cash and cash equivalents $ 4,008 $ 3,958
Trade accounts receivable - net of allowance for doubtful
accounts of $201 and $200 8,186 2,453
Inventories 33,137 17,734
Prepaid expenses and other current assets 3,786 611
Total current assets 49,117 24,756
Property, plant and equipment, less accumulated depreciation and amortization 3,727 3,441
Other assets 214 79
Deferred tax assets 0 3,086
Intangible assets, less accumulated amortization 92 89
Total Assets $53,150 $31,451

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 14,483 $ 5,227
Accrued payroll

Income taxes payable


Short-term debt and current maturities of long-term debt 5,446 6,361
Total current liabilities 21,288 12,291
Long-term debt, less current maturities 5,064 121
Total Liabilities 26,352 12,412
Commitments and contingencies
Stockholders' equity:
Preferred stock shares authorized 5,000,000
Series A Convertible Preferred stock, $0.01 par value ($100
liquidation preference value); shares authorized 150,000; none issued or

0 0
Common stock, $0.01 par value; shares authorized 50,000,000;
23,873,392 and 23,783,106 issued and outstanding 239 238
Additional paid-in capital 42,984 42,869
Accumulated deficit (16,425) (24,068)
Total Stockholders' Equity 26,798 19,039
Total Liabilities and Stockholders' Equity $53,150 $31,451

Hudson Technologies, Inc. and subsidiaries

Consolidated Income Statements


(Amounts in thousands, except for share and per share amounts)

Three month period ended June 30,

Six month period ended June 30,




Revenues $22,251 $14,712 $37,105 $28,530
Cost of sales 12,014 12,005 20,900 22,121
Gross Profit 10,237 2,707 16,205 6,409
Operating expenses:
  Selling and marketing 673 455 1,354 1,098
General and administrative 1,095 723 2,164 1,792
  Total operating expenses 1,768 1,178 3,518 2,890
Operating income 8,469 1,529 12,687 3,519
Other income (expense):
Interest expense (187) (274) (358) (517)
Interest income 1 4 1 12

Total other income (expense)
(186) (270) (357) (505)
Income before income taxes 8,283 1,259 12,330 3,014
Income tax expense 3,148 478 4,686 1,145
Net income $ 5,135 $ 781 $ 7,644 $ 1,869
Net income per common share – Basic $0.22 $0.03 $0.32 $0.08
Net income per common share - Diluted $0.20 $0.03 $0.29 $0.07
Weighted average number of shares
  outstanding – Basic 23,841,996 23,780,606 23,813,776 23,780,606
Weighted average number of shares
outstanding - Diluted 26,177,960 24,989,119 26,149,740 25,082,275

Copyright Business Wire 2010

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