Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HUDSON TECHNOLOGIES INC /NY | v385215_8k.htm |
EXHIBIT 99.1
Hudson Technologies Reports Second Quarter 2014 Results
pearl river, ny – July 30, 2014 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the quarter ended June 30, 2014.
Revenues for the three months ended June 30, 2014 were $16.9 million, an increase of 7% as compared to $15.8 million in the second quarter of 2013. The revenue increase in the quarter is primarily related to increased sales volumes of certain refrigerants offset by a decrease in the selling price of certain refrigerants. Net income for the quarter was $308,000, or $0.01 per basic and diluted share, compared to net income of $334,000, or $0.01 per basic and diluted share, in the second quarter of 2013.
For the first six months of 2014, Hudson recorded revenues of $32.5 million as compared to $38.6 million in the comparable 2013 period. The decrease in revenues was primarily due to a decrease in R-22 pricing of over 40%, partially offset by increased volume in the first six months of 2014. Net income for the first half of 2014 was $468,000 or $0.02 per basic and diluted share, compared to $4.8 million or $0.20 per basic and $0.18 per diluted share in the first half of 2013.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We delivered solid performance for the second quarter with modest revenue gains and profitability. R-22 pricing in the quarter was down as compared to the same period last year, but has remained essentially stable through the first half of 2014, which we view as encouraging. We have continued to focus on meeting the needs of our existing customers and on developing relationships with new customers, which has allowed us to achieve increased volumes and service revenues. We view the reclamation of R-22 and the next generation refrigerants as a significant market opportunity. In addition, the capital raise we completed in June further strengthens our balance sheet and positions us favorably to drive both organic and inorganic growth. We believe that the EPA’s final rule for the 2015 through 2020 time period, expected to be issued before the end of this calendar year, will give clarity to the R-22 production phase-out, providing the needed opportunity for the growth of reclamation.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the second quarter results today, July 30, 2014 at 5:00 P.M. Eastern Time.
To access the live webcast, log onto the Hudson Technologies website at www.hudsontech.com, 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 teleconference will be available until August 30, 2014 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13587056.
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 www.hudsontech.com.
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, 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, 2013 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: Institutional Marketing Services (IMS) jnesbett@institutionalms.com |
Company Contact:
|
Hudson Technologies, Inc. and subsidiaries
Consolidated Income Statements
(unaudited)
(Amounts in thousands, except for share and per share amounts)
| Three month period | Six month period | |||||||||||||||
| ended June 30, | ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues | $ | 16,875 | $ | 15,768 | $ | 32,459 | $ | 38,645 | ||||||||
| Cost of sales | 14,673 | 13,220 | 28,454 | 26,935 | ||||||||||||
| Gross Profit | 2,202 | 2,548 | 4,005 | 11,710 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing | 614 | 818 | 1,264 | 1,641 | ||||||||||||
| General and administrative | 931 | 956 | 1,617 | 1,890 | ||||||||||||
| Total operating expenses | 1,545 | 1,774 | 2,881 | 3,531 | ||||||||||||
| Operating income | 657 | 774 | 1,124 | 8,179 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (186 | ) | (243 | ) | (395 | ) | (440 | ) | ||||||||
| Total other income (expense) | (186 | ) | (243 | ) | (395 | ) | (440 | ) | ||||||||
| Income before income taxes | 471 | 531 | 729 | 7,739 | ||||||||||||
| Income tax expense | 163 | 197 | 261 | 2,936 | ||||||||||||
| Net income | $ | 308 | $ | 334 | $ | 468 | $ | 4,803 | ||||||||
| Net income per common share Basic | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.20 | ||||||||
| Net income per common share Diluted | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.18 | ||||||||
| Weighted average number of shares | ||||||||||||||||
| outstanding Basic | 26,267,746 | 24,891,115 | 25,679,066 | 24,605,541 | ||||||||||||
| Weighted average number of shares | ||||||||||||||||
| outstanding Diluted | 27,846,672 | 26,859,009 | 27,357,936 | 26,670,232 | ||||||||||||
Hudson Technologies, Inc. and subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)
| June 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,893 | $ | 669 | ||||
| Trade accounts receivable - net | 10,163 | 3,706 | ||||||
| Income taxes receivable | 1,699 | 2,709 | ||||||
| Inventories | 24,517 | 33,967 | ||||||
| Deferred tax asset | 207 | 207 | ||||||
| Prepaid expenses and other current assets | 3,342 | 608 | ||||||
| Total current assets | 41,821 | 41,866 | ||||||
| Property, plant and equipment, less accumulated depreciation | 4,422 | 4,536 | ||||||
| Other assets | 111 | 106 | ||||||
| Deferred tax asset | 5,087 | 5,363 | ||||||
| Investments in affiliates | 377 | 440 | ||||||
| Intangible assets, less accumulated amortization | 44 | 57 | ||||||
| Total Assets | $ | 51,862 | $ | 52,368 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 6,558 | $ | 3,955 | ||||
| Accrued payroll | 287 | 289 | ||||||
| Short-term debt and current maturities of long-term debt | 278 | 15,367 | ||||||
| Total current liabilities | 7,123 | 19,611 | ||||||
| Long-term debt, less current maturities | 528 | 4,671 | ||||||
| Total Liabilities | 7,651 | 24,282 | ||||||
| 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 outstanding | 0 | 0 | ||||||
| Common stock, $0.01 par value; shares authorized 50,000,000; | ||||||||
| issued and outstanding 32,031,426 and 25,070,386 | 320 | 251 | ||||||
| Additional paid-in capital | 60,532 | 44,944 | ||||||
| Accumulated deficit | (16,641 | ) | (17,109 | ) | ||||
| Total Stockholders' Equity | 44,211 | 28,086 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 51,862 | $ | 52,368 | ||||