Hudson Technologies Reports 23% Increase in 2008 Revenues 2008 Operating Income to $5.4 Million
Friday, March 06 2009 - 9:04
HDSN $1.47 $0.10 (%7.30)
PEARL RIVER, N.Y.--(BUSINESS WIRE)--
Hudson Technologies, Inc. (NASDAQ: HDSN), a leading distributor and
reclaimer of refrigerants as well as a provider of proprietary on-site
decontamination services for large comfort and process cooling systems,
announced results for the fourth quarter and year ended December 31,
2008.
Revenues for the year ended December 31, 2008 increased 23% to
$33,167,000 from $26,894,000 in 2007. Gross profit margins increased to
34% for the 2008 fiscal year compared to 25% in 2007. Operating income
also increased to $5,416,000 in 2008 compared to an operating loss of
$2,354,000 in 2007. The Company reported net income of $6,669,000 or
$0.35 and $0.33 per basic and diluted common share, respectively, for
the year ended December 31, 2008 compared to a net loss of $1,961,000 or
$0.09 per basic and diluted common share for the year ended December 31,
2007. The increase in 2008 net income is mainly attributed to increased
gross profit from an increase in refrigerant revenues, the absence of
$4,338,000 of compensation expense recorded in the 2007 period, as well
as an increase in the income tax benefit recorded in 2008 when compared
to 2007.
Revenues for the three months ended December 31, 2008 were $2,871,000
compared to $2,732,000 in the same period of 2007. Gross profit margins
declined to 23% in the fourth quarter of 2008 compared to 27% in the
fourth quarter of 2007. In the fourth quarter of 2008, Hudson reported a
net loss of $821,000 or $0.04 per basic and diluted common share
compared to a net loss of $986,000 or $0.05 per basic and diluted common
share in the fourth quarter of 2007.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson
Technologies commented, "The fourth quarter, which is always our slowest
given the seasonality of the refrigerants business, caps off a very
strong year for the Company in which we demonstrated solid revenue
growth and a significant increase in net income. We are continuing to
position ourselves to capitalize on the opportunities that we expect to
see with the January 2010 federally mandated phase down in the
production of new (virgin) HCFC refrigerants. The EPA has proposed to
reduce, effective January 1, 2010, the total amount of HCFCs that can be
produced and imported to 80% of the EPA's estimated and projected demand
for 2010. In proposing these reductions, the EPA expects that at least
20% of the demand will be met by reclaimed or recycled refrigerant,
which would require a significant increase in reclamation from current
levels. As such, reclaimed refrigerant will be essential to make up the
supply shortfall and to service the entire spectrum of existing units
from small residential A/C units to large tonnage chillers that require
HCFCs to function properly. As an industry leader with proven
infrastructure and distillation capabilities, we expect to benefit from
this industry shift."
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Mr. Zugibe continued, "Heading into 2009, we are of course cognizant of
the current economic climate and we will have more clarity on how the
overall economy may or may not affect our business during the second
quarter. That being said, the economic climate does not dampen the
significant opportunity in front of us with the upcoming catalytic shift
that will impact our industry in 2010 and we are committed to
strategically positioning the Company to take full advantage of this
change to our marketplace," Mr. Zugibe concluded.
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the fourth quarter
and year end results on March 6, 2009 at 10:00 A.M. Eastern Time.
To access the live webcast log onto the Hudson Technologies website at
Hudson Technologies Inc. Refrigerant Recovery, Chiller Services Cleaning Optimization and Sales
and click on "Investor Relations". The webcast can also be accessed at
www.InvestorCalendar.com
.
To participate in the call by phone, dial 877-407-0778 approximately
five minutes prior to the scheduled start time. International callers
please dial 201-689-8565.
A replay of the webcast can be accessed by visiting the Investor
Relations section of the Hudson Technologies website.
A replay of the teleconference will be available until March 13, 2009
and may be accessed domestically by dialing 877-660-6853 and
international callers may dial 201-612-7415. Callers should use account
number 286 and pass code 315432.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative solutions
to recurring problems within the refrigeration industry. Hudson's
proprietary RefrigerantSide(R) 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(R)
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
Hudson Technologies Inc. Refrigerant Recovery, Chiller Services Cleaning Optimization and Sales.
HDSN Hudson Technologies Refrigeration Industry
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