There were 630 press releases posted in the last 24 hours and 162,394 in the last 365 days.

Hudson Technologies Reports Second Quarter 2019 Results and Receives $8.9 Million Settlement From Airgas

/EIN News/ -- PEARL RIVER, N.Y., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2019.

For the quarter ended June 30, 2019 Hudson reported revenues of $56.0 million compared to $57.8 million in the comparable 2018 period.  Refrigerant average selling prices declined by approximately 19%, partially offset by a 12% increase in volume.  Revenue from the Defense Logistics Agency (“DLA”) increased by approximately $2.3 million in the quarter.  The Company recorded lower of cost or net realizable value (“NRV”) adjustments to its inventory of $9.2 million and $34.7 million during the second quarter of 2019 and 2018, respectively.  The 2019 NRV adjustment was primarily attributed to the remaining R-22 inventory purchased in connection with the acquisition of Aspen Refrigerants, Inc. (“ARI”).  Selling, general and administrative (“SG&A”) expenses for the three-month period ended June 30, 2019 were $6.8 million, a decrease of $3.8 million from the $10.6 million reported during the comparable 2018 period. The reduction in SG&A was primarily attributable to professional fees pertaining to integration and services relating to the acquisition of ARI, which declined by approximately $2.5 million from the second quarter of 2018, as well as a reduction in payroll-related expenses, advertising and other professional fees in the second quarter of 2019 compared to the 2018 period.  The Company’s net loss for the second quarter of 2019, which includes the above mentioned $9.2 million inventory adjustment, was $13.8 million, or $(0.32) per basic and diluted share.  This compares to a net loss for the second quarter of 2018, which includes the above mentioned $34.7 million inventory adjustment, of $30.6 million or $(0.72) per basic and diluted share.

For the six months ended June 30, 2019, Hudson reported revenues of $90.7 million compared to $100.3 million in the comparable 2018 period.  Refrigerant average selling prices declined by approximately 19%, partially offset by a 3% increase in refrigerant volume.  Revenue from the DLA also increased by approximately $4.1 million.  Net loss for the first half of 2019, which includes the above mentioned $9.2 million inventory adjustment, was $17.8 million, or ($0.42) per basic and diluted share.  This compares to a net loss in the first half of 2018, which includes the above mentioned $34.7 million inventory adjustment, of $33.7 million, or $(0.79) per basic and diluted share.

In August 2019, following the end of the second quarter, the Company successfully completed the working capital adjustment process arising from the acquisition of ARI, including the settlement of related litigation, which resulted in Airgas agreeing to make a cash payment to Hudson of $8.9 million.

Loan Covenant Defaults

The Company failed to comply with the financial covenants contained in its term loan facility and its revolving credit facility at June 30, 2019 and is currently in default under those agreements.  Other than the financial covenants, the Company has fully complied with all of its debt payment and other obligations on a timely basis and had over $21 million of availability pursuant to the borrowing base formula in its revolving loan facility as of June 30, 2019.  As such, the Company does not believe that the covenant defaults relate to a liquidity issue but relate to a leverage issue under the current covenant structure. The Company is currently seeking a waiver and amendment from its lenders to waive the covenant defaults and reset the financial covenants under both the term loan facility and the revolving credit facility.  However, the lenders have the right to declare all amounts under these facilities to be immediately due and payable, and there can be no assurance that the Company will be able to obtain any such waivers or amendments on acceptable terms or at all.

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented,
“This was a disappointing quarter as we continued to encounter lower prices, primarily on R-22, when compared to 2018.  Temperatures remained cool for much of the quarter, which reduced urgency for customers and a ‘just in time’ buying pattern continued.  On a positive note, even with poor weather conditions, we did see refrigerant sales volumes increase meaningfully during the second quarter, and, as we move through the third fiscal quarter, temperatures have risen to more seasonal levels.

“A benefit of our experience in this industry is that we have faced and managed through price corrections and disappointing sales seasons before and as we sell through the higher priced layers within our FIFO inventory, we expect to return to more historical margin levels.  We remain optimistic about the long-term market opportunity and remain focused on driving growth by leveraging our positioning at two key points in the supply chain and our ability to provide any refrigerant, anywhere at any time.”

Conference Call Information

The Company will host a conference call and webcast today, Wednesday, August 14, 2019 at 5:00 p.m. Eastern Time, to discuss the Company’s second quarter results.

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 September 14, 2019 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331.  Callers should use conference ID: 53040. 

About Hudson Technologies                                       

Hudson Technologies, Inc. is a leading provider of innovative and sustainable solutions for optimizing performance and enhancing reliability of commercial and industrial chiller plants and refrigeration systems. Hudson's proprietary RefrigerantSide® Services increase operating efficiency, provide energy and cost savings, reduce greenhouse gas emissions and the plant’s carbon footprint while enhancing system life and reliability of operations at the same time. RefrigerantSide® Services can be performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies. Hudson also offers SMARTenergy OPS®, which is a cloud-based Managed Software as a Service for continuous monitoring, Fault Detection and Diagnostics and real-time optimization of chilled water plants. In addition, the Company sells refrigerants and provides traditional reclamation services for commercial and industrial air conditioning and refrigeration uses. 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. These include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future including, without limitation, Hudson’s expectations with respect to the benefits, costs and other anticipated financial impacts of the ARI transaction; future financial and operating results of the Company; the Company’s ability to secure amendments to its credit facilities and thereafter to remain in compliance with the financial covenants therein; and the Company’s plans, objectives, expectations and intentions with respect to future operations and services. 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 ARI’s operations and any assets it acquires from other third parties into its operations, and other risks detailed in the Company's 10-K for the year ended December 31, 2018 and other subsequent filings with the Securities and Exchange Commission. Examples of such risks and uncertainties specific to the ARI transaction include, but are not limited to, the possibility that the expected benefits will not be realized, or will not be realized within the expected time period. 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: Company Contact:
John Nesbett/Jennifer Belodeau Brian F. Coleman, President & COO
IMS Investor Relations  Hudson Technologies, Inc.
(203) 972-9200 (845) 735-6000
jnesbett@institutionalms.com bcoleman@hudsontech.com 


Hudson Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(Amounts in thousands, except for share and par value amounts)

    June 30,     December 31,  
    2019     2018  
    (unaudited)        
Assets                
Current assets:                
Cash and cash equivalents   $ 1,302     $ 2,272  
Trade accounts receivable – net     28,050       14,065  
Inventories – net     75,247       101,962  
Prepaid expenses and other current assets     6,783       5,287  
Total current assets     111,382       123,586  
                 
Property, plant and equipment, less accumulated depreciation     24,973       27,395  
Goodwill     47,803       47,803  
Intangible assets, less accumulated amortization     27,977       29,451  
Right of use asset     7,014       -  
Other assets     87       106  
Total Assets   $ 219,236     $ 228,341  
                 
Liabilities and Stockholders’ Equity                
Current liabilities:                
Trade accounts payable   $ 9,681     $ 8,671  
Accrued expenses and other current liabilities     18,162       19,023  
Accrued payroll     1,101       1,046  
Short-term debt     33,000       29,000  
Current maturities of long-term debt     99,674       2,672  
Total current liabilities     161,618       60,412  
Deferred tax liability     586       443  
Long-term lease liabilities     5,012        
Long-term debt, less current maturities     6       98,273  
Total Liabilities     167,222       159,128  
                 
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            
Common stock, $0.01 par value; shares authorized 100,000,000; issued and outstanding 42,612,431 at June 30, 2019 and 42,602,431 at December 31, 2018     426       426  
Additional paid-in capital     116,356       115,719  
Accumulated deficit     (64,768 )     (46,932 )
Total Stockholders’ Equity     52,014       69,213  
                 
Total Liabilities and Stockholders’ Equity   $ 219,236     $ 228,341  
                 


Hudson Technologies, Inc. and Subsidiaries

Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except for share and per share amounts)

    Three months
ended June 30,
    Six months
ended June 30,
 
    2019     2018     2019     2018  
                         
Revenues   $ 56,011     $ 57,831     $ 90,675     $ 100,259  
Cost of sales     58,377       83,913       86,056       118,436  
Gross profit     (2,366 )     (26,082 )     4,619       (18,177 )
                                 
Operating expenses:                                
Selling, general and administrative     6,848       10,605       12,872       18,682  
Amortization     753       741       1,474       1,483  
Total operating expenses     7,601       11,346       14,346       20,165  
                                 
Operating loss     (9,967 )     (37,428 )     (9,727 )     (38,342 )
                                 
Other expense:                                
Net interest expense     (4,267 )     (3,346       (8,474       (6,552 )
Other income     508       --       508       --  
Total other expense     (3,759       (3,346 )     (7,966 )     (6,552 )
                                 
Loss before income taxes     (13,726 )     (40,774 )     (17,693 )     (44,894 )
                                 
Income tax (benefit) expense     71       (10,158 )     143       (11,222 )
                                 
Net loss   $ (13,797 )   $ (30,616 )   $ (17,836 )   $ (33,672 )
                                 
Net loss per common share – Basic and Diluted   $ (0.32 )   $ (0.72 )   $ (0.42 )   $ (0.79 )
Weighted average number of shares outstanding – Basic and Diluted     42,604,189       42,403,140       42,603,315       42,403,084  
                                 

 

Primary Logo

Distribution channels: Business & Economy


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.