PEARL RIVER, NY – AUGUST 2, 2012 – 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.”
CONFERENCE CALL INFORMATION
The Company will host a conference call to discuss the second 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 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 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