PEARL RIVER, NY – OCTOBER 10, 2017 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced preliminary results for the third quarter and nine months ended September 30, 2017.
In conjunction with today’s closing of the Company’s acquisition of Airgas-Refrigerants, Inc., and given the proximity to the close of the third quarter of 2017, Hudson has chosen to provide a preliminary range of estimated earnings per share and revenues for the three and nine months ended September 30, 2017, as well as additional refrigerant pricing trend information.
The Company expects to report revenues for the three months ended September 30, 2017 of approximately $25 million and net income per share in the range of approximately $0.03 to $0.05 on a fully diluted basis. For the nine months ended September 30, 2017, Hudson expects to report revenues of approximately $116 million and net income per share of approximately $0.36 to $0.38 on a fully diluted basis. The anticipated results for the third quarter and nine months include non-recurring SG&A expense related to corporate development initiatives of approximately $1.0 million, or $0.01 per diluted share and $2.4 million, or $0.03 per diluted share, respectively.
As previously disclosed, entering the third quarter of this year Hudson expected declines in price and volume for all refrigerants. However, the magnitude of the decline was greater than previously anticipated. Notwithstanding these trends, the Company is expecting to achieve its gross margin target of 30% for the entire nine-month 2017 cooling season.
On a combined basis, assuming that third quarter 2017 included revenue from Airgas-Refrigerants, Inc. (“ARI”), pro forma consolidated revenue would have been approximately $57 million for the three months ended September 30, 2017.
Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “As we noted on our most recent conference call in August, following the close of the second quarter, we began to see a downturn in both volume and pricing for all refrigerants. At that point R-22 prices had decreased to $18 per pound and the pricing pressure continued through the end of the 2017 cooling season, with R-22 prices declining further. We also indicated during that call that we were experiencing declining demand for all refrigerants and noted that we expected the price volatility for HFCs that occurred in the second quarter would end, and that HFC pricing would return to January 2017 levels. The pricing change for HFCs occurred faster than anticipated, also impacting our results for the third quarter.
“We are energized by the completion of our acquisition of ARI and confident about the long-term opportunities ahead for our combined Company related to the sale and reclamation of R-22 refrigerants as well as HFC refrigerants, as the industry continues its transition to next generation technology and equipment. We expect to release our full third quarter results during the week of November 4 when we will also share the combined historical results and outlook for both businesses.”
The Company cautions that the preliminary financial results presented here are unaudited estimates. These estimates and trends may or may not be realized and they may be based upon judgments or assumptions that prove incorrect. These estimates have not been reviewed by the Company’s Independent Registered Public Accounting Firm and are therefore subject to modification in the course of completing the Company’s quarter-end financial review and completion of the Company’s full financial results. The Company’s actual results may be materially different from its estimates.
