Form 8-K HUDSON TECHNOLOGIES INC For: Jul 29

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT Pursuant

to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

 

Date of report (Date of earliest event reported): July 29, 2015

 

Hudson Technologies, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

New York

(State or Other Jurisdiction of Incorporation)

 

1-13412	13-3641539
(Commission File Number)	(IRS Employer Identification No.)

 

PO Box 1541, One Blue Hill Plaza    Pearl River, New York	10965
(Address of Principal Executive Offices)	(Zip Code)

 

(845) 735-6000

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On July 29, 2015 Hudson Technologies, Inc. issued a press release announcing its financial results for the three and six months ended June 30, 2015. A copy of the press release is furnished herewith as Exhibit 99.1.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit 99.1

Press Release issued July 29, 2015.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	HUDSON TECHNOLOGIES, INC.
Date: July 29, 2015	By:	/s/ Stephen P. Mandracchia
	Name:	Stephen P. Mandracchia
	Title:	Vice President Legal & Regulatory, Secretary

 

 

 

EXHIBIT 99.1

 

Hudson Technologies REPORTS Record Second Quarter 2015 Revenues of $28.6 Million; EPS OF $0.08

 

pearl river, ny – July 29, 2015 – Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the second quarter and six months ended June 30, 2015.

 

Revenues for the three months ended June 30, 2015 were $28.6 million, an increase of 70% compared to $16.9 million in the comparable 2014 period. The revenue increase in the quarter is primarily related to an increase in sales volumes of certain refrigerants and a higher selling price of certain refrigerants, as well as revenue contribution from the Company’s recent acquisitions. Gross margin increased to 25% as compared to 13% in the second quarter of 2014. Net income for the quarter was $2.8 million, or $0.09 per basic and $0.08 per diluted share, compared to net income of $0.3 million, or $0.01 per basic and diluted share, in the second quarter of 2014.

 

For the first six months of 2015, Hudson recorded revenues of $50.7 million, a 56% increase as compared to $32.5 million in the comparable 2014 period. The increase is primarily related to an increase in sales volumes of certain refrigerants, and a higher selling price of certain refrigerants. Gross margin increased to 25% in the first half of 2015 as compared to 12% in the first half of 2014. Net income for the first half of 2015 was $4.7 million, or $0.14 per basic and diluted share, compared to $0.5 million or $0.02 per basic and diluted share in the first half of 2014.

 

Kevin J. Zugibe, Chairman and Chief Executive Officer of Hudson Technologies commented, “We are very pleased to have built upon our strong first quarter performance to deliver record revenues, strong margins and significantly improved profitability in the second quarter. During the quarter we saw increased sales volume and benefitted from a continued higher average selling price for R-22 refrigerants, particularly compared to the weaker R-22 pricing we contended with last year. Likewise, our acquisitions have provided revenue contribution as a result of the expanded customer base and increased geographic reach.”

 

Mr. Zugibe continued, “We remain focused on expanding our reclamation capacity as we prepare for anticipated increased demand for reclaimed refrigerant as virgin production of R-22 is eliminated. With the end of R-22 production, reclamation will become the primary source of R-22 supply and we are intent on growing our position as the leading reclaimer in the marketplace. Additionally, there are indications that HFCs, the replacement refrigerants for R-22 and CFCs, will also be subject to restrictions on virgin production in response to concerns over their high global warming potential. The strategy that we have put in place for the R-22 phase out provides us with the opportunity to take advantage of the HFC phase out. We believe our industry relationships, established distribution network, and proprietary technology leave us well positioned to capitalize on the changing refrigerant marketplace.”

 

 

CONFERENCE CALL INFORMATION

 

The Company will host a conference call to discuss the second quarter results today, July 29, 2015 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 29, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13611457. A transcript of the call will be available on the Hudson Technologies website approximately 24 hours after its completion.

 

 

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, 2014 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: John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) (203) 972-9200 [email protected]

Company Contact: Brian F. Coleman, President & COO Hudson Technologies, Inc. (845) 735-6000 [email protected]

 

 

 

Hudson Technologies, Inc. and subsidiaries

Consolidated Income Statements

(unaudited)

(Amounts in thousands, except for share and per share amounts)

 

		Three month period ended June 30,								Six month period ended June 30,
		2015				2014				2015				2014
Revenues		$	28,637			$	16,875			$	50,740			$	32,459
Cost of sales			21,425				14,673				38,003				28,454
Gross profit			7,212				2,202				12,737				4,005
Operating expenses:
Selling and marketing			1,054				614				2,014				1,264
General and administrative			1,397				931				2,692				1,617
Total operating expenses			2,451				1,545				4,706				2,881
Operating income			4,761				657				8,031				1,124
Other (expense):
Interest expense			(236	)			(186	)			(443	)			(395	)
Total other (expense)			(236	)			(186	)			(443	)			(395	)
Income before income taxes			4,525				471				7,588				729
Income tax expense			1,714				163				2,884				261
Net income		$	2,811			$	308			$	4,704			$	468
Net income per common share -Basic		$	0.09			$	0.01			$	0.14			$	0.02
Net income per common share - Diluted		$	0.08			$	0.01			$	0.14			$	0.02
Weighted average number of shares outstanding - Basic			32,542,672				26,267,746				32,454,175				25,679,066
Weighted average number of shares outstanding - Diluted			34,383,092				27,846,672				34,254,901				27,357,936

 

 

 

Hudson Technologies, Inc. and subsidiaries

Consolidated Balance Sheets

(Amounts in thousands, except for share and par value amounts)

 

 

		June 30, 2015				December 31, 2014
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	1,483			$	935
Trade accounts receivable - net			14,675				3,968
Inventories Deferred tax asset			44,953 397				37,017 397
Prepaid expenses and other current assets			4,801				1,011
Total current assets			66,309				43,328
Property, plant and equipment, less accumulated depreciation			7,808				7,887
Other assets			100				102
Deferred tax asset			3,212				6,031
Goodwill			2,603				265
Intangible assets, less accumulated amortization			3,522				2,322
Total Assets		$	83,554			$	59,935
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	17,792			$	4,510
Accrued payroll			401				384
Short-term debt and current maturities of long-term debt			10,290				6,320
Total current liabilities			28,483				11,214
Other liabilities			1,533				333
Long-term debt, less current maturities			4,441				4,389
Total Liabilities			34,457				15,936
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 32,621,045 and 32,312,276			326				323
Additional paid-in capital			61,896				61,505
Accumulated deficit			(13,125	)			(17,829	)
Total Stockholders' Equity			49,097				43,999
Total Liabilities and Stockholders' Equity		$	83,554			$	59,935

 

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