Hudson Technologies Reports Fourth Quarter and Year End 2024 Results
Rhea-AI Summary
Hudson Technologies (NASDAQ: HDSN) reported its Q4 and full-year 2024 results, showing mixed performance amid challenging market conditions. The company ended 2024 with a strong balance sheet of $70.1 million in cash and no debt. Full-year revenues decreased 18% to $237.1 million, with gross margin compression to 28% from 39% in 2023, primarily due to HFC refrigerant price declines of up to 45%.
Despite market challenges, Hudson achieved an 18% increase in refrigerant reclamation volume and completed the strategic acquisition of USA Refrigerants in June 2024. The company's net income for 2024 was $24.4 million ($0.54 per basic share), compared to $52.2 million in 2023. During 2024, Hudson executed $8.1 million in stock buybacks, with $5.5 million occurring in Q4.
Positive
- Strong balance sheet with $70.1M cash and zero debt
- 18% increase in refrigerant reclamation volume
- Strategic acquisition of USA Refrigerants expanding recovery network
- $8.1M stock buyback completed
- Includes $2.3M non-recurring income from litigation settlement
Negative
- Revenue declined 18% to $237.1M
- Net income dropped 53% to $24.4M
- Gross margin compressed to 28% from 39%
- HFC refrigerant prices declined up to 45%
- Q4 operating loss of $3.2M vs $4.7M profit in 2023
News Market Reaction – HDSN
On the day this news was published, HDSN gained 3.39%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Strong unlevered balance sheet with
$70.1 million in cash and no debt - Repurchased
$8.1 million of common stock in 2024 - Increased refrigerant reclamation volume by
18% in 2024
WOODCLIFF LAKE, N.J., March 06, 2025 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the fourth quarter and year ended December 31, 2024.
Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies, commented, “Our fourth quarter 2024 results reflected the seasonally slower sales activity we have historically seen outside of our nine-month selling season. Full year 2024 results reflected a challenging selling season in which market pricing for certain HFC refrigerants declined by up to
“As we move through 2025, we maintain our long-term view that the current phase down of HFC refrigerants creates a significant opportunity for our reclamation business. The installed base of HFC equipment will be operable for many years to come, and as the supply of virgin HFCs becomes limited, reclaimed HFCs will be needed to fill the anticipated supply/demand gap. With that in mind, we are intent on maximizing our recovery and reclamation capabilities, as evidenced by our strategic acquisition of USA Refrigerants in June 2024. Refrigerant recovery is integral to the reclamation process and the USA Refrigerants acquisition provides Hudson access to a previously untapped recovery network. This, coupled with our ongoing efforts to promote recovery in the field, has strengthened our reclaimed refrigerant supply chain. We are now better positioned to continue to grow our leadership position in the reclamation landscape.
“Our strong unlevered balance sheet with
Three Months Results
For the quarter ended December 31, 2024, Hudson reported:
- Revenues of
$34.6 million , a decrease of23% compared to revenues of$44.9 million in the comparable 2023 period. The decrease is related to decreased prices for certain refrigerants and lower DLA activity. - Gross margin of
17% , compared to31% in the fourth quarter of 2023. The gross margin compression in 2024 was predominately price driven. - Selling, general and administrative expenses decreased to
$8.0 million compared to$8.5 million in the fourth quarter of 2023. - Operating loss of (
$3.2) million , compared to operating income of$4.7 million in the prior year period. - Net loss of (
$2.6) million or ($0.06) per basic and diluted share in the fourth quarter of 2024, compared to net income of$3.9 million or$0.09 per basic and$0.08 per diluted share in the same period of 2023.
Full Year 2024 Results
For the full year ended December 31, 2024, Hudson reported:
- Revenues of
$237.1 million , a decrease of18% compared to revenues of$289.0 million for 2023. Revenues declined due to decreased selling prices for certain refrigerants, partially offset by slightly increased sales volumes. Additionally, as expected, revenue from the Company’s DLA contract during full year 2024 declined as compared to full year 2023 contract revenue, related to surge purchases of approximately$20 million recorded in 2023. - Gross margin of
28% , compared to gross margin of39% in full year 2023. The gross margin compression in 2024 was predominately price driven. - Selling, general and administrative expenses increased to
$33.0 million compared to$30.5 million in 2023. Included in the 2024 selling, general and administrative expenses are approximately$0.7 million of costs associated with the USA Refrigerants acquisition and IT expenses. - Operating income of
$29.3 million compared to operating income of$78.2 million in 2023. - Net income of
$24.4 million or$0.54 per basic and$0.52 per diluted share, compared to net income of$52.2 million or$1.15 per basic and$1.10 per diluted share in full year 2023. Net income in full year 2024 included approximately$2.3 million of non-recurring income, arising in part from proceeds of a litigation settlement.
Conference Call Information
Hudson Technologies will host a conference call and webcast on Thursday, March 6, 2025 at 5:00 p.m. Eastern Time to discuss the Company’s fourth quarter and full year 2024 results.
Please visit this link at least 5 minutes prior to the scheduled start time in order to register and receive dial-in and webcast details.
A replay of the teleconference will be available until April 5, 2025, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 52007.
About Hudson Technologies
Hudson Technologies, Inc. is a leading provider of innovative and sustainable refrigerant products and services to the Heating Ventilation Air Conditioning and Refrigeration industry. For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the first in the United States and largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute standard for reuse as certified EMERALD Refrigerants™. The Company's products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer's site, consisting of system decontamination to remove moisture, oils and other contaminants. The Company’s SmartEnergy OPS® service is a web-based real time continuous monitoring service applicable to a facility’s refrigeration systems and other energy systems. The Company’s Chiller Chemistry® and Chill Smart® services are also predictive and diagnostic service offerings. As a component of the Company’s products and services, the Company also generates carbon offset projects.
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, the ability to meet financial covenants under its existing credit facility, 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, 2023 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 IMS Investor Relations (203) 972-9200 jnesbett@imsinvestorrelations.com | Company Contact: Brian F. Coleman, President & CEO Hudson Technologies, Inc. (845) 735-6000 bcoleman@hudsontech.com |
| Hudson Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) (Amounts in thousands, except for share and par value amounts) | ||||||
| December 31, | ||||||
| 2024 | 2023 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 70,134 | $ | 12,446 | ||
| Trade accounts receivable – net | 13,629 | 25,169 | ||||
| Inventories | 96,247 | 154,450 | ||||
| Income tax receivable | 6,284 | 5,438 | ||||
| Prepaid expenses and other current assets | 9,218 | 7,492 | ||||
| Total current assets | 195,512 | 204,995 | ||||
| Property, plant and equipment, less accumulated depreciation | 21,554 | 19,375 | ||||
| Goodwill | 62,280 | 47,803 | ||||
| Intangible assets, less accumulated amortization | 14,100 | 14,771 | ||||
| Right of use asset | 6,878 | 6,591 | ||||
| Other assets | 2,328 | 3,137 | ||||
| Total Assets | $ | 302,652 | $ | 296,672 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable | $ | 8,692 | $ | 23,399 | ||
| Accrued expenses and other current liabilities | 33,813 | 31,537 | ||||
| Accrued payroll | 3,704 | 3,615 | ||||
| Other short-term liabilities | 1,600 | — | ||||
| Total current liabilities | 47,809 | 58,551 | ||||
| Deferred tax liability | 4,076 | 4,558 | ||||
| Long-term lease liabilities | 4,917 | 4,790 | ||||
| Total Liabilities | 56,802 | 67,899 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity: | ||||||
| Preferred stock, shares authorized 5,000,000: Series A Convertible preferred stock, | — | — | ||||
| Common stock, | 443 | 455 | ||||
| Additional paid-in capital | 110,792 | 118,091 | ||||
| Retained earnings | 134,615 | 110,227 | ||||
| Total Stockholders’ Equity | 245,850 | 228,773 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 302,652 | $ | 296,672 | ||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) (Amounts in thousands, except for share and per share amounts) | |||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Revenues | $ | 34,643 | $ | 44,856 | $ | 237,118 | $ | 289,025 | |||||||||
| Cost of sales | 28,869 | 30,886 | 171,410 | 177,518 | |||||||||||||
| Gross profit | 5,774 | 13,970 | 65,708 | 111,507 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Selling, general and administrative | 7,998 | 8,532 | 33,017 | 30,542 | |||||||||||||
| Amortization | 1,022 | 698 | 3,390 | 2,793 | |||||||||||||
| Total operating expenses | 9,020 | 9,230 | 36,407 | 33,335 | |||||||||||||
| Operating (loss) income | (3,246 | ) | 4,740 | 29,301 | 78,172 | ||||||||||||
| Other income (expense) | 527 | (246 | ) | 2,726 | (8,352 | ) | |||||||||||
| Income (loss) before income taxes | (2,719 | ) | 4,494 | 32,027 | 69,820 | ||||||||||||
| Income tax (benefit) expense | (154 | ) | 549 | 7,639 | 17,573 | ||||||||||||
| Net (loss) income | $ | (2,565 | ) | $ | 3,945 | $ | 24,388 | $ | 52,247 | ||||||||
| Net (loss) income per common share – Basic | $ | (0.06 | ) | $ | 0.09 | $ | 0.54 | $ | 1.15 | ||||||||
| Net (loss) income per common share – Diluted | $ | (0.06 | ) | $ | 0.08 | $ | 0.52 | $ | 1.10 | ||||||||
| Weighted average number of shares outstanding – Basic | 44,863,767 | 45,496,296 | 45,329,789 | 45,385,433 | |||||||||||||
| Weighted average number of shares outstanding – Diluted | 44,863,767 | 47,446,365 | 47,076,477 | 47,338,231 | |||||||||||||
| Hudson Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Amounts in thousands) | ||||||||
| For the years ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 24,388 | $ | 52,247 | ||||
| Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
| Depreciation | 2,997 | 2,989 | ||||||
| Amortization of intangible assets | 3,390 | 2,793 | ||||||
| Impairment of long lived assets | 441 | 2,120 | ||||||
| Lower of cost or net realizable value inventory adjustment | 3,028 | (2,259 | ) | |||||
| Allowance for doubtful accounts | (766 | ) | 659 | |||||
| Amortization of deferred finance cost | 228 | 726 | ||||||
| Loss on extinguishment of debt | — | 3,427 | ||||||
| Share based compensation | 842 | 2,306 | ||||||
| Deferred tax expense | (482 | ) | 4,314 | |||||
| Changes in assets and liabilities: | ||||||||
| Trade accounts receivable | 12,306 | (4,957 | ) | |||||
| Inventories | 60,248 | (6,814 | ) | |||||
| Prepaid and other assets | (1,144 | ) | (3,182 | ) | ||||
| Lease obligations | (92 | ) | — | |||||
| Income taxes receivable | (846 | ) | (5,277 | ) | ||||
| Accounts payable and accrued expenses | (12,727 | ) | 9,455 | |||||
| Cash provided by operating activities | 91,811 | 58,547 | ||||||
| Cash flows from investing activities: | ||||||||
| Payments for acquisition | (20,670 | ) | — | |||||
| Additions to property, plant, and equipment | (5,300 | ) | (3,580 | ) | ||||
| Cash used in investing activities | (25,970 | ) | (3,580 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net proceeds from issuances of common stock and exercises of stock options | — | 39 | ||||||
| Repurchase of common shares | (8,146 | ) | — | |||||
| Excess tax benefits from exercise of stock options | (7 | ) | (694 | ) | ||||
| Payment of deferred financing cost | — | — | ||||||
| Proceeds from long term debt | — | — | ||||||
| Repayment of long-term debt | — | (47,161 | ) | |||||
| Cash used in financing activities | (8,153 | ) | (47,816 | ) | ||||
| Increase in cash and cash equivalents | 57,688 | 7,151 | ||||||
| Cash and cash equivalents at beginning of period | 12,446 | 5,295 | ||||||
| Cash and cash equivalents at end of period | $ | 70,134 | $ | 12,446 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during period for interest | $ | 690 | $ | 4,475 | ||||
| Cash paid for income taxes | $ | 8,990 | $ | 18,536 | ||||
| Property and equipment included in accrued expenses and other current liabilities | $ | 655 | 337 | |||||
FAQ
What caused Hudson Technologies (HDSN) revenue decline in 2024?
How much stock did Hudson Technologies (HDSN) repurchase in Q4 2024?
What was Hudson Technologies' (HDSN) cash position at the end of 2024?
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What were Hudson Technologies' (HDSN) earnings per share in 2024?
