Workflow
Hudson Technologies(HDSN)
icon
Search documents
Hudson Technologies(HDSN) - 2025 Q1 - Quarterly Report
2025-05-09 20:05
Financial Performance - Revenues for the three months ended March 31, 2025, were $55,343,000, a decrease of 15.3% compared to $65,250,000 for the same period in 2024[10] - Gross profit for the same period was $12,068,000, down 43.7% from $21,421,000 in 2024[10] - Net income for Q1 2025 was $2,758,000, a decline of 71.2% compared to $9,562,000 in Q1 2024[10] - For the three-month period ended March 31, 2025, total revenues were $55.343 million, a decrease of 15.2% from $65.250 million in the same period of 2024[53] - Product and related sales accounted for $53.865 million, down from $63.811 million, representing a decline of 15.6% year-over-year[53] - RefrigerantSide® Services revenue was $1.478 million, slightly up from $1.439 million, indicating a growth of 2.7%[53] - Net income for the three-month period ended March 31, 2025, was $2.758 million, a significant decrease of 71.1% from $9.562 million in the prior year[57] - The effective tax rate for the three-month period ended March 31, 2025, was 24.5%, compared to 23.9% for the same period in 2024[132] Assets and Liabilities - Total current assets increased to $201,344,000 as of March 31, 2025, from $195,512,000 at the end of 2024[8] - Total liabilities rose to $61,063,000 as of March 31, 2025, compared to $56,802,000 at the end of 2024[8] - The Company reported total inventories of $78.299 million as of March 31, 2025, down from $96.247 million as of December 31, 2024, reflecting a decrease of approximately 18.7%[73] - The Company had trade receivables of $27.5 million, an increase of $13.9 million from $13.6 million at December 31, 2024, primarily due to seasonal timing[136] - The cylinder deposit liability increased to $20.5 million at March 31, 2025, compared to $19.4 million at December 31, 2024, showing a growth of 5.7%[47] - The Company had working capital of $149.0 million, an increase of $1.3 million from $147.7 million at December 31, 2024[134] Cash Flow - Cash provided by operating activities for Q1 2025 was $14,156,000, compared to a cash used of $933,000 in Q1 2024[15] - Cash and cash equivalents at the end of Q1 2025 were $81,048,000, an increase from $70,134,000 at the beginning of the period[15] - Net cash provided by operating activities for the three-month period ended March 31, 2025, was $14.2 million, compared to net cash used of $0.9 million for the same period in 2024[137] - Net cash used in investing activities for the three-month period ended March 31, 2025, was $1.4 million, up from $1.0 million in the comparable 2024 period, mainly due to capital expenditures related to the ERP system[138] Acquisition - The company completed the acquisition of USA Refrigerants for approximately $20.7 million in cash, with a potential contingent payment of up to $2.0 million[22] - The acquisition is expected to enhance the company's refrigerant distribution capabilities and broaden its customer network[23] - The acquisition resulted in the recognition of $14.5 million of goodwill, which is expected to be deductible for tax purposes[115] - The Company incurred $0.3 million of acquisition costs related to the USA Refrigerants Acquisition, included in SG&A expenses for the year ended December 31, 2024[115] Shareholder Actions - During the three-month period ended March 31, 2025, options to purchase 391,140 shares were granted, with a weighted average exercise price of $5.95[95] - The Company repurchased 308,588 shares for $1.8 million at an average price of $5.94 per share during the three-month period ended March 31, 2025[139] - The total dollar value of shares that may yet be purchased under the repurchase program is $8.2 million[170] - The Board of Directors approved an increase to the repurchase program, allowing for up to $20 million in shares to be purchased during 2024 and 2025[172] Financial Covenants and Compliance - The Company had borrowing availability of approximately $75 million from the Amended Wells Fargo Facility as of March 31, 2025, with no balance outstanding[105] - The Amended Wells Fargo Facility includes a financial covenant requiring a minimum liquidity of at least $5 million, with at least $3 million derived from availability[103] - The Company was in compliance with all covenants under the Amended Wells Fargo Facility as of March 31, 2025[110] Market Risks - The Company is exposed to market risk from fluctuations in the demand, price, and availability of refrigerants, which could adversely affect revenue from refrigerant sales[162] - The United States Defense Logistics Agency accounted for over 10% of the Company's revenue and outstanding accounts receivable, totaling $6.2 million as of March 31, 2025[157] Internal Controls and Accounting - The Company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[164] - No changes occurred during the quarter ended March 31, 2025, that materially affected the internal control over financial reporting[165] - The Company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[66][68]
Hudson Technologies Roars: Volatility Or Value?
Seeking Alpha· 2025-05-09 18:04
Core Insights - Hudson Technologies (NASDAQ: HDSN) experienced a significant surge of 20% following its earnings report, but subsequently retraced by losing 4% on the second day after earnings [1] Financial Performance - Both revenue and earnings per share (EPS) for Hudson Technologies decreased year-over-year [1]
Hudson Pacific: 14% On Bonds Beats The Preferreds By A Mile
Seeking Alpha· 2025-05-08 15:57
Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value provides Covered Calls for lower volatility income investing, focusing on capital preservation [3] Group 2 - Hudson Pacific Properties (HPP) and their preferred shares were previously recommended for investors to exit, suggesting a cautious stance on these investments [2] - The investing group Conservative Income Portfolio collaborates with Preferred Stock Trader, combining expertise in income-generating portfolios and bond ladders [4] - The team behind Trapping Value has over 40 years of combined experience in generating options income while emphasizing capital preservation [4]
Hudson Technologies (HDSN) Surpasses Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-07 22:45
Company Performance - Hudson Technologies reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.20 per share a year ago, representing an earnings surprise of 500% [1] - The company posted revenues of $55.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 17.83%, but down from $65.25 million year-over-year [2] - Over the last four quarters, Hudson Technologies has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [2] Stock Movement and Outlook - Hudson Tech shares have increased approximately 20.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $67.13 million, and for the current fiscal year, it is $0.32 on revenues of $218.5 million [7] Industry Context - The Industrial Services industry, to which Hudson Technologies belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Hudson Technologies' stock performance [5][6]
Hudson Technologies(HDSN) - 2025 Q1 - Earnings Call Transcript
2025-05-07 22:02
Hudson (HDSN) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Jennifer Belodeau - Vice PresidentBrian Coleman - Chairman of the Board, President & CEOKathleen L. Houghton - SVP - Sales & MarketingBrian Bertaux - Chief Financial OfficerAustin Moeller - Director - Equity Research Conference Call Participants Ryan Sigdahl - Partner & Senior Research AnalystNone - Analyst Operator note this conference is being recorded. I will now turn the conference over to your host, Jen Bellodeau of IMS I ...
Hudson Technologies(HDSN) - 2025 Q1 - Earnings Call Transcript
2025-05-07 22:00
Financial Data and Key Metrics Changes - Company reported revenue of $55.3 million for Q1 2025, a 15% decrease compared to the same period in 2024, primarily due to lower refrigerant market prices offsetting increased sales volume [18][19] - Gross margin decreased to 22% from 33% year-over-year, attributed to low refrigerant market prices [19] - Operating income fell to $3.1 million, a decrease of $9.7 million compared to the previous year [19] - Net income was $2.8 million or $0.06 per diluted share, down from $9.6 million or $0.20 per diluted share in Q1 2024 [20] Business Line Data and Key Metrics Changes - The reclamation business saw increased reclaim volume during the first quarter, supported by the strategic acquisition of USA Refrigerants [6] - Revenue from the DLA contract remained consistent with a historical mid $30 million annualized run rate [18] Market Data and Key Metrics Changes - Pricing for certain HFCs was reported to be under $6 per pound at the close of Q1, but has since increased to over $6 per pound [7] - The demand for new lower GWP refrigerants is currently exceeding production volumes, with expectations for production to balance out with demand by the latter part of the cooling season [9] Company Strategy and Development Direction - Company is focused on improving purchasing presence in the marketplace and enhancing reclamation capabilities [6] - The capital allocation strategy emphasizes organic growth, strategic acquisitions, and opportunistic stock repurchases [11][20] - The transition to lower GWP refrigerants presents a long-term growth opportunity for the reclamation business as the supply of virgin HFCs declines [15] Management's Comments on Operating Environment and Future Outlook - Management noted the microeconomic environment is volatile, with tariff costs beginning to affect supply side costs [8] - There is uncertainty regarding costs and prices due to fluctuations in tariffs and supply disruptions related to the transition to next-generation refrigerants [8][10] - Management remains optimistic about the industry's transition representing a significant long-term growth opportunity [22] Other Important Information - Company ended the quarter with $81 million in cash and no debt, strengthening its unlevered balance sheet [11][20] - A total of $4.5 million of common stock has been repurchased under the stock buyback plan in 2025 [20] Q&A Session Summary Question: What is driving the recent price increases? - Management indicated that supply chain disruptions and tariffs have contributed to higher prices, but the permanence of these price changes will be clearer as the cooling season progresses [25][27] Question: How does the cylinder shortage impact margins? - Management acknowledged that while Hudson has advantages with reusable cylinders, supply disruptions are occurring due to longer lead times for valve manufacturing and increased demand for disposable cylinders [28][30] Question: Is there any benefit to reclamation from current macroeconomic conditions? - Management reported an increase in reclaimed volumes and expects continued growth in reclamation due to educational efforts and partnerships [31] Question: How have imports of refrigerants through Mexico been affected by tariffs? - Management noted that while there is limited production capacity in Mexico, the overall market is more impacted by tariffs on goods from India and China [36][38] Question: How is the cooler weather in the Northeast affecting demand? - Management stated that cooler weather does not significantly impact demand until late May, when warmer temperatures typically lead to increased cooling system usage [38] Question: What are the expectations for the DLA contract sales in 2025? - Management expects DLA contract sales to trend around mid $30 million for 2025 [44] Question: What are the capital allocation plans for stock buybacks? - Management confirmed they will continue to proceed opportunistically with the remaining $5.2 million allocated for buybacks [46] Question: How is inventory trending for the rest of the year? - Management believes they are approaching normalized inventory levels [47]
Hudson Technologies(HDSN) - 2025 Q1 - Quarterly Results
2025-05-07 20:10
Financial Performance - First quarter 2025 revenue was $55.3 million, a decrease of 15% compared to $65.3 million in the same period of 2024[7] - Gross margin for the first quarter of 2025 was 22%, down from 33% in the first quarter of 2024, primarily due to price-driven compression[7] - Operating income decreased to $3.1 million in Q1 2025 from $12.8 million in Q1 2024[7] - Net income for the first quarter of 2025 was $2.8 million, or $0.06 per share, compared to $9.6 million, or $0.21 per share, in the same period of 2024[7] - Selling, general and administrative expenses rose slightly to $8.2 million in Q1 2025 from $7.9 million in Q1 2024[7] Cash and Capital Management - Cash and cash equivalents increased to $81 million as of March 31, 2025, with no debt reported[5] - The company repurchased $4.5 million of common stock under its stock buyback plan in 2025[5] - The company remains focused on capital allocation strategies, including organic growth and acquisition opportunities[5] Strategic Initiatives - The strategic acquisition of USA Refrigerants has strengthened the company's reclamation business and capabilities[3] - The ongoing phase down of HFC refrigerants under the AIM Act is expected to create long-term growth opportunities for the reclamation business[4]
Hudson Technologies Reports First Quarter 2025 Results
Globenewswire· 2025-05-07 20:05
Core Insights - Hudson Technologies, Inc. reported a revenue of $55.3 million for Q1 2025, a decrease of 15% compared to $65.3 million in Q1 2024, primarily due to lower refrigerant prices despite a slight increase in sales volume [9][16] - The gross margin for Q1 2025 was 22%, down from 33% in the same period last year, largely driven by price compression in the refrigerant market [9][16] - The company has a strong balance sheet with $81 million in cash and no debt as of March 31, 2025, and has repurchased $4.5 million of common stock in 2025 [4][8] Financial Performance - Revenues for Q1 2025 were $55.3 million, down 15% from $65.3 million in Q1 2024 [9][16] - Gross profit decreased to $12.1 million in Q1 2025 from $21.4 million in Q1 2024, reflecting the decline in gross margin [9][16] - Operating income fell to $3.1 million in Q1 2025 from $12.8 million in the prior year [9][16] - Net income for Q1 2025 was $2.8 million, or $0.06 per share, compared to $9.6 million, or $0.21 per share, in Q1 2024 [9][16] Market and Strategic Insights - The company anticipates continued growth in its reclamation business due to the phase-down of HFC refrigerants under the AIM Act, which is expected to reduce the supply of virgin HFCs [3] - Several states are implementing requirements for the use of reclaimed refrigerants in municipal buildings, creating additional demand opportunities [3] - Hudson Technologies is focused on responsible refrigerant management and has strengthened its capabilities through the acquisition of USA Refrigerants [2][3] Cash Flow and Capital Allocation - Cash provided by operating activities was $14.2 million in Q1 2025, compared to a cash used of $0.9 million in the same period last year [19] - The company invested $1.4 million in property, plant, and equipment during the quarter [20] - Hudson Technologies continues to pursue a capital allocation strategy that includes organic growth investments, acquisitions, and stock repurchases [4][8]
Hudson Pacific Properties: Beware The Perceived Discount
Seeking Alpha· 2025-05-06 22:06
Core Viewpoint - Hudson Pacific Properties, Inc. (HPP) is trading at a significant discount, approximately 30% of its Net Asset Value (NAV), but this discount may be misleading due to high leverage and the overall capital structure [1][12]. Valuation Metrics - The consensus NAV for HPP is $7.61, while the stock is trading at $2.32, indicating a price to NAV of 29.71% [2][4]. - The market capitalization of fully diluted common shares is $338 million, with a NAV implied common value of $1.109 billion [7][8]. Financial Structure - HPP's total liabilities, including preferred shares, amount to $5.379 billion, with total debt at $4.176 billion [5][6]. - The asset value at NAV is $6.488 billion, while the market price implied asset value is $5.717 billion, resulting in a discount of 12% from asset value [10]. Leverage Impact - HPP's high leverage means that an 18% decline in asset value could lead to common shares being wiped out, taking NAV per share to $0 [12][13]. - The leverage amplifies both potential gains and losses, making the investment sensitive to changes in asset value [16]. Investment Thesis - For HPP to be a viable investment, there must be a belief in a turnaround story, particularly in stabilizing occupancy and returning to growth in office assets [14][15]. - The potential for significant returns exists if the office market improves, as leverage could enhance the gains on common stock [16].
RioCan REIT: Hudson's Bay Bankruptcy Is A Minor Hindrance
Seeking Alpha· 2025-03-27 14:41
Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1][4] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value provides Covered Calls and focuses on capital preservation through lower volatility income investing [3][4] Group 2 - The fixed income portfolio emphasizes buying securities with high income potential and significant undervaluation compared to peers [3] - Trapping Value's team has over 40 years of combined experience in generating options income while prioritizing capital preservation [4]