Hudson Q1 2021 Earnings Report
Key Takeaways
Hudson Technologies reported a decrease in revenue for the first quarter of 2021, but experienced an increase in gross margin and operating income. The company is optimistic about the reopening of the economy and the opportunities presented by the AIM Act.
Revenue decreased by 7% to $33.8 million compared to the same period in 2020.
Gross margin increased to 27% compared to 23% in the first quarter of 2020.
Operating income rose to $1.7 million, up from $0.4 million in the prior year period.
Net loss was $1.1 million, or ($0.02) per share, compared to a net loss of $2.9 million, or ($0.07) per share, in the same period of 2020.
Hudson
Hudson
Forward Guidance
Hudson Technologies anticipates a broader reopening of the economy and is prepared to meet potential demand. The company is encouraged by the progress made with the passing of the AIM Act and its role as an HFC supplier.
Positive Outlook
- Optimistic about a broader reopening of the economy.
- Prepared to meet potential demand as the cooling season continues.
- Cooling systems are expected to come back online with the gradual return to ‘business as usual’.
- The AIM Act requires the phasedown of HFC production over the next 15 years.
- Reclamation will be a key component to maintaining necessary supply during an orderly phasedown.
Challenges Ahead
- Decrease in revenue was primarily due to decreased volume.
- COVID pandemic shutdowns had a greater impact in the first quarter of 2021 compared to 2020.
- Demand decline was partially offset by an increase in selling price of certain refrigerants.
- Net loss reported for the quarter.
- Uncertainties related to changes in laws and regulations affecting the industry.