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Sep 30, 2020
Hudson Q3 2020 Earnings Report
Hudson Technologies reported a decrease in revenue but improved gross margin and operating income due to the impact of the COVID-19 pandemic.
Key Takeaways
Hudson Technologies reported Q3 2020 revenues of $41.5 million, a 9% decrease compared to Q3 2019. However, the company improved its gross margin to 22% and reported an operating income of $2.1 million, compared to an operating loss in the same period last year. They also repaid $16.5 million of debt and increased their cash balance.
Revenues decreased by 9% to $41.5 million due to COVID-19 impacts on end markets.
Gross margin improved to 22% compared to 17% in the prior year.
Operating income was $2.1 million, a significant improvement from the operating loss of $1.2 million in Q3 2019.
The company repaid $16.5 million of debt and increased its cash balance to $9.2 million.
Hudson
Hudson
Forward Guidance
Hudson Technologies is focused on navigating the uncertainties of the pandemic and planning for the 2021 cooling season, anticipating more consistent re-openings for businesses and schools.
Positive Outlook
- Optimistic that 2021 will bring more consistent re-openings for businesses and schools.
- Planning to be well-positioned to meet potential demand as more cooling systems are turned back on.
- Committed to protecting the health and safety of employees.
- Maintaining product supply for customers across all channels.
- Fourth quarter is typically their quietest quarter, which allows for operational strategy planning.
Challenges Ahead
- Continued to contend with demand declines associated with the ongoing closure of many public venues across the U.S.
- Uncertainties of the pandemic remain a concern.
- Historically, the fourth quarter is typically the quietest quarter.
- Impacts of COVID-19 remain a significant factor.
- No specific negative factors were detailed.