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Dec 31, 2021
Hudson Q4 2021 Earnings Report
Hudson's Q4 2021 results reflected significant revenue growth, enhanced margins, and improved profitability.
Key Takeaways
Hudson Technologies reported record fourth quarter results with a 71% increase in revenue to $37.8 million, driven by increased selling prices for certain refrigerants. The company achieved a gross margin of 45% and an operating income of $9.3 million, a significant improvement from the prior year's operating loss. Net income was $6.2 million, or $0.14 per basic share and $0.13 per diluted share.
Hudson Technologies reported a 71% increase in revenue for Q4 2021, reaching $37.8 million.
Gross margin for Q4 2021 was 45%, a significant increase from 25% in the same period of 2020.
The company recorded net income of $6.2 million, or $0.14 per basic share and $0.13 per diluted share, compared to a net loss in the prior year period.
Hudson entered into a new $85 million term loan agreement and amended its existing asset-based lending facility to $90 million.
Hudson
Hudson
Forward Guidance
Assuming the pricing trend continues for the 2022 selling season, Hudson Technologies could see revenues exceeding $270 million in 2022.
Positive Outlook
- Continued strength in the average selling prices of certain refrigerants.
- AIM Act has introduced a mandated 10% stepdown in production and consumption allowances for virgin HFCs in 2022.
- Installed base of HFC equipment continues to expand.
- Virgin supply is expected to tighten, driving accelerated reclamation activity to fill the anticipated supply gap.
- New debt structure will improve cost of capital and interest expense.
Challenges Ahead
- Changes in the laws and regulations affecting the industry.
- Changes in the demand and price for refrigerants.
- The company's ability to source refrigerants.
- Possible technological obsolescence of existing products and services.
- The impact of the current COVID-19 pandemic.