Hudson Q4 2021 Earnings Report
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.