GlobeNewswire Inc | Mar 3, 2021 04:05PM EST

March 03, 2021

PEARL RIVER, N.Y., March 03, 2021 (GLOBE NEWSWIRE) -- Hudson Technologies, Inc. (NASDAQ: HDSN) announced results for the fourth quarter and year ended December 31, 2020.

For the quarter ended December 31, 2020, Hudson reported revenues of $22.1 million, a decrease of 14% compared to revenues of $25.8 million in the comparable 2019 period. The decrease in revenue was primarily due to decreased volume, as the COVID-19 pandemic and the associated closures of public venues such as commercial and recreational facilities, schools and universities across the U.S. negatively impacted the Companys end markets and overall demand for refrigerants for much of the year, partially offset by an increase in selling price of certain refrigerants. Gross margin in the fourth quarter of 2020 was 25%, compared to 19% in the fourth quarter of 2019, mainly due to the aforementioned increase in selling price of certain refrigerants. Hudson reported an operating loss of $1.7 million in the fourth quarter of 2020 compared to an operating loss of $4.8 million in the prior year period. The Company recorded a net loss of $4.7 million or ($0.11) per basic and diluted share in the fourth quarter of 2020, compared to a net loss of $10.8 million or ($0.25) per basic and diluted share in the same period of 2019. For the year ended December 31, 2020, Hudson reported revenues of $147.6 million, a decrease of 9% compared to $162.1 million in 2019. The decrease in revenue was primarily due to decreased volume, related to the pandemic-driven closures described above. Gross margin for full year 2020 improved to 24% compared to gross margin of 11% for the full year 2019. The Company reported operating income of $5.9 million for 2020 compared to an operating loss of $15.8 million in 2019. The Companys net loss for 2020 was $5.2 million, or ($0.12) per basic and diluted share, compared to a net loss of $25.9 million, or ($0.61) per basic and diluted share in 2019, which included a $9.2 million non-cash inventory adjustment mainly due to declines in selling prices of certain refrigerants during that time period.

Brian F. Coleman, President and Chief Executive Officer of Hudson Technologies commented, 2020 was a challenging year for our industry, characterized by the public health and economic uncertainties caused by the global COVID-19 pandemic. As we begin 2021, we are optimistic that the widespread closures related to the virus will begin to subside and enable the broader re-opening of our economy. With that in mind, we are planning and preparing for the 2021 selling season so that we are ready to meet potential demand as more cooling systems return to operation and we look forward to fully re-engaging with our customers as they continue to come back online.

Conference Call Information

The Company will host a conference call and webcast to discuss the fourth quarter results today, March 3, 2021 at 5:00 P.M. Eastern Time.

To access the live webcast, log onto the Hudson Technologies website at www.hudsontech.com, and click on Investor Relations.

To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0011. Callers should use entry code: 227063.

A replay of the teleconference will be available until April 3, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use conference ID: 40141.

About Hudson Technologies

Hudson Technologies, Inc. is a leading provider of innovative and sustainable solutions for optimizing performance and enhancing reliability of commercial and industrial chiller plants and refrigeration systems. Hudson's proprietary RefrigerantSide Services increase operating efficiency, provide energy and cost savings, reduce greenhouse gas emissions and the plants carbon footprint while enhancing system life and reliability of operations at the same time. RefrigerantSide Services can be performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies. Hudson also offers SMARTenergy OPS, which is a cloud-based Managed Software as a Service for continuous monitoring, fault detection and diagnostics and real-time optimization of chilled water plants. In addition, the Company sells refrigerants and provides traditional reclamation services for commercial and industrial air conditioning and refrigeration uses. For further information on Hudson, please visit the Company's web site at www.hudsontech.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Statements contained herein which are not historical facts constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changes in the laws and regulations affecting the industry, changes in the demand and price for refrigerants (including unfavorable market conditions adversely affecting the demand for, and the price of, refrigerants), the Company's ability to source refrigerants, regulatory and economic factors, seasonality, competition, litigation, the nature of supplier or customer arrangements that become available to the Company in the future, adverse weather conditions, possible technological obsolescence of existing products and services, possible reduction in the carrying value of long-lived assets, estimates of the useful life of its assets, potential environmental liability, customer concentration, the ability to obtain financing, the ability to meet financial covenants under existing credit facilities, any delays or interruptions in bringing products and services to market, the timely availability of any requisite permits and authorizations from governmental entities and third parties as well as factors relating to doing business outside the United States, including changes in the laws, regulations, policies, and political, financial and economic conditions, including inflation, interest and currency exchange rates, of countries in which the Company may seek to conduct business, the Companys ability to successfully integrate any assets it acquires from third parties into its operations, the impact of the current COVID-19 pandemic, and other risks detailed in the Company's 10-K for the year ended December 31, 2019 and other subsequent filings with the Securities and Exchange Commission.The words "believe", "expect", "anticipate", "may", "plan", "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made.

Investor Relations Contact:John Nesbett/Jennifer Belodeau Company Contact:IMS Investor Relations Brian F. Coleman, President & CEO(203) 972-9200 Hudson Technologies, Inc.jnesbett@institutionalms.com (845) 735-6000 bcoleman@hudsontech.com



Hudson Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(Amounts in thousands, except for share and par value amounts)

December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 1,348 $ 2,600 Trade accounts receivable ? net 9,806 8,061 Inventories 44,460 59,238 Prepaid expenses and other current assets 6,528 4,525 Total current assets 62,142 74,424 Property, plant and equipment, less accumulated 21,910 23,674 depreciationGoodwill 47,803 47,803 Intangible assets, less accumulated amortization 23,150 26,012 Right of use asset 6,559 8,048 Other assets 85 192 Total Assets $ 161,649 $ 180,153 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $ 7,644 $ 10,274 Accrued expenses and other current liabilities 19,417 18,120 Accrued payroll 1,394 724 Current maturities of long-term debt 7,314 3,008 Short-term debt 2,000 14,000 Total current liabilities 37,769 46,126 Deferred tax liability 1,355 1,192 Long-term lease liabilities 3,927 5,742 Long-term debt, less current maturities, net of 77,976 81,982 deferred financing costsTotal Liabilities 121,027 135,042 Commitments and contingencies Stockholders' equity: Preferred stock, shares authorized 5,000,000:Series A Convertible preferred stock, $0.01 par ? ? value ($100 liquidation preference value); sharesauthorized 150,000; none issued or outstandingCommon stock, $0.01 par value; shares authorized100,000,000; issued and outstanding: 43,347,887 and 433 426 42,628,560, respectivelyAdditional paid-in capital 118,269 117,557 Accumulated deficit (78,080 ) (72,872 )Total Stockholders' Equity 40,622 45,111 Total Liabilities and Stockholders' Equity $ 161,649 $ 180,153

Hudson Technologies, Inc. and SubsidiariesConsolidated Statements of Operations(unaudited)(Amounts in thousands, except for share and per share amounts)

Threemonths Twelvemonths endedDecember 31, endedDecember 31, 2020 2019 2020 2019 Revenues $ 22,110 $ 25,753 $ 147,605 $ 162,059 Cost of sales 16,684 20,989 112,195 144,894 Gross profit 5,426 4,764 35,410 17,165 Operating expenses:Selling,general and 6,460 8,864 26,644 30,018 administrativeAmortization 715 715 2,862 2,931 Totaloperating 7,175 9,579 29,506 32,949 expenses Operating (1,749 ) (4,815 ) 5,904 (15,784 )income (loss) Other expense: Interest (2,918 ) (5,990 ) (12,330 ) (18,911 )expenseOther income 22 (1 ) 1,033 9,411 (expense)Total other (2,896 ) (5,991 ) (11,297 ) (9,500 )expense Loss before (4,645 ) (10,806 ) (5,393 ) (25,284 )income taxes Income taxexpense 103 (35 (185 ) 656 (benefit) Net loss $ (4,748 ) $ (10,771 ) $ (5,208 ) $ (25,940 ) Net loss percommon share ? $ (0.11 ) $ (0.25 ) $ (0.12 ) $ (0.61 )BasicNet loss percommon share ? $ (0.11 ) $ (0.25 ) $ (0.12 ) $ (0.61 )DilutedWeightedaverage numberof shares 42,881,307 42,628,560 42,710,381 42,613,478 outstanding ?BasicWeightedaverage numberof shares 42,881,307 42,628,560 42,710,381 42,613,478 outstanding ?Diluted