Why the price has increased by 26.89%

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  • Hudson Technologies, Inc. (NASDAQ: HDSN) stock price rose 26.89% today. That is why.

Hudson Technologies, Inc. (NASDAQ: HDSN) stock price rose 26.89% today. Investors are reacting positively to the company’s results for the first quarter ended March 31, 2022.

For the quarter ended March 31, 2022, Hudson reported revenue of $84.3 million, an increase of 149% from revenue of $33.8 million for the comparable period of 2021. And the growth First quarter revenue was driven by increases in volumes and selling prices of certain refrigerants during the period.

Gross margin in the first quarter of 2022 increased to 54%, compared to 27% in the first quarter of 2021, mainly due to the significant increase in the selling price without a significant appreciation in the cost basis of certain refrigerants sold.

Hudson reported operating income of $38.3 million in the first quarter of 2022, compared to operating income of $1.7 million in the same period a year earlier.

The company reported net income of $29.6 million or $0.66 per share basic and $0.63 per diluted share in the first quarter of 2022, compared to a net loss of $1.1 million or ( $0.02) per basic and diluted share over the same period of 2021.

Net income for the first quarter of 2022 included $4.6 million of one-time interest charges associated with the refinancing of the Company’s term loan. As previously announced, during the first quarter the company entered into a new $85 million term loan agreement with TCW Asset Management, LLC and amended its existing asset-based lending facility to bring the global facility at $90 million.

KEY QUOTES:

“Our 2022 selling season is off to a good start, with record first quarter revenues and a path to another record full year. The first quarter demonstrated substantial improvement in gross margin and significant improvement in profitability compared to the first. quarter of last year. Our performance in the first quarter reflects the continued upward trend in average prices for certain refrigerants and also benefited from increased sales volume as we continue to focus on strategic customers who value our sustainability offerings. We previously communicated longer-term goals for 2023 to 2024 with annualized revenue and operating income of $350 million and $72 million, respectively. With our visibility today, assuming the first quarter price trend continues, we think we are on the right track. goose to achieve these longer-term goals at a faster pace than originally anticipated, as we begin to feel the initial impact of the AIM Act and its regulations. Although our gross margin in the first quarter was particularly strong, we expect full year margin performance to moderate to levels similar to last year. Additionally, based on current price trends, we should see revenues in excess of $270 million in 2022.”

“With the start of 2022, our industry must now comply with the AIM law, which imposes a 10% reduction in production and consumption quotas for virgin HFCs in 2022 and 2023. From 2024, with the reduction of 40% of baseline, we expect to experience a significant inflection point for our business model and our sustainable offerings.HFCs are currently the most commonly used refrigerants and, as a leader in recovery, we We are uniquely positioned to fill the anticipated HFC supply gap as virgin production is phased out.With our recovery capabilities and strong distribution network, Hudson is poised to continue to lead the orderly transition of industry towards greener and more environmentally friendly refrigerants, and we welcome this opportunity to promote the circular economy of refrigerants and the transition to cleaner and more efficient refrigerants. generation and gas cooling equipment. We are energized by the opportunities we see to expand our market share and leadership role in the refrigerants market throughout 2022 and for decades to come.

— Brian Coleman, President and CEO of Hudson Technologies

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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