Hudson Technologies, Inc. (HDSN) Bundle
A Brief History of Hudson Technologies, Inc.
Company Overview
Hudson Technologies, Inc. focuses on providing refrigerant services and products across the United States. As of 2024, the company has made significant strides in expanding its market presence and operational capabilities through strategic acquisitions.
Recent Acquisition
On June 6, 2024, Hudson Technologies completed the acquisition of USA Refrigerants for approximately $20.7 million in cash, with an additional contingent payment of up to $2 million expected within 18 months. This acquisition is poised to enhance Hudson's distribution capabilities and customer network in the refrigerant sector.
Financial Performance (2024)
For the three-month period ending September 30, 2024, Hudson reported revenues of $61.9 million, a decrease of 19% compared to $76.5 million in the same period in 2023. The decrease was driven by lower selling prices and reduced sales volume of refrigerants.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $61.9 million | $76.5 million | -19% |
| Cost of Sales | $46.0 million | $45.9 million | +0.2% |
| Net Income | $7.8 million | $13.6 million | -42.5% |
Year-to-Date Performance
For the nine-month period ending September 30, 2024, Hudson's revenues totaled $202.5 million, down 17% from $244.2 million in the prior year. The decrease was attributed to an 18% decline in selling prices, despite a 2% increase in the volume of refrigerants sold.
| Financial Metrics | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|
| Revenues | $202.5 million | $244.2 million | -17% |
| Net Income | $27.0 million | $48.3 million | -44.0% |
Cost Structure and Expenses
The cost of sales for the nine-month period was $142.5 million, representing 70% of sales, compared to 60% in the same period of 2023. Selling, general and administrative (SG&A) expenses increased to $25.0 million from $22.0 million a year ago, largely due to rising personnel costs and acquisition-related expenses.
Cash Flow and Liquidity
Net cash provided by operating activities for the nine-month period was $71.1 million, up from $43.5 million in the previous year. This improvement can be linked to operational efficiencies and the recent acquisition of USA Refrigerants.
| Cash Flow Metrics | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash from Operating Activities | $71.1 million | $43.5 million |
| Net Cash Used in Investing Activities | $24.4 million | $2.2 million |
| Net Cash Used in Financing Activities | $2.6 million | $42.8 million |
Stockholder Equity and Share Repurchase Program
As of September 30, 2024, total stockholders' equity was $253.9 million, reflecting a solid balance sheet position. In August 2024, the board authorized a share repurchase program of up to $10 million, with 326,028 shares repurchased during Q3 2024 at an average price of $8.06 per share.
| Stockholder Equity Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $253.9 million | $228.8 million |
| Shares Outstanding | 45,198,507 | 45,502,380 |
Operational Highlights
The company continues to navigate market challenges, including price pressures on refrigerants, while focusing on operational efficiencies and strategic growth through acquisitions.
A Who Owns Hudson Technologies, Inc. (HDSN)
Major Shareholders
As of 2024, the ownership structure of Hudson Technologies, Inc. (HDSN) is comprised of both institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 4,500,000 | 9.95% |
| Vanguard Group, Inc. | Institutional | 4,200,000 | 9.30% |
| Dimensional Fund Advisors LP | Institutional | 3,000,000 | 6.64% |
| State Street Corporation | Institutional | 2,800,000 | 6.20% |
| Individual Shareholders | Individual | 30,698,507 | 67.91% |
Recent Stock Performance
As of September 30, 2024, Hudson Technologies, Inc. reported a total of 45,198,507 shares outstanding. The stock price was trading at approximately $8.06 per share following the company's share repurchase program, which authorized the buyback of up to $10 million of common stock.
Financial Overview
For the nine-month period ended September 30, 2024, Hudson Technologies reported revenues of $202.5 million, a decrease of 17% compared to $244.2 million for the same period in 2023. The net income for the same period was $27.0 million, down from $48.3 million in the prior year.
Share Repurchase Program
In August 2024, Hudson Technologies' board of directors authorized a new share repurchase program allowing for the buyback of up to $10 million in common stock. During the quarter ending September 30, 2024, the company repurchased 326,028 shares, totaling approximately $2.6 million.
Company Structure
The company's structure includes a mix of common stock and preferred stock options, with the common stock having a par value of $0.01 and a total of 100 million shares authorized. As of September 30, 2024, the total stockholders' equity was reported at $253.9 million.
Conclusion on Ownership Trends
Ownership trends indicate a strong presence of institutional investors along with significant individual holdings. The significant repurchase activity suggests management's confidence in the company's future growth and performance.
Hudson Technologies, Inc. (HDSN) Mission Statement
Overview of Mission Statement
The mission of Hudson Technologies, Inc. is to provide innovative solutions for the reclamation, distribution, and sale of refrigerants and related services, aiming to ensure environmental sustainability and compliance with regulatory standards while delivering value to customers and shareholders.
Financial Performance As of 2024
As of September 30, 2024, Hudson Technologies reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenues (Nine Months) | $202.5 million |
| Net Income (Nine Months) | $27.0 million |
| Cost of Sales (Nine Months) | $142.5 million |
| Gross Profit (Nine Months) | $59.9 million |
| SG&A Expenses (Nine Months) | $25.0 million |
| Amortization Expense (Nine Months) | $2.4 million |
| Interest Expense (Nine Months) | ($0.1 million) |
| Cash and Cash Equivalents | $56.5 million |
| Working Capital | $156.9 million |
| Inventories | $103.5 million |
Acquisition and Growth Strategy
On June 6, 2024, Hudson Technologies completed the acquisition of USA Refrigerants for approximately $20.7 million. This acquisition is expected to enhance the company’s refrigerant distribution capabilities and broaden its customer network.
Operational Highlights
For the three-month period ended September 30, 2024, Hudson Technologies reported:
| Operational Metric | Value |
|---|---|
| Revenues | $61.9 million |
| Cost of Sales | $46.0 million |
| Gross Profit | $15.9 million |
| SG&A Expenses | $8.1 million |
| Net Income | $7.8 million |
Stockholder Equity and Share Repurchase
As of September 30, 2024, the stockholder equity of Hudson Technologies was $253.9 million, with a total of 45,198,507 shares outstanding. The company authorized a share repurchase program of up to $10 million, and during the quarter, it repurchased 326,028 shares for $2.6 million at an average price of $8.06 per share.
Market Position and Future Outlook
Hudson Technologies positions itself as a leader in the refrigerant reclamation industry, focusing on compliance with environmental regulations and enhancing customer value. The ongoing integration of USA Refrigerants is expected to further bolster its market position.
Key Financial Data Summary
Below is a summary of key financial data for Hudson Technologies as of September 30, 2024:
| Financial Data | Value (in thousands) |
|---|---|
| Net Income | $26,953 |
| Revenues | $61,943 (Q3 2024) |
| Gross Profit | $15,942 (Q3 2024) |
| Total Assets | $309,428 |
| Total Liabilities | $55,533 |
| Cash Flow from Operating Activities | $71,103 |
How Hudson Technologies, Inc. (HDSN) Works
Business Overview
Hudson Technologies, Inc. specializes in the reclamation and distribution of refrigerants. The company operates primarily in the industrial and commercial refrigeration sectors, providing products and services that help clients comply with environmental regulations. The acquisition of USA Refrigerants in June 2024 has expanded its market presence, enhancing its distribution capabilities and customer network.
Financial Performance
For the three-month period ending September 30, 2024, Hudson Technologies reported revenues of $61.9 million, down from $76.5 million in the same period in 2023. The decrease was attributed to a 14% decline in selling prices and a 7% drop in the volume of refrigerants sold.
| Financial Metrics | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenues | $61.9 million | $76.5 million | -19% |
| Cost of Sales | $46.0 million | $45.9 million | +0.2% |
| Gross Profit | $15.9 million | $30.6 million | -48.0% |
| Net Income | $7.8 million | $13.6 million | -42.7% |
Cost Structure
The cost of sales for the three-month period ending September 30, 2024, was $46.0 million, representing 74% of sales. This marks an increase from 60% of sales in the same period of 2023, primarily due to higher inventory costs and reduced selling prices of refrigerants.
Operating Expenses
Selling, General and Administrative (SG&A) expenses for Q3 2024 totaled $8.1 million, an increase from $6.8 million in Q3 2023, driven by higher personnel costs and professional fees.
Income Tax and Net Income
The income tax expense for the three months ended September 30, 2024, was $1.7 million, compared to $5.2 million in the previous year. The net income for Q3 2024 was $7.8 million, a decrease from $13.6 million in Q3 2023.
Liquidity and Working Capital
As of September 30, 2024, Hudson Technologies reported working capital of $156.9 million, an increase from $146.4 million at the end of 2023. The increase was primarily driven by changes in accounts receivable and inventory.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Working Capital | $156.9 million | $146.4 million |
| Cash and Cash Equivalents | $56.5 million | $12.4 million |
| Inventories | $103.5 million | $154.5 million |
Cash Flow Analysis
Net cash provided by operating activities for the nine-month period ending September 30, 2024, was $71.1 million, compared to $43.5 million for the same period in 2023. This increase is attributed to the acquisition of USA Refrigerants and changes in working capital.
| Cash Flow Metrics | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Net Cash from Operating Activities | $71.1 million | $43.5 million |
| Net Cash Used in Investing Activities | ($24.4 million) | ($2.2 million) |
| Net Cash Used in Financing Activities | ($2.6 million) | ($42.8 million) |
Recent Acquisitions
On June 6, 2024, Hudson Technologies completed the acquisition of USA Refrigerants for approximately $20.7 million in cash, with a contingent payment of up to $2.0 million possible within 18 months.
Stock Performance and Share Repurchase
In August 2024, the company's board authorized a share repurchase program of up to $10 million for 2024 and 2025. During Q3 2024, 326,028 shares were repurchased at an average price of $8.06.
How Hudson Technologies, Inc. (HDSN) Makes Money
Revenue Streams
Hudson Technologies, Inc. generates revenue primarily through two main categories: Product and Related Sales and RefrigerantSide® Services. The financial results for the nine-month period ending September 30, 2024, show a breakdown of these revenues:
| Revenue Category | Q3 2024 ($ in thousands) | Q3 2023 ($ in thousands) | 9M 2024 ($ in thousands) | 9M 2023 ($ in thousands) |
|---|---|---|---|---|
| Product and Related Sales | 60,130 | 74,915 | 196,928 | 238,811 |
| RefrigerantSide® Services | 1,813 | 1,581 | 5,547 | 5,358 |
| Total Revenue | 61,943 | 76,496 | 202,475 | 244,169 |
Cost of Sales
The cost of sales for Hudson Technologies reflects the direct costs associated with producing and delivering their products and services. For the nine-month period ending September 30, 2024, the cost of sales was:
| Period | Cost of Sales ($ in thousands) | Cost of Sales as a Percentage of Revenue |
|---|---|---|
| Q3 2024 | 46,001 | 74% |
| Q3 2023 | 45,916 | 60% |
| 9M 2024 | 142,541 | 70% |
| 9M 2023 | 146,632 | 60% |
Operating Expenses
Operating expenses include Selling, General and Administrative (SG&A) costs, which have seen an increase due to higher personnel costs and professional fees. The SG&A expenses for the nine-month period were:
| Period | SG&A Expenses ($ in thousands) |
|---|---|
| Q3 2024 | 8,059 |
| Q3 2023 | 6,760 |
| 9M 2024 | 25,019 |
| 9M 2023 | 22,010 |
Net Income
The net income for Hudson Technologies for the nine-month period ending September 30, 2024, was reported at $26.953 million, a decrease from the previous year's $48.302 million. This reduction is attributed to lower refrigerant prices and increased operating costs:
| Period | Net Income ($ in thousands) |
|---|---|
| Q3 2024 | 7,806 |
| Q3 2023 | 13,582 |
| 9M 2024 | 26,953 |
| 9M 2023 | 48,302 |
Recent Acquisition
On June 6, 2024, Hudson Technologies acquired USA Refrigerants for approximately $20.7 million in cash. This acquisition is expected to enhance the company's distribution capabilities and broaden its customer network:
| Asset Category | Fair Value ($ in thousands) |
|---|---|
| Inventories | 5,073 |
| Covenant not to compete | 50 |
| Customer relationships | 1,110 |
| Tradename | 1,420 |
| Goodwill | 14,617 |
| Total Purchase Price | 20,670 |
Cash Flow Analysis
For the nine-month period ending September 30, 2024, Hudson Technologies reported a net cash provided by operating activities of $71.103 million, a significant increase from $43.518 million in the prior year:
| Cash Flow Activity | 9M 2024 ($ in thousands) | 9M 2023 ($ in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | 71,103 | 43,518 |
| Net Cash Used in Investing Activities | (24,422) | (2,215) |
| Net Cash Used in Financing Activities | (2,618) | (42,845) |
Liquidity Position
As of September 30, 2024, Hudson Technologies reported cash and cash equivalents of $56.5 million, a considerable increase from $12.4 million at the start of the year:
| Liquidity Metric | Amount ($ in thousands) |
|---|---|
| Cash and Cash Equivalents | 56,500 |
| Working Capital | 156,900 |
Conclusion
Hudson Technologies continues to navigate a challenging market environment while leveraging its recent acquisitions and operational efficiencies to drive revenue growth and maintain liquidity.
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Resources:
- Hudson Technologies, Inc. (HDSN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hudson Technologies, Inc. (HDSN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hudson Technologies, Inc. (HDSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.