Hudson Technologies, Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for the third quarter were $61.9 million, down 19% from $76.5 million in the prior year, primarily due to a 14% decrease in selling prices and a 7% reduction in the volume of refrigerants sold. For the nine-month period, revenues totaled $202.5 million, a decrease of 17% from $244.2 million in 2023.
Gross profit for the third quarter was $15.9 million, significantly lower than $30.6 million in the same quarter of 2023. The nine-month gross profit also fell to $59.9 million from $97.5 million year-over-year. Operating income for the third quarter decreased to $7.0 million from $23.1 million, while for the nine months, it dropped to $32.5 million from $73.4 million. Net income for the third quarter was $7.8 million, down from $13.6 million, and for the nine months, it fell to $27.0 million from $48.3 million.
The company’s total assets increased to $309.4 million as of September 30, 2024, from $296.7 million at the end of 2023. Cash and cash equivalents saw a significant rise, reaching $56.5 million compared to $12.4 million at the end of the previous fiscal year. Total liabilities decreased to $55.5 million from $67.9 million, while total stockholders’ equity rose to $253.9 million from $228.8 million, reflecting retained earnings growth from $110.2 million to $137.2 million.
Strategically, Hudson Technologies completed the acquisition of USA United Suppliers of America, Inc. and B&B Jobber Services, Inc. on June 6, 2024, for approximately $20.7 million, with a potential contingent payment of up to $2.0 million. This acquisition is expected to enhance the company’s refrigerant distribution capabilities and geographic footprint. The acquisition resulted in the recognition of $14.6 million of goodwill.
The company also initiated a share repurchase program in August 2024, allowing for the purchase of up to $10 million in common stock during 2024 and 2025. This program was later amended to increase the total repurchase limit to $20 million, with $10 million allocated for each year.
Overall, Hudson Technologies is navigating a challenging market environment while pursuing strategic growth through acquisitions and stock repurchase initiatives.
About HUDSON TECHNOLOGIES INC /NY
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