The following is a summary of the Hudson Technologies, Inc. (HDSN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Hudson Technologies reported Q1 2024 revenues of $65.3 million, down 15% from $77.2 million in Q1 2023, mainly due to decreased refrigerant selling prices and lower DLA contract revenue.
Q1 2024 gross margin was 33%, a drop from 39% in Q1 2023.
Net income for Q1 2024 was $9.6 million, down from $15.5 million in Q1 2023.
The company anticipates full-year 2024 revenue between $250 million and $265 million, with a gross margin below the target of 35%.
They have a strong balance sheet, with stockholder equity at $238.6 million and no debt at the end of March 2024.
Business Progress:
Hudson is advocating for refrigerant recovery and presented on this topic at industry conferences.
The company plans to capitalize on the EPA's proposed Refrigerant Management rule, which mandates reclaimed refrigerant use in some applications and equipment.
Investment in IT and personnel is scheduled to support the transition to next-generation cooling technologies.
An increase in sales price for certain refrigerants is anticipated as supply diminishes due to virgin HFC production reductions.
The company is considering M&A opportunities to strengthen its market position.
In response to the AIM Act's HFC restrictions, the company foresees an increase in sales prices and profitability, specifically for reclaimed refrigerants.
Exploring acquisitions in the reclaimers, distributors, and contractors sectors has been identified as a strategic initiative.
More details: Hudson Technologies IR
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