Yesterday, Hudson Technologies, a leading provider of innovative solutions for recurring problems within the refrigeration industry, announced record revenues and record profitability for the fourth quarter and year ending Dec. 31, 2012.
The company's revenues increased by 26% for the three months ending Dec. 31, totaling $4,869,000 as compared with $3,856,000 for the corresponding period of 2011. The company's fourth quarter net income was $2,964,000, or $0.12 per basic share and $0.11 per diluted share; this included an income tax benefit of $4,638,000 ($4 million of which was associated with the company's recognition of its deferred tax asset) and is compared with a net loss of $723,000, or $0.03 per basic and diluted share, for the fourth quarter of 2011.
Hudson also reported record revenues for the year ending Dec. 31: $56,447,000, an increase of 27%, as compared with revenues of $44,322,000 for the corresponding period of 2011. The company's 2012 gross profit margins represented an increase of 40%, compared with 20% in 2011. The company's 2012 reported income tax expense was $1,395,000, based on federal and state income taxes of $5,395,000, and was partially offset by the recognition of $4 million for its deferred tax asset. Hudson's 2012 reported net income, $12,801,000 or $0.54 per basic share and $0.49 per diluted share, contrasts with a 2011 net income of $1,034,000 or $0.04 per basic and diluted share.
Hudson's financial performance continues to be positively impacted by EPA support of the growing reclamation and recycling through regulatory actions that have mandated annual reductions in virgin R-22 refrigerant production. Last month, the EPA revised and extended the "No Action Assurance" previously issued in January 2012 to further reduce the levels of R-22 in 2013. This has already favorably impacted pricing, which potentially positions Hudson for another year of strong results. As the EPA continues progressing toward complete phase-out of R-22, Hudson anticipates continued growth in the reclamation market, with recovered refrigerants filling the supply gap that has been created by the limitation of virgin R-22 production.
With its reclamation technology and industry relationships, Hudson believes it is well-positioned to become a significant source of reclaimed R-22 to supply the industry, as the phase-down - and ultimate phase-out - of R-22 goes forward. Hudson also anticipates a phase-down in production of next-generation refrigerants, which the company currently reclaims and sells and which will provide it with diverse, ongoing refrigerant opportunities in the future.
Today, Hudson hosted a conference call and live Webcast discussing its fourth quarter and year-end results. A replay of the teleconference is available through March 31 and can be accessed by calling (877) 660-6853, or (201) 612-7415 for international callers. Callers should enter conference ID 409745. A transcript of the call will also be available on the company's Web site, hudsontech.com.
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