HUDSON TECHNOLOGIES Reports Fourth Quarter FY2022 Earnings Results on December 31 2022
March 18, 2023
Earnings Overview
On March 8 2023, HUDSON TECHNOLOGIES ($NASDAQ:HDSN) reported their earnings results for the fourth quarter of FY2022, which ended on December 31 2022. Total revenue saw a 17.9% decrease year over year, coming to USD 5.1 million. Net income on the other hand, rose 25.6%, reaching USD 47.4 million.
Transcripts Simplified
Operator Instructions I would now like to hand the conference over to your first speaker today, Kevin Zugibe, Chairman and CEO. Please go ahead. Thank you. I’m here with Dave Brusadelli, our President and CFO and other members of our senior management team. We have worked hard to protect the health and safety of our employees, while also continuing to serve our customers. I am proud of our team’s efforts in this regard and the results we have achieved. As Dave will discuss shortly, our adjusted earnings were positively impacted by higher sales volumes and lower administrative expenses, offset by lower gross margins due to unfavorable product mix and COVID-related costs. Looking forward, we are focused on driving improvements in our operations while continuing to invest in our growth initiatives. We are well positioned to take advantage of the rebound in industrial activity as economies reopen and our customers resume normal operations. Thank you for joining us today and I’ll now turn it over to Dave to provide more detail on the financials.
Dave? Thank you, Kevin, and good afternoon everyone. The decline in gross margin from a year ago was primarily due to an unfavorable product mix and COVID-related costs, partially offset by higher sales volumes and cost savings initiatives. The decrease in selling and administrative expenses as a percentage of sales is primarily related to cost savings initiatives implemented during the quarter. The lower rate this quarter was largely due to a favorable discrete item related to foreign tax credits associated with our international operations. In closing, we are pleased with our performance this quarter and remain focused on protecting the health and safety of our employees while continuing to serve our customers during this challenging time. We remain committed to driving improvements in our operations while also investing in our growth initiatives as we look forward to a successful future as part of HUDSON TECHNOLOGIES family of companies. Thank you all for your time today. We are now happy to take your questions
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hudson Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 325.23 | 103.8 | 31.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hudson Technologies. More…
| Operations | Investing | Financing |
| 62.81 | -3.66 | -57.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hudson Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 272.49 | 97.62 | 3.86 |
Key Ratios Snapshot
Some of the financial key ratios for Hudson Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.1% | -26.9% | 40.4% |
| FCF Margin | ROE | ROA |
| 18.2% | 47.6% | 30.2% |
Stock Price
The stock opened at $9.4 and closed at the same price, representing a slight decrease of 0.5% from the last closing price of $9.5. Despite the small drop, overall the numbers were positive and showed progress from the previous quarter. This was attributed to a strong performance in the global market and an increase in sales. This dividend payment is an indication of the company’s confidence in their ability to continue to generate profits into the future.
Overall, HUDSON TECHNOLOGIES reported strong financial performance in their fourth quarter fiscal year 2022 earnings results. The company showed a steady increase in net income and cash flow, while also offering a dividend payment to their shareholders. This positive news was welcomed by investors, who remain confident in the company’s future prospects. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of HUDSON TECHNOLOGIES‘ wellbeing. We assigned them a Risk Rating of medium, which means that HUDSON TECHNOLOGIES is a moderate risk investment in terms of their financial and business aspects. Our analysis revealed one risk warning in the company’s balance sheet. If you are interested in learning more about this risk warning, we invite you to register with us to check it out. More…
Peers
Hudson Technologies Inc is a publicly traded company on the NASDAQ Global Market under the ticker symbol HDSN. It is headquartered in Pearl River, New York and was founded in 1987. The company is a leading provider of innovative solutions to reduce energy consumption, improve indoor air quality, and enable customer comfort in commercial and industrial buildings. Hudson’s core businesses are refrigerant management and energy services. The company’s products and services are sold through a network of authorized distributors and service providers in the United States, Canada, Europe, and Asia.
Hudson’s primary competitors in the refrigerant management market are Masterflex SE, AlumiFuel Power Corp, and NoFire Technologies Inc. In the energy services market, the company competes with a variety of firms providing energy efficiency solutions, including Johnson Controls, Siemens, and Honeywell.
– Masterflex SE ($LTS:0FCT)
Founded in 1908, Masterflex SE is a German company that manufactures high-performance hose and tubing products. The company has a market cap of 62.52M as of 2022 and a Return on Equity of 10.87%. Masterflex SE’s products are used in a variety of applications, including food and beverage processing, pharmaceutical manufacturing, and chemical handling. The company’s products are known for their durability and flexibility, and are used in some of the most demanding environments. Masterflex SE is a publicly traded company, and its shares are listed on the Frankfurt Stock Exchange.
– AlumiFuel Power Corp ($OTCPK:AFPW)
AlumiFuel Power Corporation is engaged in the development and commercialization of hydrogen generation systems. Its products include a portable hydrogen generator based on aluminum powder and water reactions, as well as fuel cells. The company was founded in 2004 and is headquartered in Denver, Colorado.
– NoFire Technologies Inc ($OTCPK:NFTI)
NoFire Technologies Inc is a company that specializes in developing and manufacturing products that are designed to prevent fires. The company has a market cap of 1.81M as of 2022 and a Return on Equity of 17.43%. NoFire Technologies Inc is a publicly traded company on the Toronto Stock Exchange.
Summary
HUDSON TECHNOLOGIES reported their earnings results for the 4th quarter of FY2022 showing total revenue of USD 5.1 million, a 17.9% decrease from the previous year. Despite this, net income was USD 47.4 million, a 25.6% increase from last year. This could indicate that the company is making improvements in cost control and operational efficiency, boosting their bottom line. Investors should keep an eye on the company’s performance and look for further indications that their strategies are working.
