Hudson Technologies, Inc, a leading provider of innovative solutions to recurring problems within the refrigeration industry, announced their results for the fourth quarter. Revenues for the year ended December 31, 2007 were $26,894,000, an increase of 14.7% from $23,451,000 in 2006
Chairman and Chief Executive Office of Hudson Tech, Kevin J. Zugibe said, “2007 was a very significant year for Hudson. The increase in revenues for the year was driven by refrigerant sales as we continued to expand and strengthen our offerings to the commercial and industrial air conditioning and refrigeration markets. In addition, during 2007 the Company’s ownership was restructured through management’s purchase of $6 million of Hudson common stock from Hudson’s principal shareholders, which required us to recognize significant non-cash and non-recurring charges, and through the Company’s purchase and retirement of nearly 7 million shares. The retirement of these 7 million shares substantially enhances Hudson’s ownership structure which should benefit our shareholders in 2008 and beyond.”
“Revenues for the fourth quarter were essentially flat as compared to last year.” continued Mr. Zugibe. “Net income for the quarter decreased by $876,000 primarily due to: a non-cash $437,000 share-based compensation expense; higher interest expense on increased debt related to our 2007 stock repurchases; and additional taxes in the quarter. Absent the non-cash expenses, the cash flow of the business remains very strong. It is important to note that the fourth quarter is typically our seasonally slowest quarter given the colder weather. We did, however, see a slight increase in quarterly services revenues and we continue to make strides educating the market on our innovative solutions to optimize the efficiency of industrial scale air conditioning and refrigeration systems.”
In conclusion Mr. Zugibe said, “As a result of the Company’s 2007 stock repurchases future earnings per share will be calculated based upon 26% fewer shares outstanding, which should enhance shareholder value as we grow the business. As we emerge from a year of record sales and head into 2008, we are particularly encouraged by the healthy demand we are seeing for our offerings.”
On March 13th, Hudson Technologies held a conference call to talk about the fourth quarter and year-end results. A replay of the conference is available until March 20th, 2008 by calling 866-245-6755 (international callers; 416-915-1035). Callers should enter pass code: 934896 to hear the replay. In addition to the recorded call, interested parties may find more information at www.hudsontech.com or www.investorcalendar.com to hear a webcast of the replay.
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