Hudson Technologies Inc. (HDSN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Hudson Technologies Inc. has a market cap of $40.2 million; its shares were traded at around $1.92 with and P/S ratio of 1.7. HDSN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Revenues for the six month period ended June 30, 2010 were $25,137,000, an increase of $10,237,000 or 69% from the $14,900,000 reported during the comparable 2009 period. The increase in revenues was primarily attributable to an increase in refrigerant revenues of $10,163,000 and an increase in RefrigerantSide® Services revenues of $74,000. The increase in refrigerant revenues is primarily related to an increase in the number of pounds of certain refrigerants sold. The increase in RefrigerantSide® Services was attributable to an increase in the average revenues per job completed when compared to the same period of 2009, offset to a lesser extent by a decrease in the number of jobs completed compared to the same period of 2009.
At June 30, 2010, the Company had working capital, which represents current assets less current liabilities of $7,134,000, a decrease of $2,235,000 from the working capital of $9,369,000 at December 31, 2009. The decrease in working capital is primarily attributable to the reclassification of $3,000,000 of term loans from long term to short term to reflect the expiration of the Keltic loan agreement on June 26, 2011.
Inventory and trade receivables are principal components of current assets. At June 30, 2010, the Company had inventories of $12,995,000 a decrease of $3,415,000 from the $16,410,000 at December 31, 2009. The decrease in the inventory balance is due to the timing and availability of inventory purchases and the sale of refrigerants. The Company's ability to sell and replace its inventory on a timely basis and the prices at which it can be sold are subject, among other things, to current market conditions and the nature of supplier or customer arrangements and the Company's ability to source CFC based refrigerants, which are no longer being manufactured, or non-CFC based refrigerants. At June 30, 2010, the Company had trade receivables, net of allowance for doubtful accounts of $8,977,000, an increase of $7,383,000 from the $1,594,000 at December 31, 2009. The Company's trade receivables are concentrated with various wholesalers, brokers, contractors and end-users within the refrigeration industry that are primarily located in the continental United States.
On June 26, 2007, a subsidiary of Hudson entered into a credit facility (the "Facility") with Keltic and on April 17, 2008, the Facility was amended to secure the participation of Bridge Healthcare Financial, LLC ("Bridge") and to provide for borrowings of up to $15,000,000. On September 23, 2009, Keltic advised the Company that it had assumed all of Bridge's rights under the Facility. The Facility consists of a revolving line of credit and two term loans, which expires on June 20, 2011. Advances under the revolving line of credit are limited to (i) 85% of eligible trade accounts receivable and (ii) 55% of eligible inventory. Advances available to Hudson under the A and B term loans may not exceed $2,500,000 and $4,500,000, respectively. At June 30, 2010, the Facility bore interest at 6.5%. Substantially all of Hudson's assets are pledged as collateral for its obligations under the Facility. In addition, among other things, the loan agreement restricts Hudson's ability to declare or pay any cash dividends on its capital stock. As of June 30, 2010, Hudson had $2,527,000 of borrowings outstanding and $5,973,000 available for borrowing under the revolving line of credit. In addition, as of June 30, 2010, Hudson had $4,000,000 of borrowings outstanding under the A and B term loans.
A closing of the Offering was held on August 5, 2009, at which time, the Company sold 1,470,000 shares of its common stock at $1.15 per share and received net proceeds of approximately $1,400,000 and no other closings were completed. The Placement Agent received compensation from the Company of $101,000 and a warrant to purchase 73,500 shares of common stock at an exercise price of $1.4375 per share, plus reimbursement of its expenses of $56,000. The estimated fair value of the warrant was approximately $48,000 and such warrant was charged to additional paid in capital as compensation expense to the Placement Agent. As of October 1, 2009, the Company discontinued, and ceased pursuing future sales under, the Offering.
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Hudson Technologies Inc. has a market cap of $40.2 million; its shares were traded at around $1.92 with and P/S ratio of 1.7. HDSN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenues for the three month period ended June 30, 2010 were $16,053,000, an increase of $7,736,000 or 93% from the $8,317,000 reported during the comparable 2009 period. The increase in revenues was primarily attributable to an increase in refrigerant revenues of $7,856,000 offset slightly by a decrease in RefrigerantSide® Services revenues of $120,000. The increase in refrigerant revenues is primarily related to an increase in the number of pounds of certain refrigerants sold. The decrease in RefrigerantSide® Services was attributable to a decrease in the number of jobs completed, slightly offset by an increase in the average revenues per job completed when compared to the same period of 2009.Revenues for the six month period ended June 30, 2010 were $25,137,000, an increase of $10,237,000 or 69% from the $14,900,000 reported during the comparable 2009 period. The increase in revenues was primarily attributable to an increase in refrigerant revenues of $10,163,000 and an increase in RefrigerantSide® Services revenues of $74,000. The increase in refrigerant revenues is primarily related to an increase in the number of pounds of certain refrigerants sold. The increase in RefrigerantSide® Services was attributable to an increase in the average revenues per job completed when compared to the same period of 2009, offset to a lesser extent by a decrease in the number of jobs completed compared to the same period of 2009.
At June 30, 2010, the Company had working capital, which represents current assets less current liabilities of $7,134,000, a decrease of $2,235,000 from the working capital of $9,369,000 at December 31, 2009. The decrease in working capital is primarily attributable to the reclassification of $3,000,000 of term loans from long term to short term to reflect the expiration of the Keltic loan agreement on June 26, 2011.
Inventory and trade receivables are principal components of current assets. At June 30, 2010, the Company had inventories of $12,995,000 a decrease of $3,415,000 from the $16,410,000 at December 31, 2009. The decrease in the inventory balance is due to the timing and availability of inventory purchases and the sale of refrigerants. The Company's ability to sell and replace its inventory on a timely basis and the prices at which it can be sold are subject, among other things, to current market conditions and the nature of supplier or customer arrangements and the Company's ability to source CFC based refrigerants, which are no longer being manufactured, or non-CFC based refrigerants. At June 30, 2010, the Company had trade receivables, net of allowance for doubtful accounts of $8,977,000, an increase of $7,383,000 from the $1,594,000 at December 31, 2009. The Company's trade receivables are concentrated with various wholesalers, brokers, contractors and end-users within the refrigeration industry that are primarily located in the continental United States.
On June 26, 2007, a subsidiary of Hudson entered into a credit facility (the "Facility") with Keltic and on April 17, 2008, the Facility was amended to secure the participation of Bridge Healthcare Financial, LLC ("Bridge") and to provide for borrowings of up to $15,000,000. On September 23, 2009, Keltic advised the Company that it had assumed all of Bridge's rights under the Facility. The Facility consists of a revolving line of credit and two term loans, which expires on June 20, 2011. Advances under the revolving line of credit are limited to (i) 85% of eligible trade accounts receivable and (ii) 55% of eligible inventory. Advances available to Hudson under the A and B term loans may not exceed $2,500,000 and $4,500,000, respectively. At June 30, 2010, the Facility bore interest at 6.5%. Substantially all of Hudson's assets are pledged as collateral for its obligations under the Facility. In addition, among other things, the loan agreement restricts Hudson's ability to declare or pay any cash dividends on its capital stock. As of June 30, 2010, Hudson had $2,527,000 of borrowings outstanding and $5,973,000 available for borrowing under the revolving line of credit. In addition, as of June 30, 2010, Hudson had $4,000,000 of borrowings outstanding under the A and B term loans.
A closing of the Offering was held on August 5, 2009, at which time, the Company sold 1,470,000 shares of its common stock at $1.15 per share and received net proceeds of approximately $1,400,000 and no other closings were completed. The Placement Agent received compensation from the Company of $101,000 and a warrant to purchase 73,500 shares of common stock at an exercise price of $1.4375 per share, plus reimbursement of its expenses of $56,000. The estimated fair value of the warrant was approximately $48,000 and such warrant was charged to additional paid in capital as compensation expense to the Placement Agent. As of October 1, 2009, the Company discontinued, and ceased pursuing future sales under, the Offering.
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