Hudson Technologies Inc. (HDSN, Financial) filed Quarterly Report for the period ended 2009-03-31.
Hudson Technologies Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide Services increase operating efficiency and energy savings and remove moisture oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies RefrigerantSide Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels and can be utilized while the customer's system continues to operate. In addition the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. Hudson Technologies Inc. has a market cap of $35.9 million; its shares were traded at around $1.85 with a P/E ratio of 5.6 and P/S ratio of 1.1.
Other income (expense) for the three month period ended March 31, 2009 was ($341,000), compared to the ($253,000) reported during the comparable 2008 period. Other income (expense) includes interest expense of $341,000 and $254,000 for the comparable 2009 and 2008 periods, respectively. The increase in interest expense is primarily attributed to an increase in outstanding indebtedness.
At March 31, 2009, the Company had working capital, which represents current assets less current liabilities, of $10,508,000 a decrease of $591,000 from the working capital of $11,099,000 at December 31, 2008. The decrease in working capital is primarily attributable to net loss during the 2009 period.
Inventory and trade receivables are principal components of current assets. At March 31, 2009, the Company had inventories of $21,908,000 a decrease of $1,705,000 or 7% from the $23,613,000 at December 31, 2008. 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 March 31, 2009, the Company had trade receivables, net of allowance for doubtful accounts of $4,828,000 an increase of $3,097,000 from the $1,731,000 at December 31, 2008. 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.
Net cash used by operating activities for the three month period ended March 31, 2009, was $3,332,000 compared with net cash used by operating activities of $848,000 for the comparable 2008 period. Net cash used by operating activities for the 2009 period was primarily attributable to an increase in accounts receivable of $3,101,000 and a reduction in accounts payable of $1,665,000 partially offset by a decrease in inventory of $1,705,000.
(1) The contractual cash obligations included in the table includes both principal and estimated interest payments. The estimated interest payments on revolving debt are based primarily on the interest rates in effect and the outstanding revolving debt obligation as March 31, 2009. (2) Long and short term debt and capital lease obligations include payment of obligations of outstanding principal amounts of debt as of March 31, 2009 and estimated future interest payments on the outstanding principal amounts under the Company's credit facility with Keltic and Bridge, which expires on June 20, 2011. On June 26, 2007, the Company entered into a credit facility with Keltic and on April 17, 2008, Hudson amended its credit facility with Keltic and secured participation from Bridge to provide for borrowings up to $15,000,000. On March 20, 2009, the facility was temporarily increased to $17,000,000 and effective July 15, 2009, the facility will return to $15,000,000. The facility consists of a revolving line of credit and 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 March 31, 2009, the facility bore interest at 6.5%. Substantially all of Hudson's assets are pledged as collateral for its obligations to Keltic and Bridge under the credit facility. In addition, among other things, the agreement restricts Hudson's ability to declare or pay any cash dividends on its capital stock. As of March 31, 2009, Hudson had in the aggregate $11,829,000 of borrowings outstanding and $27,000 available for borrowing under the revolving line of credit. In addition, as of March 31, 2009, the Company had $5,250,000 of borrowings outstanding under the A and B term loans with Keltic and Bridge.
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Hudson Technologies Inc. is a leading provider of innovative solutions to recurring problems within the refrigeration industry. Hudson's proprietary RefrigerantSide Services increase operating efficiency and energy savings and remove moisture oils and other contaminants frequently found in the refrigeration circuits of large comfort cooling and process refrigeration systems. Performed at a customer's site as an integral part of an effective scheduled maintenance program or in response to emergencies RefrigerantSide Services offer significant savings to customers due to their ability to be completed rapidly and at higher purity levels and can be utilized while the customer's system continues to operate. In addition the Company sells refrigerants and provides traditional reclamation services to the commercial and industrial air conditioning and refrigeration markets. Hudson Technologies Inc. has a market cap of $35.9 million; its shares were traded at around $1.85 with a P/E ratio of 5.6 and P/S ratio of 1.1.
Highlight of Business Operations:
Revenues for the three month period ended March 31, 2009 were $6,583,000, a decrease of $4,783,000 or 42% from the $11,366,000 reported during the comparable 2008 period. The decrease in revenues was primarily attributable to a decrease in refrigerant revenues of $4,690,000 and a decrease in RefrigerantSide® Services revenues of $93,000. The decrease in refrigerant revenues is primarily related to a decrease in the number of pounds sold. The decrease in RefrigerantSide® Services was primarily attributable to a decrease in the numbers of jobs completed when compared to the same period of 2008.Other income (expense) for the three month period ended March 31, 2009 was ($341,000), compared to the ($253,000) reported during the comparable 2008 period. Other income (expense) includes interest expense of $341,000 and $254,000 for the comparable 2009 and 2008 periods, respectively. The increase in interest expense is primarily attributed to an increase in outstanding indebtedness.
At March 31, 2009, the Company had working capital, which represents current assets less current liabilities, of $10,508,000 a decrease of $591,000 from the working capital of $11,099,000 at December 31, 2008. The decrease in working capital is primarily attributable to net loss during the 2009 period.
Inventory and trade receivables are principal components of current assets. At March 31, 2009, the Company had inventories of $21,908,000 a decrease of $1,705,000 or 7% from the $23,613,000 at December 31, 2008. 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 March 31, 2009, the Company had trade receivables, net of allowance for doubtful accounts of $4,828,000 an increase of $3,097,000 from the $1,731,000 at December 31, 2008. 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.
Net cash used by operating activities for the three month period ended March 31, 2009, was $3,332,000 compared with net cash used by operating activities of $848,000 for the comparable 2008 period. Net cash used by operating activities for the 2009 period was primarily attributable to an increase in accounts receivable of $3,101,000 and a reduction in accounts payable of $1,665,000 partially offset by a decrease in inventory of $1,705,000.
(1) The contractual cash obligations included in the table includes both principal and estimated interest payments. The estimated interest payments on revolving debt are based primarily on the interest rates in effect and the outstanding revolving debt obligation as March 31, 2009. (2) Long and short term debt and capital lease obligations include payment of obligations of outstanding principal amounts of debt as of March 31, 2009 and estimated future interest payments on the outstanding principal amounts under the Company's credit facility with Keltic and Bridge, which expires on June 20, 2011. On June 26, 2007, the Company entered into a credit facility with Keltic and on April 17, 2008, Hudson amended its credit facility with Keltic and secured participation from Bridge to provide for borrowings up to $15,000,000. On March 20, 2009, the facility was temporarily increased to $17,000,000 and effective July 15, 2009, the facility will return to $15,000,000. The facility consists of a revolving line of credit and 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 March 31, 2009, the facility bore interest at 6.5%. Substantially all of Hudson's assets are pledged as collateral for its obligations to Keltic and Bridge under the credit facility. In addition, among other things, the agreement restricts Hudson's ability to declare or pay any cash dividends on its capital stock. As of March 31, 2009, Hudson had in the aggregate $11,829,000 of borrowings outstanding and $27,000 available for borrowing under the revolving line of credit. In addition, as of March 31, 2009, the Company had $5,250,000 of borrowings outstanding under the A and B term loans with Keltic and Bridge.
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