Hudson Technologies Inc. (NASDAQ:HDSN) Q3 2018 Earnings Conference Call Transcript

Dec 05, 2018 • 05:00 pm ET

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Hudson Technologies Inc. (NASDAQ:HDSN) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Hudson Technologies Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Jennifer Belodeau, from IMS Investor Relations. Please go ahead.

Executive
Jennifer Belodeau

Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies financial results for the third quarter of 2018. On the call today, we have Kevin Zugibe, Chairman and Chief Executive Officer; and Brian Coleman, President and Chief Operating Officer of Hudson.

(Forward-Looking Cautionary Statements)

With that, I'll turn the call over to Kevin. Go ahead, Kevin.

Executive
Kevin J. Zugibe

Good evening, and thank you for joining us. Before we get started with our prepared remarks about the quarter, I want to take a moment this evening to recognize our nation's collective loss of President George H.W. Bush. Among President Bush's many achievements was his signing of the Clean Air Act of 1990 Title VI, which sought to protect the ozone layer. The 1990 Clean Air Act specifically required the EPA to regulate ozone depleting substances like chlorofluorocarbons or CFCs and hydrochlorofluorocarbons or HCFC's. This legislation and the resulting refrigerant phase outs pave the way for the development of reclamation and directly impacted the way we at Hudson thought about our business and our opportunities for the future. During the past few days, we've seen and heard about many of President Bush's legislative accomplishments and while we may be a bit biased, we count the Clean Air Act of 1990 as one of the most important elements of distinguished legacy.

Now, turning to our third quarter and nine months results. As you know, 2018 has been a challenging year for Hudson, as well as our entire industry. That said, we were very pleased to have recently announced definitive amendments to our credit facilities. The amendment process was lengthy and we appreciate the patience and support shown by our shareholders while we completed that process. With the amendments in place, we believe, we now have the financial flexibility and liquidity to drive improved operating performance as we move through 2019 and beyond. Additionally, with the amendments in place, we filed our Form 10-Qs for the period ended June 30th, 2018, and also for the period ended September 30th, 2018, and regained listing compliance with NASDAQ.

As we've previously pointed out, our 2018 selling season was characterized by more just in time buying pattern, significantly reduced pricing for most of the refrigerants we sell in cooler seasonal temperatures. Despite these headwinds it is important to note that we were able to achieve $35 million in cash flow from operations during the first nine months of 2018, and surpassed our target level for cash flow.

Additionally, we've reduced our debt by 37 million year-to-date and had 45 million of availability at September 30th, 2018. So while, 2018 selling season was very disappointing, our