Hudson Technologies, Inc. (NASDAQ:HDSN) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET

Company Participants

John Nesbett - Investor Relations

Brian Coleman - Chairman, President & Chief Executive Officer

Nat Krishnamurti - Vice President, Secretary & Chief Financial Officer

Conference Call Participants

Ryan Sigdahl - Craig-Hallum Group

Gerry Sweeney - ROTH Capital

Chip Moore - EF Hutton

Operator

Good afternoon, ladies and gentlemen and welcome to today's Hudson Technologies Third Quarter 2022 Earnings Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, John Nesbett of IMS Investor Relations. John, the floor is yours.

John Nesbett

Thank you, Tom. Good evening and welcome to our conference call to discuss Hudson Technologies' financial results for the third quarter 2022. On the call are Brian Coleman, President and Chief Executive Officer; and Nat Krishnamurti, Chief Financial Officer.

I'll now take a moment to read the Safe Harbor statement. During the course of this conference call, we will make certain forward-looking statements. All statements that address expectations, opinions or expectations about the future are forward-looking statements. Although they reflect our current expectations and are based on our best view of the industry and our businesses, as we see them today, they are not guarantees of future performance. Please understand that these statements involve a number of risks and assumptions. And since those elements can change and, in certain cases, are not within our control, we would ask that you consider and interpret them in that light. We urge you to review Hudson's most recent Form 10-K and other subsequent SEC filings for a discussion of the principal risks and uncertainties that affect our business and our performance and of the factors that could cause our actual results to differ materially.

Okay. With that, I will turn the call over to Brian Coleman. Go ahead, Brian.

Brian Coleman

Good evening and thank you for joining us. Our third quarter delivered a strong close to our 2022 selling season, reflected record revenues, improved margins and enhanced profitability. During the third quarter, we continue to benefit from sustained strength in the pricing of certain refrigerants. In addition to delivering our third quarter of record revenue performance, we achieve gross margins of 49% in the quarter and a significant improvement when compared to gross margin in the third quarter of 2021.

However, as expected, gross margin moderated sequentially as compared to the first and second quarters of this year as we began to see less of a gap between the inventory cost and the sale price. As we enter the fourth quarter which is seasonally our weakest quarter, we are focused on maintaining our existing strategic relationships and adding new customers who share our vision of the circular economy of refrigerants. Hudson is a longtime industry leader in the facilitation and adoption of sustainable refrigerant management and we are delivering on the efforts to attract partners who are similarly committed.