Hudson Technologies, Inc. (NASDAQ:HDSN) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET

Company Participants

Jennifer Belodeau - Investor Relations

Brian Coleman - Chairman, President and Chief Executive Officer

Nat Krishnamurti - Vice President and Chief Financial Officer

Conference Call Participants

Gerry Sweeney - ROTH Capital

Ryan Sigdahl - Craig-Hallum Capital

Austin Moeller - Canaccord

Operator

Greetings. Welcome to the Hudson Technologies' Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Jennifer Belodeau. You may begin.

Jennifer Belodeau

Thank you. Good evening and welcome to our conference call to discuss Hudson Technologies' financial results for the third quarter 2023. On the call today are Brian Coleman, President and Chief Executive Officer; and Nat Krishnamurti, CFO.

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 predictions 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 business 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, 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 the factors that could cause actual results to differ materially.

With that out of the way, I’ll turn the call over to Brian Coleman. Go ahead, Brian.

Brian Coleman

Good evening and thank you for joining us. We delivered solid third quarter results which included continued profitability and strong cash flow to close out our traditional nine month cooling season.

That said, as we expected on a comparative basis, third quarter of 2023 revenue margin decreased relative to the significantly strong revenue margin performance achieved in 2022.

The primary driver for the comparative decrease was a 27% decline in the sales price for certain refrigerants when compared to the third quarter of 2022. As we detailed previously throughout most of 2022, we saw substantial sale price increases without a corresponding increase in inventory price.