Hudson Technologies, Inc. (NASDAQ:HDSN) Q2 2024 Earnings Conference Call August 6, 2024 5:00 PM ET

Company Participants

Jennifer Belodeau - IMS Investor Relations
Brian Coleman - Chairman of the Board, President and Chief Executive Officer
Brian J. Bertaux - Chief Financial Officer

Conference Call Participants

Ryan Sigdahl - Craig-Hallum
Gerry Sweeney - ROTH Capital
Josh Nichols - B. Riley
Austin Moeller - Canaccord

Operator

Greetings. Welcome to the Hudson Technologies’ Second Quarter 2024 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, Jen Belodeau. You may begin.

Jennifer Belodeau

Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies’ financial results for second quarter 2024.

On the call today are Brian Coleman, President and Chief Executive Officer; and Brian Bertaux, Hudson’s new Chief Financial Officer.

I’ll now take a moment to read the Safe Harbor statement. During the course of this conference call, we'll 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 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 other factors that could cause our 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. So far, 2024 has a number of long-term positive events such as the significant cash flow generation, the anticipated share buyback, the acquisition of USA Refrigerants and the expected final Refrigerant Management Rule, creating the first ever federal mandates for the use of reclaimed refrigerant.

Unfortunately, on a short-term basis, we’ve seen downward pricing pressure this sales season. As we move through the 2024 selling season, the landscape has been challenging. In the second quarter, demand for refrigerants were very strong with a 17% increase in volume over last year. However, we continue to experience pricing pressure for certain refrigerants, which negatively impacted our revenue and margin performance and outweighing the volume gains.