Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (December 2013)
14 slides from Hudson Technologies's investor presentation, December 2013
Slide 1: Refrigerants, Recycling & Energy Efficiency Investor Presentation
REFRIGERANTS, RECYCLING & ENERGY EFFICIENCY Investor Presentation December 2013
Slide 2: Forward-looking statements
Statements contained herein, which are not historical facts constitute forward-looking statements, involve a number of known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future r
Slide 3: What We Do
What We Do Provide refrigerant for use in cooling systems (e.g. air conditioning) Recycle (reclaim) refrigerant Hudson is largest reclaimer in U.S. Provide system service and energy optimization 3
Slide 4: Our Businesses
Our Businesses Leading Provider of Full Range of Refrigerant Solutions PRODUCT OFFERINGS SERVICE OFFERINGS On-Site Refrigerant Services Refrigerants Reclaimed and virgin refrigerants Decontamination and recovery services including complete line of Freon, R-22, Removal of moisture, oils and oth
Slide 5: Market Opportunity
Market Opportunity • Refrigerant Product Sales: $1 Billion U.S. Aftermarket – Fragmented market; Hudson one of largest independent participants • Hudson sells all types of refrigerants and has developed an extensive distribution network • Majority of organic growth to date has been from refrigerant
Slide 6: Phase-Outs of Refrigerants By Type – Hudson Becomes the Producer
Phase-Outs of Refrigerants By Type – Hudson Becomes the Producer US Refrigerant Aftermarket Hudson sells & reclaims all 3 types of refrigerant Freon: 1st phase-out 100% reclaimed R-22: 2nd phase-out Will become 100% reclaimed HFC: expected to be phased out Will become more widely reclaimed 6 with fu
Slide 7: Virgin R-22 Allocations
Virgin R-22 Allocations 70 60 63 Final Rule (April 3, 2013) 2015-2019 Proposed Rule* 50 51 (Pounds in millions) 40 30 30 20 24 18 Virgin Production 10 12 goes to 0 6 in 2020 0 0 2013 2014 2015 2016 2017 2018 2019 2020 * Presented in this graph is the EPA’s preferred phase out method; additional
Slide 8: Pricing Impact on Reclamation
Pricing Impact on Reclamation High Price of R-22: economic incentive to Low Price of R-22: little/no economic return dirty gas to distributors incentive to return dirty gas Contractors capture dirty gas, return to Contractors vent majority of distributors & HDSN dirty gas into atmosphere Distributor
Slide 9: Our Businesses
Our Businesses Leading Provider of Full Range of Refrigerant Solutions PRODUCT OFFERINGS SERVICE OFFERINGS On-site Refrigerant Services Refrigerants Reclaimed and virgin refrigerants Decontamination and recovery services including complete line of Freon, R-22, Removal of moisture, oils and oth
Slide 10: Service Offerings
Service Offerings • Refrigerant Side Services – Proprietary RefrigerantSide® Services • U.S.: $500 million land-based/$75+ million marine • International opportunity similar to U.S. – currently in UK and RSA • Have served more than 50 of Fortune 500, including 15 of Fortune 50 • Remediation Services
Slide 11: Financial Review
FINANCIAL REVIEW 11
Slide 12: Historical Revenue Growth
Historical Revenue Growth Quarterly Revenue Annual Revenue $ millions $ millions $25 Q1 Q2 Q3 Q4 $60 56.4 22.3 22.9 53.8 51.6 $50 $20 44.3 16 15.8 15.2 $40 37.2 14.7 14.8 14.5 $15 13.8 11.9 $30 24.2 $10 8.3 9.1 8 6.6 6.5 $20 4.9 $5 4.1 3.9 2.8 $10 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 F
Slide 13: Investment Considerations
Investment Considerations • Refrigerants and Reclamation − EPA has mandated that virgin R-22 will be 100% phased out by 2020 − Reclamation will be only source of R-22 − Drives reclamation and strengthens HDSN’s bottom line growth − HDSN is able to reclaim all refrigerants in the market • Engineering
Slide 14: Contact Us
Contact Us Company Contact: Brian Coleman, President & COO Hudson Technologies, Inc. (845) 735-6000 ext. 6007 Investor Contact: John Nesbett/Jennifer Belodeau Institutional Marketing Services (IMS) (203) 972-9200 14
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