Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (May 2006)
24 slides from Hudson Technologies's investor presentation, May 2006
Slide 1: An Engineering-based Solutions Company - Profitable and Growing
An Engineering-based Solutions Company - Profitable and Growing - May 2006
Slide 2: 'Safe Harbor' Statement
‘Safe Harbor’ Statement 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 dif
Slide 3: Agenda
Agenda Overview of Hudson and its Market 2003 – A Year of Rebuilding 2004 – A Year of Profitability 2005 – A Year of Continued Momentum Continued Progress in 2006 Next Steps Investment Highlights 3
Slide 4: Overview of Hudson
Overview of Hudson Refrigerant services company with unique, niche expertise in cooling systems Use superior engineering & chemistry know-how to solve increasingly complex problems Help industrial & commercial companies identify energy-efficient solutions that provide significant savings while
Slide 5: Overview of Hudson
Overview of Hudson Has served 54 of the Fortune 500, including 15 of the Fortune 50 One of only three ARI Certified labs in the US Energy Star Partner Service sells refrigerant Reclaimed over 40 million pounds of refrigerants Leader in niche reclamation market 5
Slide 6: The Hudson Advantage
The Hudson Advantage A unique combination of proprietary technology, equipment, chemistry & engineering skills Understand complex installations Able to identify root problems Offer predictive maintenance Can prevent recurring problems Offer versatile, high speed, on-site remediation serv
Slide 7: World Trade Center - July 2001
World Trade Center - July 2001 7
Slide 8: World Trade Center – December 2001
World Trade Center – December 2001 8
Slide 9: Aircraft Carrier USS Nimitz
Aircraft Carrier USS Nimitz 9
Slide 10: Titanium Dioxide Plant
Titanium Dioxide Plant 10
Slide 11: Hudson's Technology
Hudson’s Technology The ZugiBeast® RefrigerantSide® (“R-Side”) Services Chiller Chemistry™ Performance Monitoring & Optimization Currently 13 patents and patents pending 11
Slide 12: Significant Market Opportunity
Significant Market Opportunity Refrigerant Sales – Overall $1 Billion Market Hudson focus: higher-margin refrigerants - $300+ million RefrigerantSide® Services (Ind. & Com’l service $3 Billion) US: $500 million land-based / $75+ million marine International: $500 million Performance Opti
Slide 13: Company History through 2003
Company History through 2003 Created first Reclamation Center -- 1991 Patented Zugibeast® -- 1993 DuPont invests -- 1997 Hudson becomes largest reclaimer -- 1997 Created R-Side Services -- 1998 Established nationwide depot network -- 1999 Introduced Chiller Chemistry™ -- 2002 Develop
Slide 14: 2003 – A Year of Rebuilding
2003 – A Year of Rebuilding Eliminated over $1 million in annual costs Closed 5 depots, consolidated 3 reclamation facilities, right-sized workforce Reorganized & strengthened R-Side business Merged management responsibilities Set new profitability benchmarks Improved R-Side sales & mark
Slide 15: 2004 – A Year of Profitability
2004 – A Year of Profitability Hudson returned to profitability, posting strongest financial results since 1995 Successful focus on performing value-added projects Each line of business produced higher gross profit margins R-Side business a profitable segment Bottom-line financial performa
Slide 16: Additional 2004 Achievements
Additional 2004 Achievements Launched Hudson’s services internationally through technology & marketing alliance with BOC (NYSE: BOX) Leading industrial gases company servicing 2 million customers in 50+ countries Alliance currently encompasses UK & South Africa, with another 20 countries appro
Slide 17: 2005 – A Year of Continued Momentum
2005 – A Year of Continued Momentum Hudson improved on last year’s strong performance with an even better financial performance Continued strong demand and prices for refrigerants Increase in refrigerant revenues of $5.4 million Growth in number of customers served Net income increased by
Slide 18: 2005 Financial Results
2005 Financial Results (in 000’s) 12 Mo. 12 Mo. 2005 2004 Revenues $19,223 $14,613 Gross Profit 7,503 5,123 Total Operating Exp. 4,915 4,623 Operating Income 2,588 500 Net Income 2,294 264 Net Income/Common Share $ 0.09 $ 0.00 18
Slide 19: 2005 Achievements
2005 Achievements Expanded scope of R-Side Services: March 2005 : Became ENERGY STAR® Service & Product Provider EPA-sponsored energy efficiency program April 2005 : Introduced ChillSMART™ offering Powerful new tool for improving industrial & commercial refrigeration systems 19
Slide 20: 2006 - Continued Progress
2006 - Continued Progress 3 Mo. 3 Mo. 2006 2005 ___________________________________( (unaudited – in 000’s) Revenues $6,906 $4,582 Gross Profit 1,726 1,446 Total Operating Exp. (a) 1,373 1,305 Operating Income 353 289 Net Income 247 223 Net Income/Common Share $ 0.01 $ 0.01 (a) Includes $87 and $0 f
Slide 21: 2006 Achievements
2006 Achievements In February, Hudson’s lab became one of only three labs in the U.S. to be certified by the Air-Conditioning and Refrigeration Institute ("ARI") under ARI's Refrigerant Testing Laboratory Certification Program The certification demonstrates that we have a high level of quality c
Slide 22: Next Steps
Next Steps Rollout of programs for generating predictive / preventative R-Side revenues Chiller Chemistry™ ChillSMART™ Commercialize Performance Optimization Develop long-term projects with profitable revenue stream Continue expansion of BOC international alliance 22
Slide 23: Growth Prospects
Growth Prospects Continued steady growth in revenues, margins and profits Increasing focus on higher margin customers Continued management of operating costs and infrastructure 23
Slide 24: Investment Highlights
Investment Highlights Attractive market opportunity with potential for significant growth Superior engineering & chemistry expertise Company right-sized for profitable growth New focus on highest opportunity industries & customers Alliance with leading international player, BOC Group ENE
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