Hudson Technologies, Inc. · NASDAQ:HDSN
Hudson Technologies — Investor Presentation (August 2017)
21 slides from Hudson Technologies's investor presentation, August 2017
Slide 1: Refrigerants, Recycling & Energy Efficiency
Refrigerants, Recycling & Energy Efficiency NASDAQ: HDSN Investor Presentation: 1 August 2017
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 diff
Slide 3: What We Do
What We Do Non-disruptive growth; working with producers and industry participants 3
Slide 4: Leading National Provider of Full Range of Refrigerant and Engineered Solutions
Leading National Provider of Full Range of Refrigerant and Engineered Solutions Product Offerings Service Offerings (90% of Revenue) (10% of Revenue) Refrigerants Industrial and Large Commercial Reclaimed and virgin refrigerants including CFCs, R-22, HFCs Remediation solutions One of the large
Slide 5: Airgas-Refrigerants Transaction Overview
Airgas-Refrigerants Transaction Overview Air Liquide Airgas- Refrigerants Business Overview Airgas- Refrigerants LTM Revenue as of 3/31/17 ~$250 million • Refrigerants • Refrigerants • Reclamation Offerings • Reclamation • Remediation Services • Remediation Services • Global Energy Services • HQ – L
Slide 6: Transformational Acquisition
Transformational Acquisition Combining two businesses with complementary offerings and best-in-class employees in the refrigerant industry ARI’s large customer base for HFCs positions Hudson to better serve an expanded customer base during the future phase down of HFCs Expanded customer network incr
Slide 7: Refrigerant Aftermarket Landscape
Refrigerant Aftermarket Landscape CFCs Virgin production phased out in 1995 HCFCs Virgin production phase out underway; vast majority of virgin HCFC production (R-22) will cease in 2020 HFCs High global warming gases scheduled for phase out beginning 2019 Producers focusing on next generatio
Slide 8: Market Opportunity
Market Opportunity Near-Term Market Opportunity Long-Term Market Opportunity $1 Billion Non-Reclaim Refrigerant Aftermarket Energy Efficiency is a Multi-Billion Dollar Market HDSN is leading independent distributor selling all available Remediation solutions provide predictive, diagnostic servic
Slide 9: R-22 Market Opportunity
R-22 Market Opportunity EPA Final Rule (10/16/14) Production Phase Down Schedule: 2014 2015 2016 2017 2018 2019 2020 43.5M 22M 18M 13M 9M 4M 0 pounds pounds pounds pounds pounds pounds pounds • Virgin R-22 Production Will Be Zero By End of 2019 – Despite elimination of virgin production, aftermarket
Slide 10: Sourcing of All Types of Used Refrigerant
Sourcing of All Types of Used Refrigerant Contractors capture dirty gas, return to distributors & Hudson HVAC Supply House Price drives reclamation for Hudson All refrigerants, legacy & next generation, follow the same supply path 10
Slide 11: A Leader in a Fragmented Market
A Leader in a Fragmented Market Reclaimers ~30 different Other companies Airgas National Refrigerants Hudson captures approximately 25% of the reclaim market 11
Slide 12: Phase Out Drives Domestic Job Creation; HFCs Are Next to Go
Phase Out Drives Domestic Job Creation; HFCs Are Next to Go • Allocation System Benefits U.S. Producers & Reclaimers R-22 Phase Out – Advances U.S. competitiveness – Domestic production grows with introduction of next gen products and restrictions on foreign imports – Increased infrastructure spendi
Slide 13: Expansion of Energy Services & Remediation
Expansion of Energy Services & Remediation • Remediation Solutions – Reliability & Emergency 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 • Ener
Slide 14: Energy: $200B Annual Spend
Energy: $200B Annual Spend Industrial Facility Utility Budget Boilers Boiler Electric Hudson’s Water Expertise Miscellaneous Water Treatment Program Chiller (typically 20% inefficient) Chillers Hudson Serves Two of the Larger Spending Areas: Chillers and Boilers 14
Slide 15: Inefficiency Costs Greater Than $20B Annually
Inefficiency Costs Greater Than $20B Annually Annuity-Based Revenues Hudson Software Monitoring Systems Boilers Air Compressors Chillers Energy Engineers Operations Customer Facility Hudson Solutions Refrigerant Sales Field Services Engineers • System Data • ChillSMART • Energy Assessments • Monitor
Slide 16: Large DoD Contract: Expanded Products & Services
Large DoD Contract: Expanded Products & Services Department of Defense Contract With Maximum Value of $400M – 5-Year contract with 5-year renewal option from the U.S. Defense Logistics Agency (“DLA”) • Fixed price contract for management and supply of refrigerants, compressed gases, cylinders and
Slide 17: Growth Opportunities
Growth Opportunities Largest reclaimer with infrastructure and proprietary processes in place 4 3 Strategic acquisitions 2 and market 1 Recent DoD contract consolidation Expansion of energy provides financial Further penetration of services business upside refrigerant sales; reclamation opportunity
Slide 18: Financial Review
FINANCIAL REVIEW TECHNOLOGIES
Slide 19: Attractive Financial Profile
Attractive Financial Profile 18.9% 5-year revenue CAGR Revenue growth driven by rising R-22 prices and future refrigerants phase outs Consistent Revenue Growth Incremental revenue streams poised to drive accretive, high margin sales – Global energy services is contract based and highly recurri
Slide 20: Historical Revenue Growth
Historical Revenue Growth Quarterly Revenue Annual Revenue $ millions Q1 Q2 Q3 Q4 $ millions $60 $140 Series1 Revenue Series2 EPS $0.35 52.2 $0.30 $120 $50 $105.5 $0.25 $100 $40 38.8 34.6 34.9 $79.7 $0.20 $80 28.6 $0.15 $30 28.2 $60 $55.8 22.1 21.7 $0.10 $20 16.8 15.6 15.3 $40 $0.05 $10 8.1 7.3 7.8
Slide 21: 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 21
Hudson Technologies — Investor Presentation (August 2017) on 6ix