Hudson Technologies Inc (HDSN) 2021 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, welcome to the Hudson Technologies First Quarter 2021 Earnings Call. (Operator Instructions)

女士們先生們，下午好，歡迎來到哈德遜科技 2021 年第一季度財報電話會議。 （操作員說明）

It is now my pleasure to turn the floor over to your host, Jennifer Belodeau. Ma'am, the floor is yours.

現在我很高興將發言權交給主持人 Jennifer Belodeau。女士，地板是你的。

Thank you. Good evening, and welcome to our conference call to discuss Hudson Technologies financial results for first quarter 2021. 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.

謝謝。晚上好，歡迎參加我們的電話會議，討論 Hudson Technologies 2021 年第一季度的財務業績。今天的電話會議是總裁兼首席執行官 Brian Coleman；和首席財務官 Nat Krishnamurti。我現在花點時間閱讀安全港聲明。

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 of 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 and in certain cases are not within our control, we would ask that you consider and interpret them in that light.

在本次電話會議期間，我們將做出某些前瞻性陳述。所有涉及對未來的期望、意見或預測的陳述均為前瞻性陳述。儘管它們反映了我們當前的期望，並且基於我們對行業和業務的最佳看法，但它們並不能保證未來的表現。請理解，這些陳述涉及許多風險和假設。由於這些元素可能會發生變化，並且在某些情況下不在我們的控制範圍內，因此我們會要求您從這個角度考慮和解釋它們。

We urge you to review Hudson's most recent Form 10-K and other subsequent SEC filings for a discussion of the principle risks and uncertainties that affect our business and our performance and of the factors that could cause our actual results to differ materially.

我們敦促您查看 Hudson 最近的 10-K 表格和其他隨後提交給美國證券交易委員會的文件，以討論影響我們業務和業績的主要風險和不確定性，以及可能導致我們的實際結果出現重大差異的因素。

With that. I'll turn the call over to Brian Coleman. Go ahead, Brian.

接著就，隨即。我會把電話轉給 Brian Coleman。來吧，布賴恩。

Good evening, and thank you for joining us. As at March 31, we kicked off our 2021 selling season. Our first quarter revenues were slightly down from the first quarter of 2020, primarily due to the impact of the COVID pandemic, which did not materially affect the economy until late March of 2020. This year, while the economy is opening back up, it's a gradual process, largely dependent on where our customers are located geographically, and our first quarter revenues reflect that, but we still believe we can get back to 2019 volumes levels during the 2021 cooling season.

晚上好，感謝您加入我們。截至 3 月 31 日，我們開啟了 2021 年的銷售旺季。我們第一季度的收入比 2020 年第一季度略有下降，這主要是由於 COVID 大流行的影響，直到 2020 年 3 月下旬才對經濟產生重大影響。今年，雖然經濟正在重新開放，但這是一個漸進過程，很大程度上取決於我們客戶的地理位置，我們第一季度的收入反映了這一點，但我們仍然相信我們可以在 2021 年降溫季節恢復到 2019 年的銷量水平。

That said, well, first quarter revenues were down related to decreased volume, we were encouraged by price stability and pricing improvement for nearly all refrigerants. We are well prepared to meet potential demand as the 9-month selling season moves forward, particularly as cooling systems come back online with the return of business as usual and as we move into the warmer late spring and summer weather.

也就是說，第一季度收入下降與銷量下降有關，我們對幾乎所有製冷劑的價格穩定和定價改善感到鼓舞。隨著為期 9 個月的銷售旺季的推進，我們已做好充分準備以滿足潛在需求，特別是隨著冷卻系統恢復正常營業以及我們進入溫暖的晚春和夏季天氣。

Hudson continues to be a leading source for all refrigerants from legacy products like CFCs and HCFCs to the current HFCs and beyond to the next generation HFOs. We are positioned at 2 key points in the supply chain with a solid and longstanding customer base. With our capabilities of relationships, we remain optimistic about future opportunities.

從 CFC 和 HCFC 等遺留產品到當前的 HFC，再到下一代 HFO，Hudson 一直是所有製冷劑的主要來源。我們位於供應鏈的兩個關鍵點，擁有穩固且長期的客戶群。憑藉我們的關係能力，我們對未來的機會保持樂觀。

With the new administration comes a new regulatory landscape and we're encouraged by the progress made with passing of the AIM Act in December 2020 and the support the reclamation is receiving. As a leading source of wall refrigerants, Hudson is keenly focused on our role as environmental and sustainability legislation is adopted. Our capabilities as a reclaimer uniquely position us to support the phased down of virgin HFC production as we can reclaim and recycle these refrigerants, positioning us as an effective resource in the circular economy of the refrigerant industry.

新政府帶來了新的監管環境，我們對 2020 年 12 月通過 AIM 法案所取得的進展以及填海工程獲得的支持感到鼓舞。作為壁式製冷劑的主要來源，哈德森非常關注我們在通過環境和可持續性立法方面的作用。我們作為回收商的能力使我們能夠支持逐步減少原始 HFC 生產，因為我們可以回收和再循環這些製冷劑，使我們成為製冷劑行業循環經濟中的有效資源。

The AIM Act requires the phase down of virgin HFC production over the next 15 years with a cumulative 40% reduction in the baseline scheduled to take place in just 2.5 years. The installed base of HFC systems is large and growing, so reclamation will be a key component to maintaining necessary supply during an orderly phase out. This presents a significant long-term opportunity for Hudson to grow as an HFC supplier while also supporting the transition away from production of virgin HFCs. The regulated phased down of HFC virgin production through the establishment of an allocation system has some similarities to the previous ODS phase out, which included R-22. But with that previous phase out, the reclamation industry was in its infancy. Today, the reclamation industry is well-established with Hudson representing approximately 35% of all refrigerant reclamation activity in the U.S. And the AIM Act mandates the EPA to support the growth and development of the reclamation market.

AIM 法案要求在未來 15 年內逐步減少原始 HFC 的生產，計劃在短短 2.5 年內將基準線累計減少 40%。 HFC 系統的安裝基礎龐大且不斷增長，因此回收將是在有序淘汰期間維持必要供應的關鍵組成部分。這為哈德森提供了一個重要的長期機會，使其成為 HFC 供應商，同時也支持從純 HFC 生產轉型。通過建立分配系統對 HFC 原始生產進行監管的逐步淘汰與之前的 ODS 淘汰有一些相似之處，其中包括 R-22。但隨著前一階段的淘汰，填海業還處於起步階段。如今，哈德森的回收行業已經很成熟，約占美國所有製冷劑回收活動的 35%，而且 AIM 法案要求 EPA 支持回收市場的增長和發展。

We are excited by the opportunities we're seeing not only to grow our business, but also to provide our services to benefit the environment. Likewise, we continue our focus and efforts of making our California production sites carbon neutral as we seek to achieve California stated goals for emission reductions and their legislative phase out of virgin HFC refrigerant use. As we make progress at our California sites, our larger goal is to achieve carbon neutrality at all of our production facilities. Just as we work with our customers to provide equipment optimization services to help them lower their energy bills and reduce their carbon footprint, we remain intent on finding more and better ways to improve the circular economy and end of life management of refrigerants.

我們對看到的機會感到興奮，不僅可以發展我們的業務，還可以提供我們的服務以造福於環境。同樣，我們繼續關注和努力使我們的加利福尼亞生產基地實現碳中和，因為我們尋求實現加利福尼亞規定的減排目標和立法逐步淘汰原始 HFC 製冷劑的使用。隨著我們在加利福尼亞工廠取得進展，我們更大的目標是在我們所有的生產設施中實現碳中和。正如我們與客戶合作提供設備優化服務以幫助他們降低能源費用和減少碳足跡一樣，我們仍然致力於尋找更多更好的方法來改善循環經濟和製冷劑的報廢管理。

With our visibility today, we are optimistic about the 2021 selling season as we see the steady reopening of businesses, schools and public facilities that make up our customers and end markets. As cooling systems are reengaged and new systems come online, we believe that we're well positioned to leverage the near-term opportunities we are seeing in the refrigerant marketplace. Additionally, the scheduled phase down of HFC virgin production represents a significant opportunity for the growth of our reclamation industry and in turn our leadership position.

憑藉我們今天的知名度，我們對 2021 年的銷售季持樂觀態度，因為我們看到構成我們客戶和終端市場的企業、學校和公共設施穩步重新開放。隨著冷卻系統的重新啟用和新系統的上線，我們相信我們已做好充分準備，可以利用我們在製冷劑市場上看到的近期機會。此外，按計劃逐步減少 HFC 原始生產為我們的回收行業的發展以及我們的領導地位提供了重要機會。

Now I'll turn the call over to Nat to review the financials. Go ahead Nat.

現在我會把電話轉給 Nat 來審查財務狀況。繼續，納特。

Thank you, Brian. For the first quarter ended March 31, 2021, Hudson recorded revenues of $33.8 million, a decrease of 7% as compared to $36.4 million in the comparable 2020 period, primarily due to a decline in volume related to the COVID impact stemming from the closure of businesses, schools and other public venues, which as Brian mentioned, did not materially impact the economy until late March 2020. This was partially offset by an increase in selling price of certain refrigerants, which also led to the improved gross margin of 27% for the first quarter of 2021 compared to 23% in the first quarter of 2020.

謝謝你，布萊恩。截至 2021 年 3 月 31 日的第一季度，Hudson 的收入為 3380 萬美元，與 2020 年同期的 3640 萬美元相比下降了 7%，這主要是由於 COVID 影響導致銷量下降企業、學校和其他公共場所，正如 Brian 提到的那樣，直到 2020 年 3 月下旬才對經濟產生重大影響。這部分被某些製冷劑的售價上漲所抵消，這也導致毛利率提高了 27%與 2020 年第一季度相比，2021 年第一季度為 23%。

SG&A for the first quarter of 2021 was $6.7 million, a $600,000 decrease compared to $7.3 million in the first quarter of 2020, mainly due to reduced professional fees, partially offset by an increase in noncash stock compensation expense. We recorded operating income of $1.7 million in the first quarter of 2021 compared to operating income of $400,000 in the first quarter of 2020. To continue with the cost savings, interest expense for the first quarter of 2021 was $2.8 million, a decrease of about $500,000 from the $3.3 million reported during the first quarter of 2020, mainly due to principal payments made on the term loan.

2021 年第一季度的 SG&A 為 670 萬美元，與 2020 年第一季度的 730 萬美元相比減少了 60 萬美元，這主要是由於專業費用減少，部分被非現金股票補償費用的增加所抵消。我們在 2021 年第一季度的營業收入為 170 萬美元，而 2020 年第一季度的營業收入為 400,000 美元。為了繼續節省成本，2021 年第一季度的利息支出為 280 萬美元，減少了約 500,000 美元2020 年第一季度報告的 330 萬美元，主要是由於定期貸款的本金支付。

The company recorded a net loss of $1.1 million or a loss of $0.02 per basic and diluted share in the first quarter of 2021 compared to a net loss of $2.9 million or $0.07 per basic and diluted share in the same period of 2020. At March 31, 2021, we had approximately $32 million of total availability, consisting of both our cash balance and revolver availability. We have strong liquidity and our term loan and revolving loan credit facilities provide us with a solid financial platform and flexibility as we look forward. With our stronger balance sheet and improved liquidity metrics, we hope to further improve our financial condition by exploring the refinancing of our existing debt to help grow and support the business.

該公司在 2021 年第一季度錄得淨虧損 110 萬美元或基本股和稀釋後每股虧損 0.02 美元，而 2020 年同期的淨虧損為 290 萬美元或基本股和稀釋後每股虧損 0.07 美元。截至 3 月 31 日，到 2021 年，我們的總可用性約為 3200 萬美元，包括我們的現金餘額和可用的左輪手槍。我們擁有強大的流動性，我們的定期貸款和循環貸款信貸額度為我們提供了堅實的財務平台和我們期待的靈活性。憑藉我們更強大的資產負債表和改善的流動性指標，我們希望通過探索現有債務的再融資來進一步改善我們的財務狀況，以幫助發展和支持業務。

And I'll turn the call back over to Brian.

我會把電話轉回給布賴恩。

Thanks, Nat. We are a leader in the industry with extensive experience that has served us well through the volatility and challenges we've encountered over the years. We built a solid platform for growth with a longstanding customer base, established distribution network and industry leading technology. As we move through the balance of 2021, we are energized by the opportunities ahead, while focused on meeting the needs of our customer base and increasing our position as a leader in the refrigerant and reclamation industry.

謝謝，奈特。我們是行業的領導者，擁有豐富的經驗，這些經驗在我們多年來遇到的動盪和挑戰中為我們提供了良好的服務。我們憑藉長期的客戶群、成熟的分銷網絡和行業領先的技術構建了穩固的增長平台。在 2021 年餘下的時間裡，我們為未來的機遇而充滿活力，同時專注於滿足客戶群的需求並提升我們作為製冷劑和回收行業領導者的地位。

Operator, we’ll now open the call to questions.

接線員，我們現在開始提問。

(Operator Instructions) And your first question is coming from Ryan Sigdahl from Craig-Hallum Capital.

（操作員說明）您的第一個問題來自 Craig-Hallum Capital 的 Ryan Sigdahl。

So I know seasonality and weather as we warm up through the year have an impact, but maybe in the context of a normal kind of month over month compare how have volumes and demand trended through Q1 and then also into April here? Have we seen an increase with the reopening?

所以我知道季節性和天氣隨著我們全年的升溫而產生影響，但也許在正常的逐月情況下比較第一季度和四月份的銷量和需求趨勢如何？我們看到重新開放後有所增加嗎？

So in the first quarter, the volumes were down, which again, we attribute primarily to the overall openings or closings, whatever way you want to reference it. We do think that Q2 we should be able to grow our revenues in 2021 based on volume when compared to 2020. And we're really focused on volumes and the type of business we had for the '19 year. That may not come out that way, but we do think there'll be sufficient openings throughout the country. And as you probably heard in the past, the second quarter really gets kicked off not in April. April is generally very slow month, but it really gets kicked off in the warmer weather in May that we're starting to get into. And particularly, we like to see a string of 90 degree days around Memorial Day weekend, early June, particularly for the North and Northeast because that really kicks on the whole comfort cooling season, and that's really what moves the volume of refrigerants.

因此，在第一季度，交易量下降了，我們再次將其主要歸因於整體開盤或關盤，無論你想以何種方式引用它。我們確實認為，與 2020 年相比，我們應該能夠在 2021 年第二季度根據數量增加收入。我們真正關注的是 19 年的數量和業務類型。事實可能並非如此，但我們確實認為全國各地都會有足夠的職位空缺。正如您過去可能聽說過的那樣，第二季度真正開始的時間不是在 4 月。 4 月通常是非常緩慢的月份，但它真正在我們開始進入的 5 月溫暖的天氣中拉開序幕。特別是，我們希望在 6 月初的陣亡將士紀念日週末前後看到一連串 90 華氏度的日子，尤其是在北部和東北部，因為這確實開啟了整個舒適的製冷季節，而這正是推動製冷劑使用量的真正原因。

And then on gross margin. So it looks like a 3-year high there. So it's really nice. Was that improvement primarily just price or was there any other factors in their mix, et cetera?

然後是毛利率。所以它看起來像 3 年高點。所以這真的很好。這種改進主要是價格還是他們的組合中有任何其他因素，等等？

It was primarily price. In some cases our cost base is a little bit lower, but we are seeing, like in the HFC class refrigerants, higher prices. But we're also seeing higher costs now that a lot of the tariffs have been applied to the various components. So the margins on the HFC class will probably stay similar throughout the season, even though we've seen some price increases, as I said, we've seen corresponding cost increases there. But the mid-20s that we're at in the 27%, we do think is achievable for the balance of the year.

主要是價格。在某些情況下，我們的成本基數略低一些，但我們看到，例如 HFC 類製冷劑，價格更高。但現在我們也看到了更高的成本，因為很多關稅已經適用於各種組件。因此，HFC 類的利潤率可能會在整個季節保持相似，即使我們看到價格有所上漲，正如我所說，我們已經看到相應的成本增加。但是我們處於 27% 的 20 年代中期，我們確實認為在今年餘下的時間裡是可以實現的。

Great. Then maybe I missed it, Brian. Normally you'd give kind of what the price of R-22 is in the quarter, curious what that is and then also where that price is today.

偉大的。那麼也許我錯過了，布賴恩。通常你會給出本季度 R-22 的價格，好奇它是什麼，然後也是今天的價格。

Yes. The prices right now are ranging in the $15 to $17 range. In some cases, you might see a little bit higher, but certainly up from the beginning of the year. We think we're going to see further price increases this year. We don't know when, but certainly the warm weather is going to help us to understand that relative to both the supply side and how much stockpile might be left. And then certainly the demand side.

是的。現在的價格在 15 美元到 17 美元之間。在某些情況下，您可能會看到稍微高一點，但肯定比年初高。我們認為今年我們將看到價格進一步上漲。我們不知道什麼時候，但可以肯定的是，溫暖的天氣將幫助我們了解相對於供應方面以及可能剩下多少庫存。然後當然是需求方。

On that stockpile, any indication of kind of where we're at?

在那個庫存上，有任何跡象表明我們所處的位置嗎？

No. No changes from the last couple of reported periods. We think Chemours is out, although they never published a letter, but based on the communications we understand they've had with customers. So that always ended up leaving Arkema as the entity that likely has a fairly large stockpile. Will it be used up this season or not? It's difficult to know. But we don't think that their stockpile is going to last for much longer.

沒有。與最近幾個報告期相比沒有變化。我們認為 Chemours 出局了，雖然他們從未發表過一封信，但基於我們了解他們與客戶的溝通。因此，這總是最終讓阿科瑪成為可能擁有相當大庫存的實體。這個賽季用不完？很難知道。但我們認為他們的庫存不會持續太久。

One more for me. So the DoD contract is a 5-year contract, 5-year extension option. I believe we're coming up close to that 5-year mark here. I guess how is that contract or relationship gone relative to your expectations? And then remind us of the time line for that extension.

給我一個。所以 DoD 合同是 5 年合同，5 年延期選項。我相信我們正在接近 5 年大關。我想這份合同或關係如何與您的預期相去甚遠？然後提醒我們該延期的時間表。

So you're correct, it expires at the end of July. We do believe we will receive the 5-year renewal. As evidence, let's say, to why we believe that, if they were to go out and not extend it with us, they have to do a formal bid process, which they haven't done. That's a very lengthy process. So we think that they're going to exercise their option. We believe we performed very well, particularly in connection with the prior contract holder in terms of delivery and fill rates and different metrics that are required within the contract.

所以你是對的，它在 7 月底到期。我們相信我們會收到 5 年續約。作為證據，比方說，為什麼我們相信，如果他們要出去而不是與我們一起擴展它，他們必須進行正式的投標過程，而他們還沒有這樣做。這是一個非常漫長的過程。所以我們認為他們會行使他們的選擇權。我們相信我們的表現非常好，特別是在交付和履行率以及合同中要求的不同指標方面與先前的合同持有人有關。

We're still a little disappointed though on the overall spend through the contract. We're not getting back to the levels yet that we had seen in the 2019 period. We were tracking to almost $25 million in revenues on a quarter-to-quarter basis. We were seeing growth on a quarterly basis. We think that this year -- so at some level, the COVID affected the contract as well, and we think this year that we can get back to marketing the contract more broadly and probably all that will begin after the renewal, which we probably will hear about that renewal before the contract expires, but -- and maybe 30 days out yet from where we are.

儘管我們對合同的總體支出仍然有些失望。我們還沒有回到 2019 年期間的水平。我們按季度追踪到近 2500 萬美元的收入。我們看到每個季度都有增長。我們認為今年 - 所以在某種程度上，COVID 也影響了合同，我們認為今年我們可以更廣泛地重新營銷合同，並且可能所有這些都將在續籤後開始，我們可能會在合同到期之前聽說續約，但是 - 可能距離我們現在還有 30 天。

Your next question is coming from Gerry Sweeney from ROTH Capital.

你的下一個問題來自 ROTH Capital 的 Gerry Sweeney。

Obviously, COVID was a little bit of a struggle last year, but it also depended on where you are in parts of the country. Brian, we're in the Northeast and New York City is scheduling to open up. Pennsylvania, Philadelphia is scheduled to open up soon. Is there an opportunity to see a little bit of a surge in business as some of these businesses that may have been shuttered or running at 25% capacity start turning on systems, more people, more body heat, you're starting to get into the summertime and maybe some of these systems just weren't charged up last year. Is there a potential opportunity for that?

顯然，去年 COVID 有點困難，但這也取決於你在該國部分地區的位置。布賴恩，我們在東北部，紐約市正計劃開放。賓夕法尼亞州、費城計劃很快開放。是否有機會看到業務激增，因為其中一些可能已經關閉或以 25% 的產能運行的業務開始開啟系統，更多的人，更多的體溫，你開始進入夏季，也許其中一些系統去年沒有充電。這有潛在的機會嗎？

We do believe so. How much will it be? We don't know. And this is why we're still optimistic about the 2021 season. As you said, the Northeast is beginning to open up in ways that we had not seen before. So we do think a lot of systems will be turned on. New York City is still having a lot of its struggles. But at the end of the day, we think there is a potential upside because systems likely could have leaked over this past year because they haven't been run and tested. So that would cause potential increase. Also, they may not have been maintained as well as they normally would have. So there's a potential increase for refrigerant sales and service work in that regard too.

我們確實相信。會是多少？我們不知道。這就是為什麼我們仍然對 2021 賽季持樂觀態度。正如您所說，東北部正開始以我們以前從未見過的方式開放。所以我們確實認為很多系統都會被打開。紐約市仍有很多困難。但歸根結底，我們認為存在潛在的上行空間，因為系統在過去一年中可能已經洩露，因為它們尚未運行和測試。所以這會導致潛在的增加。此外，它們可能沒有像通常那樣得到維護。因此，在這方面製冷劑銷售和服務工作也有可能增加。

And then just on the phase out of HFCs on the allocation system, we went through this obviously with R-22. I sort of caught the tail end when I picked up coverage a bunch of years ago, but is there -- it's not always as smooth or as linear as we would like and sometimes lawsuits pop up and I suspect HFCs are a little bit -- might be a little bit different than R-22. I think a lot of people want them gone, including producers. But do you have any insight into how it may develop over the next couple of years from that perspective?

然後就在分配系統中逐步淘汰氫氟碳化合物時，我們顯然通過 R-22 經歷了這一過程。幾年前，當我開始報導時，我有點趕上了尾聲，但它確實存在——它並不總是像我們想要的那樣平穩或線性，有時會出現訴訟，我懷疑氫氟碳化物有點——可能與 R-22 略有不同。我認為很多人都希望他們離開，包括製作人。但是，從這個角度來看，您對未來幾年的發展有何看法？

So I would recommend folks go to our website and look at Page 7 of our current presentation, because you'll see this step down. It comes very hard and very fast. So in 2.5 years, there's going to have to be a 40% reduction from the baseline. We went -- with the 22 phase out, we probably went more than 10 years, maybe 12 years before we ever got to that threshold. So here the step-down comes very quickly, very hard, very fast. That I think is what makes this particular opportunity different. So in the old 22 phase out, there was the ability for the creation of very large stockpiles, for example. There'll probably be stockpiles in this phase out, but we don't think to the magnitude because the length of time to create a stockpile is greatly diminished because we're already starting next year. There'll be a 10% reduction off of the baseline.

所以我建議大家訪問我們的網站並查看我們當前演示文稿的第 7 頁，因為您會看到這一步。它來得非常艱難而且非常快。所以在 2.5 年內，必須比基線減少 40%。我們去了 - 隨著 22 的逐步淘汰，我們可能走了 10 多年，也許 12 年才達到那個門檻。所以這裡的降壓來得非常快，非常困難，非常快。我認為這就是讓這個特殊機會與眾不同的原因。因此，在舊的 22 逐步淘汰中，有能力創建非常大的庫存，例如。在這個逐步淘汰過程中可能會有庫存，但我們認為規模不大，因為我們已經在明年開始，因此建立庫存的時間大大縮短了。基線將減少 10%。

And then that will run for the 22 and 23 year and then a 30% reduction, which then is a cumulative 40%. So we think that's the big difference here. Also, the big difference is within the AIM Act, the EPA is mandated to find ways to help support the growth in reclamation. There's no such language in the original Clean Air Act and the phase out structure for all the ODS products, the ozone deplete substances. So there's a lot of differences. There's similarities, certainly, but there's also differences that I think will be positive to the reclamation industry and Hudson Technologies.

然後這將持續 22 年和 23 年，然後減少 30%，然後累計減少 40%。所以我們認為這是最大的不同。此外，最大的不同在於 AIM 法案，EPA 被授權尋找方法來幫助支持填海工程的增長。在最初的清潔空氣法案和所有 ODS 產品（消耗臭氧層物質）的逐步淘汰結構中沒有這樣的語言。所以有很多不同之處。當然有相似之處，但也有不同之處，我認為這對回收行業和 Hudson Technologies 都是積極的。

Got you. And size of the HFC market versus R-22, when they pace that, HFCs are significantly voluminous, right?

明白了HFC 市場的規模與 R-22 相比，當他們按比例計算時，HFC 的數量非常龐大，對吧？

At its peak, 22 could have been 70% of the overall market. Right now, HFCs are probably 80% with R-22 around 20%. And as each year progresses, the 22 share diminishes and the HFCs grow because all of the new construction, new equipment, all the change out of the 22 units are HFC based. Soon HFOs will be introduced more widely than they are today. And they're beginning to get some traction. So over time, HFOs will grow into a larger market share, but that's probably 5 to 10 years out in terms of time line of it becoming a material piece of the overall market.

在巔峰時期，22 可能佔整個市場的 70%。目前，氫氟碳化合物可能佔 80%，而 R-22 約為 20%。隨著時間的推移，22 的份額在減少，而氫氟碳化物在增加，因為所有新建築、新設備，以及 22 個裝置的所有變化都是基於氫氟碳化合物的。很快，氫氟烯烴將比現在更廣泛地被引入。他們開始受到一些關注。因此，隨著時間的推移，HFO 將佔據更大的市場份額，但就其成為整個市場的重要組成部分而言，這可能需要 5 到 10 年的時間。

Got it. Okay. And one more question just pivoting back to R-22, probably should have asked that a couple of minutes ago. But how are collections going? Obviously, that is a key component to the model, is collecting you to use gas.

知道了。好的。還有一個問題只是回到 R-22，可能幾分鐘前就該問了。但收藏進展如何？顯然，那是模型的關鍵部件，正在收集你用的氣體。

Yes. We've shared, I think our disappointment with you all. We just are struggling with why we're not seeing more gas coming back. We do think there is more gas that could come back. How much of it is illegal venting? How much of it is illegal reuse? We don't know. And part of this HFC phase out is the EPA has got to figure out this issue and is being mandated to find ways and systems, if you will, to improve the legal recovery and improve the volume of reclamation. So the positive thing more -- again, getting back to HFCs is the HFC reclaim is in its infancy relative to what we think the overall opportunity is. And there's certainly, 5x, potentially 10x growth in reclamation over the next number of years as these virgin HFC gases are being faced out.

是的。我們已經分享了，我想我們對你們所有人都感到失望。我們只是在為為什麼看不到更多的天然氣返回而苦苦掙扎。我們確實認為有更多的天然氣可以回來。其中有多少是非法排放的？其中有多少是非法再利用的？我們不知道。 HFC 淘汰的一部分是 EPA 必須弄清楚這個問題，並被授權尋找方法和系統，如果你願意的話，以提高合法回收率和提高回收量。因此，更積極的事情——再次回到氫氟碳化合物是氫氟碳化合物的回收相對於我們認為的整體機會而言處於起步階段。隨著這些原始 HFC 氣體面臨淘汰，在接下來的幾年裡，回收肯定會增長 5 倍，甚至可能增長 10 倍。

I would now like to turn the floor back to Brian Coleman. Sir, the floor is yours.

我現在想把發言權轉回 Brian Coleman。先生，地板是你的。

Well, thank you, operator. I'd like to thank all of our employees for their continued support and dedication to our business. I want to again thank our longtime shareholders and those that have recently joined us for their support.

嗯，謝謝接線員。我要感謝所有員工對我們業務的持續支持和奉獻。我想再次感謝我們的長期股東和最近加入我們的股東的支持。

Thank you everyone for participating in today's conference call, and we look forward to speaking with you after the second quarter results. Have a good night, everybody.

感謝大家參加今天的電話會議，我們期待在第二季度業績後與您交談。大家晚上好

Thank you.

謝謝。

Thank you, ladies and gentlemen, this does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

女士們先生們，謝謝你們，今天的電話會議到此結束。此時您可以斷開電話線，度過美好的一天。感謝您的參與。