Latest news with #HarteHanks
Associated Press
30-06-2025
- Business
- Associated Press
Harte Hanks, Inc. Appoints David Fisher as President to Lead Next Phase of Client Innovation and Growth
Proven transformation leader and former CTO David Fisher to spearhead Harte Hanks' next chapter of innovation, efficiency, and client-centric growth CHELMSFORD, MA / ACCESS Newswire / June 30, 2025 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company, today announced the appointment of David Fisher as President. This leadership transition comes at a strategically significant time, as the Company advances its transformation initiatives, deepens its commitment to delivering long-term client value, and positions itself to drive sustained EBITDA growth. Fisher's appointment underscores Harte Hanks' focus on disciplined execution, operational efficiency, and market expansion across high-potential business segments. Mr. Fisher initially joined Harte Hanks in March 2023 as a strategic development advisor focused on identifying operational inefficiencies and unlocking growth across business segments. On January 29, 2024, he was named Chief Transformation Officer and launched 'Project Elevate,' a company-wide initiative driving EBITDA stability, service innovation, and execution discipline. Recognizing his performance and vision, the Company appointed him Interim Chief Operating Officer on January 28, 2025, to oversee enterprise alignment during a pivotal transition period. 'I'm honored to step into this role at such an exciting time for Harte Hanks,' said David Fisher. 'Over the past year, I've seen firsthand the ingenuity, dedication, and customer focus that define our team. We're building on a foundation of strong business fundamentals while embracing the power of AI to deliver exceptional client service. By combining deep industry expertise with evolving technologies, we're uniquely positioned to solve complex challenges and help our clients succeed. Through Project Elevate, we are also operating more efficiently and effectively, and are fully aligned around EBITDA growth, innovation, and client-centric outcomes. I'm proud to help shape the future of a company that has been serving clients through over a century of innovation.' This leadership transition positions Harte Hanks to accelerate growth by deepening services with existing clients, adding new client relationships, and expanding our footprint in key sectors, including fulfilment and customer care. Jack Griffin, Chairman of the Board, commented: 'David's leadership has been nothing short of transformational. He brings a rare combination of strategic vision, operational rigor, and entrepreneurial focus. He's precisely the kind of leader we need to capitalize on market opportunities and deliver sustainable EBITDA growth. David has already reshaped how we operate, compete, and win, and we're confident in his ability to steer Harte Hanks through its next stage of expansion.' In his new role, Mr. Fisher will lead day-to-day operations and drive strategic execution in partnership with Harte Hanks' executive leadership team. About Harte Hanks: Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world's premier brands, including GlaxoSmithKline, Unilever, Pfizer, Max, Volvo, Ford, FedEx, Midea, and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,000 employees in offices across the Americas, Europe, and Asia Pacific. For more information, visit As used herein, 'Harte Hanks' or 'the Company' refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks' logo and name are trademarks of Harte Hanks, Inc. Cautionary Note Regarding Forward-Looking Statements: Our press release may contain 'forward-looking statements' within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as 'may,' 'will,' 'expects,' 'believes,' 'anticipates,' 'plans,' 'estimates,' 'seeks,' 'could,' 'intends,' or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) market conditions that may adversely impact marketing expenditures, (ii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects, (iii) the demand for our products and services by clients and prospective clients, including the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (iv) our ability to predict changes in client needs and preferences; (b) economic and other business factors that impact the industry verticals we serve, including competition, inflation and consolidation of current and prospective clients, vendors and partners in these verticals; (c) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (d) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (e) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (f) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (g) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (h) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (i) the number of shares, if any, that we may repurchase in connection with our repurchase program; (j) unanticipated developments regarding litigation or other contingent liabilities; (k) our ability to complete reorganizations, including cost-saving initiatives; and (l) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under 'Item 1A. Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2024 which was filed on March 17, 2025. The forward-looking statements in this press release, if any, are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future. Investor Relations Contact: David Garrison [email protected] SOURCE: Harte Hanks, Inc. press release
Associated Press
30-06-2025
- Business
- Associated Press
Harte Hanks Extends Line of Credit with Texas Capital Bank
Extends Lending Relationship and Expands Credit Facility Borrowing Capacity with Texas Capital Bank CHELMSFORD, MASSACHUSETTS / ACCESS Newswire / June 30, 2025 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company, today announced it has extended its $25 million secured revolving line of credit with Texas Capital Bank for an additional three-year term beyond its original maturity date of June 30, 2025. The amended agreement, now maturing at the end of June 2028, strengthens the Company's financial flexibility and supports the long-term operational stability of the Company. The Second Amendment also includes an accordion feature that allows Harte Hanks to seek up to a $10 million increase in commitments under the credit line, subject to lender approval. The expanded credit facility will be used to fund working capital, accelerate innovation, and support strategic growth initiatives across the Company's business segments. 'Extending and expanding our credit facility is a significant milestone for Harte Hanks,' said David Fisher, President. 'We value Texas Capital Bank's continued partnership and confidence in our on-going and ever evolving business strategy. With greater capacity and an extended term, we are well-positioned to execute our growth initiatives, drive innovation, and deliver sustained value to our clients and shareholders.' About Harte Hanks: Harte Hanks (NASDAQ: HHS ) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world's premier brands, including GlaxoSmithKline, Unilever, Pfizer, Max, Volvo, Ford, FedEx, Midea, and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,000 employees in offices across the Americas, Europe, and Asia Pacific. For more information, visit As used herein, 'Harte Hanks' or 'the Company' refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks' logo and name are trademarks of Harte Hanks, Inc. Cautionary Note Regarding Forward-Looking Statements: Our press release may contain 'forward-looking statements' within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as 'may,' 'will,' 'expects,' 'believes,' 'anticipates,' 'plans,' 'estimates,' 'seeks,' 'could,' 'intends,' or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) market conditions that may adversely impact marketing expenditures, (ii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (iii) the demand for our products and services by clients and prospective clients, including the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (iv) our ability to predict changes in client needs and preferences; (b) economic and other business factors that impact the industry verticals we serve, including competition, inflation and consolidation of current and prospective clients, vendors and partners in these verticals; (c) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (d) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (e) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (f) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (g) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (h) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (i) the number of shares, if any, that we may repurchase in connection with our repurchase program; (j) unanticipated developments regarding litigation or other contingent liabilities; (k) our ability to complete reorganizations, including cost-saving initiatives; and (l) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under 'Item 1A. Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2024 which was filed on March 17, 2025. The forward-looking statements in this press release, if any, are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future. Investor Relations Contact: David Garrison [email protected] SOURCE: Harte Hanks, Inc. press release
Yahoo
17-05-2025
- Business
- Yahoo
Harte Hanks Insiders Placed Bullish Bets Worth US$986.3k
Quite a few insiders have dramatically grown their holdings in Harte Hanks, Inc. (NASDAQ:HHS) over the past 12 months. An insider's optimism about the company's prospects is a positive sign. Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing. Our free stock report includes 2 warning signs investors should be aware of before investing in Harte Hanks. Read for free now. Over the last year, we can see that the biggest insider purchase was by Independent Director Bradley Radoff for US$534k worth of shares, at about US$7.29 per share. That means that even when the share price was higher than US$4.52 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. While Harte Hanks insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! View our latest analysis for Harte Hanks There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them). Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Harte Hanks insiders own about US$5.5m worth of shares. That equates to 16% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders. There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Harte Hanks and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 2 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Harte Hanks. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-03-2025
- Business
- Yahoo
Here's Why We're Watching Harte Hanks' (NASDAQ:HHS) Cash Burn Situation
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the right price. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed. Given this risk, we thought we'd take a look at whether Harte Hanks (NASDAQ:HHS) shareholders should be worried about its cash burn. For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Let's start with an examination of the business' cash, relative to its cash burn. View our latest analysis for Harte Hanks A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. In December 2024, Harte Hanks had US$9.9m in cash, and was debt-free. Importantly, its cash burn was US$6.7m over the trailing twelve months. That means it had a cash runway of around 18 months as of December 2024. That's not too bad, but it's fair to say the end of the cash runway is in sight, unless cash burn reduces drastically. You can see how its cash balance has changed over time in the image below. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We're hesitant to extrapolate on the recent trend to assess its cash burn, because Harte Hanks actually had positive free cash flow last year, so operating revenue growth is probably our best bet to measure, right now. Unfortunately, the last year has been a disappointment, with operating revenue dropping 3.3% during the period. In reality, this article only makes a short study of the company's growth data. You can take a look at how Harte Hanks has developed its business over time by checking this visualization of its revenue and earnings history. Since its revenue growth is moving in the wrong direction, Harte Hanks shareholders may wish to think ahead to when the company may need to raise more cash. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Many companies end up issuing new shares to fund future growth. We can compare a company's cash burn to its market capitalisation to get a sense for how many new shares a company would have to issue to fund one year's operations. Harte Hanks' cash burn of US$6.7m is about 21% of its US$32m market capitalisation. That's not insignificant, and if the company had to sell enough shares to fund another year's growth at the current share price, you'd likely witness fairly costly dilution. On this analysis of Harte Hanks' cash burn, we think its cash runway was reassuring, while its falling revenue has us a bit worried. Even though we don't think it has a problem with its cash burn, the analysis we've done in this article does suggest that shareholders should give some careful thought to the potential cost of raising more money in the future. Separately, we looked at different risks affecting the company and spotted 2 warning signs for Harte Hanks (of which 1 is potentially serious!) you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Associated Press
17-03-2025
- Business
- Associated Press
Harte Hanks Reports Fourth Quarter and Fiscal 2024 Full-Year Results
CHELMSFORD, MA / ACCESS Newswire / March 17, 2025 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for over 100 years, today announced financial results for the fourth quarter and full year ended December 31, 2024. Revenue for the fourth quarter and full year of 2024 was $47.1 million and $185.2 million compared to $49.5 million and $191.5 million for the same periods of 2023 or a decrease of 4.8% and 3.3%, respectively. EBITDA for the fourth quarter and full year of 2024 was a negative $0.3 million and positive $6.5 million compared to a negative $1.1 million and positive $7.6 million for the same periods in 2023. The 2024 EBITDA loss included noncash items, $1.6 million of goodwill impairment and $1.5 million of intangible asset impairment, in the fourth quarter associated with the write-down of the InsideOut acquisition. The Company ended the year with $9.9 million in cash, zero debt, and a fully terminated Pension Plan I, positioning it for future growth in 2025 and beyond. The Company continued to make significant progress on Project Elevate, a strategic initiative aimed at optimizing the cost structure and streamlining operations. David Fisher, Interim Chief Operating Officer, emphasized the Company's focus on driving innovation and operational excellence. 'We continue to execute on Project Elevate to optimize our cost structure and streamline our organization. These initiatives have eliminated cost consistent with our expectations in 2024 and will continue to address business-critical initiatives in 2025. It's a pivotal time as the Company continues its efforts to identify a CEO, while the organization remains focused on driving innovation and operational excellence during this transition period. The next phase of innovation will be driven by heightened strategic ownership within our segments, aligning our resources to meet each segments' needs, and modernizing our business to exceed customers' expectations.' Fourth Quarter Highlights The Company ended the year with a cash balance of $9.9 million compared to $18.4 million at December 31, 2023, with zero debt and a fully terminated Pension Plan I. Total revenues for Q4 2024 were $47.1 million, down 4.8% compared to $49.5 million in Q4 2023. Operating loss of $1.6 million compared to a loss of $2.3 million in the prior-year quarter. Net loss for the fourth quarter was $2.4 million, or $0.33 per basic and diluted share, compared to net loss of $2.0 million, or $0.27 per basic and diluted share, in the prior-year quarter. The fourth quarter of 2024 had negative EBITDA of $0.3 million compared to negative EBITDA of $1.1 million in the same period in the prior year. Adjusted EBITDA, which excludes stock-based compensation, severance, restructuring charges and goodwill and intangibles impairments, was $3.5 million in Q4 2024 compared to $5.2 million in Q4 of 2023. Segment Highlights Customer Care, $15.0 million in revenue, 32% of total - Segment revenue decreased $0.2 million or 1.5% versus the prior year and EBITDA totaled $2.9 million for the quarter, down18.0% year-over-year. In the fourth quarter of 2023, revenues associated with a short term special project yielded higher margins than usual which contributed to this variance. Fulfillment & Logistics Services, $20.8 million in revenue, 44% of total - Segment revenue decreased $0.6 million or 2.7% versus the prior year quarter and EBITDA totaled $1.3 million, down 31.4%. The lower EBITDA was the result of the increased cost of warehouse space and operational costs associated with an investment in technology. Both cost increases will enable expansion across our fulfillment operations. Marketing Services, $11.3 million in revenue, 24% of total - Segment revenue decreased $1.6 million or 12.1% compared to the prior year quarter and EBITDA for the fourth quarter was a negative $1.5 million or in equilibrium with the prior year. The impairment of goodwill and intangible assets reduced EBITDA by $3.2 million without which the segment maintained the same earnings year over year, despite the reduction in revenues. Consolidated Fourth Quarter 2024 Results Fourth quarter revenues were $47.1 million, down 4.8% from $49.5 million in the fourth quarter of 2023 due to decreased revenue in all of the Company's operating segments. Fourth quarter operating loss was $1.6 million, compared to a loss of $2.3 million in the fourth quarter of 2023. The 2024 operating loss included $1.6 million of goodwill impairment and $1.5 million intangible asset impairment associated with the write-down of the InsideOut acquisition. Net loss for the quarter was $2.4 million, or $0.33 per basic and diluted share, compared to net loss of $2.0 million, or $0.27 per basic and diluted share, in the fourth quarter last year. The net loss during the 2024 fourth quarter was impact by the one-time $3.2 million impairment of goodwill and intangible assets from the 2022 acquisition of InsideOut. Consolidated Full Year 2024 Results Full-year revenues in 2024 were $185.2 million, down 3.3% from $191.5 million in 2023. Operating income in 2024 was $2.1 million, compared to operating income of $3.4 million in 2023 or a year over year decrease of 37.7%. Net loss for 2024 was $30.3 million, or $4.15 per basic and diluted share, compared to net loss of $1.6 million, or $0.21 per basic and diluted share in 2023. The 2024 net loss was primarily attributable to the $37.5 million in pension plan termination charges. Balance Sheet and Liquidity Harte Hanks ended the year with $9.9 million in cash and cash equivalents and $24.0 million of capacity on its credit line. The Company had no outstanding debt as of December 31, 2024. The Company's financial position continues to be strong, and it is well-positioned to execute on its long-term growth strategies in 2025 and beyond. About Harte Hanks: Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world's premier brands, including PNC Bank, GlaxoSmithKline, Unilever, Pfizer, Warner Bros Discovery, Ford, FedEx, Midea, and IBM among others. Headquartered in Chelmsford, Massachusetts, Harte Hanks has over 2,000 employees in offices across the Americas, Europe, and Asia Pacific. For more information, visit As used herein, 'Harte Hanks' or 'the Company' refers to Harte Hanks, Inc. and/or its applicable operating subsidiaries, as the context may require. Harte Hanks' logo and name are trademarks of Harte Hanks, Inc. Cautionary Note Regarding Forward-Looking Statements: Our press release contains 'forward-looking statements' within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements other than historical facts are forward-looking and may be identified by words such as 'may,' 'will,' 'expects,' 'believes,' 'anticipates,' 'plans,' 'estimates,' 'seeks,' 'could,' 'intends,' or words of similar meaning. These forward-looking statements are based on current information, expectations and estimates and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from what is expressed in or indicated by the forward-looking statements. In that event, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. These risks, uncertainties, assumptions and other factors include: (a) local, national and international economic and business conditions, including (i) market conditions that may adversely impact marketing expenditures, and (ii) the impact of economic environments and competitive pressures on the financial condition, marketing expenditures and activities of our clients and prospects; (iii) the demand for our products and services by clients and prospective clients, including (iv) the willingness of existing clients to maintain or increase their spending on products and services that are or remain profitable for us, and (vi) our ability to predict changes in client needs and preferences; (b) economic and other business factors that impact the industry verticals we serve, including competition, inflation and consolidation of current and prospective clients, vendors and partners in these verticals; (c) our ability to manage and timely adjust our facilities, capacity, workforce and cost structure to effectively serve our clients; (d) our ability to improve our processes and to provide new products and services in a timely and cost-effective manner though development, license, partnership or acquisition; (e) our ability to protect our facilities against security breaches and other interruptions and to protect sensitive personal information of our clients and their customers; (f) our ability to respond to increasing concern, regulation and legal action over consumer privacy issues, including changing requirements for collection, processing and use of information; (g) the impact of privacy and other regulations, including restrictions on unsolicited marketing communications and other consumer protection laws; (h) fluctuations in fuel prices, paper prices, postal rates and postal delivery schedules; (i) the number of shares, if any, that we may repurchase in connection with our repurchase program; (j) unanticipated developments regarding litigation or other contingent liabilities; (k) our ability to complete reorganizations, including cost-saving initiatives; and (l) other factors discussed from time to time in our filings with the Securities and Exchange Commission, including under 'Item 1A. Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2023 which was filed on April 1, 2024. The forward-looking statements in this press release are made only as of the date hereof, and we undertake no obligation to update publicly any forward-looking statement, even if new information becomes available or other events occur in the future. Supplemental Non-GAAP Financial Measures: The Company reports its financial results in accordance with generally accepted accounting principles ('GAAP'). However, the Company may use certain non-GAAP measures of financial performance in order to provide investors with a better understanding of operating results and underlying trends to assess the Company's performance and liquidity in this press release. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure. The Company presents the non-GAAP financial measure 'Adjusted Operating Income' as a useful measure to both management and investors in their analysis of the Company's financial results because it facilitates a period-to-period comparison of Operating (loss) income excluding stock-based compensation, goodwill and intangible impairment, severance and restructuring. The most directly comparable measure for this non-GAAP financial measure is Operating Income. The Company presents the non-GAAP financial measure 'EBITDA' as a supplemental measure of operating performance in order to provide an improved understanding of underlying performance trends. The Company defines 'EBITDA' as Net loss adjusted to exclude income tax expense (benefit), net, other expense (income), net, depreciation, and amortization expense. The Company defines 'Adjusted EBITDA' as EBITDA adjusted to exclude stock-based compensation, severance, restructuring, and goodwill and intangible impairment. The most directly comparable measure for EBITDA and Adjusted EBITDA is Net Income. We believe EBITDA and Adjusted EBITDA are an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash items, including items which do not directly correlate to our business operations; however, we urge investors to review the reconciliation of non-GAAP EBITDA to the comparable GAAP Net Income, which is included in this press release, and not to rely on any single financial measure to evaluate the Company's financial performance. The use of non-GAAP measures do not serve as a substitute and should not be construed as a substitute for GAAP performance but should provide supplemental information concerning our performance that our investors and we find useful. The Company evaluates its operating performance based on several measures, including these non-GAAP financial measures. The Company believes that the presentation of these non-GAAP financial measures in this press release are a useful supplemental financial measures of operating performance for investors because they facilitate investors' ability to evaluate the operational strength of the Company's business. However, there are limitations to the use of these non-GAAP measures, including that they may not be calculated the same by other companies in our industry limiting their use as a tool to compare results. Any supplemental non-GAAP financial measures referred to herein are not calculated in accordance with GAAP and they should not be considered in isolation or as substitutes for the most comparable GAAP financial measures. Harte Hanks, Inc. Three Months Ended December 31, Year Ended December 31, In thousands, except per share amounts 2024 2023 2024 2023 Operating revenue $ 47,129 $ 49,491 $ 185,242 $ 191,492 Operating expenses Labor 23,426 23,884 93,769 97,968 Production and distribution 14,794 16,410 56,644 59,568 Advertising, selling, general and administrative 5,730 4,602 22,781 20,673 Restructuring expense 286 5,687 2,402 5,687 Goodwill impairment charge 1,631 - 1,631 - Intangible assets impairment charge 1,537 - 1,537 - Depreciation and amortization expense 1,278 1,186 4,385 4,237 Total operating expenses 48,682 51,769 183,149 188,133 Operating (loss) income (1,553 ) (2,278 ) 2,093 3,359 Other expenses, net Interest expense (income), net 80 15 187 (135 ) Pension Plan termination charges - - 37,505 - Other expenses, net 231 1,653 2,335 5,413 Total other expenses, net 311 1,668 40,027 5,278 Loss before income taxes (1,864 ) (3,946 ) (37,934 ) (1,919 ) Income tax expense (benefit) 570 (1,969 ) (7,637 ) (349 ) Net loss (2,434 ) (1,977 ) (30,297 ) (1,570 ) Loss per common share Basic and Diluted $ (0.33 ) $ (0.27 ) $ (4.15 ) $ (0.21 ) Weighted-average common shares outstanding Basic and Diluted 7,355 7,221 7,293 7,310 Comprehensive income, net of tax Net loss $ (2,434 ) $ (1,977 ) $ (30,297 ) $ (1,570 ) Adjustment to pension liabilities 2,647 243 32,273 1,664 Foreign currency translation adjustments 165 903 (1,780 ) 2,548 Total other comprehensive income, net of tax 2,812 1,146 30,493 4,212 Comprehensive income (loss) $ 378 $ (831 ) $ 196 $ 2,642 Harte Hanks, Inc. Condensed Consolidated Balance Sheets (Unaudited) In thousands December 31, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 9,934 $ 18,364 Accounts receivable (less allowance of $50 and $474 at December 31, 2024 and 2023, respectively) 31,648 34,313 Contract assets and unbilled accounts receivable 8,215 7,935 Prepaid expenses 1,511 1,915 Prepaid income tax and income tax receivable 938 1,758 Other current assets 1,368 928 Total current assets 53,614 65,213 Net property, plant and equipment 8,956 8,855 Right-of-use assets 22,460 25,417 Other assets 16,752 23,272 Total assets $ 101,782 $ 122,757 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 21,832 $ 23,176 Accrued payroll and related expenses 3,210 5,615 Deferred revenue and customer advances 1,589 3,195 Customer postage and program deposits 1,625 1,815 Other current liabilities 3,145 9,495 Short-term lease liabilities 3,736 4,815 Total current liabilities 35,137 48,111 Pension liabilities - Qualified plans 5,445 10,540 Pension liabilities - Nonqualified plan 17,103 18,630 Long-term lease liabilities 20,860 23,691 Other long-term liabilities 1,548 1,928 Total liabilities 80,093 102,900 Stockholders' equity Common stock 12,221 12,221 Additional paid-in capital 124,194 157,889 Retained earnings 814,623 844,920 Less treasury stock (915,752 ) (951,083 ) Accumulated other comprehensive loss (13,597 ) (44,090 ) Total stockholders' equity 21,689 19,857 Total liabilities and stockholders' equity $ 101,782 $ 122,757 Harte Hanks, Inc. Reconciliations of Non-GAAP Financial Measures (Unaudited) Three Months Ended December 31, Year Ended December 31, In thousands, except per share data 2024 2023 2024 2023 Net loss $ (2,434 ) $ (1,977 ) (30,297 ) $ (1,570 ) Income tax expense (benefit) 570 (1,969 ) (7,637 ) (349 ) Other expenses, net 311 1,668 40,027 5,278 Depreciation and amortization expense 1,278 1,186 4,385 4,237 EBITDA $ (275 ) $ (1,092 ) $ 6,478 $ 7,596 Stock-based compensation 330 215 1,984 1,418 Severance - 399 8 1,775 Restructuring expense 286 5,687 2,402 5,687 Goodwill impairment charge 1,631 - 1,631 - Intangible assets impairment charge 1,537 - 1,537 - Adjusted EBITDA $ 3,509 $ 5,209 $ 14,040 $ 16,476 Operating (loss) income $ (1,553 ) $ (2,278 ) $ 2,093 $ 3,359 Stock-based compensation 330 215 1,984 1,418 Goodwill impairment charge 1,631 - 1,631 - Intangible assets impairment charge 1,537 - 1,537 - Severance - 399 8 1,775 Restructuring expense 286 5,687 2,402 5,687 Adjusted operating income $ 2,231 $ 4,023 $ 9,655 $ 12,239 Adjusted operating margin (a) 4.7 % 8.1 % 5.2 % 6.4 % (a) Adjusted Operating Margin equals Adjusted Operating Income divided by Revenues. Harte Hanks, Inc. Statement of Operations by Segments (Unaudited) In thousands Year ended December 31, 2024 Marketing Services Customer Care Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenues $ 50,332 $ 52,918 $ 81,992 $ - $ - $ 185,242 Segment labor expense 26,440 34,175 20,263 - 12,891 93,769 Other segment operating expense 11,468 6,260 52,770 - 8,927 79,425 Restructuring expense - - - 2,402 - 2,402 Contribution margin $ 12,424 $ 12,483 $ 8,959 $ (2,402 ) $ (21,818 ) $ 9,646 Overhead Allocation 4,074 2,355 3,198 - (9,627 ) - Goodwill and intangible assets impairment charges 3,168 - - - - 3,168 EBITDA (unaudited) $ 5,182 $ 10,128 $ 5,761 $ (2,402 ) $ (12,191 ) $ 6,478 Depreciation and amortization expense 1,459 207 1,256 - 1,463 4,385 Operating income (loss) $ 3,723 $ 9,921 $ 4,505 $ (2,402 ) $ (13,654 ) $ 2,093 Year ended December 31, 2023 Marketing Services Customer Care Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenues $ 52,910 $ 53,620 $ 84,962 $ - $ - $ 191,492 Segment labor expense 30,938 35,345 19,418 - 12,267 97,968 Other segment operating expense 12,351 6,013 53,797 - 8,080 80,241 Restructuring expense - - - 5,687 - 5,687 Contribution margin $ 9,621 $ 12,262 $ 11,747 $ (5,687 ) $ (20,347 ) $ 7,596 Overhead allocation 2,984 2,774 2,891 - (8,649 ) - EBITDA (unaudited) $ 6,637 $ 9,488 $ 8,856 $ (5,687 ) $ (11,698 ) $ 7,596 Depreciation and amortization expense 1,093 500 1,142 - 1,502 4,237 Operating income (loss) $ 5,544 $ 8,988 $ 7,714 $ (5,687 ) $ (13,200 ) $ 3,359 Three months ended December 31, 2024 Marketing Services Customer Care Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenues $ 11,342 $ 15,024 $ 20,763 $ - $ - $ 47,129 Segment labor expense 5,660 9,628 5,351 - 2,787 23,426 Other segment operating expense 3,002 1,951 13,334 - 2,237 20,524 Restructuring expense - - - 286 - 286 Contribution margin $ 2,680 $ 3,445 $ 2,078 $ (286 ) $ (5,024 ) $ 2,893 Overhead Allocation 1,033 594 795 - (2,422 ) - Goodwill and intangible assets impairment charges 3,168 - - - - 3,168 EBITDA (unaudited) $ (1,521 ) $ 2,851 $ 1,283 $ (286 ) $ (2,602 ) $ (275 ) Depreciation and amortization expense 362 47 499 370 1,278 Operating (loss) income $ (1,883 ) $ 2,804 $ 784 $ (286 ) $ (2,972 ) $ (1,553 ) Three months ended December 31, 2023 Marketing Services Customer Care Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenues $ 12,907 $ 15,248 $ 21,336 $ - $ - $ 49,491 Segment labor expense 7,118 9,349 4,346 - 3,071 23,884 Other segment operating expense 3,432 1,750 14,433 - 1,397 21,012 Restructuring expense - - - 5,687 - 5,687 Contribution margin $ 2,357 $ 4,149 $ 2,557 $ (5,687 ) $ (4,468 ) $ (1,092 ) Overhead Allocation 723 672 687 - (2,082 ) - EBITDA (unaudited) $ 1,634 $ 3,477 $ 1,870 $ (5,687 ) $ (2,386 ) $ (1,092 ) Depreciation and amortization expense 340 61 407 - 378 1,186 Operating income (loss) $ 1,294 $ 3,416 $ 1,463 $ (5,687 ) $ (2,764 ) $ (2,278 ) SOURCE: Harte Hanks, Inc. press release
