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Harte Hanks Reports Fourth Quarter and Fiscal 2024 Full-Year Results

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Harte Hanks (NASDAQ:HHS) reported its Q4 and full-year 2024 financial results, showing revenue declines across all segments. Q4 revenue decreased 4.8% to $47.1 million, while full-year revenue fell 3.3% to $185.2 million compared to 2023.

Q4 resulted in a net loss of $2.4 million ($0.33 per share), impacted by $3.2 million in impairment charges related to the InsideOut acquisition. Full-year 2024 saw a net loss of $30.3 million ($4.15 per share), primarily due to $37.5 million in pension plan termination charges.

The company ended 2024 with $9.9 million in cash, zero debt, and a fully terminated Pension Plan I. Segment performance showed Customer Care revenue at $15.0 million (-1.5% YoY), Fulfillment & Logistics at $20.8 million (-2.7% YoY), and Marketing Services at $11.3 million (-12.1% YoY).

Harte Hanks (NASDAQ:HHS) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, evidenziando un calo dei ricavi in tutti i segmenti. I ricavi del quarto trimestre sono diminuiti del 4,8% a $47,1 milioni, mentre i ricavi dell'intero anno sono scesi del 3,3% a $185,2 milioni rispetto al 2023.

Nel quarto trimestre si è registrata una perdita netta di $2,4 milioni ($0,33 per azione), influenzata da $3,2 milioni di oneri per svalutazione legati all'acquisizione di InsideOut. L'intero anno 2024 ha visto una perdita netta di $30,3 milioni ($4,15 per azione), principalmente a causa di $37,5 milioni di oneri per la cessazione del piano pensionistico.

L'azienda ha chiuso il 2024 con $9,9 milioni in contante, zero debiti e un Piano Pensionistico I completamente terminato. Le performance dei segmenti hanno mostrato ricavi nel Customer Care pari a $15,0 milioni (-1,5% su base annua), Fulfillment & Logistics a $20,8 milioni (-2,7% su base annua) e Marketing Services a $11,3 milioni (-12,1% su base annua).

Harte Hanks (NASDAQ:HHS) informó sobre sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando una disminución de ingresos en todos los segmentos. Los ingresos del cuarto trimestre disminuyeron un 4.8% a $47.1 millones, mientras que los ingresos del año completo cayeron un 3.3% a $185.2 millones en comparación con 2023.

El cuarto trimestre resultó en una pérdida neta de $2.4 millones ($0.33 por acción), afectada por $3.2 millones en cargos por deterioro relacionados con la adquisición de InsideOut. El año completo 2024 tuvo una pérdida neta de $30.3 millones ($4.15 por acción), principalmente debido a $37.5 millones en cargos por la terminación del plan de pensiones.

La empresa cerró 2024 con $9.9 millones en efectivo, cero deudas y un Plan de Pensiones I totalmente terminado. El rendimiento de los segmentos mostró ingresos en Atención al Cliente de $15.0 millones (-1.5% interanual), Cumplimiento y Logística de $20.8 millones (-2.7% interanual) y Servicios de Marketing de $11.3 millones (-12.1% interanual).

하르트 행크스 (NASDAQ:HHS)는 2024년 4분기 및 전체 연도 재무 결과를 보고하며 모든 부문에서 수익 감소를 나타냈습니다. 4분기 수익은 4.8% 감소하여 4,710만 달러에 이르렀고, 전체 연도 수익은 2023년 대비 3.3% 감소하여 1억 8,520만 달러로 나타났습니다.

4분기에는 240만 달러($0.33 per share)의 순손실이 발생했으며, 이는 InsideOut 인수와 관련된 320만 달러의 손상 차감으로 영향을 받았습니다. 2024년 전체 연도는 3,030만 달러($4.15 per share)의 순손실을 기록했으며, 이는 주로 3,750만 달러의 연금 계획 종료 비용 때문입니다.

회사는 2024년을 990만 달러의 현금, 제로 부채, 그리고 완전히 종료된 연금 계획 I으로 마감했습니다. 부문 성과는 고객 관리 수익이 1,500만 달러(-1.5% 전년 대비), 이행 및 물류가 2,080만 달러(-2.7% 전년 대비), 마케팅 서비스가 1,130만 달러(-12.1% 전년 대비)로 나타났습니다.

Harte Hanks (NASDAQ:HHS) a publié ses résultats financiers pour le quatrième trimestre et l'année entière 2024, montrant une baisse des revenus dans tous les segments. Les revenus du quatrième trimestre ont diminué de 4,8 % pour atteindre 47,1 millions de dollars, tandis que les revenus de l'année entière ont chuté de 3,3 % pour s'établir à 185,2 millions de dollars par rapport à 2023.

Le quatrième trimestre a entraîné une perte nette de 2,4 millions de dollars (0,33 $ par action), impactée par 3,2 millions de dollars de charges de dépréciation liées à l'acquisition d'InsideOut. L'année entière 2024 a enregistré une perte nette de 30,3 millions de dollars (4,15 $ par action), principalement en raison de 37,5 millions de dollars de charges liées à la résiliation du plan de pension.

L'entreprise a terminé 2024 avec 9,9 millions de dollars en liquidités, aucune dette et un Plan de Pension I entièrement résilié. La performance des segments a montré des revenus dans le service client de 15,0 millions de dollars (-1,5 % en glissement annuel), la logistique et l'exécution de 20,8 millions de dollars (-2,7 % en glissement annuel) et les services marketing de 11,3 millions de dollars (-12,1 % en glissement annuel).

Harte Hanks (NASDAQ:HHS) hat seine finanziellen Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht, die einen Rückgang der Einnahmen in allen Segmenten zeigen. Die Einnahmen im vierten Quartal sanken um 4,8% auf 47,1 Millionen Dollar, während die Einnahmen für das Gesamtjahr um 3,3% auf 185,2 Millionen Dollar im Vergleich zu 2023 zurückgingen.

Im vierten Quartal ergab sich ein Nettoverlust von 2,4 Millionen Dollar (0,33 Dollar pro Aktie), der durch 3,2 Millionen Dollar an Wertminderungsaufwendungen im Zusammenhang mit der Übernahme von InsideOut beeinflusst wurde. Im Gesamtjahr 2024 wurde ein Nettoverlust von 30,3 Millionen Dollar (4,15 Dollar pro Aktie) verzeichnet, hauptsächlich aufgrund von 37,5 Millionen Dollar an Kosten für die Beendigung des Pensionsplans.

Das Unternehmen schloss das Jahr 2024 mit 9,9 Millionen Dollar in bar, null Schulden und einem vollständig beendeten Pensionsplan I ab. Die Segmentleistung zeigte, dass die Einnahmen im Kundenservice bei 15,0 Millionen Dollar (-1,5% im Jahresvergleich), Fulfillment & Logistik bei 20,8 Millionen Dollar (-2,7% im Jahresvergleich) und Marketingdienste bei 11,3 Millionen Dollar (-12,1% im Jahresvergleich) lagen.

Positive
  • Zero debt with $24.0 million available credit line
  • Fully terminated Pension Plan I, reducing future liabilities
  • Project Elevate initiatives successfully reducing costs
Negative
  • Q4 revenue declined 4.8% to $47.1M year-over-year
  • Full-year revenue decreased 3.3% to $185.2M
  • Q4 net loss increased to $2.4M from $2.0M year-over-year
  • Full-year net loss of $30.3M compared to $1.6M in 2023
  • $3.2M impairment charges from InsideOut acquisition
  • Cash position decreased to $9.9M from $18.4M year-over-year
  • Revenue declined across all business segments

Insights

Harte Hanks' Q4 and FY 2024 results reveal a company in transition with declining revenues but making strategic adjustments to improve future prospects. The 4.8% Q4 revenue decline to $47.1 million and 3.3% full-year decrease to $185.2 million reflect ongoing challenges across all business segments. The quarterly net loss widened to $2.4 million ($0.33 per share) from $2.0 million in Q4 2023.

The $3.2 million impairment charge related to the InsideOut acquisition significantly impacted Q4 results, suggesting management's recognition that this prior investment isn't performing as expected. This non-cash charge masked operational improvements, as Q4 EBITDA would have been positive without these write-downs.

Project Elevate represents a critical restructuring initiative that appears to be delivering cost savings as planned, which will be essential to offset revenue pressures. The company's debt-free status and $9.9 million cash position provide financial flexibility, though the cash balance has declined substantially from $18.4 million year-over-year.

The full termination of Pension Plan I represents a significant strategic win, eliminating long-term liabilities and allowing management to focus resources on growth initiatives rather than legacy obligations. While the $37.5 million pension termination charge created a substantial full-year loss, this one-time expense removes a significant financial overhang.

Each business segment faces specific challenges - Customer Care saw EBITDA drop 18% despite only minor revenue declines, Fulfillment & Logistics experienced margin pressure from higher warehouse costs, and Marketing Services saw the steepest revenue decline at 12.1% alongside impairment charges. Management will need to address these segment-specific issues while continuing to implement cost-saving measures.

Harte Hanks' results signal a company taking necessary but difficult actions to position itself for future growth. The decline across all business segments isn't surprising given the challenging customer experience market, but management appears to be making pragmatic decisions to strengthen core operations.

The comprehensive termination of Pension Plan I represents a strategically sound decision despite the $37.5 million immediate accounting impact. This move eliminates a significant liability that has likely been diverting resources and management attention from growth initiatives. The zero-debt position combined with Project Elevate's cost optimization focus creates a foundation for potential recovery.

The impairment of the InsideOut acquisition reveals an important shift in strategic thinking. Rather than maintaining artificially inflated valuations of past investments, management is realistically assessing asset values and redirecting resources to more promising opportunities. This transparency, while painful in the short term, demonstrates commitment to shareholder value protection.

The segment-specific challenges highlight the need for targeted interventions. The Customer Care segment's 18% EBITDA decline despite minimal revenue reduction suggests margin compression that will require operational refinements. In Fulfillment & Logistics, the investment in technology and expanded warehouse capacity represents essential modernization despite near-term margin impact.

The leadership transition period presents both risk and opportunity. The interim status of the COO while seeking a new CEO creates uncertainty, but also provides an opening for fresh strategic direction. The mention of "heightened strategic ownership within segments" suggests a potential shift toward more decentralized decision-making that could accelerate responsiveness to market changes. The company's cash position, while reduced, still provides adequate runway to implement these strategic adjustments.

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 hartehanks.com

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.

Investor Relations Contact:

Investor.Relations@HarteHanks.com

Harte Hanks, Inc.
Consolidated Statements of Operations (Unaudited)

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.



View the original press release on ACCESS Newswire

FAQ

What caused Harte Hanks (HHS) significant net loss in 2024?

The $30.3 million net loss in 2024 was primarily due to $37.5 million in pension plan termination charges and $3.2 million in impairment charges related to the InsideOut acquisition.

How much revenue did Harte Hanks (HHS) generate in Q4 2024?

Harte Hanks generated $47.1 million in revenue during Q4 2024, representing a 4.8% decrease from $49.5 million in Q4 2023.

What is Harte Hanks' (HHS) current debt and cash position?

As of December 31, 2024, Harte Hanks had $9.9 million in cash, zero debt, and $24.0 million available on its credit line.

How did Harte Hanks' (HHS) business segments perform in Q4 2024?

Customer Care revenue fell 1.5% to $15.0M, Fulfillment & Logistics decreased 2.7% to $20.8M, and Marketing Services declined 12.1% to $11.3M.
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