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Harte Hanks Reports Second Quarter 2024 Results

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Harte Hanks (NASDAQ:HHS) reported Q2 2024 results, showing a 5.7% decrease in total revenues to $45.0 million compared to Q2 2023. The company ended the quarter with a cash balance of $11.0 million and no debt. Operating income was $1.4 million, down from $1.7 million in the same quarter last year. Harte Hanks recorded a net loss of $27.8 million, or $3.84 per share, primarily due to $38.2 million in pension termination charges.

Key highlights include the appointment of Sharona Sankar-King as Chief Customer and Data Officer, completion of sales transformation in April, and progress on cost-saving initiatives from Project Elevate. The company's Sales Services segment saw a 92.2% increase in revenue, while Customer Care and Marketing Services segments experienced declines.

Harte Hanks (NASDAQ:HHS) ha riportato i risultati del secondo trimestre 2024, evidenziando una diminuzione del 5,7% dei ricavi totali a $45,0 milioni rispetto al secondo trimestre 2023. L'azienda ha chiuso il trimestre con un saldo di cassa di $11,0 milioni e senza debiti. Il reddito operativo è stato di $1,4 milioni, in calo rispetto ai $1,7 milioni dello stesso trimestre dell'anno scorso. Harte Hanks ha registrato una perdita netta di $27,8 milioni, pari a $3,84 per azione, principalmente a causa di spese di termine pensionistico di $38,2 milioni.

I punti salienti includono la nomina di Sharona Sankar-King come Chief Customer and Data Officer, il completamento della trasformazione delle vendite in aprile e i progressi nelle iniziative di risparmio dei costi del Progetto Elevate. Il segmento Servizi di Vendita ha visto un aumento del 92,2% dei ricavi, mentre i segmenti Assistenza Clienti e Servizi di Marketing hanno subito delle flessioni.

Harte Hanks (NASDAQ:HHS) reportó los resultados del segundo trimestre de 2024, mostrando una disminución del 5,7% en los ingresos totales a $45,0 millones en comparación con el segundo trimestre de 2023. La empresa cerró el trimestre con un saldo de efectivo de $11,0 millones y sin deudas. El ingreso operativo fue de $1,4 millones, a la baja desde los $1,7 millones en el mismo trimestre del año pasado. Harte Hanks registró una pérdida neta de $27,8 millones, o $3,84 por acción, principalmente debido a cargos por terminación de pensión de $38,2 millones.

Entre los aspectos destacados se incluye la nombramiento de Sharona Sankar-King como Directora de Clientes y Datos, la finalización de la transformación de ventas en abril y avances en las iniciativas de ahorro de costos del Proyecto Elevate. El segmento de Servicios de Ventas vio un aumento del 92,2% en los ingresos, mientras que los segmentos de Atención al Cliente y Servicios de Marketing experimentaron disminuciones.

하르트 행크스 (NASDAQ:HHS)가 2024년 2분기 실적을 발표했으며, 총 수익이 5.7% 감소하여 4,500만 달러에 달한다고 전했습니다. 회사는 2분기를 1,100만 달러의 현금 잔액과 부채 없이 마감했습니다. 운영 수익은 140만 달러로, 지난해 같은 분기 170만 달러에서 감소했습니다. 하르트 행크스는 2,780만 달러의 순손실, 주당 3.84달러를 기록했으며, 이는 주로 3,820만 달러의 연금 해지비용으로 인한 것입니다.

주요 사항으로는 샤로나 생커–킹의 고객 및 데이터 책임자 임명, 4월 판매 변환 완료, 프로젝트 엘리베이트의 비용 절감 이니셔티브 진전을 포함합니다. 회사의 판매 서비스 부문은 수익에서 92.2% 증가했습니다, 반면 고객 관리 및 마케팅 서비스 부문은 감소했습니다.

Harte Hanks (NASDAQ:HHS) a publié ses résultats du deuxième trimestre 2024, montrant une baisse de 5,7 % des revenus totaux à 45,0 millions de dollars par rapport au deuxième trimestre 2023. L'entreprise a terminé le trimestre avec un solde de liquidités de 11,0 millions de dollars et aucune dette. Le résultat opérationnel était de 1,4 million de dollars, contre 1,7 million de dollars au cours du même trimestre de l'année précédente. Harte Hanks a enregistré une perte nette de 27,8 millions de dollars, soit 3,84 dollars par action, principalement en raison de 38,2 millions de dollars de charges de résiliation de pensions.

Les points clés comprennent la nomination de Sharona Sankar-King au poste de Directrice des Clients et des Données, l'achèvement de la transformation des ventes en avril, et les progrès des initiatives d'économie de coûts du Projet Elevate. Le segment des Services de Vente a connu une augmentation de 92,2 % des revenus, tandis que les segments des Services à la Clientèle et du Marketing ont enregistré des baisses.

Harte Hanks (NASDAQ:HHS) hat die Ergebnisse für das zweite Quartal 2024 berichtet und einen Rückgang von 5,7% in den Gesamterlösen auf 45,0 Millionen US-Dollar im Vergleich zum zweiten Quartal 2023 verzeichnet. Das Unternehmen schloss das Quartal mit einem Bargeldbestand von 11,0 Millionen US-Dollar und ohne Schulden ab. Das Betriebsergebnis betrug 1,4 Millionen US-Dollar, ein Rückgang von 1,7 Millionen US-Dollar im gleichen Quartal des Vorjahres. Harte Hanks meldete einen Gesamtverlust von 27,8 Millionen US-Dollar, oder 3,84 US-Dollar pro Aktie, hauptsächlich aufgrund von 38,2 Millionen US-Dollar an Kosten für Pensionskündigungen.

Zu den wichtigsten Eckdaten gehört die Ernennung von Sharona Sankar-King zur Chief Customer and Data Officer, der Abschluss der Vertriebsumwandlung im April und Fortschritte bei den Kostensenkungsinitiativen des Projekts Elevate. Der Segment Sales Services verzeichnete einen Umsatzanstieg von 92,2%, während die Segmente Kundenbetreuung und Marketingdienste Rückgänge verzeichneten.

Positive
  • Appointment of Sharona Sankar-King as first Chief Customer and Data Officer
  • Sales Services segment revenue increased by 92.2% year-over-year
  • Fulfillment & Logistics Services segment revenue grew by 4.4%
  • Successfully completed termination of Pension Plan I
  • Strong cash position with $11.0 million and no outstanding debt
Negative
  • Total revenues decreased by 5.7% year-over-year to $45.0 million
  • Operating income declined to $1.4 million from $1.7 million in Q2 2023
  • Net loss of $27.8 million, primarily due to pension termination charges
  • Customer Care segment revenue decreased by 17.0%
  • Marketing Services segment revenue declined by 29.1%

Insights

Harte Hanks' Q2 2024 results present a mixed financial picture. While revenues declined 5.7% year-over-year to $45.0 million, the company maintained profitability with operating income of $1.4 million. The reported net loss of $27.8 million is primarily due to a $38.2 million pension plan termination charge, which is a one-time event. Adjusting for this, the company would have been profitable.

The segment performance varies significantly. Sales Services showed impressive growth with a 92.2% revenue increase, while Customer Care and Marketing Services experienced declines. This divergence suggests a shift in the company's business mix, which could impact future profitability.

The strong cash position of $11.0 million and zero debt are positive indicators of financial health. However, investors should monitor the company's ability to reverse revenue declines in key segments and capitalize on growth opportunities identified through Project Elevate.

Harte Hanks is undergoing a significant transformation under new leadership. The appointment of Sharona Sankar-King as Chief Customer and Data Officer signals a strategic pivot towards data-driven, AI-enhanced customer solutions. This move aligns with industry trends and could position the company for future growth in high-value services.

The completion of the sales transformation and Project Elevate initiatives demonstrate a proactive approach to restructuring. While these changes incur short-term costs (e.g., $0.4 million in restructuring charges), they lay the groundwork for improved efficiency and competitiveness.

The company's focus on expanding its sales pipeline and progressing new clients through the sales cycle is important for reversing revenue declines. However, the success of these efforts remains to be seen and investors should look for concrete results in upcoming quarters to validate the effectiveness of the new strategy.

Sales transformation completed in April, accelerating sales pipeline growth

Cost initiatives identified through Project Elevate progressing well

Appointment of first Chief Customer and Data Officer ushers in new era of customer leadership

Successfully completed termination of Pension Plan I, leaving cash balance of $11 million and no debt

CHELMSFORD, MA / ACCESSWIRE / August 8, 2024 / 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 second quarter ended June 30, 2024.

Kirk Davis, Chief Executive Officer, said: "In my first year, I have been laser-focused on building an exceptionally strong executive team, united in our mission to redefine our company. Last quarter, I emphasized the importance of enhancing our customer organization and announced our plan to recruit the company's first Chief Customer and Data Officer. Today, I am thrilled to confirm that Sharona Sankar-King will assume this pivotal role, joining us on September 4th from Bain & Company. Sharona's expertise in integrating data and analytics across product lines will be transformative, accelerating our ability to harness Gen AI for innovative customer solutions. Her leadership will be a powerful catalyst in driving our ambitious growth objectives."

"While we are committed to rapidly building a modern, growing company, we remain firmly grounded in the present" continued Mr. Davis. "Our sales and marketing reorganization, which we concluded in April is maturing well. As we shared last quarter, we have new clients progressing through our sales cycle and are expanding our sales pipeline. We also continue to execute on the specific cost savings initiatives we identified in Project Elevate, resulting from our engagement with the Kearney organization throughout Q4 of 2023 and Q1 of 2024."

Second Quarter Highlights

  • The Company ended the quarter with a cash balance of $11.0 million on June 30, 2024.

  • Contribution payment of $6.1 million executed for the termination of Pension Plan I.

  • Total revenues for Q2 2024 were $45.0 million, down5.7% compared to $47.8 million in Q2 2023.

  • Operating income was $1.4 million compared to $1.7 million in the same quarter in the prior year.

  • Harte Hanks recorded $0.4 million in restructuring charges in Q2 2024, related to execution of Project Elevate.

  • Net loss, inclusive of the $38.2 million in pension termination charges and $10.1 million in tax benefit, was $27.8 million, or $3.84 per basic and diluted share, compared to net income of $0.6 million, or $0.08 per basic and diluted share, in the prior year quarter.

  • The second quarter of 2024 had EBITDA of $2.4 million compared to EBITDA of $2.7 million in the same period in the prior year. Adjusted EBITDA, which excludes stock-based compensation, severance and restructuring charges, was $3.6 million for Q2 2024 and $4.4 million for the same quarter in 2023.

Segment Highlights

  • Customer Care, $12.4 million in revenue, 27% of total - Segment revenue for the quarter decreased $2.5 million or 17.0% versus the prior year and EBITDA totaled $2.3 million for the quarter, a decline of 14.3% compared to the same period in the prior year. The year over year decline related to the timing of fluctuating work that shifted between quarters with a specific client.

  • Sales Services, $4.4 million in revenue, 10% of total - Segment revenue for the quarter increased $2.1 million or 92.2% versus the prior year and EBITDA totaled $1.0 million for the quarter, an increase of 297% compared to the same period in the prior year. This increase in revenue related to the growth with a large fintech client.

  • Fulfillment & Logistics Services, $20.5 million in revenue, 46% of total - Segment revenue for the quarter increased $0.9 million or 4.4% versus the prior year quarter and EBITDA totaled $1.6 million, decline of 19.4%. The contribution margin was impacted by investments in technology, the increased cost of facilities, and in the revenue mix between lower margin logistics and the higher margin fulfillment services. The profitability is expected to improve through the year as the revenue mix shifts to fulfillment in the second half of the year.

  • Marketing Services, $7.7 million in revenue, 17% of total - Segment revenue for the quarter decreased $3.2 million or 29.1% compared to the prior year quarter and EBITDA for the second quarter totaled $0.8 million vs. $1.3 million for the second quarter of 2023. Revenue decline is the result of customer turnover and reductions in client spending. The reduction in EBITDA was the result of lower revenues and the expected contribution margin.

Consolidated Second Quarter 2024 Results

Second quarter revenues were $45.0 million, down 5.7% from $47.8 million in the second quarter of 2023 due to decreased revenue in two of the Company's operating segments.

Second quarter operating income was $1.4 million, compared to $1.7 million in the second quarter of 2023. The decrease resulted from a restructuring expense during the quarter.

Net loss for the quarter was $27.8 million, or $3.84 per basic and diluted share, compared to net income of $0.6 million, or $0.08 per basic and diluted share, in the second quarter of the prior year. The net loss included $38.2 million of pension plan termination charges and a related tax benefit of $10.1 million, without which the results would have been approximately $0.3 million of net income for the quarter.

Balance Sheet and Liquidity

Harte Hanks ended the quarter with $11.0 million in cash and cash equivalents and $24.0 million of capacity on its credit line. The Company has no outstanding debt as of June 30, 2024. The Company's financial position continues to be strong, and it is well-positioned to execute on its long-term growth strategies in 2024 and beyond.

Conference Call Information

The Company will host a conference call and live webcast to discuss these results at 4:30 p.m. EDT today, August 8, 2024. Interested parties may access the webcast at https://www.webcaster4.com/Webcast/Page/2810/50867 or access the conference call by dialing 888-506-0062 in the United States or 973-528-0011 from outside the U.S. and using access code 821775.

A replay of the call can also be accessed via phone through August 22, 2024, by dialing (877) 481-4010 from the U.S., or (919) 882-2331 from outside the U.S. The conference call replay passcode is 50867.

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, Warner Bros Discovery, 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 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 and related earnings conference call 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, 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 and our related earnings conference call 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 and our related earnings conference call. 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 Income excluding stock-based compensation and severance. 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 Income adjusted to exclude income tax expense, other expense (income), net, and depreciation and amortization expense. The Company defines "Adjusted EBITDA" as EBITDA adjusted to exclude stock-based compensation, restructuring expense and severance. 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 does 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 and earnings conference call presentations are 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:

Rob Fink or Tom Baumann
646.809.4048 / 646.349.6641
FNK IR
HHS@fnkir.com

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

Three Months Ended June 30,

Six Months Ended June 30,

In thousands, except per share amounts

2024

2023

2024

2023

Revenue

$

45,035

$

47,762

$

90,483

$

94,882

Operating expenses

Labor

22,682

26,666

46,167

51,131

Production and distribution

13,679

13,328

27,429

27,780

Advertising, selling, general and administrative

5,852

5,065

11,791

11,149

Restructuring expenses

427

-

1,280

-

Depreciation and amortization expense

1,022

1,033

2,068

2,099

Total operating expenses

43,662

46,092

88,735

92,159

Operating income

1,373

1,670

1,748

2,723

Other expense, net

Interest expense (income), net

39

59

50

(151

)

Pension Plan termination charges

38,217

-

38,217

-

Other (income) expense, net

(45

)

791

561

3,377

Total other expense, net

38,211

850

38,828

3,226

(Loss) income before income taxes

(36,838

)

820

(37,080

)

(503

)

Income tax (benefit) expense

(9,004

)

240

(9,075

)

(292

)

Net (loss) income

(27,834

)

580

(28,005

)

(211

)


(Loss) income per common share

Basic

$

(3.84

)

$

0.08

$

(3.86

)

$

(0.03

)

Diluted

$

(3.84

)

$

0.08

$

(3.86

)

$

(0.03

)


Weighted average shares used to compute (loss) income per share

Basic

7,257

7,358

7,246

7,392

Diluted

7,365

7,505

7,354

7,392


Comprehensive (loss) income, net of tax:

Net (loss) income

$

(27,834

)

$

580

$

(28,005

)

$

(211

)


Adjustment to pension liability, net

29,179

402

29,524

1,142

Foreign currency translation adjustment

(1,403

)

100

(1,937

)

1,980

Total other comprehensive loss, net of tax

27,776

502

27,587

3,122


Comprehensive (loss) income

$

(58

)

$

1,082

$

(418

)

$

2,911


Harte Hanks, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

In thousands, except shares and per share amounts

June 30,
2024

December 31, 2023

ASSETS

Current assets

Cash and cash equivalents

$

10,974

$

18,364

Accounts receivable, net

30,564

34,313

Contract assets and unbilled accounts receivable

8,119

7,935

Prepaid expenses

2,330

1,915

Prepaid income taxes and income tax receivable

1,758

1,758

Other current assets

1,292

928

Total current assets

55,037

65,213


Net property, plant and equipment

8,430

8,855

Right-of-use assets

23,896

25,417

Other assets

22,370

23,272

Total assets

$

109,733

$

122,757


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$

20,248

$

23,176

Accrued payroll and related expenses

4,410

5,615

Deferred revenue and customer advances

3,484

3,195

Customer postage and program deposits

1,318

1,815

Other current liabilities

2,808

9,495

Current portion of lease liabilities

4,134

4,815

Total current liabilities

36,402

48,111


Pension liabilities - Qualified plans

9,766

10,540

Pension liabilities - Nonqualified plan

18,190

18,630

Long-term lease liabilities, net of current portion

22,291

23,691

Other long-term liabilities

2,476

1,928

Total liabilities

89,125

102,900


Stockholders' equity

Common stock

12,221

12,221

Additional paid-in capital

145,703

157,889

Retained earnings

816,915

844,920

Less treasury stock

(937,728

)

(951,083

)

Accumulated other comprehensive loss

(16,503

)

(44,090

)

Total stockholders' equity

20,608

19,857


Total liabilities and stockholders' equity

$

109,733

$

122,757

Harte Hanks, Inc
Reconciliations of Non-GAAP Financial Measures (Unaudited)


Three Months Ended June 30,

Six Months Ended June 30,

In thousands, except per share data

2024

2023

2024

2023

Net (loss) income

$

(27,834

)

$

580

$

(28,005

)

$

(211

)

Income tax (benefit) expense

(9,004

)

240

(9,075

)

(292

)

Other expense, net

38,211

850

38,828

3,226

Depreciation and amortization expense

1,022

1,033

2,068

2,099

EBITDA

$

2,395

$

2,703

$

3,816

$

4,822

Stock-based compensation

734

503

1,286

1,042

Severance

5

1,187

8

1,209

Restructuring expense

427

-

1,280

-

Adjusted EBITDA

$

3,561

$

4,393

$

6,390

$

7,073

Operating income

$

1,373

$

1,670

$

1,748

$

2,723

Stock-based compensation

734

503

1,286

1,042

Severance

5

1,187

8

1,209

Restructuring expense

427

-

1,280

-

Adjusted operating income

$

2,539

$

3,360

$

4,322

$

4,974

Adjusted operating margin (a)

5.6

%

7.0

%

4.8

%

5.2

%

  1. Adjusted Operating Margin equals Adjusted Operating Income divided by Revenues.

Harte Hanks, Inc.
Statement of Operations by Segments (Unaudited)
In thousands

Three months ended June 30, 2024

Marketing Services

Customer Care

Sales Services

Fulfillment & Logistics

Restructuring

Unallocated Corporate

Total

Revenue

$

7,738

$

12,384

$

4,414

$

20,499

$

-

$

-

$

45,035

Segment operating expense

6,047

9,454

3,234

18,113

427

5,365

42,640

Contribution margin (loss)

$

1,691

$

2,930

$

1,180

$

2,386

$

(427

)

$

(5,365

)

$

2,395

Overhead allocation

856

612

204

827

-

(2,499

)

-

EBITDA

$

835

$

2,318

$

976

$

1,559

$

(427

)

$

(2,866

)

$

2,395

Depreciation and amortization

165

54

196

243

-

364

1,022

Operating income (loss)

$

670

$

2,264

$

780

$

1,316

$

(427

)

$

(3,230

)

$

1,373


Three months ended June 30, 2023

Marketing Services

Customer Care

Sales Services

Fulfillment & Logistics

Restructuring

Unallocated Corporate

Total

Revenue

$

10,921

$

14,915

$

2,296

$

19,630

$

-

$

-

$

47,762

Segment operating expense

8,835

11,491

2,050

16,931

-

5,752

45,059

Contribution margin (loss)

$

2,086

$

3,424

$

246

$

2,699

$

-

$

(5,752

)

$

2,703

Overhead allocation

766

720

-

765

-

(2,251

)

-

EBITDA

$

1,320

$

2,704

$

246

$

1,934

$

-

$

(3,501

)

$

2,703

Depreciation and amortization

47

173

198

241

-

374

1,033

Operating income (loss)

$

1,273

$

2,531

$

48

$

1,693

$

-

$

(3,875

)

$

1,670

SOURCE: Harte Hanks, Inc.






View the original press release on accesswire.com

FAQ

What were Harte Hanks' (HHS) Q2 2024 revenue and earnings results?

Harte Hanks reported Q2 2024 revenues of $45.0 million, down 5.7% year-over-year. The company recorded a net loss of $27.8 million, or $3.84 per share, primarily due to pension termination charges.

How did Harte Hanks' (HHS) different segments perform in Q2 2024?

Sales Services segment revenue increased by 92.2%, Fulfillment & Logistics Services grew by 4.4%, while Customer Care decreased by 17.0% and Marketing Services declined by 29.1% compared to Q2 2023.

What is Harte Hanks' (HHS) cash position as of June 30, 2024?

Harte Hanks ended Q2 2024 with a cash balance of $11.0 million, no outstanding debt, and $24.0 million of capacity on its credit line.

Who did Harte Hanks (HHS) appoint as Chief Customer and Data Officer in Q2 2024?

Harte Hanks announced the appointment of Sharona Sankar-King as the company's first Chief Customer and Data Officer, effective September 4th, 2024.

Harte-Hanks, Inc.

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