CHELMSFORD, Mass., Feb. 24, 2022 /PRNewswire/ -- Harte
Hanks, Inc. (NASDAQ: HHS), a global customer experience
company, today announced financial results for the fourth quarter
and full year period ended December 31, 2021.
Fourth Quarter Financial Highlights
- Revenues improved by 10% to $52.0
million, compared to $47.1
million in the same period in the prior year.
- Diluted EPS $0.20 for fourth
quarter of 2021 vs. $0.11 for fourth
quarter of 2020.
- Operating income of $2.9 million,
compared to an operating loss of $0.4
million in the same period in the prior year.
- Net income of $1.8 million,
compared to net income of $1.0
million in the same period in the prior year.
- EBITDA improved to $3.5 million
compared to $0.3 million in the same
period in the prior year.1
Full-Year Financial Highlights
- Revenues improved by 10% to $194.6
million, compared to $176.9
million in the prior year
- $1.76 diluted EPS for the year
vs. $(0.34) for 2020.
- Operating income of $7.6 million,
compared to an operating loss of $10.6
million, in the prior year.
- Net income of $15.0 million,
compared to a net loss of $1.7
million in the prior year.
- EBITDA improved to $10.2 million
compared to a loss of ($7.0) million
in the prior year .1
The fourth quarter segment results were as follows:
1) Customer Care,
$19.2 million in revenue, 37% of
total - Revenue increased by 12.7% or $2.2 million from the prior year quarter and
year-over-year EBITDA improved to $2.6
million from $2.5 million. New
business wins for the quarter included:
a. Harte Hanks was
selected by a regional sports network to support customer
interaction for their direct-to-consumer product launch. Harte
Hanks will build the self-service solution and support phone,
email, chat, and SMS customer interactions as we leverage our
streaming industry experience.
b. A company with an
advanced ecommerce social cart that allows its customers to invite
others into their transaction experience retained Harte Hanks to
assist with its sports and entertainment customer interaction and
digital ticket distribution experiences.
c. A consulting
company's government practice selected Harte Hanks to support
unemployment interactions and claims processing for a state
government. Harte Hanks was selected due to our experience and top
performance in their vendor network.
2) Fulfillment & Logistics,
$18.2 million in revenue, 35% of
total - Revenue increased by 24.5% or $3.6 million compared to the prior year quarter;
and year-over-year EBITDA improved to $2.1
million from $30,000. New
business wins for the quarter included:
a. Expanding our
partnership with a healthcare & nutrition company, winning a
$1 million-plus program to fulfill
prebuilt sample kits to pediatrician's offices nationwide.
b. A long standing
retail customer selected Harte Hanks to manage and deliver
time-sensitive print materials on additional distribution lanes due
to our on-time performance and low-cost pricing.
3) Marketing Services, $14.6 million in revenue, 28% of total -
Revenue decreased by 5.4% or $0.8
million compared to the prior year
quarter and year-over-year EBITDA improved to
$2.6 million from $2.1 million. New business wins for the quarter
included:
a. A global
multinational technology manufacturer chose Harte Hanks to
implement and execute a full-service omni-channel demand generation
program. Harte Hanks was selected because of its wide variety of
solutions and services required to execute the campaigns. The
program leverages analytics, creative, marketing services, media
buys, and outbound calling lead generation.
b. An existing
client that distributes salon professional products, where we
provide data driven marketing strategy to drive topline sales
through customer loyalty in the B2B beauty space, increased our
existing strategy and analytics remit after we helped them achieve
$1.4 billion in annual sales.
Harte Hanks CEO, Brian Linscott,
commented: "Our strategy and focus on core offerings enabled an
improvement in our financial performance as we continue to service
our valued customers. Our restructuring efforts are now
behind us, our shares have been listed on the Nasdaq Global Market,
and we have significantly improved our balance sheet. The
benefits of our new, asset-lite operating model have been validated
by our results with a $17.7 million
revenue increase for the year; driving an $18.2 million increase in operating income and a
$16.7 million increase in net income.
The financial results for both the quarter and full-year clearly
demonstrate the substantially improved earnings power of Harte
Hanks."
"We enter 2022 a stronger company with sustainable profitability
growth, sufficient liquidity, and a loyal customer base," continued
Mr. Linscott. "Our focus in 2022 is expanding our gross and
operating margins across all segments, and to generate free cash
flow. We are encouraged by the early results so far this year. New
revenue opportunities are giving us confidence that current revenue
levels are sustainable. We are even more confident in our ability
to again generate positive net income for the full year, with
year-over-year improvement in EBITDA and cash generation. The
future of Harte Hanks is bright."
Fourth Quarter 2021 Results
Fourth quarter revenues were $52.0 million, up from
$47.1 million in the fourth quarter
of 2020 and up sequentially from $49.6
million in the third quarter of 2021. Growth in both our
Customer Care and Fulfillment & Logistics segments led our
fourth quarter performance.
Fourth quarter operating income was $2.9
million, compared to an operating loss of $0.4 million in the fourth quarter of 2020.
The improvement resulted from the Company's revenue increases and
cost reduction efforts, including a 22% reduction in
advertising, selling, general and administrative expenses.
Fourth quarter Adjusted Operating Income2 was
$4.7 million, compared to
$1.2 million in the fourth
quarter of 2020. The improvement in Adjusted Operating Income
reflects improved revenue and continued cost-cutting actions.
Income attributable to common stockholders for the fourth quarter
was $1.4 million, or $0.20 per both basic and diluted
share.
Full-Year 2021 Results
Full-year revenues were $194.6 million, up from
$176.9 million in 2020. Full-year
operating income was $7.6 million,
compared to an operating loss of $10.6 million in 2020. Adjusted Operating
Income2 was $15.5 million,
compared to an Adjusted Operating Loss of $0.4 million in 2020. Income attributable to
common stockholders was $12.6 million, or $1.85 and
$1.76 per basic and diluted share,
respectively.
Balance Sheet and Liquidity
Harte Hanks ended the year with $15.1
million in cash, cash equivalents and restricted cash,
compared to $33.6 million on
December 31, 2020. On December 31, 2021, the Company had no short-term
debt, $5 million in long-term debt
and $52.5 million in outstanding
long-term pension liability. On December 31,
2020, the Company had $4.9
million in short-term debt, $22.2
million in long-term debt and $67.5
million in outstanding long-term pension liability. The
$22.1 million reduction in total debt
was due primarily to the paydown of debt during the year and the
forgiveness of the Company's PPP loan.
The company anticipates receiving a net operating loss (NOL) tax
refund of $7.8 million in 2022 which
will further enhance liquidity.
Conference Call Information
The Company will host a conference call and live webcast to
discuss these results today at 4:30 p.m. EST. Interested
parties may access the webcast at
https://www.webcaster4.com/Webcast/Page/2810/44600 or may
access the conference call by dialing in the United States (888) 506-0062 or
internationally (973) 528-0011 and entering passcode 479781.
A replay of the call can also be accessed via phone through
March 10, 2022, by dialing (877)
481-4010 from the U.S., or (919) 882-2331 from outside the
U.S. The conference call replay passcode is 44600.
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 Bank of America,
GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx,
Midea, Sony, and IBM among others. Headquartered in
Chelmsford, Massachusetts, Harte
Hanks has over 2,500 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.
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) the outbreak of diseases, such as the COVID-19
coronavirus and new variants thereof, which has curtailed travel to
and from certain countries and geographic regions, created supply
chain disruption and shortages, disrupted business operations and
reduced consumer spending, (ii) market conditions that may
adversely impact marketing expenditures and (iii) the impact of
economic environments and competitive pressures on the financial
condition, marketing expenditures and activities of our clients and
prospects; (b) the demand for our products and services by clients
and prospective clients, including (i) the willingness of existing
clients to maintain or increase their spending on products and
services that are or remain profitable for us, and (ii) our ability
to predict changes in client needs and preferences; (c) economic
and other business factors that impact the industry verticals we
serve, including competition and consolidation of current and
prospective clients, vendors and partners in these verticals; (d)
our ability to manage and timely adjust our facilities, capacity,
workforce and cost structure to effectively serve our clients; (e)
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; (f) our ability
to protect our facilities against security breaches and other
interruptions and to protect sensitive personal information of our
clients and their customers; (g) 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; (h) the impact of privacy and
other regulations, including restrictions on unsolicited marketing
communications and other consumer protection laws; (i) fluctuations
in fuel prices, paper prices, postal rates and postal delivery
schedules; (j) the number of shares, if any, that we may repurchase
in connection with our repurchase program; (k) unanticipated
developments regarding litigation or other contingent liabilities;
(l) our ability to complete anticipated divestitures and
reorganizations, including cost-saving initiatives; (m) our ability
to realize the expected tax refunds; and (n) 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,
2020 which was filed on March 24, 2021. 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 (Loss)" as a measure useful to both management and
investors in their analysis of the Company's financial results
because it facilitates a period-to-period comparison of Operating
Revenue and Operating Income (Loss) by excluding restructuring
expense, impairment expense and stock-based compensation. The most
directly comparable measure for this non-GAAP financial measure is
Operating Income (Loss).
The Company also presents the non-GAAP financial measure
"Adjusted EBITDA" as a supplemental measure of operating
performance in order to provide an improved understanding of
underlying performance trends. The Company defines "Adjusted
EBITDA" as earnings before interest expense net, income tax expense
(benefit), depreciation expense, restructuring expense, impairment
expense, stock-based compensation expense, and other non-cash
expenses. The most directly comparable measure for Adjusted EBITDA
is Net Income (Loss). We believe Adjusted EBITDA is 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 Adjusted
EBITDA to the comparable GAAP Net Income (Loss), which is included
in this press release, and not to rely on any single financial
measure to evaluate the Company's financial performance.
The foregoing 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 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.
EBITDA is the Company's measure of segment
profitability.
Investor Relations Contact:
Rob Fink
FNK IR
HHS@fnkir.com
646-809-4048
__________________________________
|
1 EBITDA is a non-GAAP financial
measure. See "Supplemental Non-GAAP Financial Measures"
below. EBITDA is also the Company's measure of segment
profitability.
|
2 Adjusted Operating Income is a
non-GAAP financial measure. See "Supplemental Non-GAAP
Financial Measures" below.
|
Harte Hanks,
Inc
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
In thousands,
except per share data
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenues
|
|
$
51,986
|
|
$
47,075
|
|
$
194,596
|
|
$
176,900
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Labor
|
|
28,034
|
|
27,074
|
|
109,917
|
|
103,675
|
Production and
distribution
|
|
14,389
|
|
12,350
|
|
50,264
|
|
49,290
|
Advertising, selling,
general and administrative
|
|
4,630
|
|
5,940
|
|
17,858
|
|
21,522
|
Restructuring
expense
|
|
1,479
|
|
1,369
|
|
6,359
|
|
9,374
|
Depreciation
expense
|
|
591
|
|
710
|
|
2,559
|
|
3,615
|
Total operating
expenses
|
|
49,123
|
|
47,443
|
|
186,957
|
|
187,476
|
Operating (loss)
income
|
|
2,863
|
|
(368)
|
|
7,639
|
|
(10,576)
|
Other (income)
expense
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
257
|
|
282
|
|
903
|
|
1,164
|
Gain on
extinguishment of debt (Paycheck Protection Program Term
Note)
|
-
|
|
-
|
|
(10,000)
|
|
-
|
Other, net
|
|
579
|
|
2,058
|
|
477
|
|
6,569
|
Total other (income)
expenses
|
|
836
|
|
2,340
|
|
(8,620)
|
|
7,733
|
Income (Loss) before
income taxes
|
|
2,027
|
|
(2,708)
|
|
16,259
|
|
(18,309)
|
Income tax (benefit)
expense
|
|
271
|
|
(3,752)
|
|
1,288
|
|
(16,615)
|
Net income
(loss)
|
|
1,756
|
|
1,044
|
|
14,971
|
|
(1,694)
|
Less: Preferred stock
dividends
|
|
125
|
|
124
|
|
496
|
|
496
|
Less: Earnings
attributable to participating securities
|
|
205
|
|
121
|
|
1,858
|
|
-
|
Income (loss)
attributable to common stockholders
|
|
$
1,426
|
|
$
799
|
|
$
12,617
|
|
$
(2,190)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
common share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.20
|
|
$
0.12
|
|
$
1.85
|
|
$
(0.34)
|
Diluted
|
|
$
0.20
|
|
$
0.11
|
|
$
1.76
|
|
$
(0.34)
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
6,976
|
|
6,579
|
|
6,802
|
|
6,469
|
Diluted
|
|
7,310
|
|
7,063
|
|
7,209
|
|
6,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harte Hanks,
Inc
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP Financial Measures (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
|
In thousands, except
per share data
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
Net Income
(loss)
|
|
$
1,756
|
|
$
1,044
|
|
$
14,971
|
|
$
(1,694)
|
|
|
|
Gain on
extinguishment of debt
|
|
-
|
|
-
|
|
(10,000)
|
|
-
|
|
|
|
Income tax expense
(benefit)
|
|
271
|
|
(3,752)
|
|
1,288
|
|
(16,615)
|
|
|
|
Interest expense,
net
|
|
257
|
|
282
|
|
903
|
|
1,164
|
|
|
|
Other, net
|
|
579
|
|
2,058
|
|
477
|
|
6,569
|
|
|
|
Depreciation
expense
|
|
591
|
|
710
|
|
2,559
|
|
3,615
|
|
|
|
EBITDA
|
|
$
3,454
|
|
$
342
|
|
$
10,198
|
|
$
(6,961)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expense
|
|
1,479
|
|
1,369
|
|
6,359
|
|
9,374
|
|
|
|
Stock-based
compensation
|
|
377
|
|
176
|
|
1,469
|
|
766
|
|
|
|
Adjusted
EBITDA
|
|
$
5,310
|
|
$
1,887
|
|
$
18,026
|
|
$
3,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
2,863
|
|
$
(368)
|
|
$
7,639
|
|
$
(10,576)
|
|
|
|
Restructuring
expense
|
|
1,479
|
|
1,369
|
|
6,359
|
|
9,374
|
|
|
|
Stock-based
compensation
|
|
377
|
|
176
|
|
1,469
|
|
766
|
|
|
|
Adjusted operating
income (loss)
|
|
$
4,719
|
|
$
1,177
|
|
$
15,467
|
|
$
(436)
|
|
|
|
Adjusted operating
margin (a)
|
|
9.1%
|
|
2.5%
|
|
7.9%
|
|
(0.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjusted
Operating Margin equals Adjusted Operating Income (loss) divided by
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harte Hanks,
Inc
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
In thousands, except
per share data
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
11,911
|
|
$
29,408
|
|
|
|
|
|
|
Restricted
cash
|
|
3,222
|
|
4,154
|
|
|
|
|
|
|
Accounts receivable
(less allowance for doubtful accounts of $266 at
December 31, 2021 and $241 at December 31,
2020)
|
|
49,185
|
|
41,533
|
|
|
|
|
|
|
Contract
assets
|
|
622
|
|
613
|
|
|
|
|
|
|
Prepaid
expenses
|
|
1,948
|
|
2,256
|
|
|
|
|
|
|
Prepaid income tax
and income tax receivable
|
|
7,456
|
|
7,388
|
|
|
|
|
|
|
Other current
assets
|
|
1,031
|
|
886
|
|
|
|
|
|
|
Total current
assets
|
|
75,375
|
|
86,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant
and equipment
|
|
7,747
|
|
5,878
|
|
|
|
|
|
|
Right-of-use
assets
|
|
22,142
|
|
24,750
|
|
|
|
|
|
|
Other
assets
|
|
2,597
|
|
2,632
|
|
|
|
|
|
|
Total
assets
|
|
$
107,861
|
|
$
119,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
16,132
|
|
$
16,294
|
|
|
|
|
|
|
Accrued payroll and
related expenses
|
|
7,028
|
|
5,248
|
|
|
|
|
|
|
Short-term
debt
|
|
—
|
|
4,926
|
|
|
|
|
|
|
Deferred revenue and
customer advances
|
|
3,942
|
|
4,661
|
|
|
|
|
|
|
Customer postage and
program deposits
|
|
6,496
|
|
6,497
|
|
|
|
|
|
|
Other current
liabilities
|
|
2,291
|
|
2,903
|
|
|
|
|
|
|
Short-term lease
liabilities
|
|
6,553
|
|
6,663
|
|
|
|
|
|
|
Total current
liabilities
|
|
42,442
|
|
47,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
5,000
|
|
22,174
|
|
|
|
|
|
|
Pensions
|
|
52,499
|
|
67,490
|
|
|
|
|
|
|
Long-term lease
liabilities
|
|
19,215
|
|
21,295
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
3,697
|
|
4,747
|
|
|
|
|
|
|
Total
liabilities
|
|
122,853
|
|
162,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
9,723
|
|
9,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
12,121
|
|
12,121
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
290,711
|
|
383,043
|
|
|
|
|
|
|
Retained
earnings
|
|
811,094
|
|
796,123
|
|
|
|
|
|
|
Less treasury
stock
|
|
(1,085,313)
|
|
(1,178,799)
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
|
(53,328)
|
|
(65,611)
|
|
|
|
|
|
|
Total stockholders'
deficit
|
|
(24,715)
|
|
(53,123)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities,
Preferred Stock and stockholders' deficit
|
|
$
107,861
|
|
$
119,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Harte Hanks,
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Operations by Segments (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31, 2021
|
|
Marketing
Services
|
|
Customer
Care
|
|
Fulfillment
&
Logistics
Services
|
|
Restructuring
|
|
Unallocated
Corporate
|
|
Total
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
14,573
|
|
$
19,188
|
|
$
18,225
|
|
$
—
|
|
$
—
|
|
$
51,986
|
|
Segment Operating
Expense
|
|
$
10,896
|
|
$
15,901
|
|
$
15,371
|
|
$
—
|
|
$
4,885
|
|
$
47,053
|
|
Restructuring
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
1,479
|
|
$
—
|
|
$
1,479
|
|
Contribution
margin
|
|
$
3,677
|
|
$
3,287
|
|
$
2,854
|
|
$
(1,479)
|
|
$
(4,885)
|
|
$
3,454
|
|
Overhead
Allocation
|
|
$
1,044
|
|
$
682
|
|
$
721
|
|
$
—
|
|
$
(2,447)
|
|
$
—
|
|
EBITDA
|
|
$
2,633
|
|
$
2,605
|
|
$
2,133
|
|
$
(1,479)
|
|
$
(2,438)
|
|
$
3,454
|
|
Depreciation
|
|
$
119
|
|
$
196
|
|
$
178
|
|
$
—
|
|
$
98
|
|
$
591
|
|
Operating income
(loss)
|
|
$
2,514
|
|
$
2,409
|
|
$
1,955
|
|
$
(1,479)
|
|
$
(2,536)
|
|
$
2,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31, 2020
|
|
Marketing
Services
|
|
Customer
Care
|
|
Fulfillment
&
Logistics
Services
|
|
Restructuring
|
|
Unallocated
Corporate
|
|
Total
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
$
15,411
|
|
$
17,028
|
|
$
14,636
|
|
$
—
|
|
$
—
|
|
$
47,075
|
|
Segment Operating
Expense
|
|
$
12,086
|
|
$
13,629
|
|
$
13,695
|
|
$
—
|
|
$
5,954
|
|
$
45,364
|
|
Restructuring
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
1,369
|
|
$
—
|
|
$
1,369
|
|
Contribution
margin
|
|
$
3,325
|
|
$
3,399
|
|
$
941
|
|
$
(1,369)
|
|
$
(5,954)
|
|
$
342
|
|
Overhead
Allocation
|
|
$
1,237
|
|
$
854
|
|
$
911
|
|
$
—
|
|
$
(3,002)
|
|
$
—
|
|
EBITDA
|
|
$
2,088
|
|
$
2,545
|
|
$
30
|
|
$
(1,369)
|
|
$
(2,952)
|
|
$
342
|
|
Depreciation
|
|
$
140
|
|
$
317
|
|
$
115
|
|
$
—
|
|
$
138
|
|
$
710
|
|
Operating income
(loss)
|
|
$
1,948
|
|
$
2,228
|
|
$
(85)
|
|
$
(1,369)
|
|
$
(3,090)
|
|
$
(368)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2021
|
|
Marketing
Services
|
|
Customer
Care
|
|
Fulfillment
&
Logistics
Services
|
|
Restructuring
|
|
Unallocated
Corporate
|
|
Total
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
$
56,388
|
|
$
74,691
|
|
$
63,517
|
|
$
—
|
|
$
—
|
|
$
194,596
|
|
Segment operating
expense
|
|
$
44,251
|
|
$
59,200
|
|
$
53,666
|
|
$
—
|
|
$
20,922
|
|
$
178,039
|
|
Restructuring
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
6,359
|
|
$
—
|
|
$
6,359
|
|
Contribution
margin
|
|
$
12,137
|
|
$
15,491
|
|
$
9,851
|
|
$
(6,359)
|
|
$
(20,922)
|
|
$
10,198
|
|
Overhead
Allocation
|
|
$
4,424
|
|
$
2,922
|
|
$
3,153
|
|
$
—
|
|
$
(10,499)
|
|
$
—
|
|
EBITDA
|
|
$
7,713
|
|
$
12,569
|
|
$
6,698
|
|
$
(6,359)
|
|
$
(10,423)
|
|
$
10,198
|
|
Depreciation
|
|
$
530
|
|
$
849
|
|
$
718
|
|
$
—
|
|
$
462
|
|
$
2,559
|
|
Operating loss
(income)
|
|
$
7,183
|
|
$
11,720
|
|
$
5,980
|
|
$
(6,359)
|
|
$
(10,885)
|
|
$
7,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2020
|
|
Marketing
Services
|
|
Customer
Care
|
|
Fulfillment
&
Logistics
Services
|
|
Restructuring
|
|
Unallocated
Corporate
|
|
Total
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
Revenues
|
|
$
57,093
|
|
$
58,668
|
|
$
61,139
|
|
$
—
|
|
$
—
|
|
$
176,900
|
|
Segment operating
expense
|
|
$
46,492
|
|
$
48,298
|
|
$
58,679
|
|
$
—
|
|
$
21,018
|
|
$
174,487
|
|
Restructuring
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
9,374
|
|
$
—
|
|
$
9,374
|
|
Contribution
margin
|
|
$
10,601
|
|
$
10,370
|
|
$
2,460
|
|
$
(9,374)
|
|
$
(21,018)
|
|
$
(6,961)
|
|
Overhead
Allocation
|
|
$
5,043
|
|
$
3,483
|
|
$
3,848
|
|
$
—
|
|
$
(12,374)
|
|
$
—
|
|
EBITDA
|
|
$
5,558
|
|
$
6,887
|
|
$
(1,388)
|
|
$
(9,374)
|
|
$
(8,644)
|
|
$
(6,961)
|
|
Depreciation
|
|
$
603
|
|
$
1,097
|
|
$
1,300
|
|
$
—
|
|
$
615
|
|
$
3,615
|
|
Operating loss
(income)
|
|
$
4,955
|
|
$
5,790
|
|
$
(2,688)
|
|
$
(9,374)
|
|
$
(9,259)
|
|
$
(10,576)
|
|
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SOURCE Harte Hanks, Inc.