Harte Hanks revenues decreased 4.3%, reflecting the continued volatility and uneven recovery in the global economic environment. The company stated that it saw revenue decreases in virtually all industry verticals due to decreased marketing activity.
The challenges facing the global technology industry are well documented and this was reflected in its technology vertical decreasing 6.9% compared to 2012, driven primarily from volume reductions with contact center customers. The decline in the automotive and consumer brands vertical was smaller, at 2.1% less than 2012. Our retail and healthcare verticals each decreased approximately 4.5%. As expected, the Harte Hanks retail vertical was affected by the volatility of clients changing marketing efforts due to a slow back-to-school season. The financial vertical decreased by 10.7% compared to 2012 due to reductions in credit card solicitation activity and the aforementioned client loss. The select markets vertical had a strong quarter, increasing 13.5% compared to 2012 due to marketing solicitation testing ahead of anticipated programs.
Operating income for the quarter (excluding the previously discussed impairment charge, client make-good payment and currency translation charges) decreased 22.7% compared to last year. Management continues to closely monitor its expense structure. The operating income decline was a result of revenue declines in businesses with labor costs that aren’t variable in proportion to revenue changes.
Harte Hanks (NYSE: HHS) reported third quarter 2013 diluted earnings per share from continuing operations of $0.07 on revenues of $135.0 million. These results compare to diluted earnings per share from continuing operations of $0.14 on $141.0 million in revenues for the same quarter of last year. The 2013 third quarter financial results include an impairment charge, a client make-good payment and increased currency translation costs of approximately $3.7 million. Excluding those items, third quarter diluted earnings per share from continuing operations was $0.11 per share for 2013.
Source: Harte Hanks Earnings Release