- Fourth Quarter Delivers Operating Income and Positive EBITDA;
- Focus on Accelerating Growth and Profitability throughout 2020;
- Targeting Positive Free Cash Flow by Mid-2021
Harte Hanks, Inc. (NYSE: HHS), an industry leader in data-driven, omnichannel marketing, and customer relationship solutions and logistics, has announced fourth quarter 2019 revenues were $52.3 million, compared to $70.2 million during the same quarter last year, a $17.9 million, or a 25.5% decline. This decline was due to lower revenue in all verticals, except for Consumer Brands.
Harte Hanks’ sales pipeline more than tripled in the last three months, primarily due to demand for marketing services and fulfillment services. As such, management anticipates that the pace of revenue declines will slow during 2020. Fourth quarter operating income was $422,000, compared to an operating loss of $4.3 million in the same quarter last year.
The improvement was a result of the Company’s cost reduction efforts, which lowered operating expenses, including a $10.0 million or 27% reduction in labor expense. Fourth quarter 2019 Adjusted Operating Income was $1.7 million, compared to a loss of $3.1 million in the prior year quarter. The improvement in Adjusted Operating Loss reflects substantial cost-cutting actions taken by management.
Loss attributable to common stockholders for the fourth quarter of 2019 was $3.1 million, or a loss of $0.49 per basic and diluted share. In the prior year period, income attributable to common stockholders was $1.3 million, or earnings of $0.21 per basic and diluted share.
Full-Year 2019 Results
Revenues were $217.6 million for the full-year 2019, compared to $284.6 million for the prior year, a $67.1 million, or a 23.6% decline. This decline was due to lower revenue in all verticals except for Healthcare. Operating loss was $21.6 million for the full-year 2019, compared to an operating loss of $26.0 million for the prior year. The improvement was a result of the Company’s cost reduction efforts that lowered operating expenses by 23.0%, or $71.5 million.
Adjusted Operating Loss was $8.7 million for the full-year 2019, compared to a loss of $21.7 million in the prior year. The improvement in Adjusted Operating Loss was related to reduction in operating expense due to our restructuring efforts.
Loss attributable to common stockholders for the full-year 2019 was $26.8 million, or a loss of $4.26 per basic and diluted share, inclusive of $11.8 million of restructuring expense. In 2018, income attributable to common stockholders was $14.9 million, or earnings of $2.39 per basic share and $2.38 per diluted share, inclusive of a $31.0 million pre-tax gain on the sale of 3Q Digital, which the company completed on February 28, 2018 as well as $18.1 million tax benefit recognized in 2018.
Source: Harte Hanks Earnings Release