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

Harte Hanks, Inc., a leading global customer experience company, has released its financial results for the fourth quarter and full year ended December 31, 2024. The company, which has been in operation for over 100 years, focuses on bringing companies closer to their customers through various services including Customer Care, Fulfillment and Logistics, and Marketing Services.

Financial Highlights

For the fourth quarter of 2024, Harte Hanks reported revenues of $47.1 million, a decrease of 4.8% compared to $49.5 million in the same period of 2023. The company experienced an operating loss of $1.6 million, an improvement from the $2.3 million loss in the prior-year quarter. Net loss for the quarter was $2.4 million, or $0.33 per share, compared to a net loss of $2.0 million, or $0.27 per share, in Q4 2023.

For the full year 2024, revenues were $185.2 million, down 3.3% from $191.5 million in 2023. Operating income for the year was $2.1 million, a decrease from $3.4 million in 2023. The net loss for 2024 was significantly impacted by a $37.5 million charge related to the termination of the company's pension plan, resulting in a net loss of $30.3 million, or $4.15 per share, compared to a net loss of $1.6 million, or $0.21 per share, in 2023.

Business and Operational Highlights

Harte Hanks' business segments showed varied performance. The Customer Care segment reported revenues of $15.0 million, a slight decrease of 1.5% year-over-year, with an EBITDA of $2.9 million, down 18.0%. The Fulfillment & Logistics Services segment saw revenues of $20.8 million, down 2.7%, and an EBITDA of $1.3 million, down 31.4%. The Marketing Services segment reported revenues of $11.3 million, a decrease of 12.1%, with an EBITDA of negative $1.5 million, impacted by a $3.2 million impairment of goodwill and intangible assets.

Strategic Initiatives and Corporate Developments

The company made significant progress on Project Elevate, a strategic initiative aimed at optimizing the cost structure and streamlining operations. Harte Hanks 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.

Management's Perspective

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."

Future Outlook

Harte Hanks is well-positioned to execute on its long-term growth strategies in 2025 and beyond, with a strong financial position and no outstanding debt. The company aims to continue its efforts in optimizing operations and driving innovation to meet customer expectations.

SEC Filing: HARTE HANKS INC [ HHS ] - 8-K - Mar. 18, 2025