In This Article:
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Revenue: $47.6 million, a 1.1% increase from $47.1 million in Q3 2023.
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Customer Care Revenue: $13.1 million, up from $11.8 million in Q3 2023.
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Sales Services Revenue: $4.2 million, increased from $2.2 million in Q3 2023.
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Marketing Services Revenue: $9.1 million, down from $10.6 million in Q3 2023.
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Fulfillment and Logistics Revenue: $21.3 million, decreased from $22.5 million in Q3 2023.
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Operating Expenses: $45.7 million, including $836,000 in restructuring expenses, compared to $44.2 million in Q3 2023.
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Operating Income: $1.9 million, down from $2.9 million in Q3 2023.
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Adjusted Operating Income: $3.1 million, compared to $3.2 million in Q3 2023.
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Adjusted Operating Margin: 6.5%, compared to 6.9% in Q3 2023.
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EBITDA: $2.9 million, down from $3.9 million in Q3 2023.
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Adjusted EBITDA: $4.1 million, compared to $4.2 million in Q3 2023.
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Cash and Cash Equivalents: $5.9 million as of September 30, 2024, compared to $13.3 million as of September 30, 2023.
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Cash on Hand: $9.8 million as of October 31, 2024.
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Line of Credit: $25 million, not drawn against, extended until June 2025.
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Pension Plan Termination: $6.1 million cash contribution in June 2024, with an additional $1.1 million in Q3 2024 for final expenses.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Harte-Hanks Inc (NASDAQ:HHS) reported a 1.1% year-over-year revenue increase in Q3 2024, showing improvement from previous quarters.
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The company has secured new clients and expanded programs with existing customers, including a top 15 financial services client and a global luxury automotive brand.
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The Customer Excellence and Growth (CEG) division aims to enhance customer experience and drive growth through data and AI capabilities.
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Project Elevate is on track to deliver $6 million in EBITDA improvement through cost optimization and operational efficiencies.
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Harte-Hanks Inc (NASDAQ:HHS) has no debt and maintains a $25 million line of credit, providing financial flexibility.
Negative Points
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The company anticipates a low- to mid-single digit revenue decline in Q4 2024, indicating potential volatility in revenue growth.
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Operating income decreased to $1.9 million in Q3 2024 from $2.9 million in the same quarter of 2023.
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Cash and cash equivalents decreased to $5.9 million as of September 30, 2024, compared to $13.3 million a year earlier.
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The marketing services segment experienced a revenue decline due to customer budget reductions and program terminations.
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Project Elevate incurred restructuring charges of $836,000 in Q3 2024, with additional expenses expected through Q4 2025.