Harte Hanks, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. For the third quarter of 2024, the company achieved revenues of $47.6 million, a slight increase of $0.5 million (1.1%) from $47.1 million in Q3 2023. However, for the nine months ended September 30, 2024, total revenues decreased by $3.9 million (2.7%) to $138.1 million, down from $142.0 million in the same period last year.

Operating income for Q3 2024 was reported at $1.9 million, a decrease of 34.9% from $2.9 million in Q3 2023. The net income for the third quarter was a loss of $0.1 million, contrasting with a net income of $0.6 million in the prior year. Basic and diluted earnings per share (EPS) for Q3 2024 were $0.02, down from $0.09 in Q3 2023. For the nine-month period, the net loss remained significant at $27.9 million, consistent with the previous year.

Total operating expenses for Q3 2024 increased by $1.5 million (3.5%) to $45.7 million, driven primarily by a $1.2 million (5.3%) rise in labor costs. Conversely, production and distribution expenses decreased by $1.0 million (6.2%) due to lower volumes of brokered freight and reduced fuel charges. For the nine months, operating expenses decreased by $1.9 million (1.4%) to $134.5 million, attributed to cost controls and the ongoing "Project Elevate," a transformation initiative aimed at optimizing business resources.

The company’s restructuring efforts under Project Elevate, initiated in late 2023, are expected to yield total savings of $16 million by the end of 2025. Restructuring charges for the nine months ended September 30, 2024, amounted to $2.1 million.

In terms of segment performance, the Customer Care segment saw a revenue increase of 10.4% in Q3 2024, while the Sales Services segment experienced a significant revenue boost of 94.1%, primarily due to increased work from a large fintech customer. However, the Marketing Services segment reported a 14.6% decline in revenue for the same quarter.

The company also faced challenges with cash flow, reporting net cash used in operating activities of $7.0 million for the nine months ended September 30, 2024, compared to net cash provided of $6.1 million in the prior year. This decline was largely due to a $7.2 million payment related to the termination of the Qualified Pension Plan I, which was completed in June 2024, incurring total pension termination charges of $37.5 million for the nine-month period.

As of September 30, 2024, Harte Hanks had cash and cash equivalents of $5.9 million, a significant decrease from $18.4 million at the end of 2023. The company maintains a $25 million asset-based revolving credit facility, with no borrowings outstanding as of the reporting date.