Harte Hanks, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $185.2 million, a decrease of 3.3% from $191.5 million in 2023. The company's operating income also fell significantly, down 37.7% to $2.1 million, compared to $3.4 million in the previous year. The net loss for the year was $30.3 million, a substantial increase from a loss of $1.6 million in 2023, primarily driven by a $37.5 million pension termination charge. The diluted earnings per share from operations reflected this downturn, dropping to $(4.15) from $(0.21) in the prior year.
The company experienced revenue declines across all its business segments. Fulfillment & Logistics Services saw a revenue drop of 3.5% to $82.0 million, while Marketing Services and Customer Care segments reported decreases of 4.9% and 1.3%, respectively. Operating expenses also decreased by 2.6% to $183.1 million, largely due to a reduction in labor costs as part of the company's restructuring initiative, Project Elevate. This program aims to optimize operations and reinvest savings into sales and marketing efforts, with expected reorganization cost reductions of approximately $16 million over the next few years.
Harte Hanks has made strategic adjustments to its operational structure, including the establishment of three business units focused on Data, Marketing, Demand Generation, Customer Care, and Fulfillment & Logistics. The company is also leveraging technology, including AI tools, to enhance customer care services and improve operational efficiency. As of December 31, 2024, Harte Hanks employed 1,715 full-time and 288 part-time employees, with a significant portion of its workforce based outside the U.S.
Looking ahead, Harte Hanks remains cautious about the economic environment, particularly concerning inflation and interest rates, which could impact client marketing budgets and overall demand for services. The company is committed to monitoring these factors while executing its multichannel strategy and adjusting its cost structure to align with operational needs. Despite the challenges, management believes it can meet liquidity requirements and continue operations without substantial doubt regarding its ability to remain a going concern in the near term.
About HARTE HANKS INC
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.