After reaching an important support level, Harte-Hanks (HHS) could be a good stock pick from a technical perspective. HHS surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages. Like other SM ...

Group 1 - Luxfer Holdings PLC (LXFR) has seen a 13.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Superior Group of Companies, Inc. (SGC) has experienced a 17.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Trustmark Corporation (TRMK) has recorded a 12.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - MINISO Group Holding Limited (MNSO) has seen a 12.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Harte Hanks, Inc. (HHS) has experienced a 13.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 22nd: Navios Maritime Partners L.P. (NMM) : This operator of dry cargo vessels carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.2% over the last 60 days. Navios has a price-to-earnings ratio (P/E) of 3.21, compared with 11.30 for the industry. The company possesses a Value Score of A. Harte Hanks, Inc. (HHS) : This customer experience com ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Harte Hanks (HHS) as a strong candidate for value investors due to its favorable valuation metrics and strong earnings outlook [2][8]. Company Overview - Harte Hanks (HHS) currently holds a Zacks Rank of 1 (Strong Buy) and has a Value grade of A, indicating it is a top pick for value investors [4]. - The stock is trading at a P/E ratio of 10.05, which is lower than the industry average of 10.59 [4]. Valuation Metrics - HHS has a PEG ratio of 0.84, significantly lower than the industry average of 1.45, suggesting it is undervalued relative to its expected earnings growth [5]. - The P/B ratio for HHS is 2.56, compared to the industry average of 5.42, indicating a favorable market value versus book value [6]. - HHS's P/S ratio stands at 0.27, which is lower than the industry's average of 0.44, further supporting the notion that HHS is undervalued [7]. Earnings Outlook - The data presented suggests that Harte Hanks is likely undervalued currently, and its strong earnings outlook positions it as one of the market's strongest value stocks [8].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07120 HARTE HANKS, INC. (Exact name of registrant as specified in its charter) Delaware 1 Executive Drive, Chelmsfo ...

Chelmsford, Massachusetts – May 09, 2024 - Harte Hanks, Inc. (NASDAQ: HHS), a leading global customer experience company focused on bringing companies closer to customers for over 100 years, today announced financial results for the first quarter ended March 31, 2024. Kirk Davis, Chief Executive Officer, said: "Harte Hanks has transformed its senior leadership team, adding relevant and accomplished executives to reinvigorate our sales and finance organizations, as well as our newly established Transformatio ...

Financial Data and Key Metrics Changes - First quarter revenues were $45.4 million, a decline of 3.5% compared to $47.1 million in Q1 2023 [47] - Operating income in Q1 2024 was $0.4 million, down from $1.1 million in Q1 2023 [49] - Adjusted operating margin improved to 3.9% in Q1 2024 from 3.4% in the same quarter in 2023 [50] - EBITDA for Q1 2024 was $1.4 million, compared to $2.1 million in 2023 [50] - Cash and cash equivalents as of March 31, 2024, were $11.5 million, down from $18.4 million at the end of 2023 [51] Business Line Data and Key Metrics Changes - Customer Care segment revenues increased to $12.4 million in Q1 2024 from $11.6 million in Q1 2023 [47] - Sales Services segment revenues rose to $4.7 million, compared to $2.8 million in Q1 2023 [47] - Marketing Services segment revenues fell to $8.9 million in Q1 2024 from $11.2 million in the prior year [48] - Fulfillment and Logistics revenues decreased to $19.4 million in Q1 2024 from $21.5 million in the prior year [48] Market Data and Key Metrics Changes - The company reported strong pipeline growth year-over-year, particularly in the European market and the SMB segment [12][21] - The European operations are profitable and expected to contribute positively in Q3 [58] Company Strategy and Development Direction - The Elevate program aims to enhance agility, innovation, and organic growth, focusing on sales and marketing transformation, margin expansion, AI utilization, and customer-centric culture [10][14][15][18] - A Chief Customer Officer will be appointed to enhance customer experience and retention [18][56] - The company is investing in partnerships, notably with Amazon Web Services, to modernize customer care [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in developing a durable growth engine despite a challenging operating environment [9] - The company anticipates continued momentum in pipeline growth and new business acquisitions throughout 2024 [43][66] Other Important Information - The company has identified immediate cost reduction opportunities amounting to $6 million by year-end, with a forecasted annual savings of $16 million by the end of 2025 [14] - The company is in the early stages of a multi-year program for business optimization and margin expansion [14] Q&A Session Summary Question: What is the status of European operations? - European operations are profitable and expected to yield positive results in Q3 [58] Question: Can you provide insights on the growth potential of the Sales Services segment? - The Sales Services segment could translate to $9 million of new growth over the next couple of years [66] Question: What is the status of partnerships in the logistics division? - The company is developing partnerships and expects positive news in the next call [60] Question: Are the European operations currently profitable? - The European operations are expected to have a margin business around 30% to 35% [70] Question: What specific partnerships are contributing to growth? - The company has developed several partnerships that are expected to contribute significantly in the coming months [76]

Revenue and Client Concentration - Harte Hanks generated 71.7% of total revenue in 2023 from its largest 25 clients, with the largest client accounting for 11.2%[37] - The largest client accounted for 11.2% of total revenues in 2023, with the top 25 clients generating approximately 71.7% of total revenue[59] - In 2023, approximately 9.6% of the company's revenues were derived from operations outside the United States, primarily in Europe and Asia[74] Financial Performance - Operating revenue for the year ended December 31, 2023, was $191.5 million, a decrease of $14.8 million or 7.2% compared to $206.3 million in 2022[132] - The net loss for the year ended December 31, 2023, was $1.57 million, a decline of 104.3% compared to a net income of $36.8 million in 2022[132] - The diluted EPS from operations for 2023 was $(0.21), a decrease of 104.5% from $4.75 in 2022[132] - Total operating revenue for 2023 was $191,492,000, a decrease of 7.5% from $206,278,000 in 2022[212] - Operating income fell to $3,359,000 in 2023, down 77.8% from $15,107,000 in the previous year[212] - Comprehensive income for 2023 was $2,642,000, down from $41,802,000 in 2022, marking a decrease of 93.7%[212] Restructuring and Cost Management - The company incurred total restructuring charges of $5.7 million in 2023, including $4.6 million for operational efficiency consulting[36] - Project Elevate is expected to yield estimated cost reductions of $16.0 million from 2024 through 2026[35] - The company has initiated Project Elevate to focus on cost-saving initiatives and restructuring efforts to transform its operational cost structure[68] - Restructuring expenses for 2023 totaled $5.7 million, including $4.6 million in consulting expenses and $0.8 million in lease impairment[136] Workforce and Employment - As of December 31, 2023, the company employed 1,709 full-time and 253 part-time employees, with around 980 employees based outside the U.S.[53] - Approximately 58% of the workforce was female as of December 31, 2023, reflecting the company's commitment to diversity and inclusion[55] Operational Challenges and Risks - The company faces intense competition, with significant risks from clients moving services in-house and emerging technologies[60] - The company faces risks related to reduced demand for its products and services due to clients' financial conditions and marketing budgets, which are discretionary and easier to cut[67] - Consumer privacy and security concerns may limit the company's ability to collect data, impacting its marketing services segment[69] - The company is exposed to cybersecurity threats, including sophisticated attacks that could compromise sensitive information and disrupt operations[91][106] Cash Flow and Liquidity - Net cash provided by operating activities was $10.5 million in 2023, down $18.3 million from $28.8 million in 2022[148] - Cash and cash equivalents increased to $18.4 million in 2023 from $10.4 million in 2022, with an additional borrowing capacity of $24.2 million under the Credit Facility[145][158] - The company experienced a net increase in cash and cash equivalents of $7,500,000 in 2023, contrasting with a decrease of $3,769,000 in 2022[216] Regulatory and Compliance - The company is subject to various domestic and international regulations affecting marketing activities, including data protection laws[47] - The company is subject to numerous laws and regulations regarding privacy and data protection, which may increase compliance costs and affect service offerings[83] - The evolving regulatory landscape surrounding AI technologies may impose significant operational costs and affect the company's ability to innovate[89] Technology and Innovation - The company leverages a proprietary DataView tool that provides a 360-degree customer view with over 1,500 attributes for predictive marketing[27] - The company is investing in artificial intelligence (AI) technologies, which are essential for maintaining a competitive advantage, but failure to execute effectively could result in revenue loss and reduced margins[87][88] - The company emphasizes the need to maintain technological competitiveness and improve processes to develop new services in a timely and cost-effective manner[64] Shareholder and Stock Information - The company has remaining authority of $4.1 million to repurchase shares under its stock repurchase program[124] - The company did not pay any dividends in 2023 or 2022, with future dividends subject to Board approval[159] - The company’s stock price has experienced significant volatility, which may affect investors' ability to resell shares at favorable prices[103]

Financial Performance - Total revenues for Q4 2023 were $49.5 million, down 9.7% from $54.8 million in Q4 2022[4] - Operating loss for Q4 2023 was $2.3 million, compared to operating income of $3.4 million in the prior-year quarter[7] - Net loss for Q4 2023 was $2.0 million, or $0.27 per share, compared to net income of $21.8 million, or $2.81 per share, in Q4 2022[8] - Full-year revenues for 2023 were $191.5 million, down 7.2% from $206.3 million in 2022[9] - Operating revenue for Q4 2023 was $49,491,000, a decrease of 9.4% from $54,778,000 in Q4 2022[23] - Net loss for Q4 2023 was $1,977,000 compared to a net income of $21,804,000 in Q4 2022, representing a significant decline[25] - EBITDA for the year ended December 31, 2023, was $7,596,000, down from $17,835,000 in 2022, representing a decrease of 57.5%[26] - Operating income for the year ended December 31, 2023, was $3,359,000, compared to $15,107,000 in 2022, indicating a decline of 77.8%[26] Revenue by Segment - Customer Care segment revenue increased by $1.0 million or 6.0% year-over-year, totaling $17.7 million in Q4 2023[13] - Fulfillment & Logistics Services segment revenue decreased by $3.2 million or 12.9% year-over-year, totaling $21.3 million in Q4 2023[13] - Marketing Services segment revenue decreased by $3.1 million or 23.1% year-over-year, totaling $10.5 million in Q4 2023[13] - The contribution margin for the Marketing segment decreased to $8,409,000 in 2023 from $11,734,000 in 2022, reflecting a decline of 28.5%[26] - The contribution margin for the Fulfillment & Logistics segment was $2,558,000 for Q4 2023, down from $3,101,000 in Q4 2022, a decline of 17.5%[26] Expenses and Losses - Total operating expenses for Q4 2023 were $51,769,000, an increase of 0.8% from $51,349,000 in Q4 2022[23] - The company reported a restructuring expense of $5,687,000 in Q4 2023, with no such expense reported in Q4 2022[23] - Restructuring expenses for the year ended December 31, 2023, totaled $5,687,000, with no restructuring expenses reported in 2022[26] - Segment operating expenses for the Customer Care segment were $49,851,000 in 2023, compared to $52,173,000 in 2022, a decrease of 4.4%[26] - Depreciation and amortization expense for the year ended December 31, 2023, was $4,237,000, up from $2,728,000 in 2022, an increase of 55.3%[26] Cash and Assets - The company ended the year with a cash balance of $18.4 million and no debt[4] - Cash and cash equivalents increased to $18,364,000 in December 2023 from $10,364,000 in December 2022[24] - Total assets as of December 31, 2023, were $122,757,000, up from $119,984,000 in December 2022[24] - Total liabilities increased to $102,900,000 in December 2023 from $101,176,000 in December 2022[24] Future Projections - Project Elevate is expected to generate approximately $6 million in cost reductions in 2024 and $16 million over two years[3] - The company has extended its $25 million line of credit until June 30, 2025[4] Margins - Adjusted EBITDA for Q4 2023 was $5,209,000, slightly up from $5,155,000 in Q4 2022[25] - Adjusted operating margin for Q4 2023 was 8.1%, compared to 7.7% in Q4 2022[25] - The company reported a loss attributable to common stockholders of $1,977,000 for Q4 2023, compared to a profit of $20,424,000 in Q4 2022[23]

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-07120 HARTE HANKS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. E ...