Harte Hanks(HHS) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2024 were $47.6 million, an increase of 1.1% compared to$ 47.1 million in Q3 2023[3] - Operating income was $1.9 million, down from$ 2.9 million in the same quarter of the prior year[3] - Net income for the quarter was $0.1 million, or$ 0.02 per basic and diluted share, compared to net income of $0.6 million, or$ 0.09 per basic and $0.08 per diluted share, in the prior year quarter[9] - EBITDA for Q3 2024 was$ 2.9 million, compared to $3.9 million in the same period in the prior year[3] - The company reported a comprehensive income of$ 236,000 for Q3 2024, compared to $562,000 in Q3 2023[24] - Adjusted EBITDA for Q3 2024 was$ 4.14 million, slightly down from $4.19 million in Q3 2023[28] - The company’s total operating income for the three months ended September 30, 2024, was$ 1,898,000, compared to $2,914,000 in the same period of 2023, a decline of 34.8%[29] Segment Performance - Customer Care segment revenue was$ 13.1 million, an increase of 10.4% year-over-year, with EBITDA totaling $2.5 million, up 40.5%[4] - Sales Services segment revenue was$ 4.2 million, an increase of 94.1% year-over-year, with EBITDA totaling $0.7 million, up 237%[5] - Fulfillment & Logistics Services segment revenue was$ 21.3 million, a decrease of 5.4% year-over-year, with EBITDA declining 53.1%[6] - Marketing Services segment revenue was $9.1 million, a decrease of 14.6% year-over-year, while EBITDA increased to$ 2.1 million from $1.5 million[7] - The contribution margin for the Marketing Services segment was$ 2,892,000, down from $2,221,000 in the prior year, indicating a decline of 30.2%[29] - The contribution margin for the Fulfillment & Logistics segment was$ 2,115,000, down from $3,535,000 in the prior year, a decrease of 40.2%[29] - Operating income for the Fulfillment & Logistics segment was$ 1,074,000, down from $2,606,000 in the prior year, a decline of 58.8%[29] Expenses and Liabilities - Total operating expenses for Q3 2024 were$ 45.73 million, compared to $44.21 million in Q3 2023, an increase of 3.4%[23] - Segment operating expenses for Customer Care increased to$ 9,995,000 in Q3 2024 from $9,380,000 in Q3 2023, an increase of 6.5%[29] - The overall segment operating expenses for the company increased to$ 44,694,000 in Q3 2024 from $43,253,000 in Q3 2023, an increase of 3.3%[29] - The company reported a loss of$ 5,195,000 in unallocated corporate expenses for the three months ended September 30, 2024, compared to a loss of $2,874,000 in the same period of 2023[29] Cash and Assets - The company ended the quarter with$ 5.9 million in cash and cash equivalents and $24.0 million of capacity on its credit line[10] - Cash and cash equivalents decreased to$ 5.94 million as of September 30, 2024, from $18.36 million at the end of 2023[25] - Total assets decreased to$ 108.13 million as of September 30, 2024, down from $122.76 million at the end of 2023[25] - Total liabilities decreased to$ 87.08 million as of September 30, 2024, from $102.90 million at the end of 2023[26] Future Outlook - The company expects low to mid-single-digit revenue contraction in Q4 2024 due to changes in customer programs[2]