Harte Hanks(HHS) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue for 2024 was $47.1 million, a decrease of 4.8% compared to $49.5 million in Q4 2023[4] - Full-year revenue for 2024 was $185.2 million, down 3.3% from $191.5 million in 2023[12] - Total revenues for the year ended December 31, 2024, were $185,242,000, a decrease of 3.7% compared to $191,492,000 in 2023[27] - For the three months ended December 31, 2024, total revenues were $47,129,000, a decrease from $49,491,000 in the same period of 2023, reflecting a decline of 4.8%[28] Net Loss and Earnings - Fourth quarter net loss was $2.4 million, or $0.33 per share, compared to a net loss of $2.0 million, or $0.27 per share, in the prior year[11] - Full-year net loss for 2024 was $30.3 million, or $4.15 per share, compared to a net loss of $1.6 million, or $0.21 per share, in 2023[12] - Net loss for Q4 2024 was $2,434,000, compared to a net loss of $1,977,000 in Q4 2023, representing a 23.1% increase in loss year-over-year[26] Cash and Assets - The company ended 2024 with $9.9 million in cash, down from $18.4 million at the end of 2023, and zero debt[8] - Cash and cash equivalents decreased to $9,934,000 in 2024 from $18,364,000 in 2023, a decline of 45.9%[25] - Total assets decreased to $101,782,000 in 2024 from $122,757,000 in 2023, reflecting a reduction of 17.0%[25] - Total liabilities decreased to $80,093,000 in 2024 from $102,900,000 in 2023, a decline of 22.1%[25] EBITDA and Operating Income - Adjusted EBITDA for Q4 2024 was $3.5 million, compared to $5.2 million in Q4 2023[8] - Adjusted EBITDA for Q4 2024 was $3,509,000, down from $5,209,000 in Q4 2023, indicating a decline of 32.6%[26] - EBITDA for the year ended December 31, 2024, was $6,478,000, compared to $7,596,000 in 2023, indicating a decrease of 14.7%[27] - Operating income for the year ended December 31, 2024, was $2,093,000, down from $3,359,000 in 2023, representing a decline of 37.7%[27] Segment Performance - Customer Care segment revenue was $15.0 million, accounting for 32% of total revenue, with an 18.0% decrease in EBITDA year-over-year[8] - Fulfillment & Logistics Services segment revenue was $20.8 million, representing 44% of total revenue, with a 31.4% decrease in EBITDA[8] - Marketing Services segment revenue was $11.3 million, down 12.1% year-over-year, with EBITDA impacted by a $3.2 million impairment[8] Impairments and Charges - The company reported a goodwill impairment charge of $1,631,000 in Q4 2024, with no such charge in Q4 2023[24] - Impairment charges for goodwill and intangible assets were $3,168,000 for both the year ended December 31, 2024, and 2023[27] Restructuring and Expenses - The company incurred restructuring expenses of $2,402,000 for the year ended December 31, 2024, compared to $5,687,000 in 2023, indicating a reduction of 57.8%[27] - The company reported an unallocated expense of $21,818,000 for the year ended December 31, 2024, compared to $20,347,000 in 2023, indicating an increase of 7.2%[27] Strategic Initiatives - The company is focused on Project Elevate to optimize cost structure and streamline operations, with plans to continue these initiatives into 2025[5]