Harte Hanks(US:HHS)2025-05-15 20:26Revenue Performance - Revenue for the three months ended March 31, 2025, was $41.6 million, a decrease of $3.9 million, or 8.6%, compared to $45.4 million in the same period of 2024[102]. - Marketing Services segment revenue decreased by $4.8 million, or 35.3%, to $8.8 million, primarily due to customer loss and reduced demand[103]. - Customer Care segment revenue increased by $0.6 million, or 4.5%, to $13.0 million, driven by increased volume from new customers[112]. - Fulfillment & Logistics Services segment revenue increased by $0.4 million, or 1.8%, to $19.8 million, attributed to higher volume from existing customers[113]. Operating Expenses - Operating expenses for the three months ended March 31, 2025, were $41.6 million, a decrease of $3.5 million, or 7.7%, compared to $45.1 million in the same period of 2024[104]. - Labor expenses decreased by $3.7 million, or 15.7%, primarily due to workforce reductions in the Marketing Services segment[104]. - Restructuring charges for the three months ended March 31, 2025, were $0.8 million, comparable to $0.9 million in the prior year quarter[106]. Cash Flow and Financing - Net cash used in operating activities for the three months ended March 31, 2025, was $0.8 million, a significant decrease from $5.7 million in the same period of 2024[116]. - As of March 31, 2025, the company had cash and cash equivalents of $9.0 million and the ability to borrow an additional $24.0 million under its Credit Facility[114]. - The Company entered into a three-year, $25.0 million asset-based revolving credit facility, extended to June 30, 2025[120]. - The Credit Facility allows for loans up to $25.0 million or the amount available under a borrowing base, with $3.0 million available for letters of credit[121]. - The interest rate on the Credit Facility is variable, currently at 6.67% as of March 31, 2025[122]. - As of March 31, 2025, the Company had no borrowings under the Credit Facility but had letters of credit outstanding totaling $1.0 million[125]. - The Company has the ability to borrow $24.0 million under the Credit Facility as of March 31, 2025[126]. Shareholder Returns and Concerns - No dividends were paid during the three months ended March 31, 2025 and 2024[127]. - A share repurchase program was approved for $6.5 million, but no stock was repurchased during the three months ended March 31, 2025 and 2024[128]. - The Company believes there are no conditions that raise substantial doubt about its ability to continue as a going concern for the next twelve months[129]. - The Company has not engaged in any off-balance sheet financing activities as of March 31, 2025[125]. - The Credit Facility contains covenants that restrict the Company's ability to incur additional debt and engage in certain corporate actions[124].