Harte Hanks(US:HHS)2025-08-08 20:44Revenue Performance - Revenue for the three months ended June 30, 2025, decreased by $6.4 million, or 14.2%, to $38.6 million compared to the same period in 2024[108] - Revenue for the six months ended June 30, 2025, decreased by $10.3 million, or 11.4%, to $80.2 million compared to the same period in 2024[114] - The Marketing Services segment revenue decreased by $3.5 million, or 28.7%, for the three months ended June 30, 2025, due to customer turnover and reduced client spending[122] - Customer Care segment revenue for the three months ended June 30, 2025, decreased by $0.5 million, or 4.4%, compared to the same period in 2024, primarily due to timing fluctuations with specific programs[125] - Fulfillment & Logistics Services segment revenue decreased by $2.4 million, or 11.6%, for the three months ended June 30, 2025, primarily due to lower volume from existing customers[128] Operating Expenses - Operating expenses for the three months ended June 30, 2025, were $38.6 million, a decrease of $5.1 million, or 11.6%, from $43.7 million in the prior year[109] - Operating expenses for the six months ended June 30, 2025, were $80.2 million, a decrease of $8.5 million, or 9.6%, from $88.7 million in the prior year[115] - Labor expenses decreased by $6.9 million, or 15.0%, in the six months ended June 30, 2025, primarily due to adjustments in workforce in response to lower revenue[116] Net Loss and Income - The net loss for the three months ended June 30, 2025, was $335,000, compared to a net loss of $27.8 million in the same period of 2024[107] - Operating income for the Customer Care segment was $1.6 million for the three months ended June 30, 2025, down from $2.3 million in the same period in 2024, reflecting a decrease of $0.7 million due to higher technology costs[125] - Operating income for the Fulfillment & Logistics Services segment decreased by $0.4 million, or 30.9%, for the three months ended June 30, 2025, primarily due to lower revenue[128] Cash Flow and Liquidity - Cash and cash equivalents were $4.8 million as of June 30, 2025, down from $9.9 million at December 31, 2024[130] - Net cash used in operating activities for the six months ended June 30, 2025, was $5.7 million, an increase of $1.6 million compared to $4.1 million for the same period in 2024[132] - Net cash used in investing activities decreased to $0.3 million for the six months ended June 30, 2025, from $1.2 million in the same period in 2024[133] - The Company had the ability to borrow $24.0 million under its Credit Facility as of June 30, 2025, with no outstanding borrowings at that date[141] - The Credit Facility interest rate was 6.67% as of June 30, 2025, with a maturity extended to June 30, 2028[138] Restructuring and Savings - Project Elevate is expected to generate approximately $16.0 million in reorganization savings from 2024 to 2026[104] - Restructuring charges related to the business transformation effort were $0.1 million for the three months ended June 30, 2025, and $1.0 million for the six months ended June 30, 2025[105] Dividends - The Company did not pay any dividends in the three months ended June 30, 2025, and 2024[142] Tax Rate - The effective tax rate for the six months ended June 30, 2025, was 28.7%, an increase of 4.2% from the same period in 2024[119]