Harte Hanks(HHS) - 2023 Q4 - Annual Results

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]