Harte Hanks, Inc. (OTCQX: HRTH), a global customer experience company, today announced financial results for the third quarter ended September 30, 2021.
Third Quarter Operational and Financial Highlights
- Revenues improved by 4% to $49.6 million, compared to $47.7 million in the same period last year.
- $0.52 diluted EPS for Third Quarter of 2021 vs. ($0.27) for Third Quarter of 2020.
- Operating income of $4.2 million, compared to operating income of $0.8 million in the same period last year.
- Net income of $4.4 million, compared to net loss of ($1.6) million in the same period last year.
- EBITDA improved to $4.8 million compared to $1.5 million in the same period last year.1
The third quarter results by segment were as follows:
1) Customer Care, $19.8 million in revenue, 40% of total – Revenue increased by $1.8 million from the previous year quarter and year-over-year EBITDA improved to $4.0 million from $3.0 million. Customer Care continued to experience strong revenue tailwinds from COVID-related project work. New business wins for the quarter included a healthcare insurance provider to deliver year-round customer care services. The customer chose Harte Hanks based on our extensive experience with supporting annual enrollment and our consistent ability to exceed Centers for Medicare & Medicaid Services delivery standards.
2) Fulfillment & Logistics, $15.1 million in revenue, 30% of total – Revenue increased by $0.5 million compared to the previous year quarter and year-over-year EBITDA improved to $1.7 million from $0.3 million. New business wins for the quarter included an international financing company making its U.S. debut. Harte Hanks will fulfill point-of-purchase displays, printed sales materials, new customer welcome kits, and trade show equipment.
3) Marketing Services, $14.7 million revenue, 30% of total – Revenue decreased by $0.5 million compared to the previous year quarter and year-over-year EBITDA improved to $2.8 million from $1.2 million. New business wins for the quarter included a leading health insurance provider. The customer selected Harte Hanks to provide strategy, analytics, and creative services to accelerate membership growth.
Harte Hanks CEO, Brian Linscott, commented: “The new and refocused Harte Hanks delivered revenue growth and improved performance in each of our business segments with a $6.0 million positive swing in net income. Today, Harte Hanks is strategically well-positioned, offering compelling value to a growing roster of top-tier customers designed to enable sustained profitability. We remain focused on executing margin improvement initiatives across all segments. Looking into next year, we anticipate positive net income for the full year.”
Third Quarter 2021 Results
Third quarter revenues were $49.6 million, up from $47.7 million a year ago and up sequentially from $0.3 million in the second quarter of 2021. Continued growth in our Customer Care segment led our third quarter performance.
Third quarter operating income was $4.2 million, compared to $0.8 million in the third quarter of 2020. The improvement resulted from the Company’s revenue increases and cost reduction efforts, including an 8% reduction in production and distribution expense as well as a 34% reduction in restructuring expense.
Third quarter Adjusted Operating Income2 was $5.5 million, compared to $2.5 million in the third quarter of 2020. The improvement in Adjusted Operating Income reflects improved revenue and continued cost-cutting actions. Income attributable to common stockholders for the third quarter was $3.7 million, or $0.54 and $0.52 per basic and diluted share, respectively.
Conference Call Information
The Company will host a conference call and live webcast to discuss these results today at 4:30 p.m. EST. To access the live call, please dial (888) 506-0059 (toll free) or (973) 528-0048 and, if requested, reference conference ID 663451. The conference call will also be webcast live in the Investors Events section of the Harte Hanks website https://investors.hartehanks.com/.
Following the conclusion of the live call, a telephonic replay will be available for 72 hours by dialing (877) 481-4010 or (919) 882-2331 and using the replay passcode 43515. The replay will also be available for at least 90 days in the Investors Events section of the Harte Hanks website.
Check Out The New Martech Cube Podcast. For more such updates, follow us on Google News Martech News