We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Harte Hanks Inc | NYSE:HHS | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.69 | 0 | 01:00:00 |
|
Delaware
|
|
74-1677284
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification Number)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
HHS
|
New York Stock Exchange (“NYSE”)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
ý
|
Smaller reporting company
|
ý
|
|
|
Emerging growth company
|
o
|
|
|
|
Page
|
|||
|
|
|
|||
|
|||||
|
|
|
|||
|
|
|
|
||
|
|
(Unaudited)
|
|
||
|
|
|
|
||
|
|
||||
|
|
|
|
||
|
|
||||
|
|
|
|
||
|
|
||||
|
|
|
|
||
|
|
||||
|
|
|
|
||
|
|
|
|||
|
|
|
|
||
|
|
||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
|||||
|
|
|
|
||
|
In thousands, except per share and share amounts
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
31,738
|
|
|
$
|
20,882
|
|
Accounts receivable (less allowance for doubtful accounts of $971 at September 30, 2019 and $430 at December 31, 2018)
|
|
40,577
|
|
|
54,240
|
|
||
Contract assets
|
|
986
|
|
|
2,362
|
|
||
Inventory
|
|
407
|
|
|
448
|
|
||
Prepaid expenses
|
|
2,896
|
|
|
4,088
|
|
||
Prepaid taxes and income tax receivable
|
|
447
|
|
|
20,436
|
|
||
Other current assets
|
|
1,738
|
|
|
2,536
|
|
||
Total current assets
|
|
78,789
|
|
|
104,992
|
|
||
Property, plant and equipment (less accumulated depreciation of $130,799 at September 30, 2019 and $133,559 at December 31, 2018)
|
|
8,780
|
|
|
13,592
|
|
||
Right-of-use assets
|
|
20,684
|
|
|
—
|
|
||
Other assets
|
|
3,897
|
|
|
6,591
|
|
||
Total assets
|
|
$
|
112,150
|
|
|
$
|
125,175
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
18,131
|
|
|
$
|
31,052
|
|
Accrued payroll and related expenses
|
|
5,508
|
|
|
6,783
|
|
||
Deferred revenue and customer advances
|
|
4,286
|
|
|
6,034
|
|
||
Customer postage and program deposits
|
|
6,003
|
|
|
6,729
|
|
||
Short-term lease liabilities
|
|
8,048
|
|
|
—
|
|
||
Other current liabilities
|
|
2,984
|
|
|
3,564
|
|
||
Total current liabilities
|
|
44,960
|
|
|
54,162
|
|
||
Long-term debt
|
|
18,700
|
|
|
14,200
|
|
||
Pensions
|
|
61,518
|
|
|
62,214
|
|
||
Deferred tax liabilities, net
|
|
223
|
|
|
—
|
|
||
Long-term lease liabilities
|
|
14,578
|
|
|
—
|
|
||
Other long-term liabilities
|
|
2,877
|
|
|
4,060
|
|
||
Total liabilities
|
|
142,856
|
|
|
134,636
|
|
||
|
|
|
|
|
||||
Preferred stock, $1 par value, 1,000,000 shares authorized; 9,926 shares of Series A Convertible Preferred Stock, issued and outstanding
|
|
9,723
|
|
|
9,723
|
|
||
|
|
|
|
|
||||
Stockholders’ deficit
|
|
|
|
|
|
|
||
Common stock, $1 par value, 25,000,000 shares authorized;12,121,484 and 12,115,055 shares issued, 6,300,381 and 6,260,075 shares outstanding at September 30, 2019 and December 31, 2018, respectively
|
|
12,121
|
|
|
12,115
|
|
||
Additional paid-in capital
|
|
447,244
|
|
|
453,868
|
|
||
Retained earnings
|
|
800,763
|
|
|
812,704
|
|
||
Less treasury stock, 5,821,103 shares at cost at September 30, 2019 and 5,854,980 shares at cost at December 31, 2018
|
|
(1,244,056
|
)
|
|
(1,251,388
|
)
|
||
Accumulated other comprehensive loss
|
|
(56,501
|
)
|
|
(46,483
|
)
|
||
Total stockholders’ deficit
|
|
(40,429
|
)
|
|
(19,184
|
)
|
||
Total liabilities, preferred stock and stockholders’ deficit
|
|
$
|
112,150
|
|
|
$
|
125,175
|
|
|
|
Three Months Ended September 30,
|
|
||||||
In thousands, except per share amounts
|
|
2019
|
|
2018
|
|
||||
Operating revenues
|
|
$
|
51,414
|
|
|
$
|
63,588
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
||
Labor
|
|
28,589
|
|
|
35,619
|
|
|
||
Production and distribution
|
|
17,314
|
|
|
23,016
|
|
|
||
Advertising, selling, general and administrative
|
|
5,623
|
|
|
9,658
|
|
|
||
Restructuring Expense
|
|
3,080
|
|
|
—
|
|
|
||
Impairment of Assets
|
|
—
|
|
|
3,822
|
|
|
||
Depreciation, software and intangible asset amortization
|
|
1,283
|
|
|
1,826
|
|
|
||
Total operating expenses
|
|
55,889
|
|
|
73,941
|
|
|
||
Operating loss
|
|
(4,475
|
)
|
|
(10,353
|
)
|
|
||
Other expenses, net
|
|
|
|
|
|
|
|
||
Interest expense, net
|
|
330
|
|
|
177
|
|
|
||
Other, net
|
|
1,081
|
|
|
891
|
|
|
||
Total other expenses, net
|
|
1,411
|
|
|
1,068
|
|
|
||
Loss before income taxes
|
|
(5,886
|
)
|
|
(11,421
|
)
|
|
||
Income tax expense (benefit)
|
|
102
|
|
|
(1,437
|
)
|
|
||
Net loss
|
|
(5,988
|
)
|
|
(9,984
|
)
|
|
||
Less: Preferred stock dividends
|
|
125
|
|
|
125
|
|
|
||
Loss attributable to common stockholders
|
|
$
|
(6,113
|
)
|
|
$
|
(10,109
|
)
|
|
|
|
|
|
|
|
|
|
||
Loss per common share
|
|
|
|
|
|
|
|
||
Basic
|
|
$
|
(0.97
|
)
|
|
$
|
(1.62
|
)
|
|
Diluted
|
|
$
|
(0.97
|
)
|
|
$
|
(1.62
|
)
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares used to compute loss per share attributable to common shares
|
|
|
|
|
|
|
|
||
Basic
|
|
6,291
|
|
|
6,250
|
|
|
||
Diluted
|
|
6,291
|
|
|
6,250
|
|
|
||
|
|
|
|
|
|
|
|
||
Comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
||
Net loss
|
|
$
|
(5,988
|
)
|
|
$
|
(9,984
|
)
|
|
|
|
|
|
|
|
|
|
||
Adjustment to pension liability, net:
|
|
549
|
|
|
517
|
|
|
||
Foreign currency translation adjustment
|
|
(660
|
)
|
|
(248
|
)
|
|
||
Total other comprehensive (loss) income, net of tax
|
|
$
|
(111
|
)
|
|
$
|
269
|
|
|
|
|
|
|
|
|
|
|
||
Comprehensive loss
|
|
$
|
(6,099
|
)
|
|
$
|
(9,715
|
)
|
|
Less: Preferred stock dividends
|
|
125
|
|
|
125
|
|
|
||
Comprehensive loss attributable to common stockholders
|
|
$
|
(6,224
|
)
|
|
$
|
(9,840
|
)
|
|
|
|
Nine Months Ended September 30,
|
||||||
In thousands, except per share amounts
|
|
2019
|
|
2018
|
||||
Operating revenues
|
|
$
|
165,250
|
|
|
$
|
214,417
|
|
Operating expenses
|
|
|
|
|
|
|
||
Labor
|
|
94,034
|
|
|
125,999
|
|
||
Production and distribution
|
|
58,130
|
|
|
73,523
|
|
||
Advertising, selling, general and administrative
|
|
20,225
|
|
|
26,891
|
|
||
Restructuring Expense
|
|
10,867
|
|
|
—
|
|
||
Impairment of Assets
|
|
—
|
|
|
3,822
|
|
||
Depreciation, software and intangible asset amortization
|
|
4,022
|
|
|
5,879
|
|
||
Total operating expenses
|
|
187,278
|
|
|
236,114
|
|
||
Operating loss
|
|
(22,028
|
)
|
|
(21,697
|
)
|
||
Other expenses and (income)
|
|
|
|
|
|
|
||
Interest expense, net
|
|
938
|
|
|
1,289
|
|
||
Gain on sale from 3Q Digital
|
|
(5,000
|
)
|
|
(30,954
|
)
|
||
Other, net
|
|
4,512
|
|
|
2,859
|
|
||
Total other expenses and (income)
|
|
450
|
|
|
(26,806
|
)
|
||
(Loss) income before income taxes
|
|
(22,478
|
)
|
|
5,109
|
|
||
Income tax expense (benefit)
|
|
840
|
|
|
(10,800
|
)
|
||
Net (loss) income
|
|
(23,318
|
)
|
|
15,909
|
|
||
Less: Earnings attributable to participating securities
|
|
—
|
|
|
1,957
|
|
||
Less: Preferred stock dividends
|
|
371
|
|
|
332
|
|
||
(Loss) income attributable to common stockholders
|
|
$
|
(23,689
|
)
|
|
$
|
13,620
|
|
|
|
|
|
|
|
|
||
(Loss) earnings per common share
|
|
|
|
|
|
|
||
Basic
|
|
$
|
(3.77
|
)
|
|
$
|
2.19
|
|
Diluted
|
|
$
|
(3.77
|
)
|
|
$
|
2.18
|
|
|
|
|
|
|
|
|
||
Weighted-average shares used to compute (loss) earnings per share attributable to common shares
|
|
|
|
|
|
|
||
Basic
|
|
6,277
|
|
|
6,230
|
|
||
Diluted
|
|
6,277
|
|
|
6,251
|
|
||
|
|
|
|
|
|
|
||
Comprehensive (loss) income
|
|
|
|
|
|
|
||
Net (loss) income
|
|
$
|
(23,318
|
)
|
|
$
|
15,909
|
|
|
|
|
|
|
|
|
||
Adjustment to pension liability
|
|
1,648
|
|
|
1,552
|
|
||
Foreign currency translation adjustment
|
|
(311
|
)
|
|
(1,207
|
)
|
||
Adoption of ASU 2018-02
|
|
(11,355
|
)
|
|
—
|
|
||
Total other comprehensive (loss) income, net of tax
|
|
$
|
(10,018
|
)
|
|
$
|
345
|
|
|
|
|
|
|
|
|
||
Comprehensive (loss) income
|
|
$
|
(33,336
|
)
|
|
$
|
16,254
|
|
|
|
|
|
|
||||
Less: Earnings attributable to participating securities
|
|
—
|
|
|
1,957
|
|
||
Less: Preferred stock dividends
|
|
371
|
|
|
332
|
|
||
Comprehensive (loss) income attributable to common stockholders
|
|
$
|
(33,707
|
)
|
|
$
|
13,965
|
|
In thousands
|
|
Preferred Stock
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
Accumulated Other
Comprehensive Loss |
|
Total
Stockholders’ Deficit |
||||||||||||||
Balance at December 31, 2017
|
|
$
|
—
|
|
$
|
12,075
|
|
|
$
|
457,186
|
|
|
$
|
794,583
|
|
|
$
|
(1,254,176
|
)
|
|
$
|
(44,303
|
)
|
|
$
|
(34,635
|
)
|
Cumulative effect of accounting change
|
|
—
|
|
—
|
|
|
—
|
|
|
571
|
|
|
—
|
|
|
—
|
|
|
571
|
|
|||||||
Preferred stock issued
|
|
9,723
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock Option activities
|
|
—
|
|
38
|
|
|
(38
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Rounding from reverse stock split
|
|
—
|
|
(38
|
)
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Stock-based compensation
|
|
—
|
|
—
|
|
|
433
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
53
|
|
|
—
|
|
|
3
|
|
|||||||
Net income
|
|
—
|
|
—
|
|
|
—
|
|
|
32,627
|
|
|
—
|
|
|
—
|
|
|
32,627
|
|
|||||||
Other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
364
|
|
|
364
|
|
|||||||
Balance at March 31, 2018
|
|
$
|
9,723
|
|
$
|
12,075
|
|
|
$
|
457,569
|
|
|
$
|
827,781
|
|
|
$
|
(1,254,124
|
)
|
|
$
|
(43,939
|
)
|
|
$
|
(638
|
)
|
Stock Option activities
|
|
—
|
|
33
|
|
|
(33
|
)
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
—
|
|
|
425
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(755
|
)
|
|
—
|
|
|
789
|
|
|
—
|
|
|
34
|
|
|||||||
Net loss
|
|
—
|
|
—
|
|
|
—
|
|
|
(6,734
|
)
|
|
—
|
|
|
—
|
|
|
(6,734
|
)
|
|||||||
Other comprehensive loss
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(288
|
)
|
|
(288
|
)
|
|||||||
Balance at June 30, 2018
|
|
$
|
9,723
|
|
$
|
12,108
|
|
|
$
|
457,206
|
|
|
$
|
821,047
|
|
|
$
|
(1,253,404
|
)
|
|
$
|
(44,227
|
)
|
|
$
|
(7,270
|
)
|
Stock Option activities
|
|
—
|
|
7
|
|
|
(78
|
)
|
|
—
|
|
|
36
|
|
|
—
|
|
|
(35
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
—
|
|
|
(1,461
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,461
|
)
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(659
|
)
|
|
—
|
|
|
687
|
|
|
—
|
|
|
28
|
|
|||||||
Net loss
|
|
—
|
|
—
|
|
|
—
|
|
|
(9,984
|
)
|
|
—
|
|
|
—
|
|
|
(9,984
|
)
|
|||||||
Other comprehensive loss
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
269
|
|
|
269
|
|
|||||||
Balance at September 30, 2018
|
|
$
|
9,723
|
|
$
|
12,115
|
|
|
$
|
455,008
|
|
|
$
|
811,063
|
|
|
$
|
(1,252,681
|
)
|
|
$
|
(43,958
|
)
|
|
$
|
(18,453
|
)
|
In thousands
|
|
Preferred Stock
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
Accumulated Other
Comprehensive Loss |
|
Total
Stockholders’ Deficit |
||||||||||||||
Balance at December 31, 2018
|
|
$
|
9,723
|
|
$
|
12,115
|
|
|
$
|
453,868
|
|
|
$
|
812,704
|
|
|
$
|
(1,251,388
|
)
|
|
$
|
(46,483
|
)
|
|
$
|
(19,184
|
)
|
Cumulative effect of accounting change
|
|
—
|
|
—
|
|
|
—
|
|
|
11,377
|
|
|
—
|
|
|
(11,355
|
)
|
|
22
|
|
|||||||
Stock-based compensation
|
|
—
|
|
—
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(1,968
|
)
|
|
—
|
|
|
1,984
|
|
|
—
|
|
|
16
|
|
|||||||
Net loss
|
|
—
|
|
—
|
|
|
—
|
|
|
(13,527
|
)
|
|
—
|
|
|
—
|
|
|
(13,527
|
)
|
|||||||
Other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
522
|
|
|
522
|
|
|||||||
Balance at March 31, 2019
|
|
$
|
9,723
|
|
$
|
12,115
|
|
|
$
|
452,051
|
|
|
$
|
810,554
|
|
|
$
|
(1,249,404
|
)
|
|
$
|
(57,316
|
)
|
|
$
|
(32,000
|
)
|
Stock Option activities
|
|
—
|
|
6
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||||
Stock-based compensation
|
|
—
|
|
—
|
|
|
239
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(345
|
)
|
|
—
|
|
|
343
|
|
|
—
|
|
|
(2
|
)
|
|||||||
Net loss
|
|
—
|
|
—
|
|
|
—
|
|
|
(3,803
|
)
|
|
—
|
|
|
—
|
|
|
(3,803
|
)
|
|||||||
Other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
926
|
|
|
926
|
|
|||||||
Balance at June 30, 2019
|
|
$
|
9,723
|
|
$
|
12,121
|
|
|
$
|
451,937
|
|
|
$
|
806,751
|
|
|
$
|
(1,249,061
|
)
|
|
$
|
(56,390
|
)
|
|
$
|
(34,642
|
)
|
Stock-based compensation
|
|
—
|
|
—
|
|
|
312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312
|
|
|||||||
Treasury stock issued
|
|
—
|
|
—
|
|
|
(5,005
|
)
|
|
—
|
|
|
5,005
|
|
|
—
|
|
|
—
|
|
|||||||
Net loss
|
|
—
|
|
—
|
|
|
—
|
|
|
(5,988
|
)
|
|
—
|
|
|
—
|
|
|
(5,988
|
)
|
|||||||
Other comprehensive income
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(111
|
)
|
|
(111
|
)
|
|||||||
Balance at September 30, 2019
|
|
$
|
9,723
|
|
$
|
12,121
|
|
|
$
|
447,244
|
|
|
$
|
800,763
|
|
|
$
|
(1,244,056
|
)
|
|
$
|
(56,501
|
)
|
|
$
|
(40,429
|
)
|
|
|
Nine Months Ended September 30,
|
||||||
In thousands
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net (loss) income
|
|
$
|
(23,318
|
)
|
|
$
|
15,909
|
|
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities
|
|
|
|
|
||||
Depreciation, software amortization
|
|
4,022
|
|
|
5,767
|
|
||
Intangible asset amortization
|
|
—
|
|
|
113
|
|
||
Restructuring
|
|
5,812
|
|
|
—
|
|
||
Impairment of Assets
|
|
—
|
|
|
3,822
|
|
||
Stock-based compensation
|
|
739
|
|
|
(706
|
)
|
||
Net pension cost
|
|
1,501
|
|
|
1,284
|
|
||
Interest accretion on contingent consideration
|
|
—
|
|
|
742
|
|
||
Deferred income taxes
|
|
426
|
|
|
(978
|
)
|
||
Gain on sale
|
|
—
|
|
|
(32,760
|
)
|
||
Other, net
|
|
—
|
|
|
(238
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
|||
Decrease in accounts receivable, net and contract assets
|
|
15,039
|
|
|
10,021
|
|
||
Decrease in inventory
|
|
41
|
|
|
60
|
|
||
Decrease (increase) in prepaid expenses, income tax receivable and other assets
|
|
20,131
|
|
|
(10,632
|
)
|
||
(Decrease) increase in accounts payable
|
|
(12,591
|
)
|
|
9,693
|
|
||
Decrease in other accrued expenses and liabilities
|
|
(2,427
|
)
|
|
(9,110
|
)
|
||
Net cash provided by (used in) operating activities
|
|
9,375
|
|
|
(7,013
|
)
|
||
|
|
|
|
|
||||
Cash flows from investing activities
|
|
0
|
|
|
|
|
||
Dispositions, net of cash transferred
|
|
—
|
|
|
3,929
|
|
||
Purchases of property, plant and equipment
|
|
(1,655
|
)
|
|
(2,834
|
)
|
||
Proceeds from sale of property, plant and equipment
|
|
15
|
|
|
225
|
|
||
Net cash (used in) provided by investing activities
|
|
(1,640
|
)
|
|
1,320
|
|
||
|
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Borrowings
|
|
4,500
|
|
|
9,000
|
|
||
Repayment of borrowings
|
|
—
|
|
|
(9,000
|
)
|
||
Debt financing costs
|
|
(477
|
)
|
|
(425
|
)
|
||
Issuance of preferred stock, net of transaction fees
|
|
—
|
|
|
9,723
|
|
||
Issuance of common stock
|
|
(2
|
)
|
|
(105
|
)
|
||
Issuance of treasury stock
|
|
14
|
|
|
65
|
|
||
Payment of finance leases
|
|
(603
|
)
|
|
(377
|
)
|
||
Net cash provided by financing activities
|
|
3,432
|
|
|
8,881
|
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
(311
|
)
|
|
(1,207
|
)
|
||
Net increase in cash and cash equivalents
|
|
10,856
|
|
|
1,981
|
|
||
Cash and cash equivalents at beginning of period
|
|
20,882
|
|
|
8,397
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
31,738
|
|
|
$
|
10,378
|
|
|
|
|
|
|
||||
Supplemental disclosures
|
|
|
|
|
||||
Cash paid for interest
|
|
$
|
643
|
|
|
$
|
113
|
|
Cash received for income taxes
|
|
$
|
19,329
|
|
|
$
|
41
|
|
Non-cash investing and financing activities
|
|
|
|
|
||||
Purchases of property, plant and equipment included in accounts payable
|
|
$
|
489
|
|
|
$
|
36
|
|
•
|
Identification of the contract, or contracts, with a customer
|
•
|
Identification of the performance obligations in the contract
|
•
|
Determination of the transaction price
|
•
|
Allocation of the transaction price to the performance obligations in the contract
|
•
|
Recognition of revenue when (or as) we satisfy the performance obligation
|
Level 1
|
|
Quoted prices in active markets for identical assets or liabilities.
|
|
|
|
Level 2
|
|
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
|
|
Level 3
|
|
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
In thousands
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
Sep 30, 2019
|
|
Sep 30, 2018
|
|
Sep 30, 2019
|
|
Sep 30, 2018
|
||||||||
B2B
|
|
$
|
11,290
|
|
|
$
|
14,069
|
|
|
$
|
35,149
|
|
|
$
|
47,673
|
|
Consumer Brands
|
|
11,171
|
|
|
12,642
|
|
|
35,222
|
|
|
47,893
|
|
||||
Financial Services
|
|
11,635
|
|
|
13,185
|
|
|
36,850
|
|
|
42,185
|
|
||||
Healthcare
|
|
5,257
|
|
|
4,382
|
|
|
14,946
|
|
|
12,800
|
|
||||
Retail
|
|
8,803
|
|
|
14,933
|
|
|
31,752
|
|
|
46,884
|
|
||||
Transportation
|
|
3,258
|
|
|
4,377
|
|
|
11,331
|
|
|
16,982
|
|
||||
Total Revenues
|
|
$
|
51,414
|
|
|
$
|
63,588
|
|
|
$
|
165,250
|
|
|
$
|
214,417
|
|
|
|
For the Three Months Ended September 30, 2019
|
||||||||||
In thousands
|
|
Revenue for performance obligations recognized
over time |
|
Revenue for performance obligations recognized at a point in time
|
|
Total
|
||||||
Agency & Digital Services
|
|
$
|
6,286
|
|
|
$
|
276
|
|
|
$
|
6,562
|
|
Contact Centers
|
|
14,618
|
|
|
—
|
|
|
14,618
|
|
|||
Database Marketing Solutions
|
|
5,272
|
|
|
1,170
|
|
|
6,442
|
|
|||
Direct Mail, Logistics, and Fulfillment
|
|
20,775
|
|
|
3,017
|
|
|
23,792
|
|
|||
Total Revenues
|
|
$
|
46,951
|
|
|
$
|
4,463
|
|
|
$
|
51,414
|
|
|
|
For the Nine Months Ended September 30, 2019
|
||||||||||
In thousands
|
|
Revenue for performance obligations recognized
over time |
|
Revenue for performance obligations recognized at a point in time
|
|
Total
|
||||||
Agency & Digital Services
|
|
$
|
18,793
|
|
|
$
|
407
|
|
|
$
|
19,200
|
|
Contact Centers
|
|
46,688
|
|
|
—
|
|
|
46,688
|
|
|||
Database Marketing Solutions
|
|
16,745
|
|
|
2,537
|
|
|
19,282
|
|
|||
Direct Mail, Logistics, and Fulfillment
|
|
67,853
|
|
|
12,227
|
|
|
80,080
|
|
|||
Total Revenues
|
|
$
|
150,079
|
|
|
$
|
15,171
|
|
|
$
|
165,250
|
|
In thousands
|
|
September 30, 2019
|
|
|
December 31, 2018
|
|
||
Contract assets
|
|
$
|
986
|
|
|
$
|
2,362
|
|
Deferred revenue and customer advances
|
|
4,286
|
|
|
6,034
|
|
||
Deferred revenue, included in other long-term liabilities
|
|
904
|
|
|
578
|
|
In thousands
|
|
As of September 30, 2019
|
|
|
||||||||
|
|
Operating Leases
|
|
|
Finance Leases
|
|
|
Total
|
|
|||
Right-of-use Assets
|
|
19,647
|
|
|
1,037
|
|
|
$
|
20,684
|
|
||
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Short-term lease liabilities
|
|
7,625
|
|
|
423
|
|
|
8,048
|
|
|||
Long-term lease liabilities
|
|
14,105
|
|
|
473
|
|
|
14,578
|
|
|||
Total Lease Liabilities
|
|
$
|
21,730
|
|
|
$
|
896
|
|
|
$
|
22,626
|
|
In thousands
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Operating lease cost
|
|
$
|
2,347
|
|
|
$
|
6,940
|
|
|
|
|
|
|
||||
Finance lease cost
|
|
|
|
|
||||
Amortization of right-of-use assets
|
|
75
|
|
225
|
|
|||
Interest on lease liabilities
|
|
16
|
|
54
|
|
|||
Total Finance lease cost
|
|
91
|
|
|
279
|
|
||
Variable lease cost
|
|
614
|
|
|
1,991
|
|
||
Total lease cost
|
|
$
|
3,052
|
|
|
$
|
9,210
|
|
In thousands
|
|
Nine Months Ended September 30, 2019
|
||
Supplemental Cash Flows Information
|
|
|
||
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
13,076
|
|
Operating cash flows from finance leases
|
|
63
|
|
|
Financing cash flows from finance leases
|
|
344
|
|
|
|
|
|
||
Weighted Average Remaining Lease term
|
|
|
||
|
|
|
|
|
Operating leases
|
|
3.46
|
|
|
Finance leases
|
|
2.90
|
|
|
|
|
|
||
Weighted Average Discount Rate
|
|
|
||
Operating leases
|
|
4.71
|
%
|
|
Finance leases
|
|
6.68
|
%
|
In thousands
|
|
Operating Leases
|
|
|
Finance Leases
|
|
||
Year Ending December 31,
|
|
|
|
|
|
|||
Remainder of 2019
|
|
$
|
2,359
|
|
|
$
|
459
|
|
2020
|
|
7,867
|
|
|
200
|
|
||
2021
|
|
5,794
|
|
|
160
|
|
||
2022
|
|
3,941
|
|
|
141
|
|
||
2023
|
|
2,188
|
|
|
3
|
|
||
2024
|
|
1,397
|
|
|
—
|
|
||
Total future minimum lease payments
|
|
23,546
|
|
|
963
|
|
||
Less: Imputed interest
|
|
1,816
|
|
|
67
|
|
||
Total lease liabilities
|
|
$
|
21,730
|
|
|
$
|
896
|
|
In thousands
|
|
Operating Leases
|
|
Finance Leases
|
||||
Year Ending December 31,
|
|
|
|
|
||||
2019
|
|
$
|
9,645
|
|
|
$
|
748
|
|
2020
|
|
8,815
|
|
|
307
|
|
||
2021
|
|
7,425
|
|
|
131
|
|
||
2022
|
|
5,456
|
|
|
133
|
|
||
2023
|
|
2,349
|
|
|
104
|
|
||
Thereafter
|
|
1,328
|
|
|
—
|
|
||
Total future minimum lease payments
|
|
$
|
35,018
|
|
|
$
|
1,423
|
|
|
|
|
|
|
||||
Less: imputed interest
|
|
|
|
$
|
120
|
|
||
|
|
|
|
|
||||
Total
|
|
|
|
$
|
1,303
|
|
||
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
In thousands
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest cost
|
|
$
|
1,813
|
|
|
$
|
1,685
|
|
|
$
|
5,439
|
|
|
$
|
5,055
|
|
Expected return on plan assets
|
|
(1,111
|
)
|
|
(1,524
|
)
|
|
(3,333
|
)
|
|
(4,571
|
)
|
||||
Recognized actuarial loss
|
|
732
|
|
|
689
|
|
|
2,197
|
|
|
2,068
|
|
||||
Net periodic benefit cost
|
|
$
|
1,434
|
|
|
$
|
850
|
|
|
$
|
4,303
|
|
|
$
|
2,552
|
|
|
|
Three Months Ended September 30,
|
||||||
In thousands, except per share amounts
|
|
2019
|
|
2018
|
||||
Net loss
|
|
$
|
(5,988
|
)
|
|
$
|
(9,984
|
)
|
Less: Preferred stock dividends
|
|
125
|
|
|
125
|
|
||
Loss attributable to common stockholders
|
|
$
|
(6,113
|
)
|
|
$
|
(10,109
|
)
|
|
|
|
|
|
||||
Basic loss per Common Share
|
|
|
|
|
||||
Weighted-average common shares outstanding
|
|
6,291
|
|
|
6,250
|
|
||
Basic loss per common share
|
|
$
|
(0.97
|
)
|
|
$
|
(1.62
|
)
|
|
|
|
|
|
||||
Diluted Loss per Common Share
|
|
|
|
|
|
|
||
Weighted-average shares used to compute earnings/(loss) per share attributable to common shares
|
|
6,291
|
|
|
6,250
|
|
||
Diluted Loss per common share
|
|
$
|
(0.97
|
)
|
|
$
|
(1.62
|
)
|
|
|
|
|
|
||||
Computation of Shares Used in Diluted Loss Per Common Share
|
|
|
|
|
|
|
||
Weighted-average common shares outstanding
|
|
6,291
|
|
|
6,250
|
|
||
Shares used in diluted loss per common share computations
|
|
6,291
|
|
|
6,250
|
|
|
|
Nine Months Ended September 30,
|
||||||
In thousands, except per share amounts
|
|
2019
|
|
2018
|
||||
Numerator:
|
|
|
|
|
||||
Net (loss) income
|
|
$
|
(23,318
|
)
|
|
$
|
15,909
|
|
Less: Preferred stock dividend
|
|
371
|
|
|
332
|
|
||
Less: Earnings attributable to participating securities
|
|
—
|
|
|
1,957
|
|
||
Numerator for basic EPS: (loss) income attributable to common stockholders
|
|
$
|
(23,689
|
)
|
|
$
|
13,620
|
|
|
|
|
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
||||
Add back: Allocation of earnings to participating securities
|
|
—
|
|
|
1,957
|
|
||
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities
|
|
—
|
|
|
(1,951
|
)
|
||
Numerator for diluted EPS
|
|
$
|
(23,689
|
)
|
|
$
|
13,626
|
|
|
|
|
|
|
||||
Denominator:
|
|
|
|
|
||||
Basic EPS denominator: weighted-average common shares outstanding
|
|
6,277
|
|
|
6,230
|
|
||
|
|
|
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
||||
Unvested shares
|
|
—
|
|
|
21
|
|
||
Diluted EPS denominator
|
|
6,277
|
|
|
6,251
|
|
||
|
|
|
|
|
||||
Basic (loss) earnings per common share
|
|
$
|
(3.77
|
)
|
|
$
|
2.19
|
|
Diluted (loss) earnings per common share
|
|
$
|
(3.77
|
)
|
|
$
|
2.18
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
In thousands
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net (loss) Income
|
|
$
|
(5,988
|
)
|
|
$
|
(9,984
|
)
|
|
(23,318
|
)
|
|
$
|
15,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjustment to pension liability
|
|
732
|
|
|
689
|
|
|
2,197
|
|
|
2,068
|
|
||||
Tax expense
|
|
(183
|
)
|
|
(172
|
)
|
|
(549
|
)
|
|
(516
|
)
|
||||
|
|
549
|
|
|
517
|
|
|
1,648
|
|
|
1,552
|
|
||||
Foreign currency translation adjustment, net of tax
|
|
(660
|
)
|
|
(248
|
)
|
|
(311
|
)
|
|
(1,207
|
)
|
||||
Adoption of ASU 2018-2
|
|
—
|
|
|
—
|
|
|
(11,355
|
)
|
|
—
|
|
||||
Total other comprehensive income (loss), net of tax
|
|
(111
|
)
|
|
269
|
|
|
(10,018
|
)
|
|
345
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total comprehensive (loss) income
|
|
$
|
(6,099
|
)
|
|
$
|
(9,715
|
)
|
|
$
|
(33,336
|
)
|
|
$
|
16,254
|
|
In thousands
|
|
Defined Benefit
Pension Items |
|
Foreign Currency Items
|
|
Total
|
||||||
Balance at December 31, 2018
|
|
$
|
(46,584
|
)
|
|
$
|
101
|
|
|
$
|
(46,483
|
)
|
Other comprehensive income (loss), net of tax, before reclassifications
|
|
—
|
|
|
(311
|
)
|
|
(311
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive (loss) income
|
|
1,648
|
|
|
—
|
|
|
1,648
|
|
|||
Adoption of ASU 2018-02
|
|
(11,355
|
)
|
|
—
|
|
|
(11,355
|
)
|
|||
Net current period other comprehensive income (loss), net of tax
|
|
(9,707
|
)
|
|
(311
|
)
|
|
(10,018
|
)
|
|||
Balance at September 30, 2019
|
|
$
|
(56,291
|
)
|
|
$
|
(210
|
)
|
|
$
|
(56,501
|
)
|
In thousands
|
|
Defined Benefit
Pension Items |
|
Foreign Currency Items
|
|
Total
|
||||||
Balance at December 31, 2017
|
|
$
|
(45,418
|
)
|
|
$
|
1,115
|
|
|
$
|
(44,303
|
)
|
Other comprehensive (loss), net of tax, before reclassifications
|
|
—
|
|
|
(1,207
|
)
|
|
(1,207
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive (loss) income
|
|
1,552
|
|
|
—
|
|
|
1,552
|
|
|||
Net current period other comprehensive income (loss), net of tax
|
|
1,552
|
|
|
(1,207
|
)
|
|
345
|
|
|||
Balance at September 30, 2018
|
|
$
|
(43,866
|
)
|
|
$
|
(92
|
)
|
|
$
|
(43,958
|
)
|
In thousands
|
|
Fair Value
|
||
Accrued contingent consideration liability as of December 31, 2017
|
|
$
|
33,887
|
|
Accretion of interest
|
|
742
|
|
|
Disposition
|
|
(34,629
|
)
|
|
Accrued contingent consideration liability as of September 30, 2018
|
|
$
|
—
|
|
In thousands
|
|
Three months Ended September 30, 2019
|
||||||||||||||
|
|
Contract Termination Fee
|
|
Severance
|
|
Facility, asset impairment and other expense
|
|
Total
|
||||||||
Beginning Balance:
|
|
$
|
2,100
|
|
|
$
|
231
|
|
|
$
|
76
|
|
|
$
|
2,407
|
|
Additions:
|
|
667
|
|
|
1,116
|
|
|
452
|
|
|
2,235
|
|
||||
Payments
|
|
(700
|
)
|
|
(739
|
)
|
|
(387
|
)
|
|
(1,826
|
)
|
||||
Ending Balance:
|
|
$
|
2,067
|
|
|
$
|
608
|
|
|
$
|
141
|
|
|
$
|
2,816
|
|
In thousands
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
|
Contract Termination Fee
|
|
Severance
|
|
Facility, asset impairment and other expense
|
|
Total
|
||||||||
Beginning balance:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Additions:
|
|
2,767
|
|
|
1,760
|
|
|
528
|
|
|
5,055
|
|
||||
Payments
|
|
(700
|
)
|
|
(1,152
|
)
|
|
(387
|
)
|
|
(2,239
|
)
|
||||
Ending balance:
|
|
$
|
2,067
|
|
|
$
|
608
|
|
|
$
|
141
|
|
|
$
|
2,816
|
|
•
|
Agency
|
•
|
Digital Solutions
|
•
|
Database Marketing Solutions
|
•
|
Direct mail
|
•
|
Mail and Product Fulfillment
|
•
|
Logistics
|
•
|
Contact centers
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
||||||||||||||
In thousands, except percentages
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Revenues
|
|
$
|
51,414
|
|
|
$
|
63,588
|
|
|
(19.1
|
)%
|
|
$
|
165,250
|
|
|
$
|
214,417
|
|
|
(22.9
|
)%
|
Operating expenses
|
|
55,889
|
|
|
73,941
|
|
|
(24.4
|
)%
|
|
187,278
|
|
|
236,114
|
|
|
(20.7
|
)%
|
||||
Operating Loss
|
|
$
|
(4,475
|
)
|
|
$
|
(10,353
|
)
|
|
(56.8
|
)%
|
|
$
|
(22,028
|
)
|
|
$
|
(21,697
|
)
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating margin
|
|
(8.7
|
)%
|
|
(16.3
|
)%
|
|
|
|
(13.3
|
)%
|
|
(10.1
|
)%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) income before taxes
|
|
$
|
(5,886
|
)
|
|
$
|
(11,421
|
)
|
|
(48.5
|
)%
|
|
$
|
(22,478
|
)
|
|
$
|
5,109
|
|
|
(540.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted (Loss) income per common share from operations
|
|
$
|
(0.97
|
)
|
|
$
|
(1.62
|
)
|
|
(40.1
|
)%
|
|
$
|
(3.77
|
)
|
|
$
|
2.18
|
|
|
(272.9
|
)%
|
•
|
The adoption of ASC 842, Leases - the impact of this change in accounting policy is described in detail in Note D of the Notes to Unaudited Condensed Consolidated Financial Statements in this 10Q; and
|
•
|
Goodwill and intangible assets are no longer included as a critical accounting policy as we no longer have these assets on our condensed consolidated balance sheet
|
|
|
|
|
HARTE HANKS, INC.
|
|
|
|
November 12, 2019
|
|
/s/ Mark A. Del Priore
|
Date
|
|
Mark A. Del Priore
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
November 12, 2019
|
|
/s/ Lauri Kearnes
|
Date
|
|
Lauri Kearnes
|
|
|
Vice President, Finance and
|
|
|
Corporate Controller
|
1 Year Harte Hanks Chart |
1 Month Harte Hanks Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions