Harte-Hanks gives thanks to direct marketing services. One of the largest producers of shoppers (advertising circulars sent by mail) in the country, the company provides integrated direct-marketing services in the US and internationally, including market research and analytics. It designs contact databases, tracks leads, and provides telephone, e-mail, and printing and mailing services to connect customers with their potential clients. Customers include major retailers and companies from the financial services, health care, and technology industries.
Harte-Hanks' direct marketing services are provided by more than 30 facilities worldwide, with a half dozen of offices located outside the US. The company operates in North America, Asia-Pacific, Europe, and Latin America. However, the US remains the firm's largest market, accounting for 83% of revenue in fiscal 2015.
Sales and Marketing
The company's sales forces, with industry-specific knowledge and experience, emphasize the cross-selling of a full range of direct marketing services and are supported by employees in each sector assigned to specific clients. Harte-Hanks relies on its enterprise and solution sellers to primarily sell its products and services to new clients and task its employees supporting existing clients to expand its client relationship through additional solutions and products.
Harte-Hanks reported $495 million in revenue for fiscal 2015. That was a decrease of more than $58 million (or 11%) compared to the company's fiscal 2014 revenue of $553 million. The decreased revenue was partly responsible for Harte-Hanks suffering a net loss of about $170 million in fiscal 2015 after the company claimed a modest net income of almost $24 million the previous fiscal period.
During fiscal 2015 the company's operating cash inflows increased by 21% to $30.94 million compared to $25.56 million in fiscal 2014, mainly due to changes in working capital assets.
To counter losses, Harte-Hanks trimmed circulation and the company has not ruled out further cuts or the possibility of shutting down low-performing publications in the future. Its plan for growth involves developing new products and services and broadening its international reach, particularly in Europe.
In 2015 Harte-Hanks sold market research provider
to private equity firm Halyard Capital.
Mergers and Acquisitions
During fiscal 2015 Harte-Hanks completed its acquisitions of Aleutian Consulting and privately-owned 3Q Digital.