About Harte Hanks, Inc.
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, and health care. Its biggest market is US. The company is founded in the year 1923.
Harte Hanks offer a wide variety of integrated, omni-channel, data-driven solutions for top brands around the globe. To help their clients gain insight into their customers' behaviors from their data and use that insight to create innovative multi-channel marketing programs that deliver greater return on their marketing investment by offering a full suite of capabilities and resources to provide a broad range of marketing services, utilizing various different media from direct mail to email, including: Direct mail and product fulfillment which accounts for about 50%, Contact Centers ( nearly 30%), Data base and marketing; Agency and Digital Services which account for more than 10% each.
Texas-based Harte-Hanks' direct marketing services are provided by nearly 20 facilities worldwide, with roughly 5 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 nearly 85% of revenue in fiscal 2019.
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 currently provide services primarily to the B2B(more than 20%), Consumer Brands (more than 20%), Financial Services (more than 20%), Retail (nearly 20%), and Healthcare (about 10%) vertical markets, in addition to a range of other select markets. The largest client (measured in revenue) comprised about 10% of total revenues in 2019. The largest 25 clients in terms of revenue comprised nearly 65% of total revenues in 2019.
Revenues were $217.6 million in the year ended December 31, 2019, compared to $284.6 million in the year ended December 31, 2018. These results reflected the impact of declines in almost all of its industry verticals. The company retail, B2B, consumer brand, transportation and financial services verticals declined by $25.0 million, or 38%, $16.0 million, or 25%, $11.5 million, or 20%, $8.5 million, or 39%, $7.9 million, or 15%, respectively.
Harte-Hanks recorded a net loss of $26.3 million and net income from operations of $17.6 million in 2019 and 2018, respectively. The decrease in income from operations was mainly due to the $31.0 million pre-tax gain recognized from the sale of 3Q Digital in February 2018, and the income tax benefit related to the items noted above, which was only partially offset by the $5 million gain from the 3Q sale realized in 2019 as a result of the receipt of earn-out or contingent consideration.
Cash held by the company at the end of 2019 increased by $13.2 million to $34.1 million compared to $20.9 million. Cash provided by operations and financing activities was $12.1 million and $3.1 million, respectively. Cash used for investing activities was $2.6 million primarily for purchases of property, plant and equipment.
In the year ended December 31, 2019, the company recorded restructuring charges of $11.8 million. This comprised charges mainly related to customer database build write offs, termination fees related to certain contracts with Wipro, LLC ("Wipro"), severance agreements, asset impairment and facility related expenses.
2800 Wells Branch Pkwy
Austin, TX 78728-6762
Phone: 1 (512) 343-1100
Employer Type: Publicly Owned
Chairman: Christopher M. Harte
EVP, COO, and CTO: Shirish Lal
President, CEO, and Director: Karen A. Puckett
Employees (This Location): 20
Employees (All Locations): 2,430
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