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Harte Hanks Inc. (HHS-3.01%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total operating revenue of $185.2 million, a decrease of 3.3% from $191.5 million in the previous year. This decline is attributed to reduced revenues across all business segments, including a 3.5% decrease in the Fulfillment & Logistics Services segment.
Operating expenses for the year were $183.1 million, down 2.6% from the previous year. The reduction in expenses was primarily due to lower labor and production costs, partially offset by increased advertising and administrative expenses.
The company reported an operating income of $2.1 million, a decrease of 37.7% compared to $3.4 million in the previous year. The operating margin fell from 1.8% to 1.1%.
Harte Hanks incurred a net loss of $30.3 million for the year, compared to a net loss of $1.6 million in 2023. This was significantly impacted by a $37.5 million charge related to the termination of its Qualified Pension Plan I.
The company provided a detailed breakdown of its segment performance. The Marketing Services segment reported a 4.9% decline in revenue, while Customer Care and Fulfillment & Logistics Services segments saw decreases of 1.3% and 3.5%, respectively.
Harte Hanks highlighted its restructuring program, Project Elevate, which aims to optimize business resources and reinvest savings into sales, marketing, and technology. The program is expected to yield $16 million in cost reductions by 2026.
The filing also includes information on the company's liquidity and capital resources, noting cash and cash equivalents of $9.9 million as of December 31, 2024, and an unused borrowing capacity of $24.0 million under its credit facility.
Harte Hanks continues to focus on enhancing its customer experience offerings across its business segments, leveraging data and technology to drive growth and efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Harte Hanks Inc. annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.