Company profile

Ticker
HHS
Exchange
CEO
Andrew P. Harrison
Employees
Incorporated in
Location
Fiscal year end
Former names
Harte Hanks Communications Inc
SEC CIK
IRS number
741677284

HHS stock data

(
)

Calendar

9 Aug 19
22 Aug 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Jun 19 Mar 19 Dec 18 Sep 18
Revenue 54.69M 59.15M 70.21M 63.59M
Net income -3.8M -13.53M 1.64M -9.98M
Diluted EPS -0.63 -2.18 0.21 -1.62
Net profit margin -6.95% -22.87% 2.33% -15.70%
Operating income -6.61M -10.94M -4.34M -10.35M
Net change in cash 18.06M 60K 10.5M -9.84M
Cash on hand 39M 20.94M 20.88M 10.38M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 284.63M 383.91M 404.41M 444.17M
Net income 17.55M -41.86M -130.94M -170.93M
Diluted EPS 2.38 -6.76 -21.29 -27.73
Net profit margin 6.17% -10.90% -32.38% -38.48%
Operating income -26.03M -40.87M -53.84M -197.95M
Net change in cash 12.49M -37.61M 29.44M -36.77M
Cash on hand 20.88M 8.4M 46.01M 16.56M

Financial data from Harte-Hanks earnings reports

Financial report summary

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Risks
  • Most of our client engagements are cancelable on short notice.
  • A large portion of our revenue is generated from a limited number of clients, with concentration in the consumer retail industry. The loss of a client or significant work from one or more of our clients could adversely affect our business.
  • We rely on business partners for some services and technology, and we depend on one business partner in particular, which is also a significant equity holder, for a large number of critical services.
  • Our indebtedness may adversely impact our ability to react to changes in our business or changes in general economic conditions.
  • We may need to obtain additional funding to continue as a going concern; if we are unable to meet our needs for additional funding in the future, we will be required to limit, scale back, or cease operations.
  • We face significant competition for individual projects, entire client relationships and advertising dollars in general.
  • Current and future competitors may have significantly greater financial and other resources than we do, and they may sell competing services at lower prices or at lower profit margins, resulting in pressures on our prices and margins.
  • We must maintain technological competitiveness, continually improve our processes, and develop and introduce new services in a timely and cost-effective manner.
  • We have recently experienced, and may experience in the future, reduced demand for our products and services due to the financial condition and marketing budgets of our clients and other factors that may impact the industry verticals that we serve.
  • We must effectively manage our costs to be successful. If we do not achieve our cost management objectives, our financial results could be adversely affected.
  • Our financial performance has harmed our commercial reputation and relationship with customers, vendors, and other commercial parties, and may impair our ability to attract, retain and motivate employees.
  • Our inability to comply with the listing requirements of the New York Stock Exchange could result in our common stock being delisted, which could affect our common stock’s market price and liquidity and reduce our ability to raise capital.
  • Privacy, information security and other regulatory requirements may prevent or impair our ability to offer our products and services.
  • Consumer perceptions regarding the privacy and security of their data may prevent or impair our ability to offer our products and services.
  • If we do not prevent security breaches and other interruptions to our infrastructure, we may be exposed to lawsuits, lose customers, suffer harm to our reputation, and incur additional costs.
  • Our reputation and business results may be adversely impacted if we, or subcontractors upon whom we rely, do not effectively protect sensitive personal information of our clients and our clients’ customers.
  • If our facilities are damaged, or if we are unable to access and use our facilities, our business and results of operations will be adversely affected.
  • Significant system disruptions, loss of data center capacity or interruption of telecommunication links could adversely affect our business and results of operations.
  • If our new leaders are unsuccessful, or if we continue to lose key management and are unable to attract and retain the talent required for our business, our operating results could suffer.
  • We could fail to adequately protect our intellectual property rights and may face claims for intellectual property infringement.
  • Breaches of security, or the perception that e-commerce is not secure, could severely harm our business and reputation.
  • We may be unable to make dispositions of assets on favorable terms, or at all.
  • We are vulnerable to increases in postal rates and disruptions in postal services.
  • We are vulnerable to increases in paper prices.
  • We are subject to risks associated with operations outside the U.S.
  • Our certificate of incorporation and bylaws contain anti-takeover protections that may discourage or prevent strategic transactions, including a takeover of our company, even if such a transaction would be beneficial to our stockholders
Management Discussion
  • Revenues declined $14.9 million, or 21.5%, in the three months ended June 30, 2019, compared to the three months ended June 30, 2018. These results reflect the impact of declines in almost all of our industry verticals. Revenues declined in our retail, consumer, B2B, financial services, and transportation verticals by $5.2 million, or 32.8%, $3.9 million, or 24.9%, $3.7 million, or 25.2%, $2.2 million, or 15.2%, and $0.9 million, or 18.8%, respectively. These declines were primarily due to lost clients and lower volumes from existing clients. Healthcare increased slightly by $1.0 million, or 24.0%.
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