Business
Harte Hanks Grows Revenue 8.7% and Delivers $0.83 EPS in the Third Quarter of 2022
All Three Operating Segments Generate Positive Operating IncomeCHELMSFORD, MA / ACCESSWIRE / November 10, 2022 / Harte Hanks, Inc. (NASDAQ:HHS), a leading
About this update from Harte Hanks, Inc.
[{"type":"text","content":"All Three Operating Segments Generate Positive Operating IncomeCHELMSFORD, MA / ACCESSWIRE / November 10, 2022 / Harte Hanks, Inc. (NASDAQ:HHS), a leading global customer experience company focused on bringing companies closer to customers for nearly 100 years, today announced financial results for the third quarter, the period ended September 30, 2022.Harte Hanks CEO, Brian Linscott, commented: \"Harte Hanks continues to deliver improved operating metrics, including solid year-over-year growth as new agreements offset the erosion of pandemic-related projects and legacy direct mail projects. Each of our operating segments is operating efficiently, delivering positive contribution margin, and driving consistent profitability. A higher mix of logistics revenue compressed our gross and operating margins, but we were able to generate $2.5 million from the sale of unused IP addresses, a legacy digital asset that we monetized to further bolster our cash position.\"Demand for our Fulfillment and Logistics services continues to grow, giving us increasing confidence that we will grow our top-line this year and drive significant improvements in operating income and cash generation for the full-year,\" added Linscott. \"Simultaneously, our sales pipeline for Marketing Services and Customer Care continues to strengthen, and we believe we are well-positioned for growth in 2023. With our restructuring fully complete, we are focused on profitable growth and continuing to provide tangible value to our clients.\"Third Quarter Financial HighlightsRevenues increased by 8.7% to $53.9 million, compared to $49.6 million in the same period in the prior year.Fulfillment & Logistics Services grew 55.6%, offsetting declines in Marketing Services (11.6%) and Customer Care (12.1%) revenue related to sunsetting projects.Operating income of $3.8 million, compared to operating income of $4.2 million in the same period in the prior year, resulted in a decrease of 10.7% due to revenue mix and increased stock compensation expense.Net income of $7.2 million, inclusive of $2.5 million in other income related to the sale of unused IP addresses, was an increase compared to net income of $4.4 million in the same period in the prior year.Diluted EPS delivered was $0.83 for the third quarter of 2022 vs. $0.52 for the same period in the prior year.EBITDA was $4.4 millio...