Harte Hanks, Inc. · NASDAQ:HHS
Harte Hanks — Investor Presentation (January 2022)
16 slides from Harte Hanks's investor presentation, Jan 18, 2022
Slide 1: Harte Hanks
Harte Hanks Januar y 2022 NASDAQ: HHS
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The report and the other disclosure we make from time to time contain "forward-looking statements” within the meaning of U.S. federal securities laws. All such statements are qualified by this cautionary note, provided pursuant to the safe harbor
Slide 3: Supplemental Non-GAAP Financial Measures
Supplemental Non-GAAP Financial Measures We report our financial results in accordance with generally accepted accounting principles ("GAAP"). In this presentation, however, we use certain non-GAAP measures of financial performance to provide investors with a better understanding of operating result
Slide 4: Harte Hanks: The Customer Company
Revenue by Segment Harte Hanks: The Customer Company 30% 40% 30% Harte Hanks is a leading global customer Marketing Customer Fulfillment A ‘ Care experience company operating in three Services Shogetics business segments: — Trailing 12 months ending September 30, 2021, revenue $190 million (1 ] Mark
Slide 5: Where we were / Where we are
Where we were: 2014-2018 — _ Direct Mailer with marketing capabilities — Precipitous drop in retail campaigns and direct mail — Mis-steps and management turnover — Forced sale of Trilliumand 3Q — Large infrastructure/locations, and high fixed costs — Decentralized and siloed resources — 2018 - $285M
Slide 6: What we do
What we do We provide our services to diverse industries including, but not limited to health care, entertainment, financial, durable goods, technology, and automotive. gC) Marketing Services Focused on strategic planning, data-driven insights, performance analytics, creative design, technology enab
Slide 7: Harte Hanks — The Customer Company
Harte Hanks — The Customer Company © Great Companies and Leading Brands ° Average Tenured Customer — 10 years © Dedication through good times and bad * Longest Tenured Customer — Over 25 years LOREAL Deloitte. uy Unievee Walmart >< BlackRock GP enovo FedEx BANK OF AMERICA T SONY D@LLEMC xefOox — ] a
Slide 8: Strategy
Strategy + CRM, Brand, Marketing Strategy expertise + PersonaDevelopment, Journey Mapping, Campaign Planning + Understand consumer behaviorand leverage data to drive outcomes The Harte Hanks Experience Operational Services Marketing Services Data& Analytics Creative Services * Creative Conceptsto In
Slide 9: 3-year Customer Journey For Global Spirits Company
3-year Customer Journey For Global Spirits Company Fulfillment Logistics implementation al Print US and Canadian Global Brand eStore Point of purchase ‘on demand Customer Care Customer Care development materials All B2C customer ‘And product distribution For promo items Incremental $1.1MIM Increment
Slide 10: Total Available Market
Total Available Market Marketing Services Customer Care $413 [S25 1 Marketing Services source's “Outlook 2022: What to Be Thinking About Fr 2022" WinterburyGroupOctober27, 2021 2 Customer are source is "Telemarketing &CaliCercersinthe US” IBISWorld: May2021 3 Fulfilmene.& Logistics ource ie"Third Pa
Slide 11: Reinvigorated growth
Reinvigorated growth Revenue Growth Q3 2021 YTD Revenue $143MM vs $130MM in 2020 Elimination of unprofitable revenue in 2020 Q1.2021- 1" YoY revenue growth since 2014 Pandemic-related revenue serving as catalyst New Kansas City facility with 40% growth capacity Work from home Customer Care drives gr
Slide 12: Significant EBITDA and Net Income improvement
Significant EBITDA and Net Income improvement Net Income Adjusted EBITDA* 2019 2020 ‘TIM seP 2021 2019 2020 TIM SEP 2021 17 Dollars in Millions * 2019 Restructuring began mid-year + 2019-2021 Q3 TTM restructuring charges $11.8MM, $9.4MM, and * 2020 Reduced facilities, tech infrastructure, and overhe
Slide 13: Harte Hanks Q3 2021 Balance Sheet
Harte Hanks Q3 2021 Balance Sheet Q3 2021 -$3 million Net Cash and declining debt balance $53MM of Accounts Receivables from sought after brands Q4 2021 - New $25MM Credit Facility with $5MM borrowed Pension liabilities estimate to be $SSMM at 12/31/2021 Pension cash funding requirements going forwa
Slide 14: Stock Profile
Stock Profile HHS Intraday Price on 1/14/22 eymbol ats Harte-Hanks, Inc. (HHS) Price @ 1/14/22 close $7.85 $7.865 - 0.03 (0.32%) | NASDAQ Glot Shares (millions outstanding @ Q3 2021) 6.98 Market Cap (millions) $54.8 i Cash (net of debt Q3 2021 in millions) $2.9 EBITDA (TT @3 2021 in millions) $7.1 H
Slide 15: Harte Hanks: The Customer Company – Where we are going
Harte Hanks: The Customer Company (EIS = 90 ag ée) HARTE HANKS. Marketing Services Customer Care Fulfillment & Logistics Where we are going: Improve profitability and sustainable revenue growth Talent, technology, and offerings that serve growing markets Leverage long-term relationships to drive org
Slide 16: Appendix: Reconciliation of Adjusted EBITDA to Net Income
Appendix Reconciliation of Adjusted EBITDA to Net Income Reconciliationsof Non-GAAP Financial Measures (Unaudited) ™ Sept 30 Dec 31 Dee 31 Dec 31 Inthousands, except per share data 2021 2020 2019 2018 Net income (loss) W289 «S$ (1694) «|S (26264) 17,550 Gain on sale - - (8471) (30,954) Gain on extin