Harte Hanks, Inc. · NASDAQ:HHS
Harte Hanks — Investor Presentation (January 2023)
16 slides from Harte Hanks's investor presentation, January 2023
Slide 1: Harte Hanks: The Customer Company
Harte Hanks The Customer Company January 2023 NASDAQ: HHS
Slide 2: Disclaimers
Disclaimers 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
Slide 3: Harte Hanks: The Customer Company Performance and Focus
Harte Hanks: Diluted EPS PERFORMANCE The Customer Company $1.27 — FY 2021 Revenue of $195 million $0.83 $0.52 $0.52 Harte Hanks is a leading global customer experience $0.39 — FY 2021 EBITDA of $10+ million ($0.28) $0.20 company operating in three business segments — FY 2021 Net Income YoY increase
Slide 4: What we do
What we do HHS is a global customer experience company focused on bringing companies closer to customers for nearly 100 years. We provide our services to diverse industries including, but not limited to health care, pharma, financials, consumer products, technology, entertainment/streaming, and auto
Slide 5: Where we were: Where we are
Where we were: Where we are: 2014-2018 2022 — FY 2021 - $195MM Revenue and $10MM EBITDA — FY2018 - $285MM Revenue and negative $19 million EBITDA — Q3 2022 YTD - $151.5 MM Revenue and $13.4 MM EBITDA — Direct Mailer and Call Center with marketing capabilities — Leaner, optimized, and simplified busi
Slide 6: Harte Hanks – The Customer Company
Harte Hanks – The Customer Company − Great Companies, Leading Brands, Loyal Customers − HHS has a mix of recurring and project revenue customers, but − Average Tenured Customer – 10 years our customers deliver repeatable YoY revenue − Longest Tenured Customer – Over 25 years − 24 of Top 25 2020 reve
Slide 7: Leadership team
Leadership team Brian Linscott Lauri Kearnes Bob Wyman Chief Executive Officer Chief Financial Officer General Counsel Don Aicklen Elliott Peterson Janel Harris Senior Vice President, Chief Technology Officer Managing Director Sales and Marketing Marketing Services Ben Chacko Pat O’Brien Managing Di
Slide 8: Turnaround with Revenue Growth
Turnaround with Revenue Growth Revenue Growth Q4 • FY 2021 Revenue $195MM vs $177MM in 2020 • YoY growth in 2021 and expected full year 2022 Q3 • FDA-approved Kansas City facility with 40% growth capacity Q2 • Work-from-home expanding growth opportunities in Customer Care • Marketing Services has la
Slide 9: Significant EBITDA and Net Income improvement
Significant EBITDA and Net Income improvement NET INCOME Q3 2022 2019 2020 2021 YTD • Restructuring began in 2019 and is now complete 15.0** 15.0 • 2020 Reduced facilities, technology infrastructure, and overhead ($15-17 million Dollars in Millions in annualized savings) -1.7** • Shut down of underp
Slide 10: Harte Hanks Q3 2022 Balance Sheet
Harte Hanks Q3 2022 Balance Sheet Condensed Consolidated Balance Sheet (in millions) 9/30/22 • $9.2 million Cash Cash, restricted cash and cash equivalents $9.2 • $45 million of Accounts Receivables from sought after Accounts receivable, net $45.4 brands Positive Working capital $34.8 • $25 million
Slide 11: Pension liabilities
Pension liabilities Non-Qualified Pension • Relates to contracts with previous management • Requires periodic contract payments to participants • $0.4 million contribution made in Q3 2022 and we expect to make $1.7 million in FY2022 • Pensions were frozen in the 1990s and 2000s • Features of liabili
Slide 12: Harte Hanks Stock Profile
Stock Profile Harte Hanks Stock Profile Symbol HHS HHS Price @ 1/13/23 close $13.35 Intraday Price on 8/11/22 $13.35 Shares (millions outstanding @ Q3 2022) 7.5 Market Cap (millions) $99.2 Cash (net of debt, Q3 2022, in millions) $9.2 EBITDA (Q3 2022, in millions) $4.4 HHS 2022 Performance +53.8% Ru
Slide 13: Harte Hanks: Where we are going
Harte Hanks: Where we are going: The Customer Company — Revenue growth and EBITDA margin expansion in 2023 and beyond — Accelerate growth by leveraging cross segment relationships, and targeted campaigns highlighting our unique capabilities Marketing Services — Invest in modern technology platform,
Slide 14: Appendix A: Reconciliation of Adjusted EBITDA to Net Income - Annual
Appendix A Reconciliation of Adjusted EBITDA to Net Income - Annual Reconciliations of Non-GAAP Financial Measures (Unaudited) 14
Slide 15: Appendix B: Reconciliation of Adjusted EBITDA to Net Income - Quarter
Appendix B Reconciliation of Adjusted EBITDA to Net Income - Quarter Reconciliations of Non-GAAP Financial Measures (Unaudited) Three Months Ended Sep 30, Nine Months Ended Sep 30, In thousands, except per share data 2022 2021 2022 2021 Net Income ....................................................
Slide 16: Appendix C: The Harte Hanks – Customer Experience
Appendix C The Harte Hanks – Customer Experience Marketing Services Operational Services Strategy Data & Analytics Creative Services Marketing Customer Fulfillment Logistics Technology Care • CRM, Brand, Marketing • Predictive analytics/ • Creative Concepts • Database Build & • Customer Experience •