Q2 2024 Harte Hanks Inc Earnings Call Transcript
Key Points
- Harte-Hanks Inc (HHS) has successfully restructured its sales and marketing organization, leading to early new account wins that are expected to contribute to revenue growth.
- The company closed a significant new marketing services account with a global automotive manufacturer, highlighting the effectiveness of its partnership strategy.
- Harte-Hanks Inc (HHS) has introduced a new product offering for small and medium-sized businesses, 'demand generation in a box,' which is expected to accelerate customer activation.
- The company has made strategic investments in its fulfillment segment, including a migration to a best-in-class warehouse technology suite, enhancing client inventory visibility and operational efficiency.
- Harte-Hanks Inc (HHS) has hired a Chief Customer and Data Officer to drive customer-centric initiatives, leveraging advanced analytics and AI to enhance client experiences and foster loyalty.
- Second-quarter revenues decreased by 5.7% compared to the same period last year, with declines in customer care and marketing service segments.
- Operating income and adjusted EBITDA both declined compared to the second quarter of 2023, indicating challenges in maintaining profitability.
- The company experienced a significant pension charge of $38.2 million, resulting in a net loss of $27.8 million for the quarter.
- Cash and cash equivalents decreased from $18 million at the end of 2023 to $11 million as of June 30, 2024, reflecting a reduction in liquidity.
- The marketing services segment has faced challenges, with customer budget reductions and the end of specific programs contributing to revenue declines.
Greetings and welcome to the Harte Hanks second-quarter 2024 earnings conference call. (Operator instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Tom Baumann of FNK IR. You may begin.
Thank you. Hosting the call today are Kirk Davis, Chief Executive Officer; David Garrison, Chief Financial Officer. Before we begin, I want to remind participants that during the call, management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties. Management may also make additional forward-looking statements in response to your questions today.
Therefore, the company claims protection under safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from results discussed today, and therefore, we refer you to a more detailed discussion of these risks and uncertainties in the Company's filings with the Securities and
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