Harte Hanks Generates $0.52 in EPS for Third Quarter
Revenue increases 4%, net income of $4.4 million
Third Quarter Operational and Financial Highlights
- Revenues improved by 4% to $49.6 million, compared to $47.7 million in the same period last year.
- $0.52 diluted EPS for Third Quarter of 2021 vs. ($0.27) for Third Quarter of 2020.
- Operating income of $4.2 million, compared to operating income of $0.8 million in the same period last year.
- Net income of $4.4 million, compared to net loss of ($1.6) million in the same period last year.
- EBITDA improved to $4.8 million compared to $1.5 million in the same period last year.1
The third quarter results by segment were as follows:
1) Customer Care, $19.8 million in revenue, 40% of total – Revenue increased by $1.8 million from the previous year quarter and year-over-year EBITDA improved to $4.0 million from $3.0 million. Customer Care continued to experience strong revenue tailwinds from COVID-related project work. New business wins for the quarter included a healthcare insurance provider to deliver year-round customer care services. The customer chose Harte Hanks based on our extensive experience with supporting annual enrollment and our consistent ability to exceed Centers for Medicare & Medicaid Services delivery standards.
2) Fulfillment & Logistics, $15.1 million in revenue, 30% of total – Revenue increased by $0.5 million compared to the previous year quarter and year-over-year EBITDA improved to $1.7 million from $0.3 million. New business wins for the quarter included an international financing company making its U.S. debut. Harte Hanks will fulfill point-of-purchase displays, printed sales materials, new customer welcome kits, and trade show equipment.
3) Marketing Services, $14.7 million revenue, 30% of total – Revenue decreased by $0.5 million compared to the previous year quarterand year-over-year EBITDA improved to $2.8 million from $1.2 million. New business wins for the quarter included a leading health insurance provider. The customer selected Harte Hanks to provide strategy, analytics, and creative services to accelerate membership growth.
Harte Hanks CEO, Brian Linscott, commented:
“The new and refocused Harte Hanks delivered revenue growth and improved performance in each of our business segments with a $6.0 million positive swing in net income. Today, Harte Hanks is strategically well-positioned, offering compelling value to a growing roster of top-tier customers designed to enable sustained profitability. We remain focused on executing margin improvement initiatives across all segments. Looking into next year, we anticipate positive net income for the full year.”