Earnings Review and Free Research Report: Harte Hanks Reported Better than Expected Revenue

LONDON, UK / ACCESSWIRE / October 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Harte Hanks, Inc. (NYSE: HHS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HHS, following the Company's release of its financial results on September 28, 2017, for the second quarter fiscal 2017. The Company's labor expenses decreased 8.5% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HHS. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=HHS.

Earnings Reviewed

For three months ended June 30, 2017, Harte Hanks' revenue decreased 2.7% to $94.72 million from $97.32 million in Q2 FY16. The decrease was primarily due to lost clients and clients reducing their marketing spend with the Company. Harte Hanks' revenue beat analysts' expectations by $0.52 million.

For Q2 FY17, Harte Hanks' labor expenses decreased 8.5% to $57.10 million from $62.44 million in Q2 FY16. The decrease was due to lower managed payroll expense as a result of the Company's expense reduction efforts. During Q2 FY17, the Company's production and distribution expenses decreased 3.3% to $26.52 million from $27.43 million in the same period last year. The decrease was mainly due to a decrease in outsourced services and mail supply chain expenses.

During Q2 FY17, the Company's advertising, selling, general, and administrative expenses decreased 6.4% to $10.23 million from $10.93 million in Q2 FY16. The decrease was primarily due to a reduction in employee related expenses. For the reported quarter, the Company's depreciation and amortization (D&A) expenses decreased 16.8% to $2.66 million from $3.20 million in Q2 FY16.

For the reported quarter, Harte Hanks' total operating expenses decreased 7.2% to $96.51 million from $104.01 million in Q2 FY16. During H1 FY17, Harte Hanks's total operating expenses decreased 6.7% to $197.75 million, from $212.12 million in the same period last year.
During Q2 FY17, Harte Hanks' operating loss was $1.79 million, as compared to operating loss of $6.69 million in Q2 FY16. During H1 FY17, Harte Hanks's operating loss was $8.13 million compared to operating loss of $15.24 million in the same period last year
During Q2 FY17, Harte Hanks' net loss was $2.65 million compared to net loss of $6.91 million in Q2 FY16. During Q2 FY17, the Company's diluted EPS was negative $0.04 compared to negative diluted EPS of $0.11 in Q2 FY16. Harte Hanks' earnings lagged behind Wall Street's estimates for earnings negative $0.03 per share.

Balance Sheet

As on June 30, 2017, Harte Hanks's cash and cash equivalents decreased 71.5% to $13.07 million from $46.01 million on December 31, 2016.

During Q2 FY17, the Company's accounts receivable decreased 7.6% to $81.44 million from $88.81 million in the same period last year.
For the reported quarter, Harte Hanks's inventory decreased 7% to $779,000 from $838,000 in Q2 FY16.

During Q2 FY17, the Company's accounts payable decreased 17.6% to $37.51 million from $45.56 million in Q2 FY16.
Harte Hanks' net cash used in operating activities was $41.8 million for H1 FY17 compared to net cash provided by operating activities of $21.8 million in H1 FY16. The $63.6 million y-o-y decrease was attributed to a $59.6 million difference in cash provided by changes in operating assets and liabilities. This difference was driven by a $32.1 million decrease in other accrued expenses and liabilities, which reflects the tax payment related to the taxable gain on the sale of its Trillium business in 2016. The other principal driver was the $20.8 million decrease in cash provided by accounts receivable due to the Company's y-o-y revenue decline.

Stock Performance

On Friday, October 13, 2017, the stock closed the trading session flat at $1.05. A total volume of 84.06 thousand shares have exchanged hands, which was higher than the 3-month average volume of 82.43 thousand shares. Harte Hanks' stock price surged 16.67% in the last one month and 3.96% in the past three months. The stock has a dividend yield of 32.38%. The stock currently has a market cap of $65.10 million.

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