Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 15, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | HARTE HANKS INC | |
Entity Central Index Key | 0000045919 | |
Trading Symbol | hrth | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 6,549,309 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 29,296 | $ 28,104 |
Restricted cash | 2,489 | 6,018 |
Accounts receivable (less allowance for doubtful accounts of $766 at September 30, 2020 and $666 at December 31, 2019) | 46,006 | 38,972 |
Contract assets | 400 | 805 |
Inventory | 54 | 354 |
Prepaid expenses | 2,848 | 3,300 |
Prepaid taxes and income tax receivable | 9,062 | 78 |
Other current assets | 1,490 | 1,670 |
Total current assets | 91,645 | 79,301 |
Property, plant and equipment (less accumulated depreciation of $74,572 at September 30, 2020 and $133,559 at December 31, 2019) | 5,080 | 8,323 |
Right-of-use assets | 14,408 | 18,817 |
Other assets | 3,529 | 3,761 |
Total assets | 114,662 | 110,202 |
Current liabilities | ||
Accounts payable and accrued expenses | 17,629 | 16,917 |
Accrued payroll and related expenses | 5,079 | 4,215 |
Deferred revenue and customer advances | 5,952 | 4,397 |
Customer postage and program deposits | 4,971 | 9,767 |
Other current liabilities | 2,921 | 2,619 |
Short-term debt | 6,681 | |
Short-term lease liabilities | 6,803 | 7,616 |
Total current liabilities | 50,036 | 45,531 |
Long-term debt | 20,419 | 18,700 |
Pensions | 68,300 | 70,000 |
Deferred tax liabilities, net | 77 | 244 |
Long-term lease liabilities | 10,827 | 13,078 |
Other long-term liabilities | 4,240 | 2,609 |
Total liabilities | 153,899 | 150,162 |
Preferred Stock, $1 par value, 1,000,000 shares authorized; 9,926 shares of Series A Convertible Preferred Stock, issued and outstanding | 9,723 | 9,723 |
Stockholders’ deficit | ||
Common stock, $1 par value, 25,000,000 shares authorized;12,121,484 shares issued, 6,549,309 and 6,302,936 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 12,121 | 12,121 |
Additional paid-in capital | 393,545 | 447,022 |
Retained earnings | 795,079 | 797,817 |
Less treasury stock, 5,572,175 shares at cost at September 30, 2020 and 5,818,548 shares at cost at December 31, 2019 | (1,189,465) | (1,243,509) |
Accumulated other comprehensive loss | (60,240) | (63,134) |
Total stockholders’ deficit | (48,960) | (49,683) |
Total liabilities, Preferred Stock and stockholders’ deficit | $ 114,662 | $ 110,202 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts | $ 766 | $ 666 |
Accumulated depreciation | $ 74,572 | $ 133,559 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 12,121,484 | 12,121,484 |
Common stock, shares outstanding (in shares) | 6,549,309 | 6,302,936 |
Treasury stock, shares (in shares) | 5,572,175 | 5,818,548 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 9,926 | 9,926 |
Preferred stock, shares outstanding (in shares) | 9,926 | 9,926 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating revenues | $ 47,702 | $ 51,414 | $ 129,825 | $ 165,250 |
Operating expenses | ||||
Labor | 27,041 | 28,589 | 76,601 | 94,034 |
Production and distribution | 13,176 | 17,314 | 36,940 | 58,130 |
Advertising, selling, general and administrative | 4,540 | 5,623 | 15,582 | 20,225 |
Restructuring expense | 1,419 | 3,080 | 8,005 | 10,867 |
Depreciation expense | 741 | 1,283 | 2,905 | 4,022 |
Total operating expenses | 46,917 | 55,889 | 140,033 | 187,278 |
Operating income (loss) | 785 | (4,475) | (10,208) | (22,028) |
Other expenses (income), net | ||||
Interest expense, net | 274 | 330 | 882 | 938 |
Other, net | 2,185 | 1,081 | 4,511 | 4,512 |
Total other expenses, net | 2,459 | 1,411 | 5,393 | 450 |
Loss before income taxes | (1,674) | (5,886) | (15,601) | (22,478) |
Income tax (benefit) expense | (53) | 102 | (12,863) | 840 |
Net loss | (1,621) | (5,988) | (2,738) | (23,318) |
Less: Preferred Stock dividends | 125 | 125 | 372 | 371 |
Loss attributable to common stockholders | (1,746) | (6,113) | (3,110) | (23,689) |
Gain on sale from 3Q Digital | (5,000) | |||
Loss attributable to common stockholders | $ (1,746) | $ (6,113) | $ (3,110) | $ (23,689) |
Loss per common share | ||||
Basic (in dollars per share) | $ (0.27) | $ (0.97) | $ (0.48) | $ (3.77) |
Diluted (in dollars per share) | $ (0.27) | $ (0.97) | $ (0.48) | $ (3.77) |
Weighted average shares used to compute loss per share attributable to common shares | ||||
Basic (in shares) | 6,523 | 6,291 | 6,432 | 6,277 |
Diluted (in shares) | 6,523 | 6,291 | 6,432 | 6,277 |
Comprehensive income (loss), net of tax: | ||||
Net loss | $ (1,621) | $ (5,988) | $ (2,738) | $ (23,318) |
Adjustment to pension liability, net: | 609 | 549 | 1,827 | 1,648 |
Foreign currency translation adjustment | 1,129 | (660) | 1,067 | (311) |
Total other comprehensive income (loss), net of tax | 1,738 | (111) | 2,894 | (10,018) |
Comprehensive income (loss) | 117 | (6,099) | 156 | (33,336) |
Operating revenues | 47,702 | 51,414 | 129,825 | 165,250 |
Adoption of ASU 2018-02 | $ (11,355) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Preferred Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Treasury Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2018 | $ 11,377 | $ (11,355) | $ 22 | $ 9,723 | $ 12,115 | $ 453,868 | $ 812,704 | $ (1,251,388) | $ (46,483) | $ (19,184) | ||||
Stock-based compensation | 151 | 151 | ||||||||||||
Treasury stock issued | (1,968) | 1,984 | 16 | |||||||||||
Net income (loss) | (13,527) | (13,527) | ||||||||||||
Other comprehensive income | 522 | 522 | ||||||||||||
Other comprehensive loss | 522 | 522 | ||||||||||||
Balance at Mar. 31, 2019 | 9,723 | 12,115 | 452,051 | 810,554 | (1,249,404) | (57,316) | (32,000) | |||||||
Balance at Dec. 31, 2018 | $ 11,377 | $ (11,355) | $ 22 | 9,723 | 12,115 | 453,868 | 812,704 | (1,251,388) | (46,483) | (19,184) | ||||
Net income (loss) | (23,318) | |||||||||||||
Other comprehensive income | (10,018) | (10,018) | ||||||||||||
Balance at Sep. 30, 2019 | 9,723 | 12,121 | 447,244 | 800,763 | (1,244,056) | (56,501) | (40,429) | |||||||
Balance at Mar. 31, 2019 | 9,723 | 12,115 | 452,051 | 810,554 | (1,249,404) | (57,316) | (32,000) | |||||||
Stock-based compensation | 239 | 239 | ||||||||||||
Treasury stock issued | (345) | 343 | (2) | |||||||||||
Net income (loss) | (3,803) | (3,803) | ||||||||||||
Other comprehensive income | 926 | 926 | ||||||||||||
Stock Option activities | 6 | (8) | (2) | |||||||||||
Other comprehensive loss | 926 | 926 | ||||||||||||
Balance at Jun. 30, 2019 | 9,723 | 12,121 | 451,937 | 806,751 | (1,249,061) | (56,390) | (34,642) | |||||||
Stock-based compensation | 312 | 312 | ||||||||||||
Treasury stock issued | (5,005) | 5,005 | ||||||||||||
Net income (loss) | (5,988) | (5,988) | ||||||||||||
Other comprehensive income | (111) | (111) | ||||||||||||
Other comprehensive loss | (111) | (111) | ||||||||||||
Other comprehensive income | (111) | |||||||||||||
Balance at Sep. 30, 2019 | 9,723 | 12,121 | 447,244 | 800,763 | (1,244,056) | (56,501) | (40,429) | |||||||
Balance at Dec. 31, 2019 | 9,723 | 12,121 | 447,022 | 797,817 | (1,243,509) | (63,134) | (49,683) | |||||||
Stock-based compensation | 223 | 223 | ||||||||||||
Treasury stock issued | (29,667) | 29,667 | ||||||||||||
Net income (loss) | 5,118 | 5,118 | ||||||||||||
Other comprehensive income | 51 | 51 | ||||||||||||
Balance at Mar. 31, 2020 | 9,723 | 12,121 | 417,578 | 802,935 | (1,213,842) | (63,083) | (44,291) | |||||||
Balance at Dec. 31, 2019 | 9,723 | 12,121 | 447,022 | 797,817 | (1,243,509) | (63,134) | (49,683) | |||||||
Net income (loss) | (2,738) | |||||||||||||
Other comprehensive income | 2,894 | 2,894 | ||||||||||||
Balance at Sep. 30, 2020 | 9,723 | 12,121 | 393,545 | 795,079 | (1,189,465) | (60,240) | (48,960) | |||||||
Balance at Mar. 31, 2020 | 9,723 | 12,121 | 417,578 | 802,935 | (1,213,842) | (63,083) | (44,291) | |||||||
Stock-based compensation | 81 | 81 | ||||||||||||
Treasury stock issued | (7,416) | 7,416 | ||||||||||||
Net income (loss) | (6,235) | (6,235) | ||||||||||||
Other comprehensive income | 1,105 | 1,105 | ||||||||||||
Balance at Jun. 30, 2020 | 9,723 | 12,121 | 410,243 | 796,700 | (1,206,426) | (61,978) | (49,340) | |||||||
Stock-based compensation | 277 | 277 | ||||||||||||
Treasury stock issued | (16,975) | 16,961 | (14) | |||||||||||
Net income (loss) | (1,621) | (1,621) | ||||||||||||
Other comprehensive income | 1,738 | 1,738 | ||||||||||||
Balance at Sep. 30, 2020 | $ 9,723 | $ 12,121 | $ 393,545 | $ 795,079 | $ (1,189,465) | $ (60,240) | $ (48,960) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (2,738) | $ (23,318) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||
Depreciation expense | 2,905 | 4,022 |
Restructuring | 3,113 | 5,812 |
Stock-based compensation | 590 | 739 |
Net pension cost | 736 | 1,501 |
Deferred income taxes | (776) | 426 |
Changes in assets and liabilities: | ||
(Increase) decrease in accounts receivable, net and contract assets | (6,752) | 15,039 |
Decrease in inventory | 300 | 41 |
(Increase) decrease in prepaid expenses, income tax receivable and other assets | (7,603) | 20,131 |
Decrease (increase) in accounts payable and accrued expenses | 692 | (12,591) |
Increase in accrued payroll, deferred revenue, lease liabilities and other long-term liabilities | (1,900) | (2,427) |
Net cash (used in) provided by operating activities | (11,433) | 9,375 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (1,374) | (1,655) |
Proceeds from sale of property, plant and equipment | 1,891 | 15 |
Net cash provided by (used in) investing activities | 517 | (1,640) |
Cash flows from financing activities | ||
Borrowings | 10,000 | 4,500 |
Repayment of borrowings | (1,600) | |
Debt financing costs | (517) | (477) |
Issuance of common stock | (2) | |
Issuance of treasury stock | (14) | 14 |
Payment of finance leases | (357) | (603) |
Net cash provided by financing activities | 7,512 | 3,432 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,067 | (311) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (2,337) | 10,856 |
Cash and cash equivalents and restricted cash at beginning of period | 34,122 | 20,882 |
Cash and cash equivalents and restricted cash at end of period | 31,785 | 31,738 |
Supplemental disclosures | ||
Cash paid for interest | 547 | 643 |
Cash received for income taxes, net of payments | 3,295 | 19,329 |
Non-cash investing and financing activities | ||
Purchases of property, plant and equipment included in accounts payable | 1,651 | 489 |
Proceeds from sale of property, plant and equipment and inventory included in accounts receivable | $ 302 |
Note A - Overview and Significa
Note A - Overview and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note A - Overview and Significant Accounting Policies Background Harte Hanks, Inc., together with its subsidiaries (“Harte Hanks,” “Company”, “we,” “our,” or “us”) is a purveyor of data-driven, omni-channel marketing and customer relationship solutions and logistics. The Company has robust capabilities that offer clients the strategic guidance they need across the customer data landscape as well as the executional know-how in database build and management, data analytics, digital media, direct mail, customer contact, client fulfillment and marketing and product logistics. Harte Hanks solves marketing, commerce and logistical challenges for some of the world's leading brands in North America, Asia-Pacific and Europe. The Company operates as one The Company is closely monitoring the impact of the 2019 19” 19 not 19 may 19 may 1A. 10 December 31, 2019, 1A. 10 19 Related Party Transactions From 2016 October 2020, Effective January 30, 2018, 9,926 1,001,614 16% January 30, 2018), $9.9 Convertible Preferred Stock In the third 2019, 9% $164,000 f revenue earned from Snap Kitchen nine September 30, 2020 Accounting Principles Our unaudited interim condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not 10 10 December 31, 2019 2019 10 March 19, 2020. Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Interim Financial Information The condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10 8 01 X. not Use of Estimates The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not Operating Expense Presentation in Condensed Consolidated Statements of Comprehensive Income (Loss) The “Labor” line in the Condensed Consolidated Statements of Comprehensive Income (Loss) includes all employee payroll and benefits costs, including stock-based compensation, along with temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not Revenue Recognition We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for such products or services based on the relevant contract. We apply the following five • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized as the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically set at a fixed price or rate by transaction occurrence, service provided, time spent, or product delivered. For arrangements requiring design and build of a database, revenue is not Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures 820” 820 three Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 not Level 3 Unobservable inputs that are supported by little or no Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payable, and long-term debt. Leases We determine if an arrangement is a lease at its inception. Operating and finance leases are included in the lease right-of-use (“ROU”) assets and in the current portion and long-term portion of lease obligations on our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of each lease based on the present value of lease payments over the lease term. As most of our leases do not may During the nine September 30, 2020, 842 See Note B, Recent Accounting Pronouncements - Recently adopted accounting pronouncements. |
Note B - Recent Accounting Pron
Note B - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note B - Recent Accounting Pronouncements Recently issued accounting pronouncements not In December 2019, 2019 12, not 2021, not not In August 2018, 2018 14, Compensation—Retirement Benefits—Defined Benefit Plans—General 715 20 Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans 2018 14” 2018 14 December 15, 2020, not 2018 14 2018 14 Recently adopted accounting pronouncements Reference Rate Reform In March 2020, 2020 04, Reference Rate Reform (Topic 848 2018 March 12, 2020 December 31, 2022. March 12, 2020 not Income taxes In February 2018, 2018 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 1, 2017 (the “Tax Reform Act”), 1 2018 02 December 15, 2018, 2018 02 first 2019. Income Taxes, Stock-based Compensation In June 2018, 2018 07, Compensation-Stock Compensation (Topic 718 505 50, Accounting for Distributions to Shareholders with Components of Stock and Cash, 718 718 December 15, 2018, 606. January 1, 2019 not Leases In February 2016, 2016 02, Leases (Topic 842 2018 11, not December 15, 2018, July 2018, January 1, 2019, January 1, 2017, January 1, 2019. We adopted the standard effective January 1, 2019, 842, 842, December 31, 2019 842 The standard had a material impact on our condensed consolidated balance sheets, but did not $22,000 Leases Restricted Cash In the first 2019, 2016 18, Statement of Cash flows (Topic 230 2016 18 not |
Note C - Revenue from Contracts
Note C - Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note C - Revenue from Contracts with Customers In May 2014, 2014 09, Revenue from Contracts with Customers 606, Revenue from Contracts with Customers, five Under ASC 606, not September 30, 2020 December 31, 2019 not Consistent with legacy GAAP, we present sales taxes assessed on revenue-producing transactions on a net basis. Disaggregation of Revenue We disaggregate revenue by vertical market and key revenue stream. The following table summarizes revenue from contracts with customers for the three nine September 30, 2020 2019 In thousands Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 B2B $ 17,050 $ 11,290 $ 42,462 $ 35,149 Consumer Brands 14,087 11,171 37,727 35,222 Financial Services 6,531 11,635 21,513 36,850 Healthcare 4,111 5,257 12,283 14,946 Retail 5,392 8,803 14,014 31,752 Transportation 531 3,258 1,826 11,331 Total Revenues $ 47,702 $ 51,414 $ 129,825 $ 165,250 The nature of the services offered by each key revenue stream is different. The following tables summarize revenue from contracts with customers for the three nine September 30, 2020 2019 four Three Months Ended September 30, 2020 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 4,845 $ 87 $ 4,932 Contact Centers 21,032 — 21,032 Database Marketing Solutions 4,341 800 5,141 Direct Mail, Logistics, and Fulfillment 13,697 2,900 16,597 Total Revenues $ 43,915 $ 3,787 $ 47,702 Three Months Ended September 30, 2019 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 6,286 $ 276 $ 6,562 Contact Centers 14,618 — 14,618 Database Marketing Solutions 5,272 1,170 6,442 Direct Mail, Logistics, and Fulfillment 20,775 3,017 23,792 Total Revenues $ 46,951 $ 4,463 $ 51,414 Nine Months Ended September 30, 2020 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 14,318 $ 310 $ 14,628 Contact Centers 51,274 — 51,274 Database Marketing Solutions 13,347 2,103 15,450 Direct Mail, Logistics, and Fulfillment 40,064 8,409 48,473 Total Revenues $ 119,003 $ 10,822 $ 129,825 Nine Months Ended September 30, 2019 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 18,793 $ 407 $ 19,200 Contact Centers 46,688 — 46,688 Database Marketing Solutions 16,745 2,537 19,282 Direct Mail, Logistics, and Fulfillment 67,853 12,227 80,080 Total Revenues $ 150,079 $ 15,171 $ 165,250 Our contracts with customers may not Agency & Digital Services Our agency services include full-service, customer engagement agencies specializing in direct and digital communications for both consumer and business-to-business markets. Our digital solutions integrate online services within the marketing mix and include: search engine management, display, digital analytics, website development and design, digital strategy, social media, email, e-commerce, and interactive relationship management. Our contracts may Most agency and digital services performance obligations are satisfied over time and often offered on a project basis. We have concluded that the best approach to measure the progress toward completion of the project-based performance obligations is the input method, which is based on either the costs or labor hours incurred to date depending upon whether costs or labor hours more accurately depict the transfer of value to the customer. The variable consideration in these contracts primarily relates to time and material-based services and reimbursable out-of-pocket travel costs, both of which are estimated using the expected value method. For time and material-based contracts, we use the “as invoiced” practical expedient. Contact Centers We operate tele-service workstations in the United States, Asia, and Europe to provide advanced contact center solutions such as: speech, voice and video chat, integrated voice response, analytics, social cloud monitoring, and web self-service. Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and software as a service (“SaaS”), we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not The variable consideration in our contracts results primarily from the transaction-based fee structure of some performance obligations with their total transaction quantities to be provided unknown at the onset of a contract, which are estimated using the expected value method. Database Marketing Solutions Our solutions are built around centralized marketing databases with services rendered to build custom databases, database hosting services, customer or target marketing lists and data processing services. These performance obligations, including services rendered to build a custom database, database hosting services, professional services, customer or target marketing lists and data processing services, may not i.e i.e. not We charge our customers for certain data-related services at a fixed transaction-based rate, e.g., two Direct Mail, Logistics, and Fulfillment Our services, delivered internally and with our partners, include: digital printing, print on demand, advanced mail optimization, logistics and transportation optimization, tracking, commingling, shrink wrapping, and specialized mailings. We also maintain fulfillment centers where we provide custom kitting services, print on demand, product recalls, and freight optimization, thereby allowing our customers to distribute literature and other marketing materials. The majority of performance obligations offered within this revenue stream are satisfied over time and utilize the input or output method, depending on the nature of the service, to measure progress toward satisfying the performance obligation. For performance obligations where we charge customers a transaction-based fee, we utilize the output method based on the quantities fulfilled. Services provided through our fulfillment centers are typically priced at a per transaction basis and our contracts provide us the right to invoice for services provided and reflects the value to the customer of the services transferred to date. In most cases, we use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not may The variable consideration in our contracts results primarily from the transaction-based fee structure of some performance obligations with their total transaction quantities to be provided unknown at the onset of a contract, which is estimated using the expected value method. Upfront Non-Refundable Fees We may not not not four five six one September 30, 2020 2019 Transaction Price Allocated to Future Performance Obligations We have elected to apply certain optional exemptions that limit the disclosure requirements over remaining performance obligations at period end to exclude: performance obligations that have an original expected duration of one September 30, 2020 no Contract Balances We record a receivable when revenue is recognized prior to invoicing when we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance such as delivery of an additional good or service ( e.g September 30, 2020 December 31, 2019 In thousands September 30, 2020 December 31, 2019 Contract assets $ 400 $ 805 Deferred revenue and customer advances 5,952 4,397 Deferred revenue, included in other long-term liabilities 800 886 Revenue recognized during the nine September 30, 2020 December 31, 2019 $4.3 Costs to Obtain and Fulfill a Contract We recognize an asset for the direct costs incurred to obtain and fulfill contracts with customers to the extent that we expect to recover these costs and if the benefit is longer than one $1.6 September 30, 2020 no |
Note D - Leases
Note D - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | Note D - Leases On January 1, 2019, 842 22.8 $23.9 842. We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 not one six five one We sublease our Fullerton, Jacksonville and Manila facilities. Our current subleases have lease terms ranging from five 35 2023. As of September 30, 2020 $1.0 $13.4 $0.5 not may During the nine September 30, 2020, in the nine September 30, 2020 The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of September 30, 2020 Operating Leases Finance Leases Total Right-of-use Assets $ 13,410 $ 998 $ 14,408 Liabilities Short-term lease liabilities 6,580 223 6,803 Long-term lease liabilities 10,373 454 10,827 Total Lease Liabilities $ 16,953 $ 677 $ 17,630 In thousands As of December 31, 2019 Operating Leases Finance Leases Total Right-of-use Assets $ 17,679 $ 1,138 $ 18,817 Liabilities Short-term lease liabilities 7,226 390 7,616 Long-term lease liabilities 12,514 564 13,078 Total Lease Liabilities $ 19,740 $ 954 $ 20,694 For the three nine September 30, 2020 2019 In thousands Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Operating lease cost $ 1,951 $ 2,347 Finance lease cost: Amortization of right-of-use assets 59 75 Interest on lease liabilities 10 16 Total Finance lease cost 69 91 Variable lease cost 604 614 Sublease income (228 ) — Total lease cost, net $ 2,396 $ 3,052 In thousands Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Operating lease cost $ 6,435 $ 6,940 Finance lease cost: Amortization of right-of-use assets 191 225 Interest on lease liabilities 37 54 Total Finance lease cost 228 279 Variable lease cost 2,246 1,991 Sublease income (228 ) — Total lease cost, net $ 8,681 $ 9,210 Other information related to leases was as follows: In thousands Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,535 $ 13,076 Operating cash flows from finance leases 32 63 Financing cash flows from finance leases 357 344 Weighted Average Remaining Lease term Operating leases 3.0 3.5 Finance leases 3.2 2.9 Weighted Average Discount Rate Operating leases 4.67 % 4.71 % Finance leases 5.28 % 6.68 % The maturities of the Company's finance and operating lease liabilities as of September 30, 2020 In thousands Operating Leases (1) Finance Leases Year Ending December 31, Remainder of 2020 $ 7,171 $ 249 2021 4,842 220 2022 3,490 196 2023 2,377 59 2024 300 13 2025 — — Total future minimum lease payments 18,180 737 Less: Imputed interest 1,227 60 Total lease liabilities $ 16,953 $ 677 (1) Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2020 and the fiscal years ending December 31, 2021, 2022, and 2023 of $254k, $647k, $540k, and $154k, respectively, are not included in the table above. As of September 30, 2020 one not |
Note E - Convertible Preferred
Note E - Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | Note E - Convertible Preferred Stock Our Amended and Restated Certificate of Incorporation authorizes us to issue 1.0 January 30, 2018, 9,926 $1,000 $9.9 January 29, 2018. $0.2 $9.9 Series A Preferred Stock has the following rights and privileges: Liquidation Rights In the event of a liquidation, dissolution or winding down of the Company or a Fundamental Transaction (defined in the Certificate of Designation for the Series A Preferred Stock), whether voluntary or involuntary, the holders of the Series A Preferred Stock are entitled to receive, prior to and in preference to the holders of common stock, from the assets of the Company available for distribution, an amount equal to the greater of (i) the original issue price, plus any dividends accrued but unpaid thereon, and (ii) such amount as would have been payable to Wipro had all shares of Series A Preferred Stock been converted into common stock immediately before such liquidation. Upon liquidation, after the payment of all preferential amounts required to be paid to the holders of Series A Preferred Stock, the remaining assets of the Company available for distribution to its stockholders shall be distributed among the holders of common stock. Dividends Upon liquidation, dissolution or winding down of the Company, or a Fundamental Transaction (collectively, a “Liquidation”), shares of Series A Preferred Stock which have not 5.0% 5.0%. not not September 30, 2020 $1.3 $133.46 Conversion At the option of the holders of Series A Preferred Stock, shares of Series A Preferred Stock may 100.91 one Voting and Other Rights The Series A Preferred Stock does not one not We determined that the Series A Preferred Stock has contingent redemption provisions allowing redemption by the holder upon certain defined events. As the event that may not September 30, 2020 |
Note F - Long-term Debt
Note F - Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | Note F — Long-Term Debt In thousands September 30, 2020 December 31, 2019 Revolving credit facility $ 17,100 $ 18,700 Paycheck Protection Program Term Note 10,000 — Total debt 27,100 18,700 Less: current portion of long-term debt (6,681 ) — Long-term debt $ 20,419 $ 18,700 Credit Facility As of September 30, 2020 December 31, 2019 $17.1 $18.7 September 30, 2020 $0.1 On April 17, 2017, $20.0 $5.0 one Under the Texas Capital Credit Facility, we can elect to accrue interest on outstanding principal balances at either LIBOR plus 1.95% 0.75%. 0.50%. 0.5% three September 30, 2020 $0.1 The Texas Capital Credit Facility is subject to customary covenants requiring insurance, legal compliance, payment of taxes, prohibition of second The Texas Capital Credit Facility originally had an expiration date of April 17, 2019, January 9, 2018, $22.0 one April 17, 2020. May 7, 2019, second one April 17, 2021. May 11, 2020, third one April 17, 2022 $19.0 At September 30, 2020 $1 .8 No September 30, 2020 Paycheck Protection Program Term Note On April 14, 2020, $10.0 The PPP Term Note bears interest at a fixed annual rate of 1.00%, first six November 2020, 18 April 2022, may The proceeds may At this time, the Company anticipates forgiveness of the entire amount of the PPP Term Note; however, we are not fourth 2020. September 30, 2020 no $6.7 twelve September 30, 2020 |
Note G - Stock-based Compensati
Note G - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | Note G — Stock-Based Compensation We maintain stock incentive plans for the benefit of certain officers, directors, and employees, including the 2013 “2013 2020 "2020 2013 2013 2020 Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Condensed Consolidated Statements of Comprehensive Income (Loss). We recognized $0.3 $0.3 three September 30, 2020 2019 , respectively. We recognized $0.6 $0.7 nine September 30, 2020 2019 |
Note H - Components of Net Peri
Note H - Components of Net Periodic Benefit Cost | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note H — Components of Net Periodic Benefit Cost Prior to January 1, 1999, 401 December 31, 1998. In 1994, not not April 1, 2014. Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Interest cost $ 1,473 $ 1,813 $ 4,419 $ 5,439 Expected return on plan assets (1,384 ) (1,111 ) (4,152 ) (3,333 ) Recognized actuarial loss 812 732 2,436 2,197 Net periodic benefit cost $ 901 $ 1,434 $ 2,703 $ 4,303 We are required to make a $6.0 2020 We are not not $1.3 nine September 30, 2020 September 30, 2019 |
Note I - Income Taxes
Note I - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note I - Income Taxes Coronavirus Aid, Relief and Economic Security Act In response to the COVID- 19 March 2020. 2017 “2017 may 2018 2020 five not 2017 80% 2018, 2019 2020. may 50% 30% 2017 January 1, 2019 2020. 2020 2017 25% 15 100% Our income tax benefit of $0.1 three September 30, 2020 3.2%. $12.9 nine September 30, 2020 82.4%. three nine September 30, 2020 21.0%, three nine September 30, 2020 35%, Our income tax expense of $0.1 three September 30, 2019 1.7%. $0.8 nine September 30, 2019 3.7%. three nine September 30, 2019 21.0% not not We have in general historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full calendar year to ordinary income or loss for the reporting period. However, we have used a discrete effective tax rate method to calculate income taxes for the nine September 30, 2020 September 30, 2019 Effective January 1, 2019 2018 02 35% 21% $11.4 Harte Hanks, or one no 2014. no 2016 We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Condensed Consolidated Statements of Comprehensive Income (Loss). We did not September 30, 2020 December 31, 2019 |
Note J - Earnings Per Share
Note J - Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note J - Earnings Per Share In periods in which the Company has net income, the Company is required to calculate earnings per share (“EPS”) using the two two five five two In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two not Reconciliations of basic and diluted EPS were as follows: Three Months Ended September 30, In thousands, except per share amounts 2020 2019 Numerator: Net loss $ (1,621 ) $ (5,988 ) Less: Preferred stock dividends 125 125 Numerator for basic EPS: loss attributable to common stockholders (1,746 ) $ (6,113 ) Denominator: Basic EPS denominator: weighted-average common shares outstanding 6,523 6,291 Diluted EPS denominator 6,523 6,291 Basic loss per Common Share $ (0.27 ) $ (0.97 ) Diluted loss per Common Share $ (0.27 ) $ (0.97 ) For the three September 30, 2020 2019 0.1 0.1 0.7 0.2 1.0 1.0 Nine Months Ended September 30, In thousands, except per share amounts 2020 2019 Numerator: Net loss $ (2,738 ) $ (23,318 ) Less: Preferred stock dividend 372 371 Numerator for basic EPS: loss attributable to common stockholders (3,110 ) (23,689 ) Denominator: Basic EPS denominator: weighted-average common shares outstanding 6,432 6,277 Diluted EPS denominator 6,432 6,277 Basic loss per Common Share $ (0.48 ) $ (3.77 ) Diluted loss per Common Share $ (0.48 ) $ (3.77 ) For the nine September 30, 2020 2019 32 0.1 0.4 0.2 1.0 1.0 |
Note K - Comprehensive Income (
Note K - Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note K — Comprehensive income (loss) Comprehensive income (loss) for a period encompasses net income (loss) and all other changes in equity other than from transactions with our stockholders. Our comprehensive income (loss) was as follows: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Net loss $ (1,621 ) $ (5,988 ) $ (2,738 ) $ (23,318 ) Other comprehensive income (loss): Adjustment to pension liability 812 732 2,436 2,197 Tax expense (203 ) (183 ) (609 ) (549 ) 609 549 1,827 1,648 Foreign currency translation adjustment, net of tax 1,129 (660 ) 1,067 (311 ) Adoption of ASU 2018-2 — — — (11,355 ) Total other comprehensive income (loss), net of tax 1,738 (111 ) 2,894 (10,018 ) Total comprehensive income (loss) $ 117 $ (6,099 ) $ 156 $ (33,336 ) Changes in accumulated other comprehensive loss by component were as follows: Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2019 $ (63,887 ) $ 753 $ (63,134 ) Other comprehensive loss, net of tax, before reclassifications — 1,067 1,067 Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss 1,827 — 1,827 Net current period other comprehensive loss, net of tax 1,827 1,067 2,894 Balance at September 30, 2020 $ (62,060 ) $ 1,820 $ (60,240 ) Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2018 $ (46,584 ) $ 101 $ (46,483 ) Other comprehensive loss, net of tax, before reclassifications — (311 ) (311 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss 1,648 — 1,648 Adoption of ASU 2018-02 (11,355 ) — (11,355 ) Net current period other comprehensive loss, net of tax (9,707 ) (311 ) (10,018 ) Balance at September 30, 2019 $ (56,291 ) $ (210 ) $ (56,501 ) Reclassification amounts related to the defined pension plans are included in the computation of net periodic pension benefit cost (see Note H, Components of Net Periodic Benefit Cost |
Note L - Litigation and Conting
Note L - Litigation and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note L — Litigation and Contingencies In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of claims that we infringe on the proprietary rights of third may not not not no We are also subject to various claims and legal proceedings in the ordinary course of conducting our businesses and, from time to time, we may In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we consider when recording an accrual for contingencies include, among others: (i) the opinions and views of our legal counsel; (ii) our previous experience; and (iii) the decision of our management as to how we intend to respond to the complaints. |
Note M - Certain Relationships
Note M - Certain Relationships and Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note M — Certain Relationships and Related Party Transactions From 2016 October 2020, Wipro provided us with a variety of technology-related services. Effective January 30, 2018, 9,926 1,001,614 16% $9.9 Convertible Preferred Stock During the three nine September 30, 2020 no three nine September 30, 2019 During the three nine September 30, 2020 for technology-related services Wipro provided to us. three nine September 30, 2019 we recorded $2.6 $9.5 As of September 30, 2020 December 31, 2019 $0 $1.5 September 30, 2020 December 31, 2019 no In the third 2019, 9% $164,000 f revenue earned from Snap Kitchen nine September 30, 2020 As described in Note F, Long-Term Debt one January 9, 2018, one |
Note N - Sale of Direct Mail As
Note N - Sale of Direct Mail Assets and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Sale of Direct Mail Equipment [Text Block] | Note N — Sale of Direct Mail Assets and Equipment On April 24, 2020, $1.5 April 2020, $0.5 may The Company is well positioned to provide the full suite of marketing solutions to Summit customers and will leverage the expanded print and direct mail capabilities provided by the partnership with Summit to grow our business. As a result of this sale, we booked a $1.9 $1.4 capital loss and impairment expense from the fixed asset disposal and impairment associated with the Summit deal. These expenses were nine September 30, 2020 |
Note O - Restructuring Activiti
Note O - Restructuring Activities | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | Note O — Restructuring Activities In 2019, one 2020, During 2020, 300,000 2020. 50,000 one In the three September 30, 2020 2019 $1.4 $3.1 The charges for the three September 30, 2020 $0.6 $0.6 $0.2 capital losses from the asset disposal associated with the Summit deal. The charges for the three September 30, 2019 $1.1 $1.3 $0.7 In the nine September 30, 2020 2019 $8.0 $10.9 The charges for the nine September 30, 2020 $3.0 $2.0 $1.3 $2.0 The charges for the nine September 30, 2019 $4.0 $2.8 $1.8 $1.0 $0.6 $0.7 The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statement of Comprehensive Income (Loss). Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Customer database build write off $ — $ — $ — $ 4,036 Contract termination fee — 667 — 2,767 Adjustment to Contract termination fee — — (306 ) — Severance 641 1,116 2,053 1,760 Facility, asset impairment and other expense Lease impairment and termination expense — 888 2,974 956 Fixed Asset disposal and impairment charges 154 26 1,294 589 Facility and other expenses 624 383 1,990 759 Total facility, asset impairment and other expense 778 1,297 6,258 2,304 Total $ 1,419 $ 3,080 $ 8,005 $ 10,867 The following table summarizes the changes in liabilities related to restructuring activities: In thousands Three Months Ended September 30, 2020 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ 695 $ 775 $ 2 $ 1,472 Additions — 611 576 1,187 Payments and adjustments (695 ) (608 ) (570 ) (1,873 ) Ending Balance: $ — $ 778 $ 8 $ 786 In thousands Nine Months Ended September 30, 2020 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning balance: $ 1,491 $ 360 $ 70 $ 1,921 Additions — 2,022 3,145 5,167 Payments and adjustments (1,491 ) (1,604 ) (3,207 ) (6,302 ) Ending balance: $ — $ 778 $ 8 $ 786 In thousands Three Months Ended September 30, 2019 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ 2,100 $ 231 $ 76 $ 2,407 Additions 667 1,116 452 2,235 Payments (700 ) (739 ) (387 ) (1,826 ) Ending Balance: $ 2,067 $ 608 $ 141 $ 2,816 For the Nine Months Ended September 30, 2019 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ — $ — $ — Additions 2,767 1,760 528 5,055 Payments (700 ) (1,152 ) (387 ) (2,239 ) Ending Balance: $ 2,067 $ 608 $ 141 $ 2,816 We expect that in connection with our cost-saving and restructuring initiatives, we will incur total restructuring charges of approximately $21.0 2020. $8.0 nine September 30, 2020 $11.8 December 31, 2019. $1.2 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Accounting, Policy [Policy Text Block] | Interim Financial Information The condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10 8 01 X. not |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes could differ from those estimates and assumptions. Such estimates include, but are not |
Presentation Of Operating Expense In Consolidated Statements of Comprehensive Income [Policy Text Block] | Operating Expense Presentation in Condensed Consolidated Statements of Comprehensive Income (Loss) The “Labor” line in the Condensed Consolidated Statements of Comprehensive Income (Loss) includes all employee payroll and benefits costs, including stock-based compensation, along with temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for such products or services based on the relevant contract. We apply the following five • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized as the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically set at a fixed price or rate by transaction occurrence, service provided, time spent, or product delivered. For arrangements requiring design and build of a database, revenue is not |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures 820” 820 three Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 not Level 3 Unobservable inputs that are supported by little or no Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payable, and long-term debt. |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at its inception. Operating and finance leases are included in the lease right-of-use (“ROU”) assets and in the current portion and long-term portion of lease obligations on our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of each lease based on the present value of lease payments over the lease term. As most of our leases do not may During the nine September 30, 2020, 842 See Note B, Recent Accounting Pronouncements - Recently adopted accounting pronouncements. |
Note C - Revenue from Contrac_2
Note C - Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | In thousands Three Months Ended Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 B2B $ 17,050 $ 11,290 $ 42,462 $ 35,149 Consumer Brands 14,087 11,171 37,727 35,222 Financial Services 6,531 11,635 21,513 36,850 Healthcare 4,111 5,257 12,283 14,946 Retail 5,392 8,803 14,014 31,752 Transportation 531 3,258 1,826 11,331 Total Revenues $ 47,702 $ 51,414 $ 129,825 $ 165,250 Three Months Ended September 30, 2020 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 4,845 $ 87 $ 4,932 Contact Centers 21,032 — 21,032 Database Marketing Solutions 4,341 800 5,141 Direct Mail, Logistics, and Fulfillment 13,697 2,900 16,597 Total Revenues $ 43,915 $ 3,787 $ 47,702 Three Months Ended September 30, 2019 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 6,286 $ 276 $ 6,562 Contact Centers 14,618 — 14,618 Database Marketing Solutions 5,272 1,170 6,442 Direct Mail, Logistics, and Fulfillment 20,775 3,017 23,792 Total Revenues $ 46,951 $ 4,463 $ 51,414 Nine Months Ended September 30, 2020 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 14,318 $ 310 $ 14,628 Contact Centers 51,274 — 51,274 Database Marketing Solutions 13,347 2,103 15,450 Direct Mail, Logistics, and Fulfillment 40,064 8,409 48,473 Total Revenues $ 119,003 $ 10,822 $ 129,825 Nine Months Ended September 30, 2019 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Agency & Digital Services $ 18,793 $ 407 $ 19,200 Contact Centers 46,688 — 46,688 Database Marketing Solutions 16,745 2,537 19,282 Direct Mail, Logistics, and Fulfillment 67,853 12,227 80,080 Total Revenues $ 150,079 $ 15,171 $ 165,250 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | In thousands September 30, 2020 December 31, 2019 Contract assets $ 400 $ 805 Deferred revenue and customer advances 5,952 4,397 Deferred revenue, included in other long-term liabilities 800 886 |
Note D - Leases (Tables)
Note D - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lessee, Leases, Supplemental Balance Sheet Information [Table Text Block] | In thousands As of September 30, 2020 Operating Leases Finance Leases Total Right-of-use Assets $ 13,410 $ 998 $ 14,408 Liabilities Short-term lease liabilities 6,580 223 6,803 Long-term lease liabilities 10,373 454 10,827 Total Lease Liabilities $ 16,953 $ 677 $ 17,630 In thousands As of December 31, 2019 Operating Leases Finance Leases Total Right-of-use Assets $ 17,679 $ 1,138 $ 18,817 Liabilities Short-term lease liabilities 7,226 390 7,616 Long-term lease liabilities 12,514 564 13,078 Total Lease Liabilities $ 19,740 $ 954 $ 20,694 |
Lease, Cost [Table Text Block] | In thousands Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Operating lease cost $ 1,951 $ 2,347 Finance lease cost: Amortization of right-of-use assets 59 75 Interest on lease liabilities 10 16 Total Finance lease cost 69 91 Variable lease cost 604 614 Sublease income (228 ) — Total lease cost, net $ 2,396 $ 3,052 In thousands Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Operating lease cost $ 6,435 $ 6,940 Finance lease cost: Amortization of right-of-use assets 191 225 Interest on lease liabilities 37 54 Total Finance lease cost 228 279 Variable lease cost 2,246 1,991 Sublease income (228 ) — Total lease cost, net $ 8,681 $ 9,210 In thousands Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 14,535 $ 13,076 Operating cash flows from finance leases 32 63 Financing cash flows from finance leases 357 344 Weighted Average Remaining Lease term Operating leases 3.0 3.5 Finance leases 3.2 2.9 Weighted Average Discount Rate Operating leases 4.67 % 4.71 % Finance leases 5.28 % 6.68 % |
Lease, Liability, Maturity [Table Text Block] | In thousands Operating Leases (1) Finance Leases Year Ending December 31, Remainder of 2020 $ 7,171 $ 249 2021 4,842 220 2022 3,490 196 2023 2,377 59 2024 300 13 2025 — — Total future minimum lease payments 18,180 737 Less: Imputed interest 1,227 60 Total lease liabilities $ 16,953 $ 677 (1) Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2020 and the fiscal years ending December 31, 2021, 2022, and 2023 of $254k, $647k, $540k, and $154k, respectively, are not included in the table above. |
Note F - Long-term Debt (Tables
Note F - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | In thousands September 30, 2020 December 31, 2019 Revolving credit facility $ 17,100 $ 18,700 Paycheck Protection Program Term Note 10,000 — Total debt 27,100 18,700 Less: current portion of long-term debt (6,681 ) — Long-term debt $ 20,419 $ 18,700 |
Note H - Components of Net Pe_2
Note H - Components of Net Periodic Benefit Cost (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Interest cost $ 1,473 $ 1,813 $ 4,419 $ 5,439 Expected return on plan assets (1,384 ) (1,111 ) (4,152 ) (3,333 ) Recognized actuarial loss 812 732 2,436 2,197 Net periodic benefit cost $ 901 $ 1,434 $ 2,703 $ 4,303 |
Note J - Earnings Per Share (Ta
Note J - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, In thousands, except per share amounts 2020 2019 Numerator: Net loss $ (1,621 ) $ (5,988 ) Less: Preferred stock dividends 125 125 Numerator for basic EPS: loss attributable to common stockholders (1,746 ) $ (6,113 ) Denominator: Basic EPS denominator: weighted-average common shares outstanding 6,523 6,291 Diluted EPS denominator 6,523 6,291 Basic loss per Common Share $ (0.27 ) $ (0.97 ) Diluted loss per Common Share $ (0.27 ) $ (0.97 ) Nine Months Ended September 30, In thousands, except per share amounts 2020 2019 Numerator: Net loss $ (2,738 ) $ (23,318 ) Less: Preferred stock dividend 372 371 Numerator for basic EPS: loss attributable to common stockholders (3,110 ) (23,689 ) Denominator: Basic EPS denominator: weighted-average common shares outstanding 6,432 6,277 Diluted EPS denominator 6,432 6,277 Basic loss per Common Share $ (0.48 ) $ (3.77 ) Diluted loss per Common Share $ (0.48 ) $ (3.77 ) |
Note K - Comprehensive Income_2
Note K - Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Comprehensive Income (Loss) [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Net loss $ (1,621 ) $ (5,988 ) $ (2,738 ) $ (23,318 ) Other comprehensive income (loss): Adjustment to pension liability 812 732 2,436 2,197 Tax expense (203 ) (183 ) (609 ) (549 ) 609 549 1,827 1,648 Foreign currency translation adjustment, net of tax 1,129 (660 ) 1,067 (311 ) Adoption of ASU 2018-2 — — — (11,355 ) Total other comprehensive income (loss), net of tax 1,738 (111 ) 2,894 (10,018 ) Total comprehensive income (loss) $ 117 $ (6,099 ) $ 156 $ (33,336 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2019 $ (63,887 ) $ 753 $ (63,134 ) Other comprehensive loss, net of tax, before reclassifications — 1,067 1,067 Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss 1,827 — 1,827 Net current period other comprehensive loss, net of tax 1,827 1,067 2,894 Balance at September 30, 2020 $ (62,060 ) $ 1,820 $ (60,240 ) Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2018 $ (46,584 ) $ 101 $ (46,483 ) Other comprehensive loss, net of tax, before reclassifications — (311 ) (311 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss 1,648 — 1,648 Adoption of ASU 2018-02 (11,355 ) — (11,355 ) Net current period other comprehensive loss, net of tax (9,707 ) (311 ) (10,018 ) Balance at September 30, 2019 $ (56,291 ) $ (210 ) $ (56,501 ) |
Note O - Restructuring Activi_2
Note O - Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, In thousands 2020 2019 2020 2019 Customer database build write off $ — $ — $ — $ 4,036 Contract termination fee — 667 — 2,767 Adjustment to Contract termination fee — — (306 ) — Severance 641 1,116 2,053 1,760 Facility, asset impairment and other expense Lease impairment and termination expense — 888 2,974 956 Fixed Asset disposal and impairment charges 154 26 1,294 589 Facility and other expenses 624 383 1,990 759 Total facility, asset impairment and other expense 778 1,297 6,258 2,304 Total $ 1,419 $ 3,080 $ 8,005 $ 10,867 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | In thousands Three Months Ended September 30, 2020 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ 695 $ 775 $ 2 $ 1,472 Additions — 611 576 1,187 Payments and adjustments (695 ) (608 ) (570 ) (1,873 ) Ending Balance: $ — $ 778 $ 8 $ 786 In thousands Nine Months Ended September 30, 2020 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning balance: $ 1,491 $ 360 $ 70 $ 1,921 Additions — 2,022 3,145 5,167 Payments and adjustments (1,491 ) (1,604 ) (3,207 ) (6,302 ) Ending balance: $ — $ 778 $ 8 $ 786 In thousands Three Months Ended September 30, 2019 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ 2,100 $ 231 $ 76 $ 2,407 Additions 667 1,116 452 2,235 Payments (700 ) (739 ) (387 ) (1,826 ) Ending Balance: $ 2,067 $ 608 $ 141 $ 2,816 For the Nine Months Ended September 30, 2019 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ — $ — $ — Additions 2,767 1,760 528 5,055 Payments (700 ) (1,152 ) (387 ) (2,239 ) Ending Balance: $ 2,067 $ 608 $ 141 $ 2,816 |
Note A - Overview and Signifi_2
Note A - Overview and Significant Accounting Policies (Details Textual) | Jan. 30, 2018USD ($)shares | Sep. 30, 2020USD ($) |
Number of Reportable Segments | 1 | |
Founder of Snap Kitchen [Member] | ||
Related Party, Ownership Percentage | 9.00% | |
Revenue from Related Parties | $ | $ 164,000 | |
Securities Purchase Agreement [Member] | Series A Preferred Stock [Member] | Wipro [Member] | ||
Sale of Stock, Number of Shares Issued in Transaction (in shares) | shares | 9,926 | |
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | shares | 1,001,614 | |
Convertible Preferred Stock, Shares Issued upon Conversion as Percent of Common Stock Outstanding | 16.00% | |
Sale of Stock, Consideration Received on Transaction | $ | $ 9,900,000 |
Note B - Recent Accounting Pr_2
Note B - Recent Accounting Pronouncements (Details Textual) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Stockholders' Equity Attributable to Parent, Ending Balance | $ (48,960,000) | $ (49,340,000) | $ (44,291,000) | $ (49,683,000) | $ (40,429,000) | $ (34,642,000) | $ (32,000,000) | $ (19,184,000) | |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | 22,000 | ||||||||
Retained Earnings [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | 795,079,000 | 796,700,000 | 802,935,000 | 797,817,000 | 800,763,000 | 806,751,000 | 810,554,000 | 812,704,000 | |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | 11,377,000 | ||||||||
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-02 [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | $ (22,000) | ||||||||
AOCI Attributable to Parent [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | $ (60,240,000) | $ (61,978,000) | $ (63,083,000) | $ (63,134,000) | $ (56,501,000) | $ (56,390,000) | $ (57,316,000) | (46,483,000) | |
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | $ (11,355,000) | ||||||||
AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-02 [Member] | |||||||||
Stockholders' Equity Attributable to Parent, Ending Balance | $ 22,000 |
Note C - Revenue from Contrac_3
Note C - Revenue from Contracts with Customers (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Amount | $ 0 | |
Contract with Customer, Liability, Revenue Recognized | 4,300 | |
Capitalized Contract Cost, Net, Total | 1,600 | |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 |
Note C - Revenue from Contrac_4
Note C - Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total Revenues | $ 47,702 | $ 51,414 | $ 129,825 | $ 165,250 |
Transferred over Time [Member] | ||||
Total Revenues | 43,915 | 46,951 | 119,003 | 150,079 |
Transferred at Point in Time [Member] | ||||
Total Revenues | 3,787 | 4,463 | 10,822 | 15,171 |
B2B [Member] | ||||
Total Revenues | 17,050 | 11,290 | 42,462 | 35,149 |
Agency and Digital Services [Member] | ||||
Total Revenues | 4,932 | 6,562 | 14,628 | 19,200 |
Agency and Digital Services [Member] | Transferred over Time [Member] | ||||
Total Revenues | 4,845 | 6,286 | 14,318 | 18,793 |
Agency and Digital Services [Member] | Transferred at Point in Time [Member] | ||||
Total Revenues | 87 | 276 | 310 | 407 |
Consumer Brands [Member] | ||||
Total Revenues | 14,087 | 11,171 | 37,727 | 35,222 |
Contact Centers [Member] | ||||
Total Revenues | 21,032 | 14,618 | 51,274 | 46,688 |
Contact Centers [Member] | Transferred over Time [Member] | ||||
Total Revenues | 21,032 | 14,618 | 51,274 | 46,688 |
Contact Centers [Member] | Transferred at Point in Time [Member] | ||||
Total Revenues | ||||
Financial Service [Member] | ||||
Total Revenues | 6,531 | 11,635 | 21,513 | 36,850 |
Database Marketing Solutions [Member] | ||||
Total Revenues | 5,141 | 6,442 | 15,450 | 19,282 |
Database Marketing Solutions [Member] | Transferred over Time [Member] | ||||
Total Revenues | 4,341 | 5,272 | 13,347 | 16,745 |
Database Marketing Solutions [Member] | Transferred at Point in Time [Member] | ||||
Total Revenues | 800 | 1,170 | 2,103 | 2,537 |
Health Care [Member] | ||||
Total Revenues | 4,111 | 5,257 | 12,283 | 14,946 |
Direct Mail, Logistics and Fulfillment [Member] | ||||
Total Revenues | 16,597 | 23,792 | 48,473 | 80,080 |
Direct Mail, Logistics and Fulfillment [Member] | Transferred over Time [Member] | ||||
Total Revenues | 13,697 | 20,775 | 40,064 | 67,853 |
Direct Mail, Logistics and Fulfillment [Member] | Transferred at Point in Time [Member] | ||||
Total Revenues | 2,900 | 3,017 | 8,409 | 12,227 |
Retail [Member] | ||||
Total Revenues | 5,392 | 8,803 | 14,014 | 31,752 |
Transportation [Member] | ||||
Total Revenues | $ 531 | $ 3,258 | $ 1,826 | $ 11,331 |
Note C - Revenue from Contrac_5
Note C - Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Contract assets | $ 400 | $ 805 |
Deferred revenue and customer advances | 5,952 | 4,397 |
Deferred revenue, included in other long-term liabilities | $ 800 | $ 886 |
Note D - Leases (Details Textua
Note D - Leases (Details Textual) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | ||
Operating Lease, Right-of-Use Asset | $ 13,410 | $ 17,679 | ||
Operating Lease, Liability, Total | $ 16,953 | [1] | 19,740 | |
Lessee, Lease, Termination Period (Year) | 1 year | |||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 998 | $ 1,138 | ||
Finance Lease, Right-of-Use Asset, Accumulated Depreciation | $ 500 | |||
Lessee, Operating Lease, Lease Not yet Commenced, Number | 1 | |||
Minimum [Member] | ||||
Lessee, Lease Remaining Lease Term (Year) | 1 year | |||
Minimum [Member] | Sublease Fullerton, Jacksonville and Manila Facilities [Member] | ||||
Lessee, Operating Sublease, Lease Term (Month) | 150 days | |||
Maximum [Member] | ||||
Lessee, Lease Remaining Lease Term (Year) | 6 years | |||
Lessee, Lease, Renewal Term (Year) | 5 years | |||
Maximum [Member] | Sublease Fullerton, Jacksonville and Manila Facilities [Member] | ||||
Lessee, Operating Sublease, Lease Term (Month) | 2 years 330 days | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 22,800 | |||
Operating Lease, Liability, Total | $ 23,900 | |||
[1] | Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2020 and the fiscal years ending December 31, 2021, 2022, and 2023 of $254k, $647k, $540k, and $154k, respectively, are not included in the table above. |
Note D - Leases - Supplemental
Note D - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Right-of-use Assets, operating leases | $ 13,410 | $ 17,679 | |
Right-of-use Assets, finance leases | 998 | 1,138 | |
Right-of-use Assets, total | 14,408 | 18,817 | |
Short-term lease liabilities, operating leases | 6,580 | 7,226 | |
Short-term lease liabilities, finance leases | 223 | 390 | |
Short-term lease liabilities, total | 6,803 | 7,616 | |
Long-term lease liabilities, operating leases | 10,373 | 12,514 | |
Long-term lease liabilities, finance leases | 454 | 564 | |
Long-term lease liabilities, total | 10,827 | 13,078 | |
Total Lease Liabilities, operating leases | 16,953 | [1] | 19,740 |
Total Lease Liabilities, finance leases | 677 | [1] | 954 |
Total Lease Liabilities, total | $ 17,630 | $ 20,694 | |
[1] | Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2020 and the fiscal years ending December 31, 2021, 2022, and 2023 of $254k, $647k, $540k, and $154k, respectively, are not included in the table above. |
Note D - Leases - Components of
Note D - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating lease cost | $ 1,951 | $ 2,347 | $ 6,435 | $ 6,940 |
Amortization of right-of-use assets | 59 | 75 | 191 | 225 |
Interest on lease liabilities | 10 | 16 | 37 | 54 |
Total Finance lease cost | 69 | 91 | 228 | 279 |
Variable lease cost | 604 | 614 | 2,246 | 1,991 |
Sublease income | (228) | (228) | ||
Total lease cost, net | $ 2,396 | $ 3,052 | 8,681 | 9,210 |
Operating cash flows from operating leases | 14,535 | 13,076 | ||
Operating cash flows from finance leases | 32 | 63 | ||
Financing cash flows from finance leases | $ 357 | $ 344 | ||
Weighted Average Remaining Lease term, Operating leases (Year) | 3 years | 3 years 182 days | 3 years | 3 years 182 days |
Weighted Average Remaining Lease term, Finance leases (Year) | 3 years 73 days | 2 years 328 days | 3 years 73 days | 2 years 328 days |
Weighted Average Discount Rate, Operating leases | 4.67% | 4.71% | 4.67% | 4.71% |
Weighted Average Discount Rate, Finance leases | 5.28% | 6.68% | 5.28% | 6.68% |
Note D - Leases - Maturities of
Note D - Leases - Maturities of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | ||
Remainder of 2020, operating leases | [1] | $ 7,171 | ||
Remainder of 2020, finance leases | 249 | |||
2021, operating leases | [1] | 4,842 | ||
2021, finance leases | 220 | |||
2022, operating leases | [1] | 3,490 | ||
2022, finance leases | 196 | |||
2023, operating leases | [1] | 2,377 | ||
2023, finance leases | 59 | |||
2024, operating leases | [1] | 300 | ||
2024, finance leases | 13 | |||
2025, operating leases | [1] | |||
2025, finance leases | ||||
Total future minimum lease payments, operating leases | [1] | 18,180 | ||
Total future minimum lease payments, finance leases | 737 | |||
Less: Imputed interest, operating leases | [1] | 1,227 | ||
Less: Imputed interest, finance leases | 60 | |||
Total lease liabilities, operating leases | 16,953 | [1] | $ 19,740 | |
Total lease liabilities, finance leases | $ 677 | [1] | $ 954 | |
[1] | Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2020 and the fiscal years ending December 31, 2021, 2022, and 2023 of $254k, $647k, $540k, and $154k, respectively, are not included in the table above. |
Note D - Leases - Maturities _2
Note D - Leases - Maturities of Finance and Operating Lease Liabilities (Details) (Parentheticals) - Sublease Fullerton, Jacksonville and Manila Facilities [Member] $ in Thousands | Sep. 30, 2020USD ($) |
Remainder of 2020 | $ 254 |
2021 | 647 |
2022 | 540 |
2023 | $ 154 |
Note E - Convertible Preferre_2
Note E - Convertible Preferred Stock (Details Textual) $ / shares in Units, $ in Thousands | Jan. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Jun. 30, 2020 | Dec. 31, 2019shares |
Preferred Stock, Shares Authorized (in shares) | shares | 1,000,000 | 1,000,000 | |||
Payments of Stock Issuance Costs | $ 2 | ||||
Series A Preferred Stock [Member] | |||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||
Temporary Equity, Liquidation Preference | $ 1,300 | ||||
Temporary Equity, Liquidation Preference Per Share (in dollars per share) | $ / shares | $ 133.46 | ||||
Convertible Preferred Stock, Conversion Ratio | 100.91 | ||||
Series A Preferred Stock [Member] | Wipro [Member] | |||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 9,926 | ||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 1,000 | ||||
Stock Issued During Period, Value, New Issues | $ 9,900 | ||||
Payments of Stock Issuance Costs | 200 | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 9,900 |
Note F - Long-term Debt (Detail
Note F - Long-term Debt (Details Textual) - USD ($) $ in Thousands | May 11, 2020 | Apr. 14, 2020 | May 07, 2019 | Jan. 09, 2018 | Apr. 17, 2017 | Sep. 30, 2020 | Dec. 31, 2019 |
Letters of Credit Outstanding, Amount | $ 0 | ||||||
Standby Letters of Credit [Member] | |||||||
Long-term Line of Credit, Total | 1,800 | ||||||
Texas Capital Facility [Member] | |||||||
Long-term Line of Credit, Total | 17,100 | $ 18,700 | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 100 | ||||||
Texas Capital Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 19,000 | $ 22,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||
Line of Credit Facility, Collateral Fees, Percentage | 0.50% | ||||||
Line of Credit Facility, Collateral Fees, Amount | 100 | ||||||
Debt Instrument, Term, Extension Period (Year) | 1 year | 1 year | 1 year | ||||
Texas Capital Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.95% | ||||||
Texas Capital Credit Facility [Member] | Prime Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
Texas Capital Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000 | ||||||
Texas Capital Credit Facility [Member] | Standby Letters of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000 | ||||||
Paycheck Protection Program CARES Act [Member] | |||||||
Proceeds from Notes Payable, Total | $ 10,000 | ||||||
Debt Instrument, Due Within Twelve Months If Not Forgiven | $ 6,700 |
Note F - Long-term Debt - Long-
Note F - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total debt | $ 27,100 | $ 18,700 |
Total debt | 27,100 | 18,700 |
Less: current portion of long-term debt | (6,681) | |
Long-term debt | 20,419 | 18,700 |
Texas Capital Credit Facility [Member] | ||
Total debt | 17,100 | 18,700 |
Total debt | 17,100 | 18,700 |
Paycheck Protection Program CARES Act [Member] | ||
Total debt | 10,000 | |
Total debt | $ 10,000 |
Note G - Stock-based Compensa_2
Note G - Stock-based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expense | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.7 |
Note H - Components of Net Pe_3
Note H - Components of Net Periodic Benefit Cost (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Qualified Pension Plan [Member] | ||
Defined Benefit Plan, Minimum Employer Contributions, Fiscal Year | $ 6 | |
Restoration Pension Plan [Member] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1.3 | $ 1.3 |
Note H - Components of Net Pe_4
Note H - Components of Net Periodic Benefit Cost - Net Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest cost | $ 1,473 | $ 1,813 | $ 4,419 | $ 5,439 |
Expected return on plan assets | (1,384) | (1,111) | (4,152) | (3,333) |
Recognized actuarial loss | 812 | 732 | 2,436 | 2,197 |
Net periodic benefit cost | $ 901 | $ 1,434 | $ 2,703 | $ 4,303 |
Note I - Income Taxes (Details
Note I - Income Taxes (Details Textual) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Expense (Benefit), Total | $ (53) | $ 102 | $ (12,863) | $ 840 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 3.20% | 1.70% | 82.40% | 3.70% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ (11,355) | ||||
State and Local Jurisdiction [Member] | |||||
Open Tax Year | 2014 2015 2016 2017 2018 2019 | ||||
Foreign Tax Authority [Member] | |||||
Open Tax Year | 2016 2017 2018 2019 | ||||
Domestic Tax Authority [Member] | |||||
Open Tax Year | 2016 2017 2018 2019 | ||||
Accounting Standards Update 2018-02 [Member] | |||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 11,400 |
Note J - Earnings Per Share (De
Note J - Earnings Per Share (Details Textual) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.1 | 0.1 | 0.1 | |
Unvested Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0.7 | 0.2 | 0.4 | 0.2 |
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1 | 1 | 1 | 1 |
Series A Preferred Stock [Member] | ||||
Preferred Stock, Dividend Rate, Percentage | 5.00% |
Note J - Earnings Per Share - R
Note J - Earnings Per Share - Reconciliations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net loss | $ (1,621) | $ (6,235) | $ 5,118 | $ (5,988) | $ (3,803) | $ (13,527) | $ (2,738) | $ (23,318) |
Less: Preferred Stock dividends | 125 | 125 | 372 | 371 | ||||
Loss attributable to common stockholders | $ (1,746) | $ (6,113) | $ (3,110) | $ (23,689) | ||||
Basic (in shares) | 6,523 | 6,291 | 6,432 | 6,277 | ||||
Diluted EPS denominator (in shares) | 6,523 | 6,291 | 6,432 | 6,277 | ||||
Basic (in dollars per share) | $ (0.27) | $ (0.97) | $ (0.48) | $ (3.77) | ||||
Diluted (in dollars per share) | $ (0.27) | $ (0.97) | $ (0.48) | $ (3.77) |
Note K - Comprehensive Income_3
Note K - Comprehensive Income (Loss) - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net loss | $ (1,621) | $ (6,235) | $ 5,118 | $ (5,988) | $ (3,803) | $ (13,527) | $ (2,738) | $ (23,318) |
Other comprehensive income (loss): | ||||||||
Adjustment to pension liability | 812 | 732 | 2,436 | 2,197 | ||||
Tax expense | (203) | (183) | (609) | (549) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax, Total | 609 | 549 | 1,827 | 1,648 | ||||
Foreign currency translation adjustment | 1,129 | (660) | 1,067 | (311) | ||||
Adoption of ASU 2018-02 | (11,355) | |||||||
Total other comprehensive income (loss), net of tax | 1,738 | $ 1,105 | $ 51 | (111) | 2,894 | (10,018) | ||
Comprehensive income (loss) | $ 117 | $ (6,099) | $ 156 | $ (33,336) |
Note K - Comprehensive Income_4
Note K - Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance | $ (49,340) | $ (44,291) | $ (49,683) | $ (34,642) | $ (49,683) | $ (19,184) |
Total other comprehensive income (loss), net of tax | 1,738 | 1,105 | 51 | (111) | 2,894 | (10,018) |
Adoption of ASU 2018-02 | (11,355) | |||||
Balance | (48,960) | (49,340) | (44,291) | (40,429) | (48,960) | (40,429) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Balance | (63,887) | (63,887) | (46,584) | |||
Other comprehensive loss, net of tax, before reclassifications | ||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss | 1,827 | 1,648 | ||||
Total other comprehensive income (loss), net of tax | 1,827 | (9,707) | ||||
Adoption of ASU 2018-02 | (11,355) | |||||
Balance | (62,060) | (56,291) | (62,060) | (56,291) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | 753 | 753 | 101 | |||
Other comprehensive loss, net of tax, before reclassifications | 1,067 | (311) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss | ||||||
Total other comprehensive income (loss), net of tax | 1,067 | (311) | ||||
Adoption of ASU 2018-02 | ||||||
Balance | 1,820 | (210) | 1,820 | (210) | ||
AOCI Attributable to Parent [Member] | ||||||
Balance | (61,978) | (63,083) | (63,134) | (56,390) | (63,134) | (46,483) |
Other comprehensive loss, net of tax, before reclassifications | 1,067 | (311) | ||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax, to other, net, on the condensed consolidated statements of comprehensive loss | 1,827 | 1,648 | ||||
Total other comprehensive income (loss), net of tax | 1,738 | 1,105 | 51 | 2,894 | (10,018) | |
Adoption of ASU 2018-02 | (11,355) | |||||
Balance | $ (60,240) | $ (61,978) | $ (63,083) | $ (56,501) | $ (60,240) | $ (56,501) |
Note L - Litigation and Conti_2
Note L - Litigation and Contingencies (Details Textual) $ in Thousands | Sep. 30, 2020USD ($) |
Estimated Litigation Liability | $ 0 |
Note M - Certain Relationship_2
Note M - Certain Relationships and Related Party Transactions (Details Textual) - USD ($) | Jan. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Wipro [Member] | ||||||
Accounts Payable, Related Parties | $ 0 | $ 0 | $ 1,500,000 | |||
Accounts Receivable, Related Parties | 0 | 0 | $ 0 | |||
Wipro [Member] | Technology-related Services and Lease Expense [Member] | ||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 2,600,000 | $ 9,500,000 | ||||
Wipro [Member] | Service [Member] | ||||||
Revenue from Related Parties | $ 0 | 0 | ||||
Snap Kitchen [Member] | ||||||
Revenue from Related Parties | $ 164,000 | |||||
Snap Kitchen [Member] | Harte Hanks [Member] | ||||||
Related Party, Ownership Percentage | 9.00% | 9.00% | ||||
Securities Purchase Agreement [Member] | Series A Preferred Stock [Member] | Wipro [Member] | ||||||
Sale of Stock, Number of Shares Issued in Transaction (in shares) | 9,926 | |||||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 1,001,614 | |||||
Convertible Preferred Stock, Shares Issued upon Conversion as Percent of Common Stock Outstanding | 16.00% | |||||
Sale of Stock, Consideration Received on Transaction | $ 9,900,000 |
Note N - Sale of Direct Mail _2
Note N - Sale of Direct Mail Assets and Equipment (Details Textual) - USD ($) $ in Thousands | Apr. 24, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 1,891 | $ 15 | ||
Summit [Member] | ||||
Proceeds from Sale of Machinery and Equipment | $ 1,500 | |||
Proceeds from Sale of Property, Plant, and Equipment, Total | $ 500 | |||
Impairment of Long-Lived Assets to be Disposed of | 1,900 | |||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 1,400 |
Note O - Restructuring Activi_3
Note O - Restructuring Activities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Restructuring Charges, Total | $ 1,419 | $ 3,080 | $ 8,005 | $ 10,867 | $ 11,800 |
Restructuring and Related Cost, Expected Cost, Total | 21,000 | 21,000 | |||
Restructuring and Related Cost, Expected Cost, Remainder of Fiscal Year | 1,200 | 1,200 | |||
Employee Severance [Member] | |||||
Restructuring Charges, Total | 641 | 1,116 | 2,053 | 1,760 | |
Facility Related and Other Expenses [Member] | |||||
Restructuring Charges, Total | 600 | 2,000 | 700 | ||
Capital Losses from Asset Disposal [Member] | |||||
Restructuring Charges, Total | 154 | 26 | 1,294 | 589 | |
Lease Impairment and Other Charges [Member] | |||||
Restructuring Charges, Total | 1,300 | ||||
Contract Termination [Member] | |||||
Restructuring Charges, Total | 667 | 2,767 | |||
Lease Impairment and Termination Charges [Member] | |||||
Restructuring Charges, Total | $ 888 | $ 2,974 | 956 | ||
Impairment Charge on Long-term Customer Databases [Member] | |||||
Restructuring Charges, Total | 4,000 | ||||
Asset Impairment Charge [Member] | |||||
Restructuring Charges, Total | $ 600 |
Note O - Restructuring Activi_4
Note O - Restructuring Activities - Restructuring Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Restructuring expense | $ 1,419 | $ 3,080 | $ 8,005 | $ 10,867 | $ 11,800 |
Customer Dattbase Build Write-off [Member] | |||||
Restructuring expense | 4,036 | ||||
Contract Termination [Member] | |||||
Restructuring expense | 667 | 2,767 | |||
Adjustment to Contract Termination Fee [Member] | |||||
Restructuring expense | (306) | ||||
Employee Severance [Member] | |||||
Restructuring expense | 641 | 1,116 | 2,053 | 1,760 | |
Lease Impairment and Termination Charges [Member] | |||||
Restructuring expense | 888 | 2,974 | 956 | ||
Capital Losses from Asset Disposal [Member] | |||||
Restructuring expense | 154 | 26 | 1,294 | 589 | |
Facility Closing [Member] | |||||
Restructuring expense | 624 | 383 | 1,990 | 759 | |
Facility, Asset Impairment and Other Expense [Member] | |||||
Restructuring expense | $ 778 | $ 1,297 | $ 6,258 | $ 2,304 |
Note O - Restructuring Activi_5
Note O - Restructuring Activities - Changes in Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Beginning Balance: | $ 1,472 | $ 2,407 | $ 1,921 | |
Additions | 1,187 | 2,235 | 5,167 | 5,055 |
Payments and adjustments | (1,873) | (1,826) | (6,302) | (2,239) |
Ending Balance: | 786 | 2,816 | 786 | 2,816 |
Contract Termination [Member] | ||||
Beginning Balance: | 695 | 2,100 | 1,491 | |
Additions | 667 | 2,767 | ||
Payments and adjustments | (695) | (700) | (1,491) | (700) |
Ending Balance: | 2,067 | 2,067 | ||
Employee Severance [Member] | ||||
Beginning Balance: | 775 | 231 | 360 | |
Additions | 611 | 1,116 | 2,022 | 1,760 |
Payments and adjustments | (608) | (739) | (1,604) | (1,152) |
Ending Balance: | 778 | 608 | 778 | 608 |
Facility, Asset Impairment and Other Expense [Member] | ||||
Beginning Balance: | 2 | 76 | 70 | |
Additions | 576 | 452 | 3,145 | 528 |
Payments and adjustments | (570) | (387) | (3,207) | (387) |
Ending Balance: | $ 8 | $ 141 | $ 8 | $ 141 |