Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 15, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000045919 | |
Entity Registrant Name | HARTE HANKS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-07120 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1677284 | |
Entity Address, Address Line One | 2 Executive Drive, Suite 103 | |
Entity Address, City or Town | Chelmsford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01824 | |
City Area Code | 512 | |
Local Phone Number | 434-1100 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HHS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,032,528 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 10,570 | $ 11,911 |
Restricted cash | 2,337 | 3,222 |
Accounts receivable (less allowance for doubtful accounts of $170 at June 30, 2022 and $266 at December 31, 2021) | 44,894 | 41,051 |
Unbilled accounts receivable | 5,157 | 8,134 |
Contract assets | 337 | 622 |
Prepaid expenses | 2,763 | 1,948 |
Prepaid income taxes and income tax receivable | 6,752 | 7,456 |
Other current assets | 11,068 | 1,031 |
Total current assets | 83,878 | 75,375 |
Property, plant and equipment (less accumulated depreciation of $51,791 at June 30, 2022 and $52,512 at December 31, 2021) | 9,328 | 7,747 |
Right-of-use assets | 18,982 | 22,142 |
Other assets | 1,972 | 2,597 |
Total assets | 114,160 | 107,861 |
Current liabilities | ||
Accounts payable and accrued expenses | 17,444 | 16,132 |
Accrued payroll and related expenses | 4,858 | 7,028 |
Deferred revenue and customer advances | 6,164 | 3,942 |
Customer postage and program deposits | 4,751 | 6,496 |
Other current liabilities | 3,129 | 2,291 |
Current portion of lease liabilities | 5,307 | 6,553 |
Total current liabilities | 41,653 | 42,442 |
Long-term debt | 10,000 | 5,000 |
Long-term lease liabilities, net of current portion | 16,594 | 19,215 |
Other long-term liabilities | 3,205 | 3,697 |
Total liabilities | 122,148 | 122,853 |
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, 7,032,528 and 6,976,144 shares outstanding at June 30, 2022 and December 31, 2021, respectively | 12,121 | 12,121 |
Additional paid-in capital | 272,727 | 290,711 |
Retained earnings | 818,900 | 811,094 |
Less treasury stock, 5,088,956 shares at cost at June 30, 2022 and 5,145,340 shares at cost at December 31, 2021 | (1,066,608) | (1,085,313) |
Accumulated other comprehensive loss | (54,851) | (53,328) |
Total stockholders’ deficit | (17,711) | (24,715) |
Total liabilities, Preferred Stock and stockholders’ deficit | 114,160 | 107,861 |
Qualified Plan [Member] | ||
Current liabilities | ||
Pension liabilities | 26,088 | 27,359 |
Nonqualified Plan [Member] | ||
Current liabilities | ||
Pension liabilities | $ 24,608 | $ 25,140 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for doubtful accounts | $ 170 | $ 266 |
Accumulated depreciation | $ 51,791 | $ 52,512 |
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) | 7,032,528 | 6,976,144 |
Treasury stock, shares (in shares) | 5,088,956 | 5,145,340 |
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 (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 48,553 | $ 49,259 | $ 97,615 | $ 93,013 |
Operating expenses | ||||
Labor | 25,259 | 28,366 | 51,204 | 54,718 |
Production and distribution | 14,737 | 12,460 | 28,728 | 23,729 |
Advertising, selling, general and administrative | 3,960 | 4,591 | 8,593 | 8,712 |
Restructuring expense | 0 | 1,744 | 0 | 3,942 |
Depreciation expense | 586 | 663 | 1,184 | 1,361 |
Total operating expenses | 44,542 | 47,824 | 89,709 | 92,462 |
Operating income | 4,011 | 1,435 | 7,906 | 551 |
Other incomes, net | ||||
Interest expense, net | 95 | 155 | 230 | 423 |
Gain from extinguishment of debt (Paycheck Protection Program Term Note) | 0 | (10,000) | 0 | (10,000) |
Other (income) expense | (1,216) | 456 | (1,255) | 471 |
Total other income | (1,121) | (9,389) | (1,025) | (9,106) |
Income before income taxes | 5,132 | 10,824 | 8,931 | 9,657 |
Income tax expense | 671 | 255 | 1,125 | 846 |
Net income | 4,461 | 10,569 | 7,806 | 8,811 |
Less: Preferred Stock dividends | 124 | 124 | 246 | 246 |
Less: Earnings attributable to participating securities | 542 | 1,361 | 946 | 1,118 |
Income attributable to common stockholders | $ 3,795 | $ 9,084 | $ 6,614 | $ 7,447 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.54 | $ 1.36 | $ 0.94 | $ 1.12 |
Diluted (in dollars per share) | $ 0.52 | $ 1.27 | $ 0.91 | $ 1.05 |
Weighted average shares used to compute income per share attributable to common shares | ||||
Basic (in shares) | 7,017 | 6,686 | 7,004 | 6,669 |
Diluted (in shares) | 7,388 | 7,193 | 7,338 | 7,131 |
Comprehensive income, net of tax: | ||||
Net income | $ 4,461 | $ 10,569 | $ 7,806 | $ 8,811 |
Adjustment to pension liability, net | 578 | 860 | 1,588 | 1,596 |
Foreign currency translation adjustment | (2,607) | (4) | (3,111) | (462) |
Total other comprehensive (loss) income, net of tax | (2,029) | 856 | (1,523) | 1,134 |
Comprehensive income | 2,432 | 11,425 | 6,283 | 9,945 |
Revenue | $ 48,553 | $ 49,259 | $ 97,615 | $ 93,013 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | 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, 2020 | $ 9,723 | $ 12,121 | $ 383,043 | $ 796,123 | $ (1,178,799) | $ (65,611) | $ (53,123) |
Stock-based compensation | 0 | 0 | 210 | 0 | 0 | 0 | 210 |
Vesting of RSU's | 0 | 0 | (16,010) | 0 | 15,980 | 0 | (30) |
Net (loss) income | 0 | 0 | 0 | (1,758) | 0 | 0 | (1,758) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 278 | 278 |
Balance at Mar. 31, 2021 | 9,723 | 12,121 | 367,243 | 794,365 | (1,162,819) | (65,333) | (54,423) |
Balance at Dec. 31, 2020 | 9,723 | 12,121 | 383,043 | 796,123 | (1,178,799) | (65,611) | (53,123) |
Net (loss) income | 8,811 | ||||||
Other comprehensive income (loss) | 1,134 | 1,134 | |||||
Balance at Jun. 30, 2021 | 9,723 | 12,121 | 336,938 | 804,934 | (1,132,075) | (64,477) | (42,559) |
Balance at Mar. 31, 2021 | 9,723 | 12,121 | 367,243 | 794,365 | (1,162,819) | (65,333) | (54,423) |
Stock-based compensation | 0 | 0 | 527 | 0 | 0 | 0 | 527 |
Vesting of RSU's | 0 | 0 | (24,124) | 0 | 23,942 | 0 | (182) |
Net (loss) income | 0 | 0 | 0 | 10,569 | 0 | 0 | 10,569 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 856 | 856 |
Exercise of Stock Options | 0 | 0 | (6,708) | 0 | 6,802 | 0 | 94 |
Balance at Jun. 30, 2021 | 9,723 | 12,121 | 336,938 | 804,934 | (1,132,075) | (64,477) | (42,559) |
Balance at Dec. 31, 2021 | 9,723 | 12,121 | 290,711 | 811,094 | (1,085,313) | (53,328) | (24,715) |
Stock-based compensation | 0 | 0 | 427 | 0 | 0 | 0 | 427 |
Vesting of RSU's | 0 | 0 | (12,706) | 0 | 12,572 | 0 | (134) |
Net (loss) income | 0 | 0 | 0 | 3,345 | 0 | 0 | 3,345 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 506 | 506 |
Balance at Mar. 31, 2022 | 9,723 | 12,121 | 278,432 | 814,439 | (1,072,741) | (52,822) | (20,571) |
Balance at Dec. 31, 2021 | 9,723 | 12,121 | 290,711 | 811,094 | (1,085,313) | (53,328) | (24,715) |
Net (loss) income | 7,806 | ||||||
Other comprehensive income (loss) | (1,523) | (1,523) | |||||
Balance at Jun. 30, 2022 | 9,723 | 12,121 | 272,727 | 818,900 | (1,066,608) | (54,851) | (17,711) |
Balance at Mar. 31, 2022 | 9,723 | 12,121 | 278,432 | 814,439 | (1,072,741) | (52,822) | (20,571) |
Stock-based compensation | 0 | 0 | 561 | 0 | 0 | 0 | 561 |
Net (loss) income | 0 | 0 | 0 | 4,461 | 0 | 0 | 4,461 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (2,029) | (2,029) |
Exercise of Stock Options | 0 | 0 | (6,266) | 0 | 6,133 | 0 | (133) |
Balance at Jun. 30, 2022 | $ 9,723 | $ 12,121 | $ 272,727 | $ 818,900 | $ (1,066,608) | $ (54,851) | $ (17,711) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities | ||||
Net income | $ 4,461 | $ 10,569 | $ 7,806 | $ 8,811 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation expense | 1,184 | 1,361 | ||
Restructuring | 0 | 309 | ||
Stock-based compensation | 850 | 762 | ||
Gain from extinguishment of debt (Paycheck Protection Program Term Note) | 0 | (10,000) | 0 | (10,000) |
Net pension payment | (365) | (596) | ||
Changes in assets and liabilities: | ||||
Increase in accounts receivable and contract assets | (581) | (5,932) | ||
Decrease (increase) in prepaid expenses, income tax receivable and other current assets | 526 | (590) | ||
Increase in accounts payable and accrued expenses | 1,510 | 653 | ||
(Decrease) increase in other accrued expenses and liabilities | (1,068) | 508 | ||
Net cash provided by (used in) operating activities | 9,862 | (4,714) | ||
Cash Flows from Investing Activities | ||||
Purchases of property, plant and equipment | (3,616) | (984) | ||
Proceeds from sale of property, plant and equipment | 57 | 101 | ||
Net cash used in investing activities | (3,559) | (883) | ||
Cash Flows from Financing Activities | ||||
Borrowings | 5,000 | 0 | ||
Repayment of borrowings | 0 | (4,000) | ||
Debt financing costs | (123) | (301) | ||
Payment of finance leases | (101) | (112) | ||
Treasury stock activities | (268) | (118) | ||
Net cash provided by (used in) financing activities | 4,508 | (4,531) | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (3,111) | (462) | ||
Net increase (decrease) in cash and cash equivalents and restricted cash | 7,700 | (10,590) | ||
Cash and cash equivalents and restricted cash at beginning of period | 15,133 | 33,562 | ||
Cash and cash equivalents and restricted cash at end of period | 22,833 | 22,972 | 22,833 | 22,972 |
Supplemental disclosures | ||||
Cash paid for interest | 186 | 264 | ||
Cash paid for income taxes, net | 478 | 959 | ||
Non-cash investing and financing activities | ||||
Purchases of property, plant and equipment included in accounts payable | 2,576 | 1,322 | ||
Cash and cash equivalents | 10,570 | 11,911 | 10,570 | 11,911 |
Restricted cash | 2,337 | 3,222 | 2,337 | 3,222 |
Cash held in Escrow account included in other current assets (see Note E) | 9,926 | 0 | 9,926 | 0 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations | $ 22,833 | $ 22,972 | $ 22,833 | $ 22,972 |
Note A - Overview and Significa
Note A - Overview and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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 leading global customer experience company. With offices in North America, Asia-Pacific and Europe, Harte Hanks works with some of the world’s most respected brands. The COVID- 19 19 not may 19 may Item 1A. 10K December 31, 2021 March 21, 2022 ( “2021 10 Segment Reporting The Company operates three business segments: Marketing Services; Customer Care; and Fulfillment & Logistics Services. Our Chief Executive Officer (“CEO”) is considered to be our chief operating decision maker. Our CEO reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the three 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 2021 10 Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the Company,” “we,” “us,” or “our” may one may Interim Financial Information The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10 8 01 X. not Use of Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. Such estimates include, but are not Operating Expense Presentation in Condensed Consolidated Statements of Comprehensi ve Income The “Labor” line in the Condensed Consolidated Statements of Comprehensive Income 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 performance criteria 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 when control of the promised goods or services is transferred to the customer. 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 payables, and long-term debt. The fair value of the assets in our funded pension plan is discussed in Note H, Employee Benefit Plans. 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 liabilities 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 |
Note B - Recent Accounting Pron
Note B - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note B - Recent Accounting Pronouncements Recent Accounting Guidance Adopted In June 2016, 2016 13, Financial Instruments Credit Losses. not 12b 2 1934, January 1, 2022. not |
Note C - Revenue From Contracts
Note C - Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note C - Revenue from Contracts with Customers Under Accounting Standards Update (ASU) 2014 09, 606" , five Under ASC 606, not not Consistent with legacy U.S. GAAP, we present sales taxes assessed on revenue-producing transactions on a net basis. Disaggregation of Revenue We disaggregate revenue by three three six June 30, 2022 2021 three Three Months Ended June 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 10,610 $ 2,840 $ 13,450 Customer Care 15,382 — 15,382 Fulfillment and Logistics Services 17,203 2,518 19,721 Total Revenues $ 43,195 $ 5,358 $ 48,553 Three Months Ended June 30, 2021 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 12,087 $ 2,121 $ 14,208 Customer Care 19,191 — 19,191 Fulfillment and Logistics Services 13,881 1,979 15,860 Total Revenues $ 45,159 $ 4,100 $ 49,259 Six Months Ended June 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 21,491 $ 4,883 $ 26,374 Customer Care 33,123 — 33,123 Fulfillment and Logistics Services 32,095 6,023 38,118 Total Revenues $ 86,709 $ 10,906 $ 97,615 Six Months Ended June 30, 2021 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 23,535 $ 3,551 $ 27,086 Customer Care 35,735 — 35,735 Fulfillment and Logistics Services 26,327 3,865 30,192 Total Revenues $ 85,597 $ 7,416 $ 93,013 Our contracts with customers may not Marketing Services Our Marketing Services segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. We create relevancy by leveraging data, insight, and our extensive experience in leading clients as they engage their customers through digital, traditional, and emerging channels. We are known for helping clients build deep customer relationships, create connected customer experiences, and optimize each and every customer touch point in order to deliver desired business outcomes. Most marketing 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. Our databases solutions are built around centralized marketing databases with services rendered to build custom database, 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, customer or target marketing lists and data processing services, may not i.e i.e., not Our contracts may may We charge our customers for certain data-related services at a fixed transaction-based rate, e.g., two Customer Care 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. Fulfillment & Logistics Services Our services, delivered internally and with our partners, include printing, lettershop, advanced mail optimization (including commingling services), logistics and transportation optimization, monitoring and tracking, to support traditional and specialized mailings. Our print and fulfillment centers in Massachusetts and Kansas provide custom kitting services, print on demand, product recalls, trade marketing fulfillment, ecommerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to distribute literature and other marketing materials. Most 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 June 30, 2022 December 31, 2021 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 June 30, 2022 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 June 30, 2022 December 31, 2021 In thousands June 30, 2022 December 31, 2021 Contract assets $ 337 $ 622 Deferred revenue and customer advances 6,164 3,942 Deferred revenue, included in other long-term liabilities 540 756 Revenue recognized during the six June 30, 2022 Costs to Obtain and Fulfill a Contract We recognize an asset for the direct costs incurred to obtain and fulfill our contracts with customers to the extent that we expect to recover these costs and if the benefit is longer than one not June 30, 2022 2021, |
Note D - Leases
Note D - Leases | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | Note D - Leases 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 nine five We sublease our Fullerton (CA), Jacksonville (FL) and Uxbridge (UK) facilities. The leases and subleases for these three 2023. As of June 30, 2022 December 31, 2021, not none may There was no impairment of leases during the three six June 30, 2022 . The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of June 30, 2022 Operating Leases Finance Leases Total Right-of-use Assets $ 18,309 $ 673 $ 18,982 Liabilities Current portion of lease liabilities 5,119 188 5,307 Long-term lease liabilities 16,477 117 16,594 Total Lease Liabilities $ 21,596 $ 305 $ 21,901 In thousands As of December 31, 2021 Operating Leases Finance Leases Total Right-of-use Assets $ 21,382 $ 760 $ 22,142 Liabilities Short-term lease liabilities 6,359 194 6,553 Long-term lease liabilities 19,004 211 19,215 Total Lease Liabilities $ 25,363 $ 405 $ 25,768 For the three six June 30, 2022 2021 In thousands Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Operating lease cost $ 1,419 $ 1,913 Finance lease cost: Amortization of right-of-use assets 41 49 Interest on lease liabilities 4 8 Total Finance lease cost 45 57 Variable lease cost 447 634 Sublease income (160 ) (169 ) Total lease cost, net $ 1,751 $ 2,435 In thousands Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Operating lease cost $ 3,000 $ 4,032 Finance lease cost: Amortization of right-of-use assets 87 98 Interest on lease liabilities 9 15 Total Finance lease cost 96 113 Variable lease cost 986 1,554 Sublease income (411 ) (358 ) Total lease cost, net $ 3,671 $ 5,341 Other information related to leases was as follows: In thousands Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,097 $ 7,637 Operating cash flows from finance leases 8 13 Financing cash flows from finance leases 101 112 Weighted Average Remaining Lease term Operating leases 6.2 5.8 Finance leases 1.8 2.5 Weighted Average Discount Rate Operating leases 3.40 % 3.53 % Finance leases 5.53 % 5.33 % The maturities of the Company’s finance and operating lease liabilities as of June 30, 2022 In thousands Operating Leases (1) Finance Leases Year Ending December 31, Remainder of 2022 $ 2,437 $ 100 2023 5,222 166 2024 3,820 48 2025 2,117 6 2026 2,014 — 2027 8,229 — Total future minimum lease payments 23,839 320 Less: imputed interest 2,243 15 Total lease liabilities $ 21,596 $ 305 ( 1 December 31, 2022 December 31, 2023 not |
Note E - Convertible Preferred
Note E - Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2022 | |
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 million shares of preferred stock. On January 30, 2018, January 29, 2018. On June 30, 2022, no June 30, 2022, June 30, 2022 The transaction is expected to be completed by the third 2022 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 per share 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%. not not June 30, 2022 Conversion At the option of the holders of Series A Preferred Stock, shares of Series A Preferred Stock may 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 events that may not June 30, 2022 December 31, 2021 |
Note F - Long-term Debt
Note F - Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | Note F — Long-Term Debt As of June 30, 2022 December 31, 2021 In thousands June 30, 2022 December 31, 2021 Revolving credit facility $ 10,000 $ 5,000 Credit Facility As of June 30, 2022 December 31, 2021 June 30, 2022 As of each of June 30, 2022 December 31, 2021 June 30, 2022 On April 17, 2017, one December 31, 2021 On December 21, 2021, three December 21, 2021, The New Credit Facility is subject to certain covenants restricting the Company's and its subsidiaries' ability to create, incur, assume or become liable for indebtedness; make certain investments; pay dividends or repurchase the Company's stock; create, incur or assume liens; consummate mergers or acquisitions; liquidate, dissolve, suspend or cease operations; or modify accounting or tax reporting methods (other than as required by U.S. GAAP). The Company was in compliance with all of the requirements as of June 30, 2022 . The loans under the New Credit Facility accrue interest at a variable rate equal to the Bloomberg Short-Term Bank Yield Index Rate plus a margin of 2.25% per annum. The interest rate was 3.74% as of June 30, 2022 . The outstanding amounts advanced under the New Credit Facility are due and payable in full on December 21, 2024. In connection with entering into the New Credit Facility, the Company and Texas Capital Bank terminated the old Texas Capital Credit Facility. Prior to termination of the old Texas Capital Credit Facility, the Company used cash on hand to pay down $12.1 million outstanding under the old Texas Capital Credit Facility and the remaining $5.0 million of loans outstanding under the old Texas Capital Credit Facility were deemed to be outstanding under the New Credit Facility. Unlike the old Texas Capital Credit Facility, Texas Capital Bank did not Cash payments for interest were $0.1 million and $0.2 million and for the three June 30, 2022 2021 six June 30, 2022 2021 Paycheck Protection Program Term Note On April 14, 2020, The proceeds were used to maintain payroll or make certain permitted interest payments, lease payments and utility payments. While the Company believes that it complied with all requirements related to the PPP Loan, the U.S. Department of the Treasury has announced that it will conduct audits for PPP loans that exceed $2.0 may We applied for forgiveness of the entire $10.0 million PPP Term Note in the first 2021 June 10, 2021, three six June 30, 2021. |
Note G - Stock-based Compensati
Note G - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
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. Our stock incentive plans provide for the ability to issue stock options, cash stock appreciation rights, performance stock units, phantom stock units and cash performance stock units. Our cash stock appreciation rights, phantom stock units and cash performance stock units settle solely in cash and are treated as the current liability, which are adjusted each reporting period based on changes in our stock price. 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. We recognized $0.6 million and $0.5 million of stock-based compensation expense during the three June 30, 2022 2021 , respectively. six June 30, 2022 2021 , respectively. |
Note H - Employee Benefit Plans
Note H - Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | Note H — Employee Benefit Plans Prior to January 1, 1999, 401 December 31, 1998. In 1994, not not April 1, 2014. At the end of 2020, two December 31, 2020, 414 4044. Net pension cost for both plans included the following components: Three Months Ended June 30, Six Months Ended June 30, In thousands 2022 2021 2022 2021 Interest cost $ 1,260 $ 1,168 $ 2,520 $ 2,336 Expected return on plan assets (1,468 ) (1,688 ) (2,936 ) (3,376 ) Recognized actuarial loss 719 860 1,438 1,720 Net periodic benefit cost $ 511 $ 340 $ 1,022 $ 680 Based on current estimates, we will be required to make a $1.3 million contribution to the combined qualified Pension Plan in 2022 six June 30, 2022 We are not not six June 30, 2022 2021 |
Note I - Income Taxes
Note I - Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note I - Income Taxes The income tax provision was $0.7 million and $0.3 million for the three June 30, 2022 2021 three June 30, 2022 three June 30, 2021. The effective tax rate differs from The income tax provision was $1.1 million and $0.8 million for the six June 30, 2022 2021 six June 30, 2022 six June 30, 2021. The effective tax rate differs from 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% December 31, 2020, 2019 2018, June 30, 2022 , the Company has received the tax refunds for the tax years 2019 2018 2020. 2020 2022. Harte Hanks, or one no 2016. 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. We did not June 30, 2022 December 31, 2021 |
Note J - Earnings Per Share
Note J - Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, In thousands, except per share amounts 2022 2021 Numerator: Net income $ 4,461 $ 10,569 Less: Preferred stock dividends 124 124 Less: Earnings attributable to participating securities 542 1,361 Numerator for basic EPS: income attributable to common stockholders 3,795 $ 9,084 Effect of dilutive securities: Add back: Allocation of earnings to participating securities 542 1,361 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities (518 ) (1,277 ) Numerator for diluted EPS 3,819 9,168 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,017 6,686 Diluted EPS denominator 7,388 7,193 Basic income per Common Share $ 0.54 $ 1.36 Diluted income per Common Share $ 0.52 $ 1.27 For the three June 30, 2022 2021 Six Months Ended June 30, In thousands, except per share amounts 2022 2021 Numerator: Net Income $ 7,806 $ 8,811 Less: Preferred stock dividend 246 246 Less: Earnings attributable to common stockholders 946 1,118 Numerator for basic EPS: income attributable to common stockholders 6,614 7,447 Effect of dilutive securities: Add back: Allocation of earnings to participating securities 946 1,118 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities (908 ) (1,055 ) Numerator for diluted EPS $ 6,652 $ 7,510 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,004 6,669 Diluted EPS denominator 7,338 7,131 Basic income per Common Share $ 0.94 $ 1.12 Diluted income per Common Share $ 0.91 $ 1.05 For the six June 30, 2022 2021 |
Note K - Comprehensive Income (
Note K - Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note K — Comprehensive Income Comprehensive Income for a period encompasses net income and all other changes in equity other than from transactions with our stockholders. Changes in accumulated other comprehensive income by component were as follows: Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2021 $ (54,394 ) $ 1,066 $ (53,328 ) Other comprehensive loss, net of tax, before reclassifications — (3,111 ) (3,111 ) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,588 — 1,588 Net current period other comprehensive income (loss), net of tax 1,588 (3,111 ) (1,523 ) Balance at June 30, 2022 $ (52,806 ) $ (2,045 ) $ (54,851 ) Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2020 $ (68,544 ) $ 2,933 $ (65,611 ) Other comprehensive loss, net of tax, before reclassifications — (462 ) (462 ) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,596 — 1,596 Net current period other comprehensive income (loss), net of tax 1,596 (462 ) 1,134 Balance at June 30, 2021 $ (66,948 ) $ 2,471 $ (64,477 ) Reclassification amounts related to the defined pension plans are included in the computation of net periodic pension benefit cost (see Note H, Employee Benefit Plans |
Note L - Litigation and Conting
Note L - Litigation and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
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 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 | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note M — Certain Relationships and Related Party Transactions As described in Note F, Long-Term Debt one not third |
Note N - Restructuring Activiti
Note N - Restructuring Activities | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | Note N — Restructuring Activities Our management team continuously reviews and adjusts our cost structure and operating footprint, optimize our operations, and invest in improved technology. During 2020, December 2020. first 2021, April 30, 2021. 2020, 50,000 one two In connection with our cost-saving and restructuring initiatives, we incurred total restructuring charges of $27.6 million through the end of 2021. 2021, 2022 In the three June 30, 2021, included six June 30, 2021, included ,$2.2 The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statements of Comprehensive Income. Three Months Ended June 30, Six Months Ended June 30, In thousands 2021 2021 Severance 1,209 1,413 Facility, asset impairment and other expense Lease impairment and termination expense — 294 Fixed Asset disposal and impairment charges (4 ) 6 Facility and other expenses 539 2229 Total facility, asset impairment and other expense 535 2,529 Total $ 1,744 $ 3,942 The following table summarizes the changes in liabilities related to restructuring activities: In thousands Three Months Ended June 30, 2022 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 405 $ — $ 405 Additions — — — — Payments and adjustments — (320 ) — (320 ) Ending Balance: $ — $ 85 $ — $ 85 In thousands Six Months Ended June 30, 2022 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning balance: $ — $ 738 $ — $ 738 Additions — — — — Payments and adjustments — (653 ) — (653 ) Ending balance: $ — $ 85 $ — $ 85 In thousands Three Months Ended June 30, 2021 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 350 $ 8 $ 358 Additions — 1,209 13 1,222 Payments — (622 ) — (622 ) Ending Balance: $ — $ 937 $ 21 $ 958 For the Six Months Ended June 30, 2021 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 549 $ 4 $ 553 Additions — 1,413 17 1,430 Payments — (1,025 ) — (1,025 ) Ending Balance: $ — $ 937 $ 21 $ 958 |
Note O - Segment Reporting
Note O - Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note O — Segment Reporting Harte Hanks is a leading global customer experience company. We have organized our operations into three business segments based on the types of products and services we provide: Marketing Services, Customer Care, Fulfillment & Logistics Services. Our Marketing Services segment leverages data, insight, and experience to support clients as they engage customers through digital, traditional, and emerging channels. We partner with clients to develop strategies and tactics to identify and prioritize customer audiences in B2C B2B Our Customer Care segment offers intelligently responsive contact center solutions, which use real-time data to effectively interact with each customer. Customer contacts are handled through phone, e-mail, social media, text messaging, chat and digital self-service support. We provide these services utilizing our advanced technology infrastructure, human resource management skills and industry experience. Our Fulfillment & Logistics Services segment consists of mail and product fulfillment and logistics services. We offer a variety of product fulfillment solutions, including printing on demand, managing product recalls, and distributing literature and promotional products to support B2B third 2020, There are three not not not Overview and Significant Accounting Policies. The following table presents financial information by segment: Three Months ended June 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 13,450 $ 15,382 $ 19,721 $ — $ — $ 48,553 Segment Operating Expense $ 10,584 $ 12,212 $ 15,770 $ — $ 5,390 $ 43,956 Contribution margin (loss) $ 2,866 $ 3,170 $ 3,951 $ — $ (5,390 ) $ 4,597 Shared Services $ 1,052 $ 677 $ 779 $ — $ (2,508 ) $ — EBITDA $ 1,814 $ 2,493 $ 3,172 $ — $ (2,882 ) $ 4,597 Depreciation $ 89 $ 201 $ 202 $ — $ 94 $ 586 Operating income (loss) $ 1,725 $ 2,292 $ 2,970 $ — $ (2,976 ) $ 4,011 Three Months ended June 30, 2021 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 14,208 $ 19,191 $ 15,860 $ — $ — $ 49,259 Segment Operating Expense $ 11,377 $ 15,138 $ 13,426 $ — $ 5,476 $ 45,417 Restructuring $ — $ — $ — $ 1,744 $ — $ 1,744 Contribution margin (loss) $ 2,831 $ 4,053 $ 2,434 $ (1,744 ) $ (5,476 ) $ 2,098 Shared Services $ 1,105 $ 703 $ 779 $ — $ (2,587 ) $ — EBITDA $ 1,726 $ 3,350 $ 1,655 $ (1,744 ) $ (2,889 ) $ 2,098 Depreciation $ 144 $ 203 $ 192 $ — $ 124 $ 663 Operating income (loss) $ 1,582 $ 3,147 $ 1,463 $ (1,744 ) $ (3,013 ) $ 1,435 Six Months ended June 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 26,374 $ 33,123 $ 38,118 $ — $ — $ 97,615 Segment Operating Expense $ 20,934 $ 25,773 $ 30,929 $ — $ 10,889 $ 88,525 Contribution margin $ 5,440 $ 7,350 $ 7,189 $ — $ (10,889 ) $ 9,090 Shared Services $ 2,165 $ 1,395 $ 1,630 $ — $ (5,190 ) $ — EBITDA $ 3,275 $ 5,955 $ 5,559 $ — $ (5,699 ) $ 9,090 Depreciation $ 191 $ 403 $ 404 $ — $ 186 $ 1,184 Operating income (loss) $ 3,084 $ 5,552 $ 5,155 $ — $ (5,885 ) $ 7,906 Six Months ended June 30, 2021 Marketing Services Customer Care Fulfillment and Logistics Services (1) Restructuring Unallocated Corporate Total (In thousands) Revenues $ 27,086 $ 35,735 $ 30,192 $ — $ — $ 93,013 Segment Operating Expense $ 22,418 $ 28,212 $ 25,600 $ — $ 10,929 $ 87,159 Restructuring $ — $ — $ — $ 3,942 $ — $ 3,942 Contribution margin $ 4,668 $ 7,523 $ 4,592 $ (3,942 ) $ (10,929 ) $ 1,912 Shared Services $ 2,360 $ 1,573 $ 1,720 $ — $ (5,653 ) $ — EBITDA $ 2,308 $ 5,950 $ 2,872 $ (3,942 ) $ (5,276 ) $ 1,912 Depreciation $ 295 $ 457 $ 359 $ — $ 250 $ 1,361 Operating income (loss) $ 2,013 $ 5,493 $ 2,513 $ (3,942 ) $ (5,526 ) $ 551 ( 1 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting The Company operates three business segments: Marketing Services; Customer Care; and Fulfillment & Logistics Services. Our Chief Executive Officer (“CEO”) is considered to be our chief operating decision maker. Our CEO reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the three |
Accounting Principles [Policy Text Block] | 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 2021 10 |
Consolidation, Policy [Policy Text Block] | Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the Company,” “we,” “us,” or “our” may one may |
Basis of Accounting, Policy [Policy Text Block] | Interim Financial Information The condensed consolidated financial statements have been prepared in accordance with U.S. 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 Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. 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 Comprehensi ve Income The “Labor” line in the Condensed Consolidated Statements of Comprehensive Income 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 [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 performance criteria 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 when control of the promised goods or services is transferred to the customer. 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 payables, and long-term debt. The fair value of the assets in our funded pension plan is discussed in Note H, Employee Benefit Plans. |
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 liabilities 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 |
Note C - Revenue From Contrac_2
Note C - Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended June 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 10,610 $ 2,840 $ 13,450 Customer Care 15,382 — 15,382 Fulfillment and Logistics Services 17,203 2,518 19,721 Total Revenues $ 43,195 $ 5,358 $ 48,553 Three Months Ended June 30, 2021 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 12,087 $ 2,121 $ 14,208 Customer Care 19,191 — 19,191 Fulfillment and Logistics Services 13,881 1,979 15,860 Total Revenues $ 45,159 $ 4,100 $ 49,259 Six Months Ended June 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 21,491 $ 4,883 $ 26,374 Customer Care 33,123 — 33,123 Fulfillment and Logistics Services 32,095 6,023 38,118 Total Revenues $ 86,709 $ 10,906 $ 97,615 Six Months Ended June 30, 2021 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 23,535 $ 3,551 $ 27,086 Customer Care 35,735 — 35,735 Fulfillment and Logistics Services 26,327 3,865 30,192 Total Revenues $ 85,597 $ 7,416 $ 93,013 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | In thousands June 30, 2022 December 31, 2021 Contract assets $ 337 $ 622 Deferred revenue and customer advances 6,164 3,942 Deferred revenue, included in other long-term liabilities 540 756 |
Note D - Leases (Tables)
Note D - Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Lessee, Leases, Supplemental Balance Sheet Information [Table Text Block] | In thousands As of June 30, 2022 Operating Leases Finance Leases Total Right-of-use Assets $ 18,309 $ 673 $ 18,982 Liabilities Current portion of lease liabilities 5,119 188 5,307 Long-term lease liabilities 16,477 117 16,594 Total Lease Liabilities $ 21,596 $ 305 $ 21,901 In thousands As of December 31, 2021 Operating Leases Finance Leases Total Right-of-use Assets $ 21,382 $ 760 $ 22,142 Liabilities Short-term lease liabilities 6,359 194 6,553 Long-term lease liabilities 19,004 211 19,215 Total Lease Liabilities $ 25,363 $ 405 $ 25,768 |
Lease, Cost [Table Text Block] | In thousands Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Operating lease cost $ 1,419 $ 1,913 Finance lease cost: Amortization of right-of-use assets 41 49 Interest on lease liabilities 4 8 Total Finance lease cost 45 57 Variable lease cost 447 634 Sublease income (160 ) (169 ) Total lease cost, net $ 1,751 $ 2,435 In thousands Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Operating lease cost $ 3,000 $ 4,032 Finance lease cost: Amortization of right-of-use assets 87 98 Interest on lease liabilities 9 15 Total Finance lease cost 96 113 Variable lease cost 986 1,554 Sublease income (411 ) (358 ) Total lease cost, net $ 3,671 $ 5,341 In thousands Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,097 $ 7,637 Operating cash flows from finance leases 8 13 Financing cash flows from finance leases 101 112 Weighted Average Remaining Lease term Operating leases 6.2 5.8 Finance leases 1.8 2.5 Weighted Average Discount Rate Operating leases 3.40 % 3.53 % Finance leases 5.53 % 5.33 % |
Lease, Liability, Maturity [Table Text Block] | In thousands Operating Leases (1) Finance Leases Year Ending December 31, Remainder of 2022 $ 2,437 $ 100 2023 5,222 166 2024 3,820 48 2025 2,117 6 2026 2,014 — 2027 8,229 — Total future minimum lease payments 23,839 320 Less: imputed interest 2,243 15 Total lease liabilities $ 21,596 $ 305 |
Note F - Long-term Debt (Tables
Note F - Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | In thousands June 30, 2022 December 31, 2021 Revolving credit facility $ 10,000 $ 5,000 |
Note H - Employee Benefit Pla_2
Note H - Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, In thousands 2022 2021 2022 2021 Interest cost $ 1,260 $ 1,168 $ 2,520 $ 2,336 Expected return on plan assets (1,468 ) (1,688 ) (2,936 ) (3,376 ) Recognized actuarial loss 719 860 1,438 1,720 Net periodic benefit cost $ 511 $ 340 $ 1,022 $ 680 |
Note J - Earnings Per Share (Ta
Note J - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, In thousands, except per share amounts 2022 2021 Numerator: Net income $ 4,461 $ 10,569 Less: Preferred stock dividends 124 124 Less: Earnings attributable to participating securities 542 1,361 Numerator for basic EPS: income attributable to common stockholders 3,795 $ 9,084 Effect of dilutive securities: Add back: Allocation of earnings to participating securities 542 1,361 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities (518 ) (1,277 ) Numerator for diluted EPS 3,819 9,168 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,017 6,686 Diluted EPS denominator 7,388 7,193 Basic income per Common Share $ 0.54 $ 1.36 Diluted income per Common Share $ 0.52 $ 1.27 Six Months Ended June 30, In thousands, except per share amounts 2022 2021 Numerator: Net Income $ 7,806 $ 8,811 Less: Preferred stock dividend 246 246 Less: Earnings attributable to common stockholders 946 1,118 Numerator for basic EPS: income attributable to common stockholders 6,614 7,447 Effect of dilutive securities: Add back: Allocation of earnings to participating securities 946 1,118 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities (908 ) (1,055 ) Numerator for diluted EPS $ 6,652 $ 7,510 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,004 6,669 Diluted EPS denominator 7,338 7,131 Basic income per Common Share $ 0.94 $ 1.12 Diluted income per Common Share $ 0.91 $ 1.05 |
Note K - Comprehensive Income_2
Note K - Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2021 $ (54,394 ) $ 1,066 $ (53,328 ) Other comprehensive loss, net of tax, before reclassifications — (3,111 ) (3,111 ) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,588 — 1,588 Net current period other comprehensive income (loss), net of tax 1,588 (3,111 ) (1,523 ) Balance at June 30, 2022 $ (52,806 ) $ (2,045 ) $ (54,851 ) Defined Benefit Foreign Currency In thousands Pension Items Items Total Balance at December 31, 2020 $ (68,544 ) $ 2,933 $ (65,611 ) Other comprehensive loss, net of tax, before reclassifications — (462 ) (462 ) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,596 — 1,596 Net current period other comprehensive income (loss), net of tax 1,596 (462 ) 1,134 Balance at June 30, 2021 $ (66,948 ) $ 2,471 $ (64,477 ) |
Note N - Restructuring Activi_2
Note N - Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, In thousands 2021 2021 Severance 1,209 1,413 Facility, asset impairment and other expense Lease impairment and termination expense — 294 Fixed Asset disposal and impairment charges (4 ) 6 Facility and other expenses 539 2229 Total facility, asset impairment and other expense 535 2,529 Total $ 1,744 $ 3,942 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | In thousands Three Months Ended June 30, 2022 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 405 $ — $ 405 Additions — — — — Payments and adjustments — (320 ) — (320 ) Ending Balance: $ — $ 85 $ — $ 85 In thousands Six Months Ended June 30, 2022 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning balance: $ — $ 738 $ — $ 738 Additions — — — — Payments and adjustments — (653 ) — (653 ) Ending balance: $ — $ 85 $ — $ 85 In thousands Three Months Ended June 30, 2021 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 350 $ 8 $ 358 Additions — 1,209 13 1,222 Payments — (622 ) — (622 ) Ending Balance: $ — $ 937 $ 21 $ 958 For the Six Months Ended June 30, 2021 Contract Termination Fee Severance Facility, asset impairment and other expense Total Beginning Balance: $ — $ 549 $ 4 $ 553 Additions — 1,413 17 1,430 Payments — (1,025 ) — (1,025 ) Ending Balance: $ — $ 937 $ 21 $ 958 |
Note O - Segment Reporting (Tab
Note O - Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months ended June 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 13,450 $ 15,382 $ 19,721 $ — $ — $ 48,553 Segment Operating Expense $ 10,584 $ 12,212 $ 15,770 $ — $ 5,390 $ 43,956 Contribution margin (loss) $ 2,866 $ 3,170 $ 3,951 $ — $ (5,390 ) $ 4,597 Shared Services $ 1,052 $ 677 $ 779 $ — $ (2,508 ) $ — EBITDA $ 1,814 $ 2,493 $ 3,172 $ — $ (2,882 ) $ 4,597 Depreciation $ 89 $ 201 $ 202 $ — $ 94 $ 586 Operating income (loss) $ 1,725 $ 2,292 $ 2,970 $ — $ (2,976 ) $ 4,011 Three Months ended June 30, 2021 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 14,208 $ 19,191 $ 15,860 $ — $ — $ 49,259 Segment Operating Expense $ 11,377 $ 15,138 $ 13,426 $ — $ 5,476 $ 45,417 Restructuring $ — $ — $ — $ 1,744 $ — $ 1,744 Contribution margin (loss) $ 2,831 $ 4,053 $ 2,434 $ (1,744 ) $ (5,476 ) $ 2,098 Shared Services $ 1,105 $ 703 $ 779 $ — $ (2,587 ) $ — EBITDA $ 1,726 $ 3,350 $ 1,655 $ (1,744 ) $ (2,889 ) $ 2,098 Depreciation $ 144 $ 203 $ 192 $ — $ 124 $ 663 Operating income (loss) $ 1,582 $ 3,147 $ 1,463 $ (1,744 ) $ (3,013 ) $ 1,435 Six Months ended June 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Restructuring Unallocated Corporate Total (In thousands) Revenues $ 26,374 $ 33,123 $ 38,118 $ — $ — $ 97,615 Segment Operating Expense $ 20,934 $ 25,773 $ 30,929 $ — $ 10,889 $ 88,525 Contribution margin $ 5,440 $ 7,350 $ 7,189 $ — $ (10,889 ) $ 9,090 Shared Services $ 2,165 $ 1,395 $ 1,630 $ — $ (5,190 ) $ — EBITDA $ 3,275 $ 5,955 $ 5,559 $ — $ (5,699 ) $ 9,090 Depreciation $ 191 $ 403 $ 404 $ — $ 186 $ 1,184 Operating income (loss) $ 3,084 $ 5,552 $ 5,155 $ — $ (5,885 ) $ 7,906 Six Months ended June 30, 2021 Marketing Services Customer Care Fulfillment and Logistics Services (1) Restructuring Unallocated Corporate Total (In thousands) Revenues $ 27,086 $ 35,735 $ 30,192 $ — $ — $ 93,013 Segment Operating Expense $ 22,418 $ 28,212 $ 25,600 $ — $ 10,929 $ 87,159 Restructuring $ — $ — $ — $ 3,942 $ — $ 3,942 Contribution margin $ 4,668 $ 7,523 $ 4,592 $ (3,942 ) $ (10,929 ) $ 1,912 Shared Services $ 2,360 $ 1,573 $ 1,720 $ — $ (5,653 ) $ — EBITDA $ 2,308 $ 5,950 $ 2,872 $ (3,942 ) $ (5,276 ) $ 1,912 Depreciation $ 295 $ 457 $ 359 $ — $ 250 $ 1,361 Operating income (loss) $ 2,013 $ 5,493 $ 2,513 $ (3,942 ) $ (5,526 ) $ 551 |
Note A - Overview and Signifi_2
Note A - Overview and Significant Accounting Policies (Details Textual) | 6 Months Ended |
Jun. 30, 2022 | |
Number of Reportable Segments | 3 |
Note C - Revenue From Contrac_3
Note C - Revenue From Contracts With Customers (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue, Remaining Performance Obligation, Amount | $ 0 | ||
Contract with Customer, Liability, Revenue Recognized | 2,500 | ||
Capitalized Contract Cost, Net, Total | 1,000 | $ 1,500 | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total Revenue | $ 48,553 | $ 49,259 | $ 97,615 | $ 93,013 |
Marketing Services [Member] | ||||
Total Revenue | 13,450 | 14,208 | 26,374 | 27,086 |
Customer Care [Member] | ||||
Total Revenue | 15,382 | 19,191 | 33,123 | 35,735 |
Fulfillment and Logistics Services [Member] | ||||
Total Revenue | 19,721 | 15,860 | 38,118 | 30,192 |
Transferred over Time [Member] | ||||
Total Revenue | 43,195 | 45,159 | 86,709 | 85,597 |
Transferred over Time [Member] | Marketing Services [Member] | ||||
Total Revenue | 10,610 | 12,087 | 21,491 | 23,535 |
Transferred over Time [Member] | Customer Care [Member] | ||||
Total Revenue | 15,382 | 19,191 | 33,123 | 35,735 |
Transferred over Time [Member] | Fulfillment and Logistics Services [Member] | ||||
Total Revenue | 17,203 | 13,881 | 32,095 | 26,327 |
Transferred at Point in Time [Member] | ||||
Total Revenue | 5,358 | 4,100 | 10,906 | 7,416 |
Transferred at Point in Time [Member] | Marketing Services [Member] | ||||
Total Revenue | 2,840 | 2,121 | 4,883 | 3,551 |
Transferred at Point in Time [Member] | Customer Care [Member] | ||||
Total Revenue | 0 | 0 | 0 | 0 |
Transferred at Point in Time [Member] | Fulfillment and Logistics Services [Member] | ||||
Total Revenue | $ 2,518 | $ 1,979 | $ 6,023 | $ 3,865 |
Note C - Revenue From Contrac_5
Note C - Revenue From Contracts With Customers - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Contract assets | $ 337 | $ 622 |
Deferred revenue and customer advances | 6,164 | 3,942 |
Deferred revenue, included in other long-term liabilities | $ 540 | $ 756 |
Note D - Leases (Details Textua
Note D - Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | $ 700 | $ 700 | $ 800 | |
Operating Lease, Right-of-Use Asset | 18,300 | 18,300 | 21,400 | |
Finance Lease, Right-of-Use Asset, Accumulated Depreciation | $ 800 | $ 700 | ||
Asset Impairment Charges, Total | 0 | 0 | ||
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year | 600 | 600 | ||
Lessor, Operating Lease, Payment to be Received, Year One | $ 200 | $ 200 | ||
Minimum [Member] | ||||
Lessee, Lease Remaining Lease Term (Year) | 1 year | |||
Maximum [Member] | ||||
Lessee, Lease Remaining Lease Term (Year) | 9 years | |||
Lessee, Lease, Renewal Term (Year) | 5 years |
Note D - Leases - Supplemental
Note D - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Operating Lease, Right-of-Use Asset | $ 18,300 | $ 21,400 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | 700 | 800 | |
Right-of-use Assets, total | 18,982 | 22,142 | |
Current portion of lease liabilities, operating leases | 5,119 | ||
Current portion of lease liabilities, finance leases | 188 | ||
Current portion of lease liabilities, total | 5,307 | 6,553 | |
Long-term lease liabilities, total | 16,594 | 19,215 | |
Total Lease Liabilities, finance leases | 305 | ||
Right of Use Assets [Member] | |||
Operating Lease, Right-of-Use Asset | 18,309 | 21,382 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization, Total | 673 | 760 | |
Short-term Lease Liabilities [Member] | |||
Current portion of lease liabilities, operating leases | 6,359 | ||
Current portion of lease liabilities, finance leases | 194 | ||
Current portion of lease liabilities, total | 6,553 | ||
Long-term Lease Liabilities [Member] | |||
Long-term lease liabilities, operating leases | 16,477 | 19,004 | |
Long-term lease liabilities, finance leases | 117 | 211 | |
Long-term lease liabilities, total | 16,594 | 19,215 | |
Short-term Lease Liabilities and Long-term Lease Liabilities [Member] | |||
Total Lease Liabilities, operating leases | 21,596 | [1] | 25,363 |
Total Lease Liabilities, finance leases | 305 | 405 | |
Total Lease Liabilities, total | $ 21,901 | $ 25,768 | |
[1]Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2022 and the fiscal year ending December 31, 2023 of $0.6 million and $0.2 million, respectively, are not included in the table above. |
Note D - Leases - Components of
Note D - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating lease cost | $ 1,419 | $ 1,913 | $ 3,000 | $ 4,032 |
Amortization of right-of-use assets | 41 | 49 | 87 | 98 |
Interest on lease liabilities | 4 | 8 | 9 | 15 |
Total Finance lease cost | 45 | 57 | 96 | 113 |
Variable lease cost | 447 | 634 | 986 | 1,554 |
Sublease income | (160) | (169) | (411) | (358) |
Total lease cost, net | $ 1,751 | $ 2,435 | 3,671 | 5,341 |
Operating cash flows from operating leases | 7,097 | 7,637 | ||
Operating cash flows from finance leases | 8 | 13 | ||
Financing cash flows from finance leases | $ 101 | $ 112 | ||
Weighted Average Remaining Lease term, Operating leases (Year) | 6 years 2 months 12 days | 5 years 9 months 18 days | 6 years 2 months 12 days | 5 years 9 months 18 days |
Weighted Average Remaining Lease term, Finance leases (Year) | 1 year 9 months 18 days | 2 years 6 months | 1 year 9 months 18 days | 2 years 6 months |
Weighted Average Discount Rate, Operating leases | 3.40% | 3.53% | 3.40% | 3.53% |
Weighted Average Discount Rate, Finance leases | 5.53% | 5.33% | 5.53% | 5.33% |
Note D - Leases - Maturities of
Note D - Leases - Maturities of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | ||
Remainder of 2022, operating leases | $ 2,437 | |||
Remainder of 2022, finance leases | 100 | |||
2023, operating leases | [1] | 5,222 | ||
2023, finance leases | 166 | |||
2024, operating leases | [1] | 3,820 | ||
2024, finance leases | 48 | |||
2025, operating leases | [1] | 2,117 | ||
2025, finance leases | 6 | |||
2026, operating leases | [1] | 2,014 | ||
2026, finance leases | 0 | |||
2027, operating leases | 8,229 | |||
2027, finance leases | 0 | |||
Total future minimum lease payments, operating leases | [1] | 23,839 | ||
Total future minimum lease payments, finance leases | 320 | |||
Less: Imputed interest, operating leases | [1] | 2,243 | ||
Less: Imputed interest, finance leases | 15 | |||
Total lease liabilities, finance leases | 305 | |||
Short-term Lease Liabilities and Long-term Lease Liabilities [Member] | ||||
Total lease liabilities, operating leases | 21,596 | [1] | $ 25,363 | |
Total lease liabilities, finance leases | $ 305 | $ 405 | ||
[1]Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2022 and the fiscal year ending December 31, 2023 of $0.6 million and $0.2 million, respectively, are not included in the table above. |
Note E - Convertible Preferre_2
Note E - Convertible Preferred Stock (Details Textual) - USD ($) | 6 Months Ended | ||
Jan. 30, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | |
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | 1,000,000 | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 1 | $ 1 | |
Wipro [Member] | |||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 1 | ||
Wipro [Member] | Common Stock [Member] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 100,000 | ||
Series A Preferred Stock [Member] | |||
Preferred Stock, Dividend Rate, Percentage | 5% | ||
Temporary Equity, Liquidation Preference | $ 2,200,000 | ||
Temporary Equity, Liquidation Preference Per Share (in dollars per share) | $ 220.82 | ||
Convertible Preferred Stock, Shares Issued upon Conversion (in shares) | 100.91 | ||
Series A Preferred Stock [Member] | Wipro [Member] | |||
Stock Issued During Period, Shares, New Issues (in shares) | 9,926 | ||
Shares Issued, Price Per Share (in dollars per share) | $ 1,000 | ||
Stock Issued During Period, Value, New Issues | $ 9,900,000 | ||
Payments of Stock Issuance Costs | 200,000 | ||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 9,900,000 | ||
Series A Preferred Stock [Member] | Wipro [Member] | Preferred Stock [Member] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares) | 9,926 | ||
Stock Repurchase Program, Authorized Amount | $ 9,926,000 |
Note F - Long-term Debt (Detail
Note F - Long-term Debt (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 21, 2021 | Jun. 10, 2021 | Apr. 14, 2020 | Apr. 17, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Letters of Credit Outstanding, Amount | $ 1,000 | $ 1,000 | $ 1,000 | ||||||
Proceeds from Lines of Credit, Total | 0 | ||||||||
Interest Expense, Debt, Total | 100 | $ 200 | 200 | $ 300 | |||||
Gain (Loss) on Extinguishment of Debt, Total | $ 0 | $ 10,000 | $ 0 | $ 10,000 | |||||
Revolving Credit Facility [Member] | Bloomberg Short-Term Bank Yield Index Rate [Member] | Texas Capital Bank [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.74% | 3.74% | |||||||
New Credit Facility [Member] | |||||||||
Long-Term Line of Credit, Total | $ 10,000 | $ 10,000 | 10,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | 14,000 | 14,000 | |||||||
New Credit Facility [Member] | Revolving Credit Facility [Member] | Texas Capital Bank [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000 | ||||||||
Debt Instrument, Term (Year) | 3 years | ||||||||
Texas Capital Credit Facility [Member] | |||||||||
Long-Term Line of Credit, Total | 5,000 | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||||||
Line of Credit Facility, Collateral Fees, Percentage | 0.50% | ||||||||
Interest Expense, Debt, Total | 400 | ||||||||
Repayments of Long-term Lines of Credit | $ 12,100 | ||||||||
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 | ||||||||
Notes Payable, Total | $ 10,000 | $ 10,000 | |||||||
Gain (Loss) on Extinguishment of Debt, Total | $ 10,000 |
Note F - Long-term Debt - Long-
Note F - Long-term Debt - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
New Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Total debt | $ 10 | $ 5 |
Note G - Stock-based Compensa_2
Note G - Stock-based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expense | $ 0.6 | $ 0.5 | $ 0.8 | $ 0.8 |
Note H - Employee Benefit Pla_3
Note H - Employee Benefit Plans (Details Textual) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restoration Pension Plan [Member] | ||
Defined Benefit Plan, Plan Assets, Benefits Paid | $ 0.9 | $ 0.9 |
Qualified Plan II [Member] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0.5 | |
Qualified Plan II [Member] | Pension Plan [Member] | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year One | $ 1.3 |
Note H - Employee Benefit Pla_4
Note H - Employee Benefit Plans - Net Period of Net Periodic Cost (Details) - Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest cost | $ 1,260 | $ 1,168 | $ 2,520 | $ 2,336 |
Expected return on plan assets | (1,468) | (1,688) | (2,936) | (3,376) |
Recognized actuarial loss | 719 | 860 | 1,438 | 1,720 |
Net periodic benefit cost | $ 511 | $ 340 | $ 1,022 | $ 680 |
Note I - Income Taxes (Details
Note I - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Total | $ 671 | $ 255 | $ 1,125 | $ 846 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 13.10% | 2.40% | 12.60% | 8.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | ||||
State and Local Jurisdiction [Member] | |||||
Open Tax Year | 2016 2017 2018 2019 2020 2021 | ||||
Foreign Tax Authority [Member] | |||||
Open Tax Year | 2016 2017 2018 2019 2020 2021 | ||||
Tax Year 2019 [Member] | |||||
Proceeds from Income Tax Refunds | $ 200 | $ 6,400 | |||
Tax Year 2018 [Member] | |||||
Proceeds from Income Tax Refunds | $ 7,600 | $ 3,200 |
Note J - Earnings Per Share (De
Note J - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Option [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 13,063 | 50,653 | 14,063 | 52,442 | ||
Restricted Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 3,846 | 11,138 | 1,934 | ||
Convertible Preferred Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,001,614 | 1,001,614 | 1,001,614 | 1,001,614 | ||
Series A Preferred Stock [Member] | ||||||
Preferred Stock, Dividend Rate, Percentage | 5% |
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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income | $ 4,461 | $ 3,345 | $ 10,569 | $ (1,758) | $ 7,806 | $ 8,811 |
Less: Preferred Stock dividends | 124 | 124 | 246 | 246 | ||
Less: Earnings attributable to participating securities | 542 | 1,361 | 946 | 1,118 | ||
Income attributable to common stockholders | 3,795 | 9,084 | 6,614 | 7,447 | ||
Add back: Allocation of earnings to participating securities | 542 | 1,361 | 946 | 1,118 | ||
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities | (518) | (1,277) | (908) | (1,055) | ||
Numerator for diluted EPS | $ 3,819 | $ 9,168 | $ 6,652 | $ 7,510 | ||
Basic (in shares) | 7,017 | 6,686 | 7,004 | 6,669 | ||
Diluted (in shares) | 7,388 | 7,193 | 7,338 | 7,131 | ||
Basic (in dollars per share) | $ 0.54 | $ 1.36 | $ 0.94 | $ 1.12 | ||
Diluted (in dollars per share) | $ 0.52 | $ 1.27 | $ 0.91 | $ 1.05 |
Note K - Comprehensive Income_3
Note K - Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Balance | $ (20,571) | $ (24,715) | $ (54,423) | $ (53,123) | $ (24,715) | $ (53,123) |
Total other comprehensive (loss) income, net of tax | (2,029) | 506 | 856 | 278 | (1,523) | 1,134 |
Balance | (17,711) | (20,571) | (42,559) | (54,423) | (17,711) | (42,559) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Balance | (54,394) | (68,544) | (54,394) | (68,544) | ||
Other comprehensive loss, net of tax, before reclassifications | 0 | 0 | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income | 1,588 | 1,596 | ||||
Total other comprehensive (loss) income, net of tax | 1,588 | 1,596 | ||||
Balance | (52,806) | (66,948) | (52,806) | (66,948) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Balance | 1,066 | 2,933 | 1,066 | 2,933 | ||
Other comprehensive loss, net of tax, before reclassifications | (3,111) | (462) | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income | 0 | 0 | ||||
Total other comprehensive (loss) income, net of tax | (3,111) | (462) | ||||
Balance | (2,045) | 2,471 | (2,045) | 2,471 | ||
AOCI Attributable to Parent [Member] | ||||||
Balance | (52,822) | (53,328) | (65,333) | (65,611) | (53,328) | (65,611) |
Other comprehensive loss, net of tax, before reclassifications | (3,111) | (462) | ||||
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income | 1,588 | 1,596 | ||||
Total other comprehensive (loss) income, net of tax | (2,029) | 506 | 856 | 278 | (1,523) | 1,134 |
Balance | $ (54,851) | $ (52,822) | $ (64,477) | $ (65,333) | $ (54,851) | $ (64,477) |
Note L - Litigation and Conti_2
Note L - Litigation and Contingencies (Details Textual) $ in Thousands | Jun. 30, 2022 USD ($) |
Estimated Litigation Liability | $ 0 |
Note N - Restructuring Activi_3
Note N - Restructuring Activities (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 ft² | |
Restructuring and Related Cost, Expected Cost, Total | $ 0 | $ 27,600 | |||
Restructuring Costs, Total | $ 0 | $ 309 | |||
Facility Closing [Member] | |||||
Restructuring Costs, Total | $ 1,700 | 3,900 | |||
Employee Severance [Member] | |||||
Restructuring Costs, Total | 1,200 | 1,400 | |||
Facility Related and Other Expenses [Member] | |||||
Restructuring Costs, Total | $ 500 | 2,200 | |||
Lease Impairment [Member] | |||||
Restructuring Costs, Total | $ 300 | ||||
Facility in Kansas City [Member] | |||||
Area of Real Estate Property (Square Foot) | ft² | 400,000 |
Note N - Restructuring Activi_4
Note N - Restructuring Activities - Restructuring Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring expense | $ 0 | $ 1,744 | $ 0 | $ 3,942 |
Employee Severance [Member] | ||||
Restructuring expense | 1,209 | 1,413 | ||
Lease Impairment and Termination Charges [Member] | ||||
Restructuring expense | 0 | 294 | ||
Capital Losses from Asset Disposal [Member] | ||||
Restructuring expense | (4) | 6 | ||
Facility Closing [Member] | ||||
Restructuring expense | 539 | 2,229 | ||
Facility, Asset Impairment and Other Expense [Member] | ||||
Restructuring expense | $ 535 | $ 2,529 |
Note N - Restructuring Activi_5
Note N - Restructuring Activities - Changes in Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Beginning Balance: | $ 405 | $ 358 | $ 738 | $ 553 |
Additions | 0 | 1,222 | 0 | 1,430 |
Payments and adjustments | (320) | (622) | (653) | (1,025) |
Ending Balance: | 85 | 958 | 85 | 958 |
Contract Termination [Member] | ||||
Beginning Balance: | 0 | 0 | 0 | 0 |
Additions | 0 | 0 | 0 | 0 |
Payments and adjustments | 0 | 0 | 0 | 0 |
Ending Balance: | 0 | 0 | 0 | 0 |
Employee Severance [Member] | ||||
Beginning Balance: | 405 | 350 | 738 | 549 |
Additions | 0 | 1,209 | 0 | 1,413 |
Payments and adjustments | (320) | (622) | (653) | (1,025) |
Ending Balance: | 85 | 937 | 85 | 937 |
Facility, Asset Impairment and Other Expense [Member] | ||||
Beginning Balance: | 0 | 8 | 0 | 4 |
Additions | 13 | 17 | ||
Payments and adjustments | 0 | 0 | 0 | 0 |
Ending Balance: | $ 0 | $ 21 | $ 0 | $ 21 |
Note O - Segment Reporting (Det
Note O - Segment Reporting (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Number of Operating Segments | 3 |
Fulfillment and Logistics Services [Member] | |
Litigation Settlement, Amount Awarded from Other Party | $ 0.8 |
Note O - Segment Reporting - Fi
Note O - Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Revenues | $ 48,553 | $ 49,259 | $ 97,615 | $ 93,013 | |
Segment Operating Expense | 43,956 | 45,417 | 88,525 | 87,159 | |
Contribution margin (loss) | 4,597 | 2,098 | 9,090 | 1,912 | |
Shared Services | 0 | 0 | 0 | 0 | |
EBITDA | 4,597 | 2,098 | 9,090 | 1,912 | |
Depreciation | 586 | 663 | 1,184 | 1,361 | |
Operating income | 4,011 | 1,435 | 7,906 | 551 | |
Restructuring expense | 0 | 1,744 | 0 | 3,942 | |
Intersegment Eliminations [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Segment Operating Expense | 0 | 0 | 0 | 0 | |
Contribution margin (loss) | 0 | (1,744) | 0 | (3,942) | |
Shared Services | 0 | 0 | 0 | 0 | |
EBITDA | 0 | (1,744) | 0 | (3,942) | |
Depreciation | 0 | 0 | 0 | 0 | |
Operating income | 0 | (1,744) | 0 | (3,942) | |
Restructuring expense | 1,744 | 3,942 | |||
Corporate, Non-Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Segment Operating Expense | 5,390 | 5,476 | 10,889 | 10,929 | |
Contribution margin (loss) | (5,390) | (5,476) | (10,889) | (10,929) | |
Shared Services | (2,508) | (2,587) | (5,190) | (5,653) | |
EBITDA | (2,882) | (2,889) | (5,699) | (5,276) | |
Depreciation | 94 | 124 | 186 | 250 | |
Operating income | (2,976) | (3,013) | (5,885) | (5,526) | |
Restructuring expense | 0 | 0 | |||
Marketing Services [Member] | Operating Segments [Member] | |||||
Revenues | 13,450 | 14,208 | 26,374 | 27,086 | |
Segment Operating Expense | 10,584 | 11,377 | 20,934 | 22,418 | |
Contribution margin (loss) | 2,866 | 2,831 | 5,440 | 4,668 | |
Shared Services | 1,052 | 1,105 | 2,165 | 2,360 | |
EBITDA | 1,814 | 1,726 | 3,275 | 2,308 | |
Depreciation | 89 | 144 | 191 | 295 | |
Operating income | 1,725 | 1,582 | 3,084 | 2,013 | |
Restructuring expense | 0 | 0 | |||
Customer Care [Member] | Operating Segments [Member] | |||||
Revenues | 15,382 | 19,191 | 33,123 | 35,735 | |
Segment Operating Expense | 12,212 | 15,138 | 25,773 | 28,212 | |
Contribution margin (loss) | 3,170 | 4,053 | 7,350 | 7,523 | |
Shared Services | 677 | 703 | 1,395 | 1,573 | |
EBITDA | 2,493 | 3,350 | 5,955 | 5,950 | |
Depreciation | 201 | 203 | 403 | 457 | |
Operating income | 2,292 | 3,147 | 5,552 | 5,493 | |
Restructuring expense | 0 | 0 | |||
Fulfillment and Logistics Services [Member] | Operating Segments [Member] | |||||
Revenues | [1] | 19,721 | 15,860 | 38,118 | 30,192 |
Segment Operating Expense | [1] | 15,770 | 13,426 | 30,929 | 25,600 |
Contribution margin (loss) | [1] | 3,951 | 2,434 | 7,189 | 4,592 |
Shared Services | 779 | 779 | 1,630 | 1,720 | |
EBITDA | [1] | 3,172 | 1,655 | 5,559 | 2,872 |
Depreciation | [1] | 202 | 192 | 404 | 359 |
Operating income | [1] | $ 2,970 | 1,463 | $ 5,155 | 2,513 |
Restructuring expense | [1] | $ 0 | $ 0 | ||
[1]Operating expense in this segment includes $0.8 million favorable litigation settlement as well as the related legal expenses. |