Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 15, 2023 | |
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 | Q3 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | 1 Executive Drive, Suite 303 | |
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 | 7,216,314 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 13,288 | $ 10,364 |
Accounts receivable (less allowance for doubtful accounts of $170 and $163, respectively) | 33,303 | 39,700 |
Unbilled accounts receivable | 10,350 | 7,893 |
Contract assets | 433 | 309 |
Prepaid expenses | 2,722 | 2,176 |
Prepaid income taxes and income tax receivable | 1,221 | 4,262 |
Other current assets | 878 | 1,607 |
Total current assets | 62,195 | 66,311 |
Property, plant and equipment (less accumulated depreciation of $37,847 and $44,013, respectively) | 9,279 | 10,523 |
Right-of-use assets | 16,773 | 19,169 |
Other assets | ||
Intangible assets, net | 3,000 | 3,540 |
Goodwill | 2,426 | 2,398 |
Deferred tax assets, net | 15,816 | 16,306 |
Other long-term assets | 1,323 | 1,737 |
Total other assets | 22,565 | 23,981 |
Total assets | 110,812 | 119,984 |
Current liabilities | ||
Accounts payable and accrued expenses | 18,547 | 22,465 |
Accrued payroll and related expenses | 4,944 | 6,679 |
Deferred revenue and customer advances | 5,681 | 4,590 |
Customer postage and program deposits | 1,445 | 1,223 |
Other current liabilities | 2,652 | 2,862 |
Current portion of lease liabilities | 5,446 | 5,747 |
Total current liabilities | 38,715 | 43,566 |
Long-term lease liabilities, net of current portion | 13,553 | 16,575 |
Other long-term liabilities | 2,142 | 3,263 |
Total liabilities | 90,308 | 101,176 |
Stockholders’ equity | ||
Common stock, $1 par value, 25,000,000 shares authorized;12,221,484 shares issued, 7,216,314 and 7,402,614 shares outstanding at September 30, 2023 and December 31, 2022, respectively | 12,221 | 12,221 |
Additional paid-in capital | 160,213 | 218,411 |
Retained earnings | 846,897 | 846,490 |
Less treasury stock, 5,005,170 shares at cost at September 30, 2023 and 4,818,870 shares at cost at December 31, 2022 | (953,591) | (1,010,012) |
Accumulated other comprehensive loss | (45,236) | (48,302) |
Total stockholders’ equity | 20,504 | 18,808 |
Total liabilities and stockholders’ equity | 110,812 | 119,984 |
Qualified Plan [Member] | ||
Current liabilities | ||
Pension liabilities | 17,388 | 18,674 |
Nonqualified Plan [Member] | ||
Current liabilities | ||
Pension liabilities | $ 18,510 | $ 19,098 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 170 | $ 163 |
Accumulated depreciation | $ 37,847 | $ 44,013 |
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) | 12,221,484 | 12,221,484 |
Common stock, shares outstanding (in shares) | 7,216,314 | 7,402,614 |
Treasury stock, shares (in shares) | 5,005,170 | 4,818,870 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 47,119 | $ 53,886 | $ 142,001 | $ 151,500 |
Operating expenses | ||||
Labor | 22,953 | 27,389 | 74,084 | 78,415 |
Production and distribution | 15,378 | 16,175 | 43,158 | 42,400 |
Advertising, selling, general and administrative | 4,922 | 5,970 | 16,071 | 17,243 |
Depreciation and amortization expense | 952 | 579 | 3,051 | 1,764 |
Total operating expenses | 44,205 | 50,113 | 136,364 | 139,822 |
Operating income | 2,914 | 3,773 | 5,637 | 11,678 |
Other expense (income), net | ||||
Interest expense, net | 1 | 84 | (150) | 313 |
Other expense (income), net | 383 | (4,696) | 3,760 | (5,951) |
Total other expense (income), net | 384 | (4,612) | 3,610 | (5,638) |
Income before income taxes | 2,530 | 8,385 | 2,027 | 17,316 |
Income tax expense | 1,912 | 1,219 | 1,620 | 2,344 |
Net income | 618 | 7,166 | 407 | 14,972 |
Less: Preferred Stock dividends | 0 | 125 | 0 | 371 |
Less: Earnings attributable to participating securities | 0 | 868 | 0 | 1,817 |
Net income attributable to common stockholders | $ 618 | $ 6,173 | $ 407 | $ 12,784 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.09 | $ 0.87 | $ 0.06 | $ 1.81 |
Diluted (in dollars per share) | $ 0.08 | $ 0.83 | $ 0.05 | $ 1.73 |
Weighted average shares used to compute income per share attributable to common shares | ||||
Basic (in shares) | 7,239 | 7,125 | 7,340 | 7,045 |
Diluted (in shares) | 7,314 | 7,524 | 7,509 | 7,418 |
Comprehensive income, net of tax: | ||||
Net Income | $ 618 | $ 7,166 | $ 407 | $ 14,972 |
Adjustment to pension liability, net | 503 | 719 | 1,421 | 2,307 |
Foreign currency translation adjustment | (559) | (3,007) | 1,645 | (6,118) |
Total other comprehensive (loss) income, net of tax | (56) | (2,288) | 3,066 | (3,811) |
Comprehensive income | $ 562 | $ 4,878 | $ 3,473 | $ 11,161 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | AOCI Attributable to Parent [Member] | Total |
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 | 1,915 | 0 | 0 | 0 | 1,915 |
Vesting of RSUs | 0 | 0 | (72,315) | 0 | 71,165 | 0 | (1,150) |
Net Income | 0 | 0 | 0 | 14,972 | 0 | 0 | 14,972 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (3,811) | (3,811) |
Balance at Sep. 30, 2022 | 9,723 | 12,121 | 220,311 | 826,066 | (1,014,148) | (57,139) | (12,789) |
Balance at Jun. 30, 2022 | 9,723 | 12,121 | 272,727 | 818,900 | (1,066,608) | (54,851) | (17,711) |
Stock-based compensation | 0 | 0 | 927 | 0 | 0 | 0 | 927 |
Vesting of RSUs | 0 | 0 | (53,343) | 0 | 52,460 | 0 | (883) |
Net Income | 0 | 0 | 0 | 7,166 | 0 | 0 | 7,166 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (2,288) | (2,288) |
Balance at Sep. 30, 2022 | 9,723 | 12,121 | 220,311 | 826,066 | (1,014,148) | (57,139) | (12,789) |
Balance at Dec. 31, 2022 | 0 | 12,221 | 218,411 | 846,490 | (1,010,012) | (48,302) | 18,808 |
Stock-based compensation | 0 | 0 | 1,203 | 0 | 0 | 0 | 1,203 |
Vesting of RSUs | 0 | 0 | (59,401) | 0 | 58,791 | 0 | (610) |
Repurchase of common stock | 0 | 0 | 0 | 0 | (2,370) | 0 | (2,370) |
Net Income | 0 | 0 | 0 | 407 | 0 | 0 | 407 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 3,066 | 3,066 |
Balance at Sep. 30, 2023 | 0 | 12,221 | 160,213 | 846,897 | (953,591) | (45,236) | 20,504 |
Balance at Jun. 30, 2023 | 0 | 12,221 | 187,386 | 846,279 | (980,156) | (45,180) | 20,550 |
Stock-based compensation | 0 | 0 | 160 | 0 | 0 | 0 | 160 |
Vesting of RSUs | 0 | 0 | (27,333) | 0 | 27,055 | 0 | (278) |
Repurchase of common stock | 0 | 0 | 0 | 0 | (490) | 0 | (490) |
Net Income | 0 | 0 | 0 | 618 | 0 | 0 | 618 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | (56) | (56) |
Balance at Sep. 30, 2023 | $ 0 | $ 12,221 | $ 160,213 | $ 846,897 | $ (953,591) | $ (45,236) | $ 20,504 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net Income | $ 407 | $ 14,972 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 3,051 | 1,764 |
Stock-based compensation | 1,203 | 1,776 |
Net pension cost (payment) | 16 | (775) |
Deferred income taxes | (453) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable and contract assets | 3,816 | (2,916) |
Prepaid expenses, income tax receivable and other current assets | 4,106 | 2,496 |
Accounts payable and accrued expenses | (3,785) | 4,778 |
Deferred revenue and customer advances | 1,091 | 3,101 |
Customer postage and program deposits | 222 | (1,912) |
Other accrued expenses and liabilities | (3,564) | (1,032) |
Net cash provided by operating activities | 6,110 | 22,252 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment | (1,480) | (5,743) |
Proceeds from sale of property, plant and equipment | 3 | 57 |
Net cash used in investing activities | (1,477) | (5,686) |
Cash Flows from Financing Activities | ||
Repayment of borrowings | 0 | (5,000) |
Debt financing costs | (6) | (123) |
Payment of finance leases | (144) | (148) |
Repurchase of common stock | (2,370) | 0 |
Treasury stock activities | (610) | (1,150) |
Net cash used in financing activities | (3,130) | (6,421) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,421 | (6,118) |
Net increase in cash and cash equivalents and restricted cash | 2,924 | 4,027 |
Cash and cash equivalents and restricted cash at beginning of period | 11,364 | 15,133 |
Cash and cash equivalents and restricted cash at end of period | 14,288 | 19,160 |
Supplemental disclosures | ||
Cash paid for interest | 198 | 137 |
Cash (received) paid for income taxes, net | (3,369) | 828 |
Non-cash investing and financing activities | ||
Purchases of property, plant and equipment included in accounts payable | 1,935 | 2,385 |
Cash and cash equivalents | 13,288 | 6,907 |
Restricted cash | 0 | 2,327 |
Cash held in Escrow account included in other assets (see Note L) | 1,000 | 9,926 |
Cash and cash equivalents and restricted cash at end of period | $ 14,288 | $ 19,160 |
Note A - Overview and Significa
Note A - Overview and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 10 December 31, 2022 ( “2022 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 and 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 those products or services based on the relevant contract. We apply the following five • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized when the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically 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 Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("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 | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note B - Recent Accounting Pronouncements Recently adopted accounting pronouncements In October 2021, 2021 08, 805 Accounting for Contract Assets and Liabilities from Contracts with Customers 606. December 15, 2022. The Company adopted this standard on January 1, 2023 not |
Note C - Revenue From Contracts
Note C - Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2023 | |
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 GAAP, we present sales taxes assessed on revenue-producing transactions on a net basis. Disaggregation of Revenue We disaggregate revenue by three three nine September 30, 2023 2022 three Three Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 9,272 $ 1,319 $ 10,591 Customer Care 13,998 — 13,998 Fulfillment and Logistics Services 18,625 3,905 22,530 Total Revenues $ 41,895 $ 5,224 $ 47,119 Three Months Ended September 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 10,984 $ 2,032 $ 13,016 Customer Care 17,375 — 17,375 Fulfillment and Logistics Services 21,398 2,097 23,495 Total Revenues $ 49,757 $ 4,129 $ 53,886 Nine Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 29,321 $ 3,430 $ 32,751 Customer Care 45,625 — 45,625 Fulfillment and Logistics Services 52,044 11,581 63,625 Total Revenues $ 126,990 $ 15,011 $ 142,001 Nine Months Ended September 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 32,474 $ 6,915 $ 39,389 Customer Care 50,499 — 50,499 Fulfillment and Logistics Services 53,489 8,123 61,612 Total Revenues $ 136,462 $ 15,038 $ 151,500 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 per 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 database 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 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 as the total transaction quantities to be provided are unknown at the onset of a contract, and 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 recall support, trade marketing fulfillment, ecommerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to efficiently and effectively 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 on a per transaction basis and our contracts allow us to invoice for services provided and reflect the value to the customer of the services provided 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 as the total transaction quantities to be provided are unknown at the onset of a contract, and are estimated using the expected value method. Upfront Non-Refundable Fees We may not not four five six one September 30, 2023 December 31, 2022 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 the performance obligations that have an original expected duration of one September 30, 2023 Contract Balances We record a receivable when revenue is recognized prior to invoicing when we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance such as delivery of an additional good or service ( e.g September 30, 2023 December 31, 2022 In thousands September 30, 2023 December 31, 2022 Contract assets 433 309 Deferred revenue and customer advances 5,681 4,590 Deferred revenue, included in other long-term liabilities 321 432 Revenue recognized during the nine September 30, 2023 y $3.9 million. Revenue recognized during the nine September 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 September 30, 2023 December 31, 2022 |
Note D - Leases
Note D - Leases | 9 Months Ended |
Sep. 30, 2023 | |
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 eight may five We subleased our Fullerton (CA), Jacksonville (FL) and Uxbridge (UK) facilities. The lease and sublease for Fullerton (CA) facility expired in April 2023, October 2023 July 2024. As of September 30, 2023 December 31, 2022, not none may There was no impairment of leases during the three nine September 30, 2023 2022 . The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of September 30, 2023 Operating Leases Finance Leases Total Right-of-use Assets $ 16,289 $ 484 $ 16,773 Liabilities Current portion of lease liabilities 5,388 58 5,446 Long-term lease liabilities 13,538 15 13,553 Total Lease Liabilities $ 18,926 $ 73 $ 18,999 In thousands As of December 31, 2022 Operating Leases Finance Leases Total Right-of-use Assets $ 18,574 $ 595 $ 19,169 Liabilities Short-term lease liabilities 5,587 160 5,747 Long-term lease liabilities 16,523 52 16,575 Total Lease Liabilities $ 22,110 $ 212 $ 22,322 For the three nine September 30, 2023 2022 In thousands Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Operating lease cost $ 1,338 $ 1,393 Finance lease cost: Amortization of right-of-use assets 35 39 Interest on lease liabilities 2 4 Total Finance lease cost 37 43 Variable lease cost 537 433 Sublease income (177 ) (128 ) Total lease cost, net $ 1,735 $ 1,741 In thousands Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Operating lease cost $ 4,160 $ 4,393 Finance lease cost: Amortization of right-of-use assets 115 126 Interest on lease liabilities 6 13 Total Finance lease cost 121 139 Variable lease cost 1,525 1,419 Sublease income (676 ) (539 ) Total lease cost, net $ 5,130 $ 5,412 Other information related to leases was as follows: In thousands Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,525 $ 10,995 Operating cash flows from finance leases 6 12 Financing cash flows from finance leases 144 148 Weighted Average Remaining Lease term Operating leases 5.6 6.3 Finance leases 1.3 1.6 Weighted Average Discount Rate Operating leases 3.56 % 3.39 % Finance leases 7.04 % 5.60 % The maturities of the Company’s finance and operating lease liabilities as of September 30, 2023 In thousands Operating Leases (1 Finance Leases Year Ending December 31, Remainder of 2023 $ 1,600 $ 18 2024 5,286 50 2025 2,873 8 2026 2,373 — 2027 2,291 — 2027 and beyond 6,217 — Total future minimum lease payments 20,640 76 Less: imputed interest 1,714 3 Total lease liabilities $ 18,926 $ 73 ( 1 December 31, 2023 December 31, 2024 not |
Note E - Convertible Preferred
Note E - Convertible Preferred Stock and Share Repurchase Program | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | Note E - Convertible Preferred Stock and Share Repurchase Program 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, . June 30, 2022 December 2, 2022. On March 20, 2023, Share Repurchase Program On May 2, 2023, three nine September 30, 2023 |
Note F - Long-term Debt
Note F - Long-term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | Note F — Long-Term Debt Credit Facility As of September 30, 2023 December 31, 2022 As of September 30, 2023 December 31, 2022 September 30, 2023 As of September 30, 2023 On December 21, 2021, three December 21, 2021, The 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 September 30, 2023 . The loans under the 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 7 .62% September 30, 2023 . The outstanding amounts advanced under the Credit Facility are due and payable in full on December 21, 2024. Cash payments for interest were $34 thousand and $52 thousand for the three September 30, 2023 2022 nine September 30, 2023 2022 |
Note G - Stock-based Compensati
Note G - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
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 $0.2 million and $0.9 million of stock-based compensation expense during the three September 30, 2023 2022 , respectively. We recognized $1.2 million and $1.8 million of stock-based compensation expense during the nine September 30, 2023 2022 , respectively. |
Note H - Employee Benefit Plans
Note H - Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
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. In January 2023, 18 third The overfunded or underfunded status of our defined benefit post-retirement plans is recorded as an asset or liability on our balance sheets. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income in the Consolidated Statements of Comprehensive Income. We currently measure the funded status of our defined benefit plans as of December 31, Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2023 2022 2023 2022 Interest cost $ 1,772 $ 1,260 $ 5,316 $ 3,780 Expected return on plan assets (1,554 ) (1,468 ) (4,662 ) (4,404 ) Recognized actuarial loss 630 719 1,890 2,157 Net periodic benefit cost $ 848 $ 511 $ 2,544 $ 1,533 Based on current estimates, we will be required to make a $1.6 million contribution to the combined qualified Pension Plan in 2023 nine September 30, 2023 We are not not 2023 nine September 30, 2023 2022 |
Note I - Income Taxes
Note I - Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note I - Income Taxes The income tax provision was $1.9 million and $1.2 million for the three September 30, 2023 2022 three September 30, 2023 three September 30, 2022. The income tax provision was $1.6 million and $2.3 million for the nine September 30, 2023 2022 nine September 30, 2023 nine September 30, 2022. Harte Hanks, or one no 2017. no 2017. 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 September 30, 2023 December 31, 2022 |
Note J - Earnings Per Share
Note J - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 December 2022, In periods in which the Company has a net loss, basic loss per share is calculated using the treasury stock method. The treasury stock method is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period. The two not Reconciliations of basic and diluted EPS were as follows: Three Months Ended September 30, In thousands, except per share amounts 2023 2022 Numerator: Net income $ 618 $ 7,166 Less: Preferred stock dividends — 125 Less: Earnings attributable to participating securities — 868 Numerator for basic EPS: income attributable to common stockholders 618 6,173 Effect of dilutive securities: Add back: Allocation of earnings to participating securities — 868 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities — (827 ) Numerator for diluted EPS $ 618 $ 6,214 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,239 7,125 Diluted EPS denominator 7,314 7,524 Basic income per Common Share $ 0.09 $ 0.87 Diluted income per Common Share $ 0.08 $ 0.83 For the three September 30, 2023 2022 132 ,193 Nine Months Ended September 30, In thousands, except per share amounts 2023 2022 Numerator: Net income $ 407 $ 14,972 Less: Preferred stock dividend — 371 Less: Earnings attributable to common stockholders — 1,817 Numerator for basic EPS: income attributable to common stockholders 407 12,784 Effect of dilutive securities: Add back: Allocation of earnings to participating securities — 1,817 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities — (1,737) Numerator for diluted EPS $ 407 $ 12,864 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,340 7,045 Diluted EPS denominator 7,509 7,418 Basic income per Common Share $ 0.06 $ 1.81 Diluted income per Common Share $ 0.05 $ 1.73 For the nine September 30, 2023 2022 8 ,098 |
Note K - Comprehensive Income
Note K - Comprehensive Income | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note K — Comprehensive Income Comprehensive Income for a period encompasses net income (loss) 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, 2022 $ (44,120 ) $ (4,182 ) $ (48,302) Other comprehensive income, net of tax, before reclassifications — 1,421 1,421 Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,645 — 1,645 Net current period other comprehensive income, net of tax 1,645 1,421 3,066 Balance at September 30, 2023 $ (42,475 ) $ (2,761 ) $ (45,236) 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 — (6,118 ) (6,118) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 2,307 — 2,307 Net current period other comprehensive income (loss), net of tax 2,307 (6,118 ) (3,811) Balance at September 30, 2022 $ (52,087 ) $ (5,052 ) $ (57,139) 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 - Acquisition of Inside
Note L - Acquisition of Inside Out Solutions, LLC | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note L — Acquisition of Inside Out Solutions, LLC On December 1, 2022 (the “Closing Date”), December 1, 2022 InsideOut is a premium sales enablement agency offering technology and data driven support to technology, media telecommunications, business services, industrial, and financial technology customers in the North American and European markets with its headquarters in St. Petersburg, Florida. The acquisition of InsideOut further expands our capabilities within our marketing services and customer care segments and strengthens our ability to drive profitable revenue growth within our current sales enablement offerings, including: (i) demand generation which creates qualified marketing leads for our clients, and (ii) inside sales offerings to further promote a client’s internal growth objectives. In addition, the owner and CEO of InsideOut entered into a two Pursuant to the Asset Purchase Agreement, $5.75 million of the Purchase Price was paid in cash at closing, $1.0 million in cash was placed in escrow to satisfy indemnification obligations, if any, and separately, to satisfy earn-outs related to future revenue performance. In addition, $0.75 million of the Purchase Price was paid at closing in shares of Common Stock issued in a private placement. fifteen November 28, 2022. September 30, 2023 December 31, 2022. The Purchase Price was subject to a post-closing net working capital true-up 180 not The acquisition was accounted for under the acquisition method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition has been recorded to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the acquisition. The carrying values for current assets and liabilities were deemed to approximate their fair values due to the short-term nature of these assets and liabilities. The following table shows the amounts recorded as of their acquisition date. In thousands Amount Accounts receivable $ 1,445 Prepaid expenses 148 Property, plant and equipment 177 Total assets acquired 1,770 Less: Current liabilities assumed (761 ) Net assets acquired $ 1,009 We recognized $3.6 million of intangible assets and $2.4 million of goodwill associated with this acquisition. The amount of goodwill recorded reflects expected earning potential and synergies with our Customer Care segment. We are amortizing the intangible assets on a straight-line basis over its useful life of five three nine September 30, 2023 were $180 thousand and $540 thousand, respectively. A summary of the Company’s intangible asset as of September 30, 2023 is as follows: Weighted Average Gross Accumulated Net Carrying In thousands Amortization Period Carrying Amount Amortization Amount Customer Relationships 5 years $ 3,600 $ 600 $ 3,000 Estimated future amortization expense related to intangible assets as of September 30, 2023 is as follows: In thousands Year Ending December 31, Amount Remainder of 2023 $ 180 2024 720 2025 720 2026 720 2027 660 Total $ 3,000 The Company's result of operations for the three nine September 30, 2023 |
Note M - Litigation and Conting
Note M - Litigation and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note M — 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 no We are also subject to various claims and legal proceedings in the ordinary course of conducting our businesses and, from time to time, we may In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. |
Note N - Segment Reporting
Note N - Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note N — Segment Reporting Harte Hanks is a leading global customer experience company. We have organized our operations into three 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 for use in assessing segment performance and allocating resources. Those measures are revenue, operating income (loss) and operating income (loss) plus depreciation and amortization (“EBITDA”). not not not Overview and Significant Accounting Policies. The following table presents financial information by segment: Three Months ended September 30, 2023 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 10,591 $ 13,998 $ 22,530 $ — $ 47,119 Segment Operating Expense $ 8,370 $ 11,339 $ 18,995 $ 4,549 $ 43,253 Contribution margin (loss) $ 2,221 $ 2,659 $ 3,535 $ (4,549 ) $ 3,866 Shared Services $ 706 $ 668 $ 680 $ (2,054 ) $ — EBITDA $ 1,515 $ 1,991 $ 2,855 $ (2,495 ) $ 3,866 Depreciation and amortization $ 71 $ 253 $ 249 $ 379 $ 952 Operating income (loss) $ 1,444 $ 1,738 $ 2,606 $ (2,874 ) $ 2,914 Three Months ended September 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 13,016 $ 17,375 $ 23,495 $ — $ 53,886 Segment Operating Expense $ 9,970 $ 13,661 $ 19,865 $ 6,038 $ 49,534 Contribution margin (loss) $ 3,046 $ 3,714 $ 3,630 $ (6,038 ) $ 4,352 Shared Services $ 1,125 $ 743 $ 853 $ (2,721 ) $ — EBITDA $ 1,921 $ 2,971 $ 2,777 $ (3,317 ) $ 4,352 Depreciation and amortization $ 98 $ 206 $ 176 $ 99 $ 579 Operating income (loss) $ 1,823 $ 2,765 $ 2,601 $ (3,416 ) $ 3,773 Nine Months ended September 30, 2023 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 32,751 $ 45,625 $ 63,625 $ — $ 142,001 Segment Operating Expense $ 26,464 $ 36,534 $ 54,435 $ 15,880 $ 133,313 Contribution margin $ 6,287 $ 9,091 $ 9,190 $ (15,880 ) $ 8,688 Shared Services $ 2,261 $ 2,102 $ 2,203 $ (6,566 ) $ — EBITDA $ 4,026 $ 6,989 $ 6,987 $ (9,314 ) $ 8,688 Depreciation and amortization $ 167 $ 1,024 $ 736 $ 1,124 $ 3,051 Operating income (loss) $ 3,859 $ 5,965 $ 6,251 $ (10,438 ) $ 5,637 Nine Months ended September 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services (1) Unallocated Corporate Total (In thousands) Revenues $ 39,389 $ 50,499 $ 61,612 $ — $ 151,500 Segment Operating Expense $ 30,903 $ 39,434 $ 50,795 $ 16,926 $ 138,058 Contribution margin $ 8,486 $ 11,065 $ 10,817 $ (16,926 ) $ 13,442 Shared Services $ 3,290 $ 2,139 $ 2,483 $ (7,912 ) $ — EBITDA $ 5,196 $ 8,926 $ 8,334 $ (9,014 ) $ 13,442 Depreciation and amortization $ 288 $ 609 $ 581 $ 286 $ 1,764 Operating income (loss) $ 4,908 $ 8,317 $ 7,753 $ (9,300 ) $ 11,678 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 10 December 31, 2022 ( “2022 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 and 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 those products or services based on the relevant contract. We apply the following five • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized when the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically 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 Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("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) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 9,272 $ 1,319 $ 10,591 Customer Care 13,998 — 13,998 Fulfillment and Logistics Services 18,625 3,905 22,530 Total Revenues $ 41,895 $ 5,224 $ 47,119 Three Months Ended September 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 10,984 $ 2,032 $ 13,016 Customer Care 17,375 — 17,375 Fulfillment and Logistics Services 21,398 2,097 23,495 Total Revenues $ 49,757 $ 4,129 $ 53,886 Nine Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 29,321 $ 3,430 $ 32,751 Customer Care 45,625 — 45,625 Fulfillment and Logistics Services 52,044 11,581 63,625 Total Revenues $ 126,990 $ 15,011 $ 142,001 Nine Months Ended September 30, 2022 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 32,474 $ 6,915 $ 39,389 Customer Care 50,499 — 50,499 Fulfillment and Logistics Services 53,489 8,123 61,612 Total Revenues $ 136,462 $ 15,038 $ 151,500 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | In thousands September 30, 2023 December 31, 2022 Contract assets 433 309 Deferred revenue and customer advances 5,681 4,590 Deferred revenue, included in other long-term liabilities 321 432 |
Note D - Leases (Tables)
Note D - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lessee, Leases, Supplemental Balance Sheet Information [Table Text Block] | In thousands As of September 30, 2023 Operating Leases Finance Leases Total Right-of-use Assets $ 16,289 $ 484 $ 16,773 Liabilities Current portion of lease liabilities 5,388 58 5,446 Long-term lease liabilities 13,538 15 13,553 Total Lease Liabilities $ 18,926 $ 73 $ 18,999 In thousands As of December 31, 2022 Operating Leases Finance Leases Total Right-of-use Assets $ 18,574 $ 595 $ 19,169 Liabilities Short-term lease liabilities 5,587 160 5,747 Long-term lease liabilities 16,523 52 16,575 Total Lease Liabilities $ 22,110 $ 212 $ 22,322 |
Lease, Cost [Table Text Block] | In thousands Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Operating lease cost $ 1,338 $ 1,393 Finance lease cost: Amortization of right-of-use assets 35 39 Interest on lease liabilities 2 4 Total Finance lease cost 37 43 Variable lease cost 537 433 Sublease income (177 ) (128 ) Total lease cost, net $ 1,735 $ 1,741 In thousands Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Operating lease cost $ 4,160 $ 4,393 Finance lease cost: Amortization of right-of-use assets 115 126 Interest on lease liabilities 6 13 Total Finance lease cost 121 139 Variable lease cost 1,525 1,419 Sublease income (676 ) (539 ) Total lease cost, net $ 5,130 $ 5,412 In thousands Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,525 $ 10,995 Operating cash flows from finance leases 6 12 Financing cash flows from finance leases 144 148 Weighted Average Remaining Lease term Operating leases 5.6 6.3 Finance leases 1.3 1.6 Weighted Average Discount Rate Operating leases 3.56 % 3.39 % Finance leases 7.04 % 5.60 % |
Lease, Liability, Maturity [Table Text Block] | In thousands Operating Leases (1 Finance Leases Year Ending December 31, Remainder of 2023 $ 1,600 $ 18 2024 5,286 50 2025 2,873 8 2026 2,373 — 2027 2,291 — 2027 and beyond 6,217 — Total future minimum lease payments 20,640 76 Less: imputed interest 1,714 3 Total lease liabilities $ 18,926 $ 73 |
Note H - Employee Benefit Pla_2
Note H - Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, In thousands 2023 2022 2023 2022 Interest cost $ 1,772 $ 1,260 $ 5,316 $ 3,780 Expected return on plan assets (1,554 ) (1,468 ) (4,662 ) (4,404 ) Recognized actuarial loss 630 719 1,890 2,157 Net periodic benefit cost $ 848 $ 511 $ 2,544 $ 1,533 |
Note J - Earnings Per Share (Ta
Note J - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, In thousands, except per share amounts 2023 2022 Numerator: Net income $ 618 $ 7,166 Less: Preferred stock dividends — 125 Less: Earnings attributable to participating securities — 868 Numerator for basic EPS: income attributable to common stockholders 618 6,173 Effect of dilutive securities: Add back: Allocation of earnings to participating securities — 868 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities — (827 ) Numerator for diluted EPS $ 618 $ 6,214 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,239 7,125 Diluted EPS denominator 7,314 7,524 Basic income per Common Share $ 0.09 $ 0.87 Diluted income per Common Share $ 0.08 $ 0.83 Nine Months Ended September 30, In thousands, except per share amounts 2023 2022 Numerator: Net income $ 407 $ 14,972 Less: Preferred stock dividend — 371 Less: Earnings attributable to common stockholders — 1,817 Numerator for basic EPS: income attributable to common stockholders 407 12,784 Effect of dilutive securities: Add back: Allocation of earnings to participating securities — 1,817 Less: Re-allocation of earnings to participating securities considering potentially dilutive securities — (1,737) Numerator for diluted EPS $ 407 $ 12,864 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,340 7,045 Diluted EPS denominator 7,509 7,418 Basic income per Common Share $ 0.06 $ 1.81 Diluted income per Common Share $ 0.05 $ 1.73 |
Note K - Comprehensive Income (
Note K - Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 $ (44,120 ) $ (4,182 ) $ (48,302) Other comprehensive income, net of tax, before reclassifications — 1,421 1,421 Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,645 — 1,645 Net current period other comprehensive income, net of tax 1,645 1,421 3,066 Balance at September 30, 2023 $ (42,475 ) $ (2,761 ) $ (45,236) 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 — (6,118 ) (6,118) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 2,307 — 2,307 Net current period other comprehensive income (loss), net of tax 2,307 (6,118 ) (3,811) Balance at September 30, 2022 $ (52,087 ) $ (5,052 ) $ (57,139) |
Note L - Acquisition of Insid_2
Note L - Acquisition of Inside Out Solutions, LLC (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | In thousands Amount Accounts receivable $ 1,445 Prepaid expenses 148 Property, plant and equipment 177 Total assets acquired 1,770 Less: Current liabilities assumed (761 ) Net assets acquired $ 1,009 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Weighted Average Gross Accumulated Net Carrying In thousands Amortization Period Carrying Amount Amortization Amount Customer Relationships 5 years $ 3,600 $ 600 $ 3,000 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | In thousands Year Ending December 31, Amount Remainder of 2023 $ 180 2024 720 2025 720 2026 720 2027 660 Total $ 3,000 |
Note N - Segment Reporting (Tab
Note N - Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months ended September 30, 2023 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 10,591 $ 13,998 $ 22,530 $ — $ 47,119 Segment Operating Expense $ 8,370 $ 11,339 $ 18,995 $ 4,549 $ 43,253 Contribution margin (loss) $ 2,221 $ 2,659 $ 3,535 $ (4,549 ) $ 3,866 Shared Services $ 706 $ 668 $ 680 $ (2,054 ) $ — EBITDA $ 1,515 $ 1,991 $ 2,855 $ (2,495 ) $ 3,866 Depreciation and amortization $ 71 $ 253 $ 249 $ 379 $ 952 Operating income (loss) $ 1,444 $ 1,738 $ 2,606 $ (2,874 ) $ 2,914 Three Months ended September 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 13,016 $ 17,375 $ 23,495 $ — $ 53,886 Segment Operating Expense $ 9,970 $ 13,661 $ 19,865 $ 6,038 $ 49,534 Contribution margin (loss) $ 3,046 $ 3,714 $ 3,630 $ (6,038 ) $ 4,352 Shared Services $ 1,125 $ 743 $ 853 $ (2,721 ) $ — EBITDA $ 1,921 $ 2,971 $ 2,777 $ (3,317 ) $ 4,352 Depreciation and amortization $ 98 $ 206 $ 176 $ 99 $ 579 Operating income (loss) $ 1,823 $ 2,765 $ 2,601 $ (3,416 ) $ 3,773 Nine Months ended September 30, 2023 Marketing Services Customer Care Fulfillment and Logistics Services Unallocated Corporate Total (In thousands) Revenues $ 32,751 $ 45,625 $ 63,625 $ — $ 142,001 Segment Operating Expense $ 26,464 $ 36,534 $ 54,435 $ 15,880 $ 133,313 Contribution margin $ 6,287 $ 9,091 $ 9,190 $ (15,880 ) $ 8,688 Shared Services $ 2,261 $ 2,102 $ 2,203 $ (6,566 ) $ — EBITDA $ 4,026 $ 6,989 $ 6,987 $ (9,314 ) $ 8,688 Depreciation and amortization $ 167 $ 1,024 $ 736 $ 1,124 $ 3,051 Operating income (loss) $ 3,859 $ 5,965 $ 6,251 $ (10,438 ) $ 5,637 Nine Months ended September 30, 2022 Marketing Services Customer Care Fulfillment and Logistics Services (1) Unallocated Corporate Total (In thousands) Revenues $ 39,389 $ 50,499 $ 61,612 $ — $ 151,500 Segment Operating Expense $ 30,903 $ 39,434 $ 50,795 $ 16,926 $ 138,058 Contribution margin $ 8,486 $ 11,065 $ 10,817 $ (16,926 ) $ 13,442 Shared Services $ 3,290 $ 2,139 $ 2,483 $ (7,912 ) $ — EBITDA $ 5,196 $ 8,926 $ 8,334 $ (9,014 ) $ 13,442 Depreciation and amortization $ 288 $ 609 $ 581 $ 286 $ 1,764 Operating income (loss) $ 4,908 $ 8,317 $ 7,753 $ (9,300 ) $ 11,678 |
Note A - Overview and Signifi_2
Note A - Overview and Significant Accounting Policies (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Number of Reportable Segments | 3 | |||
Selling, General and Administrative Expense | $ 4,922 | $ 5,970 | $ 16,071 | $ 17,243 |
Moving of Lease Expense From Production and Distribution [Member] | ||||
Selling, General and Administrative Expense | $ 3,800 |
Note C - Revenue From Contrac_3
Note C - Revenue From Contracts With Customers (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Amount | $ 0 | ||
Contract with Customer, Liability, Revenue Recognized | 3,900 | $ 2,900 | |
Capitalized Contract Cost, Net | 600 | $ 1,000 | |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 |
Note C - Revenue From Contrac_4
Note C - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total Revenue | $ 47,119 | $ 53,886 | $ 142,001 | $ 151,500 |
Marketing Services [Member] | ||||
Total Revenue | 10,591 | 13,016 | 32,751 | 39,389 |
Customer Care [Member] | ||||
Total Revenue | 13,998 | 17,375 | 45,625 | 50,499 |
Fulfillment and Logistics Services [Member] | ||||
Total Revenue | 22,530 | 23,495 | 63,625 | 61,612 |
Transferred over Time [Member] | ||||
Total Revenue | 41,895 | 49,757 | 126,990 | 136,462 |
Transferred over Time [Member] | Marketing Services [Member] | ||||
Total Revenue | 9,272 | 10,984 | 29,321 | 32,474 |
Transferred over Time [Member] | Customer Care [Member] | ||||
Total Revenue | 13,998 | 17,375 | 45,625 | 50,499 |
Transferred over Time [Member] | Fulfillment and Logistics Services [Member] | ||||
Total Revenue | 18,625 | 21,398 | 52,044 | 53,489 |
Transferred at Point in Time [Member] | ||||
Total Revenue | 5,224 | 4,129 | 15,011 | 15,038 |
Transferred at Point in Time [Member] | Marketing Services [Member] | ||||
Total Revenue | 1,319 | 2,032 | 3,430 | 6,915 |
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 | $ 3,905 | $ 2,097 | $ 11,581 | $ 8,123 |
Note C - Revenue From Contrac_5
Note C - Revenue From Contracts With Customers - Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Contract assets | $ 433 | $ 309 |
Deferred revenue and customer advances | 5,681 | 4,590 |
Deferred revenue, included in other long-term liabilities | $ 321 | $ 432 |
Note D - Leases (Details Textua
Note D - Leases (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ 500 | $ 600 | |
Operating Lease, Right-of-Use Asset | 16,300 | 18,600 | |
Finance Lease, Right-of-Use Asset, Accumulated Depreciation | 1,000 | $ 1,000 | |
Asset Impairment Charges, Total | 0 | $ 0 | |
Lessor, Operating Lease, Payment to be Received, Year One | 200 | ||
Lessor, Operating Lease, Payment to be Received, Year Two | $ 400 | ||
Minimum [Member] | |||
Lessee, Lease Remaining Lease Term (Year) | 1 year | ||
Maximum [Member] | |||
Lessee, Lease Remaining Lease Term (Year) | 8 years | ||
Lessee, Lease, Renewal Term (Year) | 5 years |
Note D - Leases - Supplemental
Note D - Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Lease, Right-of-Use Asset | $ 16,300 | $ 18,600 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 500 | 600 |
Right-of-use Assets, total | 16,773 | 19,169 |
Current portion of lease liabilities, operating leases | 5,388 | |
Current portion of lease liabilities, finance leases | 58 | |
Current portion of lease liabilities, total | 5,446 | 5,747 |
Long-term lease liabilities, total | 13,553 | 16,575 |
Total Lease Liabilities, finance leases | 73 | |
Right of Use Assets [Member] | ||
Operating Lease, Right-of-Use Asset | 16,289 | 18,574 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 484 | 595 |
Short-term Lease Liabilities [Member] | ||
Current portion of lease liabilities, operating leases | 5,587 | |
Current portion of lease liabilities, finance leases | 160 | |
Current portion of lease liabilities, total | 5,747 | |
Long-term Lease Liabilities [Member] | ||
Long-term lease liabilities, operating leases | 13,538 | 16,523 |
Long-term lease liabilities, finance leases | 15 | 52 |
Long-term lease liabilities, total | 13,553 | 16,575 |
Short-term Lease Liabilities and Long-term Lease Liabilities [Member] | ||
Total Lease Liabilities, operating leases | 18,926 | 22,110 |
Total Lease Liabilities, finance leases | 73 | 212 |
Total Lease Liabilities, total | $ 18,999 | $ 22,322 |
Note D - Leases - Components of
Note D - Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease cost | $ 1,338 | $ 1,393 | $ 4,160 | $ 4,393 |
Amortization of right-of-use assets | 35 | 39 | 115 | 126 |
Interest on lease liabilities | 2 | 4 | 6 | 13 |
Total Finance lease cost | 37 | 43 | 121 | 139 |
Variable lease cost | 537 | 433 | 1,525 | 1,419 |
Sublease income | (177) | (128) | (676) | (539) |
Total lease cost, net | $ 1,735 | $ 1,741 | 5,130 | 5,412 |
Operating cash flows from operating leases | 9,525 | 10,995 | ||
Operating cash flows from finance leases | 6 | 12 | ||
Financing cash flows from finance leases | $ 144 | $ 148 | ||
Weighted Average Remaining Lease term, Operating leases (Year) | 5 years 7 months 6 days | 6 years 3 months 18 days | 5 years 7 months 6 days | 6 years 3 months 18 days |
Weighted Average Remaining Lease term, Finance leases (Year) | 1 year 3 months 18 days | 1 year 7 months 6 days | 1 year 3 months 18 days | 1 year 7 months 6 days |
Weighted Average Discount Rate, Operating leases | 3.56% | 3.39% | 3.56% | 3.39% |
Weighted Average Discount Rate, Finance leases | 7.04% | 5.60% | 7.04% | 5.60% |
Note D - Leases - Maturities of
Note D - Leases - Maturities of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Remainder of 2023, operating leases | [1] | $ 1,600 | |
Remainder of 2022, finance leases | 18 | ||
2024, operating leases | 5,286 | ||
2024, finance leases | 50 | ||
2025, operating leases | 2,873 | ||
2025, finance leases | 8 | ||
2026, operating leases | 2,373 | ||
2026, finance leases | 0 | ||
2027, operating leases | 2,291 | ||
2027, finance leases | 0 | ||
2027 and beyond, operating leases | 6,217 | ||
2027 and beyond, finance leases | 0 | ||
Total future minimum lease payments, operating leases | 20,640 | ||
Total future minimum lease payments, finance leases | 76 | ||
Less: Imputed interest, operating leases | 1,714 | ||
Less: Imputed interest, finance leases | 3 | ||
Total lease liabilities, finance leases | 73 | ||
Short-term Lease Liabilities and Long-term Lease Liabilities [Member] | |||
Total lease liabilities, operating leases | 18,926 | $ 22,110 | |
Total lease liabilities, finance leases | $ 73 | $ 212 | |
[1]Non-cancelable sublease proceeds for the remainder of the fiscal year ending December 31, 2022 and the fiscal year ending December 31, 2023 and 2024 of $0.8 million, $0.9 million and $0.4 million, respectively, are not included in the table above. |
Note E - Convertible Preferre_2
Note E - Convertible Preferred Stock and Share Repurchase Program (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 30, 2018 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | May 02, 2023 | Jun. 30, 2022 | |
Preferred Stock, Shares Authorized (in shares) | 1,000,000 | |||||
Stock Repurchase Program, Authorized Amount | $ 6,500,000 | |||||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 1 | $ 1 | $ 1 | |||
Treasury Stock, Shares, Acquired (in shares) | 100,000 | 400,000 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 490,000 | $ 2,370,000 | ||||
Preferred Stock [Member] | ||||||
Treasury Stock, Value, Acquired, Cost Method | 0 | 0 | ||||
Common Stock [Member] | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 0 | $ 0 | ||||
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] | ||||||
Treasury Stock, Shares, Acquired (in shares) | 9,926 | |||||
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 | 9 Months Ended | ||||
Dec. 21, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Letters of Credit Outstanding, Amount | $ 800 | $ 800 | $ 800 | |||
Proceeds from Lines of Credit, Total | 0 | |||||
Interest Expense, Debt | $ 34 | $ 52 | $ 198 | $ 137 | ||
Texas Capital Bank [Member] | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.62% | 6.62% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||
Revolving Credit Facility [Member] | Texas Capital Bank [Member] | Bloomberg Short-Term Bank Yield Index Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||
New Credit Facility [Member] | ||||||
Long-Term Line of Credit | $ 0 | $ 0 | $ 0 | |||
New Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 24,200 | $ 24,200 | ||||
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 |
Note G - Stock-based Compensa_2
Note G - Stock-based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement, Expense | $ 0.2 | $ 0.9 | $ 1.2 | $ 1.8 |
Note H - Employee Benefit Pla_3
Note H - Employee Benefit Plans (Details Textual) - Qualified Plan II [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1.4 | $ 1.3 |
Pension Plan [Member] | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year One | 1.6 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1.2 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest cost | $ 1,772 | $ 1,260 | $ 5,316 | $ 3,780 |
Expected return on plan assets | (1,554) | (1,468) | (4,662) | (4,404) |
Recognized actuarial loss | 630 | 719 | 1,890 | 2,157 |
Net periodic benefit cost | $ 848 | $ 511 | $ 2,544 | $ 1,533 |
Note I - Income Taxes (Details
Note I - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Expense (Benefit) | $ 1,912 | $ 1,219 | $ 1,620 | $ 2,344 |
Effective Income Tax Rate Reconciliation, Percent | 75.60% | 14.50% | 79.90% | 13.50% |
Note J - Earnings Per Share (De
Note J - Earnings Per Share (Details Textual) - shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Treasury Stock, Shares, Acquired (in shares) | 100,000 | 400,000 | |||||
Share-Based Payment Arrangement, Option [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 132,193 | 12,694 | 8,668 | 8,098 | 13,602 | ||
Restricted Stock [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 58,869 | 0 | 40,389 | 16,849 | |||
Convertible Preferred Stock [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 1,001,614 | 0 | 1,001,614 | |||
Series A Preferred Stock [Member] | |||||||
Preferred Stock, Dividend Rate, Percentage | 5% | ||||||
Treasury Stock, Shares, Acquired (in shares) | 9,926 |
Note J - Earnings Per Share - R
Note J - Earnings Per Share - Reconciliations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 618 | $ 7,166 | $ 407 | $ 14,972 |
Less: Preferred Stock dividends | 0 | 125 | 0 | 371 |
Less: Earnings attributable to participating securities | 0 | 868 | 0 | 1,817 |
Net income attributable to common stockholders | 618 | 6,173 | 407 | 12,784 |
Add back: Allocation of earnings to participating securities | 0 | 868 | 0 | 1,817 |
Less: Re-allocation of earnings to participating securities considering potentially dilutive securities | 0 | (827) | 0 | (1,737) |
Numerator for diluted EPS | $ 618 | $ 6,214 | $ 407 | $ 12,864 |
Basic (in shares) | 7,239 | 7,125 | 7,340 | 7,045 |
Diluted (in shares) | 7,314 | 7,524 | 7,509 | 7,418 |
Basic (in dollars per share) | $ 0.09 | $ 0.87 | $ 0.06 | $ 1.81 |
Diluted (in dollars per share) | $ 0.08 | $ 0.83 | $ 0.05 | $ 1.73 |
Note K - Comprehensive Income -
Note K - Comprehensive Income - Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance | $ 20,550 | $ (17,711) | $ 18,808 | $ (24,715) |
Total other comprehensive (loss) income, net of tax | (56) | (2,288) | 3,066 | (3,811) |
Balance | 20,504 | (12,789) | 20,504 | (12,789) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Balance | (44,120) | (54,394) | ||
Other comprehensive income, 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 | 1,645 | 2,307 | ||
Total other comprehensive (loss) income, net of tax | 1,645 | 2,307 | ||
Balance | (42,475) | (52,087) | (42,475) | (52,087) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Balance | (4,182) | 1,066 | ||
Other comprehensive income, net of tax, before reclassifications | 1,421 | (6,118) | ||
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 | 1,421 | (6,118) | ||
Balance | (2,761) | (5,052) | (2,761) | (5,052) |
AOCI Attributable to Parent [Member] | ||||
Balance | (45,180) | (54,851) | (48,302) | (53,328) |
Other comprehensive income, net of tax, before reclassifications | 1,421 | (6,118) | ||
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income | 1,645 | 2,307 | ||
Total other comprehensive (loss) income, net of tax | (56) | (2,288) | 3,066 | (3,811) |
Balance | $ (45,236) | $ (57,139) | $ (45,236) | $ (57,139) |
Note L - Acquisition of Insid_3
Note L - Acquisition of Inside Out Solutions, LLC (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Cash Held in Escrow | $ 1,000 | $ 1,000 | $ 9,926 | ||
Goodwill, Ending Balance | 2,426 | 2,426 | $ 2,398 | ||
Inside Out Solutions, LLC [Member] | |||||
Cash Held in Escrow | 1,000 | 1,000 | $ 1,000 | ||
Inside Out Solutions, LLC [Member] | |||||
Business Combination, Consideration Transferred, Total | $ 7,500 | ||||
Payments to Acquire Businesses, Gross | 5,750 | ||||
Cash Held in Escrow | 1,000 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 750 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,600 | ||||
Goodwill, Ending Balance | 2,400 | ||||
Amortization of Intangible Assets | 180 | 540 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 2,200 | 7,300 | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 100 | $ 700 | |||
Inside Out Solutions, LLC [Member] | Minimum [Member] | |||||
Working Capital | 1,300 | ||||
Inside Out Solutions, LLC [Member] | Maximum [Member] | |||||
Working Capital | $ 1,600 |
Note L - Acquisition of Insid_4
Note L - Acquisition of Inside Out Solution, LLC - Business Acquisition Assets and Liabilities (Details) - Inside Out Solutions, LLC [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Accounts receivable | $ 1,445 |
Prepaid expenses | 148 |
Property, plant and equipment | 177 |
Total assets acquired | 1,770 |
Less: Current liabilities assumed | (761) |
Net assets acquired | $ 1,009 |
Note L - Acquisition of Insid_5
Note L - Acquisition of Inside Out Solutions, LLC - Summary of Intangible Assets (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Weighted Average Amortization Period (Year) | 5 years |
Net Carrying Amount | $ 3 |
Inside Out Solutions, LLC [Member] | Customer Relationships [Member] | |
Gross Carrying Amount | 3.6 |
Accumulated Amortizations | 0.6 |
Net Carrying Amount | $ 3 |
Note L - Acquisition of Insid_6
Note L - Acquisition of Inside Out Solutions, LLC - Schedule of Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Remainder of 2023 | $ 180 |
2024 | 720 |
2025 | 720 |
2026 | 720 |
2027 | 660 |
Net Carrying Amount | $ 3,000 |
Note N - Segment Reporting (Det
Note N - Segment Reporting (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Number of Operating Segments | 3 |
Note N - Segment Reporting - Fi
Note N - Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenues | $ 47,119 | $ 53,886 | $ 142,001 | $ 151,500 | |
Segment Operating Expense | 43,253 | 49,534 | 133,313 | 138,058 | |
Contribution margin (loss) | 3,866 | 4,352 | 8,688 | 13,442 | |
Shared Services | 0 | 0 | 0 | 0 | |
EBITDA | 3,866 | 4,352 | 8,688 | 13,442 | |
Depreciation and amortization | 952 | 579 | 3,051 | 1,764 | |
Operating income | 2,914 | 3,773 | 5,637 | 11,678 | |
Corporate, Non-Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Segment Operating Expense | 4,549 | 6,038 | 15,880 | 16,926 | |
Contribution margin (loss) | (4,549) | (6,038) | (15,880) | (16,926) | |
Shared Services | (2,054) | (2,721) | (6,566) | (7,912) | |
EBITDA | (2,495) | (3,317) | (9,314) | (9,014) | |
Depreciation and amortization | 379 | 99 | 1,124 | 286 | |
Operating income | (2,874) | (3,416) | (10,438) | (9,300) | |
Marketing Services [Member] | Operating Segments [Member] | |||||
Revenues | 10,591 | 13,016 | 32,751 | 39,389 | |
Segment Operating Expense | 8,370 | 9,970 | 26,464 | 30,903 | |
Contribution margin (loss) | 2,221 | 3,046 | 6,287 | 8,486 | |
Shared Services | 706 | 1,125 | 2,261 | 3,290 | |
EBITDA | 1,515 | 1,921 | 4,026 | 5,196 | |
Depreciation and amortization | 71 | 98 | 167 | 288 | |
Operating income | 1,444 | 1,823 | 3,859 | 4,908 | |
Customer Care [Member] | Operating Segments [Member] | |||||
Revenues | 13,998 | 17,375 | 45,625 | 50,499 | |
Segment Operating Expense | 11,339 | 13,661 | 36,534 | 39,434 | |
Contribution margin (loss) | 2,659 | 3,714 | 9,091 | 11,065 | |
Shared Services | 668 | 743 | 2,102 | 2,139 | |
EBITDA | 1,991 | 2,971 | 6,989 | 8,926 | |
Depreciation and amortization | 253 | 206 | 1,024 | 609 | |
Operating income | 1,738 | 2,765 | 5,965 | 8,317 | |
Fulfillment and Logistics Services [Member] | Operating Segments [Member] | |||||
Revenues | [1] | 22,530 | 23,495 | 63,625 | 61,612 |
Segment Operating Expense | [1] | 18,995 | 19,865 | 54,435 | 50,795 |
Contribution margin (loss) | [1] | 3,535 | 3,630 | 9,190 | 10,817 |
Shared Services | 680 | 853 | 2,203 | 2,483 | |
EBITDA | [1] | 2,855 | 2,777 | 6,987 | 8,334 |
Depreciation and amortization | 249 | 176 | 736 | 581 | |
Operating income | [1] | $ 2,606 | $ 2,601 | $ 6,251 | $ 7,753 |
[1]Operating expense in this segment includes $0.8 million favorable litigation settlement as well as the related legal expenses. |