Harte Hanks, Inc. (NASDAQ:HHS) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET

Company Participants

Tom Baumann - Investor Relations, FNK IR

Brian Linscott - Chief Executive Officer

Lauri Kearnes - Chief Financial Officer

Conference Call Participants

Julio Romero - Sidoti & Company

Michael Kupinski - Noble Capital Markets

Operator

Good day, everyone, and welcome to the Harte Hanks Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. Later, you’ll have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]

It is now my pleasure to turn the conference over to Mr. Tom Baumann of FNK IR. Please go ahead Mr. Baumann.

Tom Baumann

Thank you. Hosting the call today are Brian Linscott, Chief Executive Officer; and Lauri Kearnes Chief Financial Officer.

Before we begin, I want to remind participants that during the call management's prepared remarks may contain forward-looking statements that are subject to risks and uncertainties. Management may also make additional forward-looking statements in response to your questions today. Therefore the company claims protection under the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Actual results may differ from results discussed today and therefore we refer you to a more detailed discussion of these risks and uncertainties in the company's filings with the SEC. In addition any projections as to the company's future performance represented by management include estimates as of today, August 11, 2022 and the company assumes no obligation to update these projections in the future as market conditions change.

This webcast and certain financial information provided on the call, including reconciliations of non-GAAP financial measures to comparable GAAP financial measures are available in the earnings press release that was issued shortly after the market closed. A copy of that press release and other corporate disclosure is available on the Investor Relations section of Harte Hanks website at hartehanks.com.

With that, I would now like to turn the call over to Brian. Brian the floor is yours.

Brian Linscott

Thank you, Tom, and good afternoon. The systemic changes we have made to Harte Hanks are clearly paying off as we have delivered significant improvements in operating income and EBITDA, even as revenues modestly decreased, as expected, due to run-off of some pandemic-related projects.

This improved profitability is a direct result of our strategic decisions to implement an asset-light business model and focus on profitable business to drive higher margins. Our operating margins improved over 8% compared to less than 3% in the year ago quarter. Harte Hanks is now sustainably profitable, with a strengthening balance sheet and a business model that generates cash.