Direct marketing provides bright spot in Harte-Hanks' Q3 results
Direct marketing company Harte-Hanks Inc. reported that operating revenue for the three months ended September 30 declined 2.7% for a total of $286.7 million. Net income dropped during the same period by 20.9% for a total of $21.9 million. Diluted earnings per share dropped 14.3% to $0.35 per share.
During the nine-month period ended September 30, the company's revenues were down 1.3% for a total of $859.9 million. Diluted earnings per share during the same period were $0.87 compared to $1 for the 2006 nine-month period.
The company's direct marketing revenue was up 4.1% during the third quarter. The direct marketing segment incurred approximately $1.6 million in restructuring costs in connection with flattening the organization to make it more efficient and bringing sales, marketing and operations closer to customers.
The company's Shoppers division continued its negative performance, with revenue down 12.6%.
"We continue to face a difficult revenue environment, primarily attributable to the condition of the real estate and associated financing markets in the California and Florida geographies in which we operate," Dean Blythe, president and CFO at Harte-Hanks, said in a statement about the Shoppers performance.
In September, Harte-Hanks, San Antonio, TX, implemented an internal restructuring to streamline the company's Shoppers segment from six operating units into three: the California PennySaver unit, the Florida Flyer unit and the Shopper digital unit.