Harte-Hanks Reports Fourth Quarter and Full Year 2003 EPS Growth.Business Editors/High-Tech Writers SAN ANTONIO--(BUSINESS WIRE)--Jan. 29, 2004 Note: Harte-Hanks Harte-Hanks NYSE: HHS, headquartered in San Antonio, Texas, is a worldwide direct marketing company that provides a full range of marketing services. Consumers in California and Florida are probably most familiar with the company's PennySaver and The Flyer will hold a fourth quarter earnings conference call on January January: see month. 29, 2004 at 10AM CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . The number is 888-730-9135 domestic or 773-756-4627 international. There will be a replay available shortly after the call through February February: see month. 5. To access, please visit www.harte-hanks.com/earnings_audio/audio_stream.html or call 800-262-5125. Pass-code for the replay is 121693. Harte-Hanks Inc. (NYSE NYSE See: New York Stock Exchange :HHS HHS Department of Health and Human Services. ) today reported fourth quarter 2003 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.28 on revenues of $255.7 million. These results compare to diluted earnings per share of $0.26 on $239.5 million in revenue for the fourth quarter of 2002. The following table presents financial highlights of the company's operations for the fourth quarter of 2003. Full financial results are attached.
RESULTS FROM OPERATIONS
(In thousands, except per share Three Months Ended
amounts) December 31,
-----------------------------
2003 2002 % Change
--------- --------- ---------
Operating revenues $255,721 $239,525 6.8%
Operating cash flow (1) 48,734 48,146 1.2%
Operating income 41,674 40,190 3.7%
Net income 24,978 24,199 3.2%
Diluted earnings per share 0.28 0.26 7.7%
Diluted shares (weighted average common
and common equivalent shares
outstanding) (2) 88,946 92,592 -3.9%
--------- --------- ---------
(1) Operating income plus depreciation and amortization of $7.1
million and $8.0 million for 2003 and 2002, respectively.
(2) Harte-Hanks completed a three-for-two split of its common stock in
the form of a 50% stock dividend effective May 30, 2002. All share
and per share amounts presented have been adjusted to reflect this
three-for-two split.
For the year, diluted earnings per share were $0.97, on revenues of $944.6 million. These 2003 results compare to diluted earnings per share of $0.96, on revenues of $908.8 million in 2002. The following table presents financial highlights of the company's operations for 2003. Full financial results are attached.
RESULTS FROM OPERATIONS
(In thousands, except per share Twelve Months Ended
amounts) December 31,
-----------------------------
2003 2002 % Change
--------- --------- ---------
Operating revenues $944,576 $908,777 3.9%
Operating cash flow (1) 176,520 183,016 -3.5%
Operating income 146,487 150,288 -2.5%
Net income 87,362 90,745 -3.7%
Diluted earnings per share 0.97 0.96 1.0%
Diluted shares (weighted average common
and common equivalent shares
outstanding) (2) 89,982 94,872 -5.2%
(1) Operating income plus depreciation and amortization of $30.0
million and $32.7 million for 2003 and 2002, respectively.
(2) Harte-Hanks completed a three-for-two split of its common stock in
the form of a 50% stock dividend effective May 30, 2002. All share
and per share amounts presented have been adjusted to reflect this
three-for-two split.
By presenting operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. and free cash flow, the company intends to provide investors a better understanding of the operating results and underlying trends to measure past and future performance and liquidity. Harte-Hanks evaluates operating performance based on several measures, including operating cash flow, defined as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. plus depreciation and amortization, and free cash flow, defined as net income plus depreciation and amortization less capital expenditures, as Harte-Hanks believes these are important measures of the operational strength of its business. Commenting on the fourth quarter 2003 performance, Chief Executive Officer Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Hochhauser said "Overall, fourth quarter performance continued the positive trend that we saw in our third quarter results." "Shoppers had another great quarter. Operating income increased 10.7% on revenue growth of 12.1%. The year-over-year revenue growth was enhanced by the once every six years occurrence of the addition of one extra publication week in the fourth quarter of 2003. Shopper growth was driven by ROP (1) (Raster Operation) An instruction that manipulates the bits of a bitmapped image in some manner. (2) (RISC Operation) An instruction in a RISC processor. (in-book advertising), especially real estate and employment related advertising." "In the fourth quarter, direct marketing revenue grew 3.8% over the prior year with operating income down 1.8%. All of our vertical markets except retail showed revenue growth in the quarter, with healthcare/pharma and select markets up slightly, high-tech/telecom up mid-single digits, and our best performer, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , up in the mid-teens. This was the first increase for financial services since the fourth quarter of 2000." Commenting on full year 2003 performance, Hochhauser said, "While 2003 was another challenging year, we are pleased with the solid operating results our people delivered. Diluted earnings per share increased 1.0% on a revenue increase of 3.9%. Our business continues to be a strong generator generator, in electricity, machine used to change mechanical energy into electrical energy. It operates on the principle of electromagnetic induction, discovered (1831) by Michael Faraday. of cash with $85.5 million of free cash flow in 2003. This was a decline from 2002, influenced by a return to historical norms of capital in 2003 whereas capital expenditures in 2002 were significantly lower than in previous years. We measure free cash flow as net income plus depreciation and amortization less capital expenditures." "Shoppers had another great year. Operating income for 2003 increased 4.6% on 7.4% revenue growth. Shopper revenue and operating income has grown every year since 1994, which really highlights the effectiveness of the shopper leadership team and product." "Direct marketing had a challenging first half of 2003, which was difficult to recover from and shows in the full year results with operating income declining 8.6%. Revenue stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. in the first half of 2003 and was followed by modest growth in the second half with the year ending up 1.9%. Overall for direct marketing we are more optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op going into 2004 than we have been for a few years now." Concluding, Hochhauser said, "The year started slow with the war and economy negatively impacting our business. We are encouraged, however, by our second half performance and expect these positive trends to continue. With signs of an improving marketplace and our investments in people and products in 2003 beginning to show returns, we believe we will deliver improved earnings per share growth in 2004." Statements in this release concerning the Company's business outlook or future financial performance and other statements that are not historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as the term is defined under applicable Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those statements. Such risks, uncertainties, and factors include, but are not limited to, public concern over consumer privacy issues, which may lead to enactment of legislation restricting or prohibiting the collection and use of information that is currently legally available, competitive pressures, fluctuations in paper prices and postal rates, and general or regional economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Highlights of the fourth quarter included: -- Harte-Hanks expanded its relationship with a large technology company by signing a three-year agreement to provide database management services. Harte-Hanks solution includes marketing data management, campaign response handling and campaign list selection for the technology company's Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Middle East and
Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ) region focused on business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. markets. -- Harte-Hanks entered into an agreement with an investment management firm to build and host the management firm's investor marketing database. Harte-Hanks solution includes using Harte-Hanks Allink(R) Customer Data Management to provide a complete, unified and multi-level view from disparate data sources to enable the investment firm to plan, test, execute, analyze and track multi-segment, multi-channel See multichannel. promotions over time. -- Harte-Hanks expanded its relationship with a diversified diversified (di·verˑ·s financial services company to provide a lead generation program. Harte-Hanks solution includes an inbound/outbound telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. lead generation campaign for the financial services firm's home equity division. -- Harte-Hanks Trillium trillium or wake-robin (trĭl`ēəm), any plant of the large genus Trillium, attractive spring wildflowers of the family Liliaceae (lily family), native to North America and E Asia. Software System(R) has been certified See certification. for Oracle(R) Warehouse Builder 10g from Oracle Corporation. As a result, the Trillium Software Connector for Oracle solutions can now be integrated with Oracle Warehouse Builder for improved data management capabilities. Additionally, Trillium has received Delivery Point Validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. from the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Post Office. Delivery Point Validation, which authenticates the accuracy of mailings, is now available as part of Trillium Software System. -- Harte-Hanks and Harte-Hanks Trillium Software System(R) were both listed in the DM Review 100 that recognizes the top 100 companies serving the business intelligence community. The listing, which appeared in the publication's December December: see month. 2003 issue, signifies the third consecutive year that Harte-Hanks has been named to the list and the sixth consecutive year for Trillium Software. -- Harte-Hanks Shoppers Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern PennySaver Pennysaver or Penny Saver is the name for many free community periodicals in North America (typically weekly or monthly publications) that advertise items for sale. Many Pennysavers offer local news and entertainment, as well as generic advice information. began the transition to its new manufacturing facility and is expected to be fully moved by the end of March, 2004. The new facility and associated equipment investment will provide Shoppers the needed capacity for significant geographic expansion in Northern California. -- Harte-Hanks Shoppers launched Dreams, a four-color four-col·or adj. Of or being an overprinting or photographic process in which three primary colors and black are transferred by four different plates or filters to a surface, reproducing the colors of the subject matter. heatset magazine targeting travel and entertainment advertisers. The product is inserted into the PennySaver in higher-income markets of Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Other highlights for 2003: Direct Marketing: -- Harte-Hanks entered into an agreement with a large financial services company to provide database build, database management and data analytics services. Harte-Hanks solution includes using Harte-Hanks Allink(R) Customer Data Management to provide a complete, unified and multi-level view from disparate data sources to enable the investment firm to plan, test, execute, analyze and track multi-segment, multi-channel promotions over time. -- Harte-Hanks signed a multi-year renewal with a leading financial management and advisory company to provide literature fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. and digital print on demand services. -- Harte-Hanks entered into an agreement with a large specialty retailer to provide a number of direct marketing services. Harte-Hanks solution will include data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a , mailing and logistic lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation services for the retailer. -- Harte-Hanks signed an agreement with a major automotive manufacturer to design, develop and construct a marketing portal for its dealers to support their customer service marketing efforts. Harte-Hanks solution will allow the dealers to create customized, flexible, targeted marketing campaigns aimed at their service customers. -- Harte-Hanks entered into an agreement with a large provider of business products to design, develop and host a business-to-business marketing database. Harte-Hanks solution includes Allink(R) Business Advantage, a results-based marketing solution that uses an integrated approach to deliver in-depth in-depth adj. Detailed; thorough: an in-depth study. in-depth Adjective detailed or thorough: an in-depth analysis customer intelligence enabling business-to-business marketers to plan and execute multi-channel marketing campaigns and then use the results to drive higher sales, more loyal customers, and continued marketing success. -- Harte-Hanks expanded its services with a major biotechnology firm to provide database, analytics and services in support of important segmentation strategies between direct sales and promotional support of the firm's portfolio of new and mature product lines. -- Harte-Hanks expanded its relationship with a large retailer to provide service bureau and database marketing services. Harte-Hanks solution includes Allink(R)Retail, a results-focused marketing solution that optimizes customer relationships and enables retailers to manage, coordinate and deliver targeted marketing campaigns across all channels with ease and effectiveness. -- Harte-Hanks extended its relationship with a large technology company to provide customer care services on a global basis, provide emergency contingency contingency n. an event that might not occur. customer support and a save and retention program for product subscriptions that are expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. . The global support solution services the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). region. -- Expanding upon Noun 1. expanding upon - adding information or detail expansion step-up, increase - the act of increasing something; "he gave me an increase in salary" its leadership in direct marketing, Harte-Hanks continued to develop new solutions and enhance its products through many new strategic initiatives: -- Harte-Hanks released Trillium Software System(R) Version 6 Unicode Unicode (y  `nĭkōd'), set of codes used to represent letters, numbers, control characters, and the like, designed for use internationally in computers. Edition for the Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. and Korean Korean, language of uncertain ancestry. It is thought by some scholars to be akin to Japanese, by others to be a member of the Altaic subfamily of the Ural-Altaic family of languages (see Uralic and Altaic languages), and by still others to be unrelated to any known markets. This
data quality solution enables global companies to ensure consistent and accurate data across multiple mission-critical customer relationship management, enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. and data warehousing See data warehouse. data warehousing - data warehouse applications, and further broadens the reach of Trillium Software into the increasingly important Asian market. -- Harte-Hanks Trillium Software System(R) received "SAP Certified Integration for Business Address Services -- Postal Validation" for its data quality software product. The Trillium Software Connector for SAP(R) solutions, which is part of Trillium Software System Version 6.0, now can be integrated within mySAP SAP's brand name for a variety of its products. mySAP Business Suite includes modules for enterprise resource planning (ERP), customer relationship management (CRM), product life cycle management (PLM), supplier relationship management (SRM) and supply chain management (SCM). See mySAP.com and SAP. (tm) Business Suite of products. -- Harte-Hanks expanded its CI Technology Database(tm), a market intelligence tool that profiles technology platforms at hundreds of thousands of business locations on three continents, to include data on small and medium-sized Me´di`um-sized` a. 1. Having a medium size; as, a medium-sized man s>. Adj. 1. medium-sized - intermediate in size medium-size, moderate-size, moderate-sized businesses. Over the past year Harte-Hanks has added comprehensive data on 220,000 small and medium-sized business locations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . -- Harte-Hanks held its 24th annual customer Forum, selecting two cities for this year's venue in mid-June n. 1. the middle part of June. Noun 1. mid-June - the middle part of June period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" : San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden (June June: see month. 19-20) and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (June 24-25). The theme was "Got Focus? Training for Smarter Marketing." Combined, more than 300 customers participated, attending approximately 35 sessions and workshops covering a range of issues: loyalty marketing, database marketing, data segmentation, e-marketing, print on demand, among others. More than half the sessions featured case studies and client speakers in high-tech/telecom, retail, and financial services markets. -- Harte-Hanks entered into an agreement with long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. partner Communique Direct that would allow Harte-Hanks the option to purchase Communique Direct in the future. The earliest an acquisition of Communique Direct could occur is August 1, 2004. Founded in 1992 and employing 30 persons, Communique Direct, located in a north suburb suburb, a community in an outlying section of a city or, more commonly, a nearby, politically separate municipality with social and economic ties to the central city. In the 20th cent. of Sydney, Australia, is a privately held firm that provides a range of marketing and information services See Information Systems. for the business-to-business sector across the Asia-Pacific region. Shoppers: -- Harte-Hanks Shoppers expanded circulation in a number of markets during 2003: -- Harte-Hanks Shopper publication The Flyer located in south Florida expanded by 27,700 households in the first quarter in the south Broward County market, expanded into 15,000 homes in Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. in the second quarter and added 66,000 homes to its circulation in the third quarter by expanding into the communities of Pompano Beach Pompano Beach (pŏm`pənō), city (1990 pop. 72,411), Broward co., SE Fla., on the Atlantic coast and the Intracoastal Waterway; inc. 1908. It is a resort city with ocean beaches, excellent fishing, and a harness-racing track. and Coconut Creek. -- Harte-Hanks Shoppers PennySaver publication in southern California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). increased its coverage of the Southeast Los Angeles market by 44,000 households and added 26,000 homes in the Silverlake neighborhood in the second quarter. Additionally, the PennySaver expanded into Bakersfield adding 167,000 homes in the third quarter. -- Harte-Hanks Shoppers have invested in color capacity for the San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. market. The San Diego PennySaver publication now has the capability of having spot color A color that is printed from one printing plate which contains one matched color of ink. Spot colors are used when only one or two solid colors are needed on a page or when a color has to match perfectly and be consistent such as with a company logo or when colors are the trademark of the on every page including color classifieds. -- Harte-Hanks Shoppers Northern California PennySaver partnered with the Girl Scouts Girl Scouts, recreational and service organization founded (1912) in Savannah, Ga., by Mrs. Juliette Gordon Low (1860–1927). It was originally modeled after the Boy Scouts and Girl Guides, organizations created in Great Britain by Sir Robert Baden-Powell during of America in making the largest-ever temporary coin mural mural Painting applied to and made integral with the surface of a wall or ceiling. Its roots can be found in the universal desire that led prehistoric peoples to create cave paintings—the desire to decorate their surroundings and express their ideas and beliefs. where over 2,000,000 pennies were used. Harte-Hanks and the Girl Scouts are the official record holders from Guinness Book of World Records. Corporate: -- Harte-Hanks paid a regular cash dividend of 3.0 cents per share in every quarter of 2003. Yesterday, the company announced a 33% increase in the quarterly dividend to 4.0 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. effective with the dividend payable March 15, 2004 to shareholders of record on March 1, which is the ninth dividend increase since the company went public in 1993 for the second time. -- Harte-Hanks purchased 4.2 million shares of common stock during 2003 and 0.3 million in the fourth quarter. This leaves approximately 4.2 million shares under its current repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. authorization The right or permission to use a system resource; the process of granting access. See access control. . Since January 1997 the company has acquired 35.7 million shares under its repurchase program. -- Harte-Hanks appointed Judy C. Odom and William F. Farley to the Company's board of directors bringing board membership to ten directors. Ms. Odom most recently served as chief executive officer of Software Spectrum Inc. She served in that position until Software Spectrum merged with Level 3 Communications in 2002. Mr. Farley is a banking industry veteran, most recently serving as Vice Chairman at U.S. Bancorp. -- Harte-Hanks named Dean Blythe as Senior Vice President and Chief Financial Officer, and Jessica Huff huff - To compress data using a Huffman code. Various programs that use such methods have been called "HUFF" or some variant thereof. Opposite: puff. Compare crunch, compress. as Vice President, Finance and Controller. Blythe previously served as Vice President, Legal and Secretary and Huff was previously Corporate Controller of Harte-Hanks. Harte-Hanks Inc., San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. , is a worldwide, direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to a wide range of local, regional, national and international consumer and business-to-business marketers. Harte-Hanks Direct Marketing improves the return on its clients' marketing investment with a range of services organized around five solution points: Construct and update the database -- Access the data -- Analyze the data -- Apply the knowledge -- Execute the programs. Experts at each element within this process, Harte-Hanks Direct Marketing is highly skilled at tailoring solutions for each of the vertical markets it serves. Harte-Hanks Shoppers is North America's largest owner, operator and distributor of shopper publications, with shoppers that are zoned into more than 800 separate editions reaching more than 10 million households in California and Florida each week. For more information, contact: Chief Financial Officer Dean Blythe 210-829-9138 or e-mail at dblythe@harte-hanks.com. This release and other information about Harte-Hanks can be found on the World Wide Web at http://www.harte-hanks.com
Harte-Hanks Inc.
Consolidated Statements of Operations
Three months ended Twelve months ended
December 31, December 31,
----------------------------- ------------------- -------------------
In thousands, except per
share data 2003 2002 2003 2002
----------------------------- --------- --------- --------- ---------
Operating revenues $255,721 $239,525 $944,576 $908,777
Operating expenses:
Payroll 88,389 83,082 336,333 324,733
Production and distribution 98,613 88,586 351,405 324,806
Advertising, selling,
general and administrative 19,985 19,711 80,318 76,222
Depreciation and
amortization 7,060 7,956 30,033 32,728
--------- --------- --------- ---------
214,047 199,335 798,089 758,489
--------- --------- --------- ---------
Operating income 41,674 40,190 146,487 150,288
--------- --------- --------- ---------
Other expenses (income):
Interest expense 205 332 855 1,208
Interest income (36) (116) (168) (274)
Other, net 394 637 1,895 2,004
--------- --------- --------- ---------
563 853 2,582 2,938
--------- --------- --------- ---------
Income from operations before
income taxes 41,111 39,337 143,905 147,350
Income tax expense 16,133 15,138 56,543 56,605
--------- --------- --------- ---------
Net income $24,978 $24,199 $87,362 $90,745
========= ========= ========= =========
Basic earnings per common
share $0.29 $0.27 $0.99 $0.98
========= ========= ========= =========
Weighted-average common
shares outstanding 87,504 90,786 88,541 92,648
========= ========= ========= =========
Diluted earnings per common
share $0.28 $0.26 $0.97 $0.96
========= ========= ========= =========
Weighted-average common
and common equivalent
shares outstanding 88,946 92,592 89,982 94,872
========= ========= ========= =========
Harte-Hanks Inc.
Business Segment Information
Three months ended Twelve months ended
December 31, December 31,
--------------- ------------------------- ---------------------------
In thousands % %
2003 2002 Change 2003 2002 Change
--------------- ------------------------- ---------------------------
OPERATING
REVENUES:
Direct
Marketing $160,331 $154,401 3.8% $584,804 $573,826 1.9%
Shoppers 95,390 85,124 12.1% 359,772 334,951 7.4%
--------- --------- --------- ---------
Total
operating
revenues $255,721 $239,525 6.8% $944,576 $908,777 3.9%
--------- --------- --------- ---------
OPERATING
INCOME:
Direct
Marketing $23,352 $23,790 -1.8% $76,641 $83,872 -8.6%
Shoppers 20,329 18,356 10.7% 78,007 74,564 4.6%
General
corporate
expense (2,007) (1,956) -2.6% (8,161) (8,148) -0.2%
--------- --------- --------- ---------
Total
operating
income $41,674 $40,190 3.7% $146,487 $150,288 -2.5%
--------- --------- --------- ---------
DEPRECIATION
AND
AMORTIZATION:
Direct
Marketing $5,754 $6,745 -14.7% $24,508 $27,688 -11.5%
Shoppers 1,298 1,204 7.8% 5,493 5,008 9.7%
General
corporate
expense 8 7 14.3% 32 32 0.0%
--------- --------- --------- ---------
Total
depreciation
and
amortization $7,060 $7,956 -11.3% $30,033 $32,728 -8.2%
--------- --------- --------- ---------
OPERATING CASH
FLOW: (A)
Direct
Marketing $29,106 $30,535 -4.7% $101,149 $111,560 -9.3%
Shoppers 21,627 19,560 10.6% 83,500 79,572 4.9%
General
corporate
expense (1,999) (1,949) -2.6% (8,129) (8,116) -0.2%
--------- --------- --------- ---------
Total
operating
cash flow $48,734 $48,146 1.2% $176,520 $183,016 -3.5%
--------- --------- --------- ---------
(A) Operating cash flow is defined as operating income plus
depreciation and amortization.
Reconciliation of Net Income to Operating Cash Flow
Three months ended Twelve months ended
December 31, December 31,
------------------------------------------------ -------------------
In thousands 2003 2002 2003 2002
------------------------------------------------ -------------------
Net Income $24,978 $24,199 $87,362 $90,745
Add: depreciation and
amortization 7,060 7,956 30,033 32,728
Add: income tax expense 16,133 15,138 56,543 56,605
Add: interest expense 205 332 855 1,208
Add: other non-operating 394 637 1,895 2,004
Less: interest income 36 116 168 274
---------- -------- -------------------
Operating cash flow $48,734 $48,146 $176,520 $183,016
---------- -------- --------- ---------
Reconciliation of Net Income to Free Cash Flow
Three months ended Twelve months ended
December 31, December 31,
------------------------------------------------- -------------------
In thousands 2003 2002 2003 2002
------------------------------------------------- -------------------
Net Income $24,978 $24,199 $87,362 $90,745
Add: depreciation and
amortization 7,060 7,956 30,033 32,728
Less: capital expenditures 6,232 5,454 31,915 17,358
--------- --------- --------- ---------
Free cash flow $25,806 $26,701 $85,480 $106,115
--------- --------- --------- ---------
Harte-Hanks Inc.
Consolidated Balance Sheets (in thousands, except share amounts)
----------------------------------------------------------------------
December 31, December 31,
2003 2002
------------ ------------
Assets
Current Assets
Cash and cash equivalents $32,151 $25,026
Accounts receivable, net 152,703 137,679
Inventory 5,213 5,299
Prepaid expenses 13,816 14,070
Current deferred income tax asset 7,682 8,129
Other current assets 5,732 8,409
------------ ------------
Total current assets 217,297 198,612
Property, plant and equipment, net 97,747 94,154
Goodwill, net 437,156 436,800
Other intangibles, net 2,667 3,267
Other assets 4,263 3,899
------------ ------------
Total assets $759,130 $736,732
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $47,891 $40,746
Accrued payroll and related expenses 22,808 21,854
Customer deposits and unearned revenue 48,658 41,775
Income taxes payable 7,776 9,338
Other current liabilities 6,939 8,048
------------ ------------
Total current liabilities 134,072 121,761
Long-term debt 5,000 16,300
Other long-term liabilities 64,460 66,138
------------ ------------
Total liabilities 203,532 204,199
------------ ------------
Stockholders' equity
Common stock, $1 par value, 375,000,000
shares authorized. 113,280,794 and
111,534,630 shares issued at December 31,
2003 and December 31, 2002, respectively 113,281 111,535
Additional paid-in-capital 235,996 216,149
Retained Earnings 798,974 722,231
Less treasury stock: 25,788,502 and
21,329,896 shares at cost at December 31,
2003 and December 31, 2002, respectively (573,863) (491,793)
Accumulated other comprehensive loss (18,790) (25,589)
------------ ------------
Total stockholders' equity 555,598 532,533
------------ ------------
Total liabilities and stockholders'
equity $759,130 $736,732
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion