Harte-Hanks reports drop in 4Q profit on legal charge, falling revenue

Harte-Hanks reports drop in 4Q profit

SAN ANTONIO — Direct marketing firm Harte-Hanks Inc. on Tuesday reported a 6 percent drop in earnings, hurt by a $7 million legal settlement and revenue declines linked to the continued advertising slump.

“Although economic uncertainty remains we did see some slight revenue improvement in both Shoppers and Direct Marketing toward the end of the quarter,” said Chairman, President and CEO Larry Franklin.

The company earned $13.5 million, or 21 cents per share, compared with $14.3 million, or 23 cents per share, a year ago. Excluding the one-time legal cost, which stemmed from a 2001 class-action lawsuit filed by two employees over reimbursements for expenses, Harte-Hanks said it would have earned 28 cents per share.

On that basis, analysts polled by Thomson Reuters were expecting 24 cents per share, on average. Revenue dropped 19 percent to $217.5 million, slightly below the average forecast of $218.3 million.

The company’s stock rose 36 cents, or 3.4 percent, to close at $11.01.

For all of 2009, Harte-Hanks reported net income of $47.7 million, or 75 cents per share, down 24 percent from $62.7 million, or 98 cents per share, the year before. Sales for the year dropped 20 percent to $860 million.