Harte-Hanks: Under The Radar Doesn't Always Mean Undervalued
Harte Hanks: Repositioning For Significant Upside
Alpha Gen Capital
Alpha Gen Capital
Fri, Jun. 10, 12:48 PM
Mon, Mar. 14, 1:52 PM
- Harte Hanks (NYSE:HHS) has tumbled -19.5% today following its late Friday news that it was discontinuing its dividend after tomorrow's payment.
- That came along with a new $110M credit facility with Wells Fargo to replace facilities that expire in August. The company expects the moves are going to increase its balance sheet flexibility.
- BMO Capital Markets has downgraded shares to Market Perform, from Outperform, and set a price target of $3 -- 18% below yesterday's closing price. Shares are trading currently at $2.94.
Mon, Mar. 14, 12:45 PM
Fri, Mar. 11, 4:33 PM
- Harte Hanks (HHS +2%) has set up a new credit facility and says it will discontinue paying dividends.
- The company says the actions will enhance its flexibility. It's sealed a new $110M five-year senior secured credit facility with Wells Fargo ($65M revolving credit, $45M term loan) to replace its existing facilities expiring in August.
- It'll pay the previously declared Q1 dividend of $0.085/share on March 15. It had a yield of 9.5%.
- Regarding the balance sheet, Harte Hanks has reported holding $24.7M in cash (about $0.40/share) vs. total debt of $75.9M.
Mon, Mar. 7, 12:28 PM
- Harte Hanks (HHS +2.5%) has added marketing consulting into its portfolio of services with the acquisition of Aleutian Consulting.
- Terms weren't disclosed. Aleutian will be renamed Harte Hanks Consulting, and the transaction is expected to be accretive to 2016 results.
- Aleutian primarily provided services to clients in telecom and technology, offering help in product, pricing, channel optimization and promotion design.
Sep. 14, 2015, 4:37 PM
- Harte Hanks (NYSE:HHS) finished the day up 7.9% -- rebounding from Friday's 52-week low of $3.38 -- after news that it selected a new permanent CEO in veteran CenturyLink COO Karen Puckett.
- The company has filed that Puckett will receive a base salary of $730K, with an incentive equal to 100%-200% of base salary, as well as eligibility for bonus restricted stock.
- The stock has lost 41.7% of value over the past three months, during which time the company began looking for a new CEO.
Sep. 14, 2015, 12:45 PM
Jul. 21, 2015, 10:42 AM
- Harte-Hanks (NYSE:HHS) is up 4% as BMO Capital points to its dividend yield (and a possible buyback) in upgrading shares to Outperform, from Market Perform.
- Analyst Daniel Salmon has a price target of $7 on the stock; it closed yesterday at $4.95 and is currently trading at $5.16.
- The stock's felt pressure this month due to a lack of strategic update since CEO Robert Philpott exited his post, Salmon says, but despite challenged fundamentals, "the risk/reward is incrementally positive."
- "Most importantly –- and in part due to high inside ownership -– we believe the current dividend is safe, and it’s also currently yielding just short of 7%," he says. "Moreover, we believe there is increased likelihood of some nominal share buyback; our main question would be if management would consider incremental borrowing (either on bank facilities or issuance of new debt) or simply use excess FCF."
- A management-led LBO isn't out of the question either, he says: Interim CEO and current CFO Doug Shepard has experience taking companies private.
Jul. 9, 2015, 12:40 PM
- Harte Hanks (HHS -1.7%) has appointed CFO Douglas Shepard as its interim CEO and president, replacing Robert Philpott, who's left the posts and the board to pursue other interests.
- The board has put together a search committee to find a permanent CEO. Shepard will continue with his current duties while acting as CEO.
- Shepard's been with the firm since joining as CFO in December 2007.
- The company will take a pretax severance charge of $2M-$2.5M in connection with the transition.
Jan. 31, 2013, 12:45 PM
Harte-Hanks, Inc. provides multichannel marketing organizations, delivering business results for some of brands through strategic agencies and core marketing services. The company operates through two segments: Customer Interaction and Trillium Software. The Customer Interaction services offer... More
Industry: Marketing Services
Country: United States
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