Tax benefit paid off for Harte Hanks Inc. in 2018

A tax benefit helped San Antonio-based global marketing firm Harte Hanks Inc. turn a profit last year despite a nearly $100 million drop in revenue.

Harte Hanks posted net income of about $17.6 million, or $2.38 a share, on $284.6 million in revenue last year. That compares with a loss of $41.9 million, or $6.76 a share, on $383.9 million in 2017.

A $18.1 million tax benefit boosted Harte Hank’s bottom line last year.

The company specializes in direct and digital communications, database marketing solutions, direct mail and call-center operations. It is a successor to the newspaper businessman started by Houston Harte and Bernard Hanks in Texas in the early 1920s.

Harte Hanks experienced revenue declines in many of its business lines last year. It previously said it would refocus attention on some of its traditional services as part of an effort to return to profitability.

“We have taken steps to reposition our core service lines to the market within the context of our data capabilities and we have successfully begun building a pipeline of new opportunities,” CEO Bant Breen said in a statement Wednesday.

Breen took over as CEO earlier this year following a management shake-up that led to the departure of Karen Puckett, who had been in the position for about three years.

Harte Hanks has slashed more than 1,000 jobs since the end of 2017.

Breen indicated there will be “meaningful opportunities to further streamline our organization going forward.”

In the quarter ended Dec. 31, Harte Hanks earned $1.6 million, or 21 cents a share, on $70.2 million in revenue. It lost $29.3 million, or $4.73 a share, on $99.9 million in revenue in the same period in 2017.

Harte Hanks’ shares fell 7 cents to close at $4 Wednesday.