Monday, July 08, 2024
Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Terminating pension plan 1. On June 25, the company announced it had executed its plan to terminate its Qualified Pension Plan 1. Notably, the company made a one time contribution of $6.1 million to the plan and transferred $71.9 million of plan assets to Nationwide. The company will make payments to plan members until July 31, and will have no further payment obligations beginning on August 1. We view the successful termination of Plan 1 as a favorable development that should positively impact cash flow.
Benefits of termination. With the termination of Plan 1 the company’s pension liability payment is expected to be approximately $1.2 million annually, which is a significant reduction from previous years. Prior to the termination of Plan 1, the company was contributing $3.0 million – $4.0 million annually to pension liabilities.
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