-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Dp8Prl2A0QqaZdQQIvjv4S2VijwxKYa7sS8cDRlefCYooTrSf3DAcKqQtBOP0Guk N1K1tKRj8Jz0COjzP+kVrg== 0000045919-94-000002.txt : 19940815 0000045919-94-000002.hdr.sgml : 19940815 ACCESSION NUMBER: 0000045919-94-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HARTE HANKS COMMUNICATIONS INC CENTRAL INDEX KEY: 0000045919 STANDARD INDUSTRIAL CLASSIFICATION: 2711 IRS NUMBER: 741677284 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07120 FILM NUMBER: 94543418 BUSINESS ADDRESS: STREET 1: 200 CONCORD PLAZA DR #800 CITY: SAN ANTONIO STATE: TX ZIP: 78216 BUSINESS PHONE: 2108299000 FORMER COMPANY: FORMER CONFORMED NAME: HARTE HANKS NEWSPAPERS INC DATE OF NAME CHANGE: 19771010 10-Q 1 10-Q FOR Q294 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q X Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 1994 _____ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number 1-7120 HARTE-HANKS COMMUNICATIONS, INC. (Exact name of registrant as specified in its charter) Delaware 74-1677284 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 200 Concord Plaza Drive, San Antonio, Texas 78216 (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code -- 210/829-9000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock: $1 par value, 18,192,500 shares as of June 30, 1994 HARTE-HANKS COMMUNICATIONS, INC. AND SUBSIDIARIES TABLE OF CONTENTS FORM 10-Q REPORT June 30, 1994
Page Part I. Financial Information Item 1. Interim Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets - 3 June 30, 1994 and December 31, 1993 Consolidated Statements of Operations - 4 Three months ended June 30, 1994 and 1993 Consolidated Statements of Operations - 5 Six months ended June 30, 1994 and 1993 Consolidated Statements of Cash Flows - 6 Six months ended June 30, 1994 and 1993 Notes to Interim Condensed Consolidated Financial 7 Statements Item 2. Management's Discussion and Analysis of Financial 8 Condition and Results of Operations Part II. Other Information Item 3. Submission of Matters to a Vote of Security Holders 13 Item 6. Exhibits and Reports on Form 8-K 14 (a) Exhibits (b) Reports on Form 8-K Signature 14
Harte-Hanks Communications, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except per share and share amounts) (Unaudited)
June 30, December 31, 1994 1993 Assets Current assets Cash.............................................. $ 4,792 $ 4,392 Accounts receivable, net.......................... 61,590 61,130 Inventory......................................... 9,956 8,032 Prepaid expenses.................................. 7,680 5,385 Current deferred income tax benefit............... 5,363 4,549 Other current assets.............................. 2,838 3,765 Total current assets............................ 92,219 87,253 Property, plant and equipment, net.................. 91,936 90,809 Goodwill, net....................................... 287,984 292,944 Other assets........................................ 8,381 7,932 Total assets.................................... $ 480,520 $ 478,938 Liabilities and Stockholders' Equity Current liabilities Accounts payable.................................. $ 22,278 $ 24,422 Accrued payroll and related expenses.............. 14,365 12,607 Accrued interest.................................. 718 950 Prepaid subscriptions............................. 3,821 3,753 Current portion of film contracts................. 625 1,233 Income taxes payable.............................. 2,106 235 Other current liabilities......................... 11,857 10,765 Current portion of long term debt................. 337 977 Total current liabilities....................... 56,107 54,942 Long term debt...................................... 310,819 320,087 Other long term liabilities......................... 20,095 20,045 Total liabilities............................... 387,021 395,074 Stockholders' equity Common stock, $1 par value, authorized 50,000,000 shares. Issued and outstanding 1994: 18,192,500 shares; 1993: 18,129,400 shares................. 18,192 18,129 Additional paid-in capital........................ 143,030 142,664 Accumulated deficit............................... (67,723) (76,929) Total stockholders' equity...................... 93,499 83,864 Total liabilities and stockholders' equity...... $ 480,520 $ 478,938 See Notes to Interim Condensed Consolidated Financial Statements.
Harte-Hanks Communications, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited)
Three Months Ended June 30, 1994 1993 Operating revenues.................................... $126,866 $116,011 Operating expenses Payroll............................................. 47,219 42,804 Production and distribution......................... 44,049 41,039 Advertising, selling, general and administrative.... 12,330 11,705 Depreciation........................................ 3,156 3,061 Goodwill amortization............................... 2,352 2,761 Goodwill write-down................................. -- 55,463 109,106 156,833 Operating income (loss)............................... 17,760 (40,822) Other expenses (income) Interest expense.................................... 4,144 8,677 Interest income..................................... (55) (22) Other, net.......................................... 153 391 4,242 9,046 Income (loss) before income tax expense............... 13,518 (49,868) Income tax expense.................................... 6,579 3,299 Net income (loss)..................................... $ 6,939 $(53,167) Net income (loss) per share -- primary................ $ .36 $ (4.43) Weighted average common and common equivalent shares outstanding..................... 19,031 12,007 Net income (loss) per share -- fully diluted.......... $ .35 $ (4.43) Weighted average common and common equivalent shares outstanding..................... 20,483 12,007 See Notes to Interim Condensed Consolidated Financial Statements.
Harte-Hanks Communications, Inc. and Subsidiaries Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited)
Six Months Ended June 30, 1994 1993 Operating revenues.................................... $241,981 $216,629 Operating expenses Payroll............................................. 94,631 84,108 Production and distribution......................... 84,180 77,081 Advertising, selling, general and administrative.... 25,933 23,532 Depreciation........................................ 6,336 5,832 Goodwill amortization............................... 4,702 5,467 Goodwill write-down................................. -- 55,463 215,782 251,483 Operating income (loss)............................... 26,199 (34,854) Other expenses (income) Interest expense.................................... 8,110 17,146 Interest income..................................... (91) (51) Other, net.......................................... 277 527 8,296 17,622 Income (loss) before income tax expense............... 17,903 (52,476) Income tax expense.................................... 8,697 1,813 Net income (loss)..................................... $ 9,206 $(54,289) Net income (loss) per share -- primary................ $ 0.48 $ (4.52) Weighted average common and common equivalent shares outstanding..................... 19,041 12,008 Net income (loss) per share -- fully diluted.......... $ 0.47 $ (4.52) Weighted average common and common equivalent shares outstanding..................... 20,483 12,008 See Notes to Interim Condensed Consolidated Financial Statements.
Harte-Hanks Communications, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in thousands) (Unaudited)
Six Months Ended June 30, Operating Activities Net income (loss)................................... $ 9,206 $(54,289) Add (deduct) non-cash income and expenses: Depreciation ................................... 6,336 5,832 Goodwill amortization........................... 4,702 5,467 Goodwill write-down............................. -- 55,463 Bad debt expense................................ 2,062 1,971 Film amortization............................... 1,233 1,787 Deferred income taxes........................... (1,521) (358) Other, net...................................... 235 407 Changes in operating assets and liabilities Increase in accounts receivable, net.............. (2,337) (1,144) Increase in inventory............................. (2,045) (293) Increase in prepaid expenses and other current assets.................................. (2,933) (1,362) Decrease in accounts payable...................... (2,778) (833) Increase in other accrued expenses and other liabilities........................... 5,120 220 Other, net........................................ 474 (72) Net cash provided by operating activities....... 17,754 12,796 Investing Activities Acquisitions........................................ -- (9,783) Purchases of property, plant and equipment.......... (7,835) (10,210) Proceeds from the sale of property, plant and equipment..................................... 126 479 Payments on film contracts.......................... (964) (1,859) Net cash used in investing activities............. (8,673) (21,373) Financing Activities Long term debt borrowings........................... 224,826 247,655 Payments on long term debt, including current maturities ....................................... (233,936) (238,277) Stock transactions.................................. 429 (15) Net cash provided by (used in) financing activities........................................ (8,681) 9,363 Net increase in cash................................ 400 786 Cash at beginning of year........................... 4,392 3,279 Cash at end of period............................... $ 4,792 $ 4,065 See Notes to Interim Condensed Consolidated Financial Statements. Harte-Hanks Communications, Inc. and Subsi
Notes to Interim Condensed Consolidated Financial Statements (Unaudited) Note A - Financial Statements The accompanying unaudited Interim Condensed Consolidated Financial Statements include the accounts of Harte-Hanks Communications, Inc. and subsidiaries (the "Company"). The statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30 are not necessarily indicative of the results that may be expected for the year ending December 31. For further information, refer to the consolidated financial statements and footnotes included in the Company's annual report on Form 10-K for the year ended December 31, 1993. Certain prior period amounts have been reclassified for comparative purposes. Note B - Income Taxes The Company's quarterly income tax calculation is based on an effective income tax rate that is derived by estimating pretax income and income tax expense for the entire year ended December 31. Applying the estimated annual effective income tax rate to the pretax income for the six months ended June 30, 1994 results in an income tax expense of $8.7 million. The effective income tax rate calculated is higher than the federal statutory rate of 35% due to the addition of state taxes and to certain expenses recorded for financial reporting purposes, primarily goodwill amortization, which are not deductible for federal income tax purposes. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Operating results, excluding the effect of the second quarter 1993 goodwill write-down (discussed under "Goodwill Write-Down," page 12), were as follows: Three months ended Six months ended In thousands June 30, 1994 June 30, 1993 Change June 30, 1994 June 30, 1993 Change Revenues $126,866 $116,011 9.4% $241,981 $216,629 11.7% Operating expenses 109,106 101,370 7.6% 215,782 196,020 10.1% Operating income $ 17,760 $ 14,641 21.3% $ 26,199 $ 20,609 27.1% Net income $ 6,939 $ 2,296 202.2% $ 9,206 $ 1,174 684.2%
Revenues grew 9.4% to $126.9 million in the second quarter of 1994 as compared to the second quarter of 1993. The most dramatic growth occurred in the direct marketing business where revenues increased 29.4%. The Company's growth resulted from the development of new products and services, shopper circulation expansion and improving general economic conditions. The same growth factors also caused operating expenses to rise. Direct Marketing Direct marketing operating results were as follows: Three months ended Six months ended In thousands June 30, 1994 June 30, 1993 Change June 30, 1994 June 30, 1993 Change Revenues $39,377 $30,428 29.4% $74,028 $54,694 35.3% Operating expenses 34,927 27,210 28.4% 67,296 49,954 34.7% Operating income $ 4,450 $ 3,218 38.3% $ 6,732 $ 4,740 42.0%
Direct marketing revenues increased $8.9 million in the second quarter of 1994 when compared to the second quarter of 1993. Revenue growth occurred in all service categories (database, integrated direct marketing, transportation, marketing services and data processing/addressing). The most significant revenue increases occurred in database, marketing services and integrated direct marketing. These service offerings enable customers to specifically select and interact with their marketing targets. Transportation revenues were also up sharply as a result of increased volumes. Overall, revenue growth resulted from increased business from both new and existing customers, particularly in services provided to the retail, banking, mutual funds and other financial industries. Payroll costs increased $3.1 million for the second quarter of 1994 as compared to 1993, primarily due to increased hiring to support direct marketing's revenue growth. Production costs also rose, mainly due to growth-related expenses in the transportation service offering. Direct marketing revenues increased $19.3 million in the first half of 1994 as compared to the first half of 1993. Increased revenues reflected significant growth in all service categories, particularly in database, integrated direct marketing, transportation and marketing services. Revenues for the first six months of 1994 were also affected by the April 1993 acquisition of Direct Market Concepts, Inc. First half 1994 operating expenses rose $17.3 million when compared to 1993, reflecting increased activity as well as investments to support future growth. First half 1994 operating expenses were also affected by the April 1993 acquisition. Shoppers Shopper operating results, excluding the second quarter 1993 goodwill write- down, were as follows: Three months ended Six months ended In thousands June 30, 1994 June 30, 1993 Change June 30, 1994 June 30, 1993 Change Revenues $45,350 $44,928 0.9% $87,442 $85,460 2.3% Operating expenses 39,634 40,027 -1.0% 79,465 78,836 0.8% Operating income $ 5,716 $ 4,901 16.6% $ 7,977 $ 6,624 20.4%
Excluding revenues from the Company's smallest shopper, sold in February 1994, shopper revenues grew $2.0 million in the second quarter of 1994 as compared to 1993. Despite the continued weak California economy, revenues grew as a result of circulation expansion and slight improvement in existing circulation. During the 12 months ended June 30, 1994, circulation for the Company's four remaining shoppers grew from 6.4 million to 6.9 million households with the largest increases occurring in Southern California and, to a lesser extent, Miami. Circulation increased 225,000 net households in the first six months of 1994. Excluding operating expenses from the divested shopper, second quarter operating expenses increased $1.4 million. Postage costs increased $0.5 million primarily due to higher circulation and, to a lesser extent, overweight postage. Newsprint costs were flat, with increased costs resulting from higher volumes relating to the circulation growth offset by average price declines. Payroll costs rose $0.8 million, and general and administrative expenses remained flat. Excluding revenues from the divested shopper, year-to-date revenues increased $4.1 million as compared to 1993. Revenue growth for the first half of 1994 was primarily attributable to circulation expansion and, to a lesser extent, increased advertising in existing circulation zones. Excluding operating expenses from the divested shopper, year-to-date operating costs increased $3.1 million. Payroll, postage and newsprint costs increased $1.3 million, $1.0 million and $0.4 million, respectively, due to increased circulation. General and administrative expenses remained flat. Newspapers Newspaper operating results, excluding the second quarter 1993 goodwill write-down, were as follows: Three months ended Six months ended In thousands June 30, 1994 June 30, 1993 Change June 30, 1994 June 30, 1993 Change Revenues $34,791 $32,935 5.6% $67,012 $62,953 6.4% Operating expenses 27,794 27,688 0.4% 55,353 54,601 1.4% Operating income $ 6,997 $ 5,247 33.4% $11,659 $ 8,352 39.6%
Newspaper revenues increased $1.9 million in the second quarter of 1994 when compared to the second quarter of 1993. Advertising revenues were up 6.0%. Classified advertising revenues grew 14.8% with strong automotive volumes. Retail and national revenues were relatively flat, while insert revenues rose 2.7%. In addition, niche and specialty product revenues were up as a result of investments made to broaden the newspaper revenue base. Circulation revenues increased 6.6%, reflecting home-delivery price increases in the fall of 1993. Payroll costs were $0.6 million higher in the second quarter of 1994 as compared to the second quarter of 1993 due to increased sales commissions on higher advertising volumes, normal payroll increases as well as investments made to develop niche and specialty products. In addition, general and administrative costs rose $0.3 million. Newsprint costs decreased $0.4 million as a result of lower average newsprint prices that offset slightly higher volumes. Goodwill amortization decreased $0.4 million due to the second quarter 1993 goodwill write-down of $52.7 million that related to the Company's suburban newspapers in Boston and Dallas. Year-to-date 1994 newspaper revenues grew $4.1 million when compared to 1993. Advertising revenues increased 7.0%, driven largely by volume increases in classified advertising and niche and specialty products. Circulation revenues increased 6.7%. Payroll costs for the first six months of 1994 rose $1.3 million due to increased advertising volumes in the Company's primary products, normal payroll increases and investments made to support niche and specialty product revenue growth. In addition, general and administrative costs increased $0.5 million. Newsprint costs declined $0.3 million due to lower average newsprint prices that offset higher volumes. Goodwill amortization decreased $0.8 million due to the second quarter 1993 goodwill write-down. Television Television operating results were as follows: Three months ended Six months ended In thousands June 30, 1994 June 30, 1993 Change June 30, 1994 June 30, 1993 Change Revenues $7,348 $7,720 -4.8% $13,499 $13,522 -0.2% Operating expenses 4,775 5,080 -6.0% 9,486 9,777 -3.0% Operating income $2,573 $2,640 -2.5% $ 4,013 $ 3,745 7.2%
Television advertising revenues declined $0.4 million in the second quarter of 1994 when compared to the same period in 1993. However, the second quarter of 1993 was affected by a number of favorable events: the favorable impact from the closure of one of San Antonio's daily newspapers, a special senatorial election runoff and the San Antonio Olympic Festival. Print graphics revenues declined in the second quarter of 1994 as compared to 1993 due to the repositioning of products and services offered. This decline was offset by revenue growth from the direct mail product introduced in 1993 and new revenue from the radio station purchased by KENS-TV in October 1993. Operating income decreased 2.5% to $2.6 million as a result of continued investment in several revenue initiatives. For the first half of 1994, television revenues remained relatively flat when compared to 1993. Television expenses decreased $0.3 million in both the second quarter and first half of 1994 when compared to the same periods in 1993. In both the second quarter and first half of 1994, film programming costs decreased due to the expiration of certain film contracts. To a lesser degree, graphic production costs also declined in both periods. Payroll costs remained relatively flat in the second quarter of 1994, while they increased in the first half due to normal payroll increases. Other Items Affecting Operating Results Shoppers and direct marketing have experienced stable postal rates in recent years. While postal rates generally go up every three years, the 10.3% increase proposed for 1995 would be the first postal rate increase in four years. Newsprint expense represents approximately 7% of the Company's total operating expenses. Both newspapers and shoppers have benefited from favorable newsprint prices in the recent past. Newsprint prices increased about 12% in June 1994 and will impact the Company's fourth quarter and, to a lesser extent, third quarter expenses. An additional price increase of approximately 9% has been announced for August 15, 1994. Interest Expense Interest expense decreased $4.5 million in the second quarter of 1994 and $9.0 million in the first half of 1994 when compared to the same periods in 1993 as a result of reduced debt levels and the use of less expensive debt. The Company redeemed $100 million of the 11 7/8% Subordinated Debentures in August 1993 with borrowings under its credit facility. The remaining $100 million of Debentures was redeemed in December 1993, funded primarily with proceeds from the Company's initial public offering. Although short term interest rates have risen in recent months, the impact on the Company has been mitigated somewhat by more favorable pricing under terms of the Company's credit facility as a result of increased operating cash flow, as defined in the Company's credit facility agreement, and reduced debt levels. Income Taxes The Company's income tax expense increased $3.3 million in the second quarter of 1994 and $6.9 million in the first half of 1994 when compared to the same periods in 1993. The expense increase was directly related to the increased income levels. Goodwill Write-Down During the second quarter of 1993, the Company incurred a goodwill write- down charge of $55.5 million. This write-down was related to the Company's daily, semi-weekly and weekly newspapers in suburban Boston and Dallas and, to a lesser extent, its shopper publication in Tucson. The Company sold the Tucson shopper in February 1994. Liquidity and Capital Resources Cash provided from operating activities for the six months ended June 30, 1994 was $17.8 million, as compared to $12.8 million for the six months ended June 30, 1993. Net cash outflows for investing activities were $8.7 million for the first half of 1994, as compared to $21.4 million in 1993. Investing activities for the first quarter of 1994 included $7.8 million in capital expenditures for equipment purchases. In 1993, the net cash outflows for investing activities of $21.4 million consisted primarily of capital expenditures of $10.2 million and cash expenditures on acquisitions of $9.8 million. Capital resources are also available from and provided through the Company's unsecured credit facility. All borrowings under the revolving credit facility are to be repaid by December 31, 1999. Management believes that its credit facility, together with cash provided from operating activities, will be sufficient to fund operations, anticipated capital and film expenditures and debt service requirements for the foreseeable future. As of June 30, 1994, the Company had $85.8 million of unused borrowing capacity under its credit facility, of which $54.8 million was reserved to serve as backup for the Company's outstanding commercial paper. PART II. OTHER INFORMATION Item 3. Submission of Matters to a Vote of Security Holders The Company held its annual meeting of stockholders on May 6, 1994. At the meeting the stockholders were requested to vote on the election of Dr. Peter T. Flawn and Christopher M. Harte as Class I directors for three year terms. The result of the vote are as follows: Director Votes For Withheld Dr. Peter T. Flawn 15,818,127 265,915 Christopher M. Harte 15,818,727 265,315 The stockholders were requested to approve the Harte-Hanks Communications, Inc. 1994 Employee Stock Purchase Plan (the "Stock Purchase Plan"). The vote of the stockholders on the Stock Purchase Plan was as follows: Votes For Votes Against Abstain 16,025,112 30,010 28,920 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. See index to Exhibits on Page 15. (b) No reports on Form 8-K were filed for the three months ended June 30, 1994. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HARTE-HANKS COMMUNICATIONS, INC. August 12, 1994 /s/ Richard L. Ritchie Date Richard L. Ritchie Senior Vice President, Finance and Chief Financial and Accounting Officer Exhibit
No. Description of Exhibit Page No. *11 Statement Regarding Computation of Net Income (Loss) 16 Common Share * Filed herewith.
EX-11 2 EPS EXHIBIT Exhibit 11 Harte-Hanks Communications, Inc. and Subsidiaries Earnings Per Share Computations (in thousands, except per share data) PRIMARY
Three Months Ended June 30, 1994 1993 Net income (loss)......................... $ 6,939 $(53,167) Shares used in net earnings per share computations...................... 19,031 12,007 Net income (loss) per share............... $ .36 $ (4.43)
Computation of Shares Used In Net Earnings Per Share Computations
Three Months Ended June 30, 1994 1993 Average outstanding common shares......... 18,178 11,878 Average common equivalent shares -- dilutive effect of option shares........ 853 -- Dilutive effect of options issued in the preceding twelve months prior to the initial public offering.......... -- 129 Shares used in net earnings per share computations.................. 19,031 12,007
FULLY DILUTED
Three Months Ended June 30, 1994 1993 Net income (loss)......................... $ 6,939 $(53,167) Adjusted net income (loss) for interest on convertible note........ $ 7,127 $(53,167) Shares used in net earnings per share computations.................. 20,483 12,007 Net income (loss) per share............... $ .35 $ (4.43)
Computation of Shares Used In Net Earnings Per Share Computations
Three Months Ended June 30, 1994 1993 Average outstanding common shares......... 18,178 11,878 Average common equivalent shares -- dilutive effect of option shares........ 876 -- Dilutive effect of convertible note....... 1,429 -- Dilutive effect of options issued in the preceding twelve months prior to the initial public offering.......... -- 129 Shares used in net earnings per share computations.................. 20,483 12,007
Harte-Hanks Communications, Inc. and Subsidiaries Earnings Per Share Computations (in thousands, except per share data) PRIMARY
Six Months Ended June 30, 1994 1993 Net income (loss)......................... $ 9,206 $(54,289) Shares used in net earnings per share computations...................... 19,041 12,008 Net income (loss) per share............... $ .48 $ (4.52)
Computation of Shares Used In Net Earnings Per Share Computations
Six Months Ended June 30, 1994 1993 Average outstanding common shares......... 18,162 11,879 Average common equivalent shares -- dilutive effect of option shares........ 879 -- Dilutive effect of options issued in the preceding twelve months prior to the initial public offering.......... -- 129 Shares used in net earnings per share computations.................. 19,041 12,008
FULLY DILUTED
Six Months Ended June 30, 1994 1993 Net income (loss)......................... $ 9,206 $(54,289) Adjusted net income (loss) for interest on convertible note........ $ 9,582 $(54,289) Shares used in net earnings per share computations.................. 20,483 12,008 Net income (loss) per share............... $ .47 $ (4.52)
Computation of Shares Used In Net Earnings Per Share Computations
Six Months Ended June 30, 1994 1993 Average outstanding common shares......... 18,162 11,879 Average common equivalent shares -- dilutive effect of option shares........ 892 -- Dilutive effect of convertible note....... 1,429 -- Dilutive effect of options issued in the preceding twelve months prior to the initial public offering.......... -- 129 Shares used in net earnings per share computations.................. 20,483 12,008
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