1. LDVIC 37.55% vs S&P %

2. Harte Hanks Inc (HHS)

3. HHS is a marketing company
Harte Hanks Inc (HHS)
HHS is a marketing company

7. HHS:
MCAP: $95m
Share: $1.55
Debt-free

8. Spin Off
-It has spun off Trillium for ($112m cash ~$65m after tax)
its crown jewel division for more than its current market cap and use the cash from the sale to repay its debt, leaving HHS debt-free.

9. Spin Off
Pension ($54m) and deferred tax liabilities ($22m) and others, grand total liabilities of $200m.
About $100m in Current Assets
NAV of -$100m

11. Risks Revenue is falling off a cliff
How is actually using direct mail anymore?
What is the first thing a retailer / financials services / tech companies (main customers) cut if it going through a down period? Marketing/ direct mail
Karen Puckett is the 3rd CEO in 3 years.
Ten largest clients collectively represented 38% of our revenues for 2015.

12. Risks Competition? Online competitors, tons of direct mail companies.
Very high client turnover

15. Compensation

16. Insider Ownership

17. Insider Ownership
Based on the company’s actual revenue performance ($495.4), the Committee determined that no payments were earned under the 2015 AIP, nor were any
discretionary bonuses or stock awards made in respect of 2015 performance

18. Share purchases 2016 (not significant)

19. 5yr average of $330m mcap vs ~$95m

20. Fair Value:
-$2.3 per share (50% upside)
-$150m market cap

22. LDVIC 37.55% vs S&P %